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JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. A Fortune 500 company with annual fee revenue of $5.2 billion and gross revenue of $6.0 billion, JLL has more than 230 corporate offices, operates in more than 80 countries and has a global workforce of more than 60,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 4.0 billion square feet, or 372 million square meters, and completed $138 billion in sales, acquisitions and finance transactions in 2015. Its investment management business, LaSalle Investment Management, has $56.4 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.

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Seattle & Portland 2015 Investment Overview 3

As we recap 2015 the strong performance of our market should be no surprise – it’s

clear why the Pacific Northwest continues to shine in the eyes of investors. Sustained

economic strength, strong employment and high quality of life serve as anchors for

companies that call Seattle or Portland home and act as magnets for those firms looking

to expand into new markets.

With one of the lowest unemployment rates of any major metro area, and job growth

of over 68,000 in 2015, Seattle was named the third best market in terms of investment

potential - surpassing San Francisco for the first time since 2010 to top the West Coast.

While our regional industrial and retail product remains strong, sales in both office and

multifamily sectors experienced record pricing.

Portland continued to see steady positive momentum and in 2015, experiencing the

highest job growth since the early 90’s. Access to outdoor recreation and the highly

popular Rose City “scene“ easily explains why the number of Bay Area residents

searching for homes in the area has increased by 420 percent. Office sales in Portland

surpassed $1 billion for the first time since 2007, with investors showing a particular

interest in the suburbs.

The strength of our region and increasing interest by investors led to the addition

of several new JLL team members and helped us deliver even more strategic and

specialized services to our clients.

We want to thank you for allowing us to represent you in 2015 and look forward to

identifying new opportunities together in 2016.

JLL Pacific Northwest Investment Team

Dear valued clients and friends,

CAPITAL MARKETS TEAM

Seattle Seattle Multifamily

David Young

Managing Director +1 206 607 1719 [email protected]

Stuart Williams


Corey Marx


Lori Hill


Seth Heikkila

Senior Vice President +1 206 607 1732 [email protected]

David Otis

Vice President +1 206 971 7022 [email protected]

Matt Kemper

Vice President +1 206 607 1752 [email protected]

Mark Thygesen

Retail Associate +1 206 607 1737 [email protected]

Mark Jackson

Associate +1 206 607 1733 [email protected]


JLL Capital Markets team

Portland Bellevue NW REIB

Buzz Ellis


Ann Chamberlin


John Lo


Paige Morgan

Senior Vice President +1 503 972 8098 [email protected]

Adam Taylor


Zach Goodwin


8

JLL Capital Markets group

Leverage the expertise of a global leader

Devised from comprehensive research, pervasive market knowledge, ethical practice and superior professionalism, JLL Capital Markets team is focused on the unique requirements of our investor clients. Our in-depth local market and global investor knowledge delivers best-in-class solutions for clients—whether a sale, financing, repositioning, advisory or recapitalization execution.

With a diverse, unified platform of shared expertise through a single point-of-entry, we help you achieve your priority capital objectives:

Investment Sales

Benefit from sales advisory services grounded in solid market analysis, sophisticated portfolio structuring support, complex valuation, thorough underwriting capabilities, reliable investor intelligence and practical marketing expertise.

Real Estate Investment Banking

Gain direct, strategic access to global money centers and real estate investment banking professionals who manage debt and equity financing across all asset types and scenarios.

Corporate Finance and Net Lease

Access an unmatched combination of expertise in finance, lease accounting, tax and transaction structuring with global access to capital that helps real estate occupiers and net lease investors make the best financial decisions to optimize transaction economics and maximize asset value.

Special Asset Services

Obtain transaction execution, valuation and advisory services for non-performing and sub-performing real estate assets concerning financial institutions and special servicers.

We have a national reach but operate with a select group of experts to offer a personal transaction experience like you won’t find with other firms. Our philosophy is simple - transparency helps foster an environment of open communication, leading to an integrated effort that quickly and efficiently drives the best results.


JLL Real Estate Investment Banking group

Navigate capital solutions

As a trusted business advisor, our Real Estate Investment Banking team helps you navigate the capital markets to obtain the best capital solutions for your particular requirements. With billions of dollars in debt and equity transaction experience and deep insights into capital flows and trends around the world, we are well-qualified to advise on creative structures and innovative solutions. Clients seeking direct access to global capital also benefit from our on-the-ground access and contacts in every money center around the world.

We provide access to the lowest cost of capital on the best terms via a competitive auction process and creative structuring. Through our broad array of relationships and a proprietary database that contains hundreds of lending and equity sources—both domestic and foreign— we provide a link between our clients and opportunity, finding appropriate, prequalified groups of capital providers and investors and creating a competitive market to get the best possible pricing and deal structure. Because we don’t align with any specific capital source, we deliver objective advice and focus exclusively on your needs. Your project receives senior-level attention—the top leaders of our group are always involved on a day-to-day basis.

Our Real Estate Investment Banking professionals devise capitalization strategies and manage debt and equity placements across all asset types.

• Acquisition and permanent financing

• Bridge and mezzanine financing

• Construction financing

• Performing note sales

• Recapitalization strategies

• Asset advisory

SEATTLE

SEATTLE

Market Overview

Seattle’s strategic location and thriving economy, driven primarily by a diversified base of high-tech companies ranging from gaming and software to biotechnology, manufacturing and aerospace, have made it the commercial force in the Pacific Northwest. In 2015 the economy continued to strengthen, and Seattle currently boasts one of the lowest unemployment rates of any major metro area. In July, unemployment in the Seattle-Bellevue-Everett area dropped to 3.6 percent, which marked the lowest figure the region had seen since mid-2007. While unemployment has increased in recent months to its current rate of 4.6 percent, the local rate remains 40 basis points below the national average. Over the past 12 months, a total of 68,000 jobs have been added in Washington, mostly in the retail trade, leisure and hospitality, government, professional and business services (this sector includes many jobs related to high-tech), and education and health services sectors. Local job growth looks to remain strong, with the most recent employment forecast from the Puget Sound Economic Forecaster calling for impressive growth of 2.3 percent in 2016. The Milken Institute recently released its 2015 Best-Performing Cities report, which measures economic vitality based on several criteria, including job creation and retention, and the quality of new jobs. According to the report, Seattle’s greatest assets are its well-educated and highly skilled workforce, as well as the fact that high wages in tech industries support consumption-related jobs throughout the rest of the local economy. Due to those and several other factors, Seattle was ranked as the seventh best-performing large city in the U.S., an improvement of four spots from last year’s report.

A total of $10.1 billion in office, industrial, retail, and multifamily investment transactions occurred in Puget Sound in 2015. Furthermore, two of these property types – office and multifamily – experienced record pricing, and the price for land has continued to inch towards $2,000 per square foot. In PWC and ULI’s Emerging Trends in Real Estate 2016 report, Seattle was ranked as the strongest West Coast real estate market and fourth strongest overall in the U.S., up four spots from last year’s eighth place ranking. Additionally, Seattle was

named the third best market in terms of investment potential and has surpassed San Francisco for the first time since 2010 to top the West Coast region. In regards to the future of Seattle, the report said, “The local outlook for the economy and investor demand could not be much stronger in Seattle. In fact, a lack of development opportunities and public and private investment is seen as the only potential problem from a local market perspective.”

Seattle’s population growth is far outpacing the national average, and due to the strong job market and high quality of living, it continues to attract millennials at a faster rate than nearly every other major U.S. city. In fact, for the first time in the city’s history it ranks among the top-10 most densely populated big cities in the nation. 2015 saw Bay Area companies and workers alike flock to Seattle. According to Redfin, in the past four years, the number of Bay Area residents searching for homes in Seattle has increased 325 percent. For Portland, the number has increased 420 percent. One out of every 13 Bay Area people searching for a home is now looking exclusively in the Pacific Northwest. For the first time ever, the median price for a Silicon Valley home has exceeded $1 million. That’s nearly double what it is in Seattle, and the pay difference is not nearly large enough to offset the cost of housing. With strong in-migration, as well as several of the West Coast’s top universities located in Puget Sound, including the University of Washington, companies in the region have excellent access to skilled workers. An impressive list of local companies have taken advantage of the talent pool, including Amazon, Microsoft, Boeing, Nordstrom, Starbucks, Costco, and the Bill & Melinda Gates Foundation. Companies that have grown their presence substantially in the market recently include Groupon, Uber and Snapchat. The strength of the local economy has caused demand and pricing to increase across all property types. However, despite strong rent growth for both commercial and residential space, Seattle remains a much more affordable place to live and conduct business than many other major markets.

OFFICEINDUSTRIALRETAILMULTIFAMILY

Seattle


2015 Seattle office sales ($10M+) overview

As foreign investors flock to the market, sales volume nearly matches the combined total of 2013

and 2014

2015 was the sixth consecutive year that more than $1 billion in office assets traded hands in Puget Sound. In total, the market saw 48 transactions over $10 million close, which makes 2015 the most active year for office investment sales since 2007. The $4.5 billion total volume represents a 157.8 percent increase over 2014. Cap rates have remained relatively flat for the last three years, as the Puget Sound average dropped 20 basis points from 2014, to 6.0 percent. In addition to the impressive total sales volume, average pricing on a per-square-foot basis increased 23.2 percent year-over-year to $392. For the sixth consecutive year a new market-record for pricing was achieved; in the third quarter, American Realty Advisors purchased 2201 Westlake from Vulcan for $251.0 million, or $792 per square foot. Four sales closed in 2015 where pricing exceeded $700 per square foot, three of which surpassed the previous record set by the 401 Terry acquisition in 2014. With how pricing has grown in the last five years, it is not unrealistic to imagine a $900 per square foot office sale occurring in Seattle in the near future.

The most active submarkets for sales in 2015 were the Seattle CBD, Lake Union and Bellevue CBD, with total volumes of $1.3 billion, $908.5 million, and $766.2 million, respectively. Perhaps the most notable sale of the year occurred in August, when Gaw Capital Partners acquired the 76-story Columbia Center for $711.0 million. This was the largest real estate transaction in the region since Amazon purchased its headquarters in 2012, and provided clear evidence of foreign investors’ interest in Seattle. The two largest office sales in the region this year – Columbia Center and Amazon Phase VI – were purchased by foreign investors, so it

should come as no surprise that Seattle moved from eighth to fifth in terms of best U.S. cities for real estate investment in this year’s Association of Foreign Investors in Real Estate (AFIRE) Foreign Investment Survey. Foreign investors had increasingly been on bid lists for major assets in recent years, so 2015 was the natural progression of that trend, as efforts to enter the market became increasingly successful.

The year began with a boom, as six sales over $100M closed in the first quarter, for a total sales volume of $1.6 billion. While the last three quarters of 2015 couldn’t quite match that figure, demand remained sky high throughout the year, and two sales over $250M - Amazon Phase VI and 400 Fairview - closed in December. These transactions are prime examples of strong investor appetite in the market, as the two projects had barely delivered before trading for near market-record pricing. As the market moves into 2016, strong landlord sentiment and expectations for robust demand will continue to fuel investor appetite for Seattle’s office assets. Leasing market fundamentals will continue to improve with strong rent growth anticipated in the short and mid-term. Owners are in the enviable position of having the option to hold properties and collect increasing rents, or sell their assets for top dollar. Seattle has firmly cemented its place as a tier one market for institutional investors and 2016 figures to be another active year for office investment sales. While it may be hard to match 2015’s volume, we anticipate total office sales volume will exceed $3 billion and the market record for pricing per square foot will fall for the seventh consecutive year.

SEATTLE WAS NAMED THE THIRD BEST MARKET IN TERMS OF INVESTMENT POTENTIAL

16

Seattle office leasing

16

Market momentum shows no signs of slowing down

Seven major office projects delivered this year, totaling more than 2.2 million square feet. This makes 2015 the most active year for development since prior to the recession. The largest project, 929 Office Tower, is the first office building to be delivered in downtown Bellevue since 2009. With more than 5.9 million square feet under construction, Seattle is the second most active market in the U.S. for development as a percentage of existing inventory, behind only Nashville. While this is a substantial amount of construction, concern locally about overbuilding remains fairly low, since demand is as high as it’s been in recent memory. We’re currently tracking more than 8.2 million square feet of tenant demand in the market. 14 of these companies are seeking space options of 100,000 square feet or larger, and there are just 10 existing blocks of space that can accommodate them. So the supply coming to market in the next 24 months, which is currently 38 percent preleased, is needed. In terms of location, the most active submarkets for development are the Seattle CBD, Lake Union, and Bellevue CBD, with a total of 5.0 million square feet being developed in the three areas. Not surprisingly, of the three major submarkets for development, Lake Union has experienced the most preleasing, with 78 percent of the space accounted for. Average asking rents for new construction space being marketed stand at $48.50 per square foot, full service, representing a 42.7 percent premium over the regional average.

For the third consecutive year net absorption surpassed 2.0 million square feet, as nearly 2.5 million square feet was taken down in 2015. More than 7.1 million square feet have been absorbed since the beginning of 2013. As in previous years, this robust demand is being driven primarily by the high-tech industry, which accounted for approximately 47.0 percent of all regional office leasing activity in 2015. Total vacancy in the Seattle metro area declined for the sixth consecutive year, dropping 50 basis points year-over-year to 10.2

percent, which is as low as the market has seen in the last 10 years. This occurred despite two projects – 1101 Westlake and 929 Office Tower – being delivered without significant preleasing. At 4.5 percentage points below the national average, the Seattle-Bellevue market is the sixth tightest office market in the country; behind Salt Lake City, Nashville, San Francisco, Portland and New York. Subsequently, average asking rents are up 7.5 percent year-over-year, and have hit a 10-year peak. Each of the four Puget Sound office clusters - Downtown Seattle, Eastside, Northend and Southend - experienced year-over-year rental rate growth in 2015. Seattle CBD Class A rents currently stand at $40.70 per square foot, up 10.9 percent year-over-year. Average Class A asking rents in Bellevue CBD stand at $42.04 per square foot, which represents an increase of 7.9 percent in the last 12 months. Notably in 2015, Lake Union surpassed Bellevue CBD to become the most expensive submarket in the region, with Class A rents standing at $47.74. This represents an impressive 28.0 percent increase year-over-year.

The wealth of young talent, quality real estate, and high quality of life in Puget Sound has made it one of the most desired locations in the country for high-tech companies of all sizes. Six of the ten largest office tenants in the metro area are in the high-tech industry. Several tech tenants have recently entered the market, including Palantir, Okta, Lyft, Snapchat, Uber, Interana and ClearSlide. With more than 8.2 million square feet of tenant demand currently in the market, vacancy as low as its been in a decade, and a lack of large blocks of available space, market fundamentals will continue shifting in favor of landlords, and strong rent growth should occur. As major developments deliver in the next 24 months, tenants looking to grow in Puget Sound will have access to much needed premier inventory in both CBD and non-CBD markets.

THE MARKET SAW 48 TRANSACTIONS OVER $10 MILLION CLOSE, WHICH MAKES 2015 THE MOST ACTIVE YEAR FOR OFFICE INVESTMENT SALES SINCE 2007.


Seattle office sales & statistics

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Number of Sales 55 119 19 6 15 25 38 39 40 48

Price/SF Highest $574 $531 $425 $397 $548 $557 $642 $745 $755 $792

CAP Rate Average 6.1% 5.2% 6.2% 9.5% 7.2% 6.8% 5.5% 6.1% 6.2% 6.0%

Sales Volume $2.7B $9.6B $0.4B $0.4B $1.2B $1.7B $4.9B $2.8B $1.8B $4.5B

Submarket Size (RSF) Vacancy Avg. Rental Rate Net Absorption RSF

Downtown Seattle 50,014,633 8.8% $37.42 2,384,411

Eastside 25,878,632 10.2% $35.85 28,756

Northend 7,634,787 14.2% $27.95 -134,368

Southend 8,302,240 15.4% $24.01 182,641

2015 Total Market 91,830,292 10.2% $33.98 2,461,440

2014 Total Market 88,445,215 10.7% $31.60 2,094,120

Sales matrix (over $10 million)

Office market statistics

Office market statistics include Class A and B office buildings over 30,000 sf, excluding owner-occupied, medical, and government-owned buildings.

1818

Seattle office sales ($10M+)

Property Closing Date

Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Columbia Center

701 5th Ave Seattle, WA

8/7/15 1,552,714

1985-2005

$711,013,000

$458

5.0% Gaw Capital Partners

Beacon Capital Partners

• 91% leased at time of sale

• Buyer is based out of Hong Kong

• Previously acquired for $621M in April 2007

Amazon Phase VI

515 Westlake Ave N Seattle, WA

12/18/15 394,578

2014

299,000,000

$758

4.3% Metzler / Union Investment

Vulcan

• 100% leased to Amazon

The Summit I & II

320-355 110th Ave NE Bellevue, WA

3/4/15 524,130

2002-2005

$296,800,000

$566

5.5% Hines

Ivanhoe Cambridge


• Total sale price of $319.8M includes a development site for a 15-story 330,000 SF building (Summit III) - accounted for $23M of total sales price

Met Park East and West

1100 Olive Way, 1730 Minor Ave Seattle, WA

3/27/15 708,283

1981-2006

$272,800,000

$385

6.0% CBRE Global Investors

Brookfield


• Buildings were previously acquired for $210M in June 2012

400 Fairview

400 Fairview Ave N Seattle, WA

12/9/15 349,152

2015

$261,000,000

$748

3.5% / 4.8%

(stabilized)

TIAA-CREF

Skanska


• Partial interest sale - seller retained a 10% stake in the asset

2201 Westlake

2201 Westlake Ave Seattle, WA

7/21/15 317,102

2009

$251,000,000

$792

4.2% American Realty Advisors

Vulcan


• Major tenants are Amazon (57% of the property), and PATH (35% of the property)

• New market record for price per square foot

• Building has 135 luxury residential units that were not included in transaction



Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Amgen Helix Campus

1201 Amgen Ct W Seattle, WA

4/28/15 750,000

2004

$228,900,000

$305

N/A Expedia

Amgen

• Acquired for occupancy - Expedia will relocate from Bellevue to the 40-acre campus in 2018

• Major renovations will be made to the campus, which currently has a significant amount of lab space

Civica Office Commons


2/12/15 305,835

2001

$205,100,000

$671

5.3% Hines

Brickman


• Previously acquired for $176.8M in September 2005

2601 Elliott

2601 Elliot Ave Seattle, WA

3/27/15 339,799

1917-1998

$170,000,000

$500

6.0% JP Morgan Chase

Shorenstein / Wright Runstand & Co.


• Zulily occupies 89% of the property on a lease that expires in January 2024

• Buyer assumed existing loan

One Bellevue Center

411 108th Ave NE Bellevue, WA

4/27/15 368,685

1984-2014

$150,000,000

$407

6.5% LaSalle (CalSTRS)

Walton Street Capital


• Property is on a ground lease

Canyon Park Business Center & Woodlands Tech Campus

1909 214th St SE Bothell, WA

8/20/15 717,702

1985-2007

$130,600,000

$182

6.5% SteelWave

TIAA-CREF

• Canyon Park Business Center: 71% leased at time of sale

• Woodlands Tech Campus: 84% leased at time of sale

• 18 buildings situated on 58 acres

Sammamish Park Place

21925-22011 SE 51st St Issaquah, WA

1/22/15 586,823

1999-2001

$128,250,000

$219

9.6% Talon / Cerberus

Vulcan


• Major tenants are Microsoft and Costco, with short term leases expiring in 2016-2020

Blanchard Plaza


1/29/15 255,818

1983-2014

$125,000,000

$489

5.2% PNC (AFL-CIO)

Shorenstein

• 100% leased at time of sale to Amazon

20



Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Dexter Horton Building

710 2nd Ave Seattle, WA

11/9/15 336,355

1924-2015

$124,400,000

$370

4.5% Pacific Eagle Holdings

Gerding Edlen


• Previously acquired for $76.6M in March 2013

SBRI Building


2/11/15 116,200

2004

$89,696,000

$780

6.6% BioMed Realty Trust

Vulcan / Seattle BioMed


• Partial sale leaseback

• Tenants are Seattle BioMed and Juno Therapeutics

Plaza East

11100 NE 8th St Bellevue, WA

4/28/15 156,000

1987-2007

$75,025,000

$481

5.6% Clarion Partners

Beacon Capital Partners


• Previously acquired as part of a portfolio for $49.1M in April 2007

Smith Tower


1/14/15 268,748

1914-2013

$73,730,000

$274

7.2% Unico

CBRE Global Investors


• Previously acquired for $36.8M in March 2012

1101 Westlake


9/30/15 150,621

2015

$67,376,000

$447

N/A Invesco

Holland Partner Group

• Building was under construction when purchased, with no preleasing

• Delivered in December 2015

Macy’s

300 Pine St Seattle, WA

10/8/15 300,000

1929

$65,000,000

$217

N/A Starwood Capital Group

Macy’s

• Condo interest for top 4 floors of building

• Plans to convert the space into creative office

Overlake Office Center - Microsoft Building 110

15050 NE 36th St Redmond, WA

4/28/15 122,103

1998

$51,200,000

$419

6.0% Spear Street Capital

Kilroy


• Microsoft occupies the entire property on a lease that runs through 2021

• This is the only office building on Microsoft’s campus that it does not own



Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Seattle Tower

1218 3rd Ave Seattle, WA

10/14/15 169,952

1929-2008

$49,500,000

$291

4.7% Gaw Capital Partners

Invesco


SeaTac Office Center

17900-18000 Pacific Hwy S SeaTac, WA

10/31/15 532,430

1980-1997

$47,100,000

$88

7.1% Urban Renaissance Group / Iron Point Partners

Garrison Investment Group / ScanlanKemperBard


• Sale included two 12-story towers and a four story building

• Buyer plans to spend more than $10M in renovations

• Previously acquired for $79.3M in December 2007

• Ground lease

The Landmark

1601 E Valley Rd & 1600 Lind Ave SW Renton, WA

11/27/15 273,903

1987

$45,000,000

$164

8.4% Redwood-Kairos

Blackrock

• 100% leased multitenant building

• Two building portfolio sale

• FAA occupies 30% of the property and is vacating September 2017

• Previously acquired for $31.2M in February 2006

King Broadcasting

333 Dexter Ave N Seattle, WA

2/13/15 155,272

1947-1982

$42,558,000

$274

N/A Kilroy

Gannett

• 100% leased at time of sale to King 5

• Purchased for redevelopment along with three other properties

Rosen Building

960-964 Republican St Seattle, WA

8/28/15 60,375

1922-2001

$40,989,000

$679

5.3% Urban Renaissance Group

Vulcan

• 100% leased at time of sale to University of Washington

• Early 20th century warehouse that was converted into lab space

Bellevue Pacific Center

188 106th Ave NE Bellevue, WA

5/11/15 110,372

1995

$39,300,000

$356

6.9% PCCP / Align

LaSalle


• Sale represents the office portion of the building, which includes residential condominiums above the office portion

22



Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Gateway One

11400 SE 8th St Bellevue, WA

8/19/15 108,065

1986

$38,750,000

$359

6.4% Talon



• Weighted average remaining lease term of 4-5 years

Corporate Campus East


3/11/15 134,000

1982-1983

$37,750,000

$282

6.1% Kennedy Wilson

CBRE Global Investors


• Three building portfolio sale

Legacy Crown Pointe

4010-4040 Lake Washington Blvd NE Kirkland, WA

9/29/15 130,647

1986

$37,000,000

$283

6.4% TA Realty



• Four building office campus

111 S Jackson

111 S Jackson St Seattle, WA

6/8/15 78,564

1904-2015

$34,000,000

$433

5.5% RREEF

Brickman


• 100% of office space leased to Galvanize for 10 years


1300 Dexter Building


2/19/15 79,877

1986

$31,550,000

$395

N/A Pemco Insurance

Holland Partners

• Acquired for occupancy - Pemco Insurance will be the lone tenant

Homeport Building and Marina

135 Lake St Kirkland, WA

9/4/15 35,447

1976

$28,000,000

$527

4.7% PMF Investments of Bellevue

Stabbert Maritime


• Includes a 118 slip marina on the Kirkland waterfront

• Existing office and retail rents are below market

• Price per square foot estimate based on 1/3 of income coming from marina



Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Antioch University


9/30/15 64,800

1950

$26,500,000

$409

N/A HB Management

Antioch University


• Redevelopment project

Olympic Block

101 Yesler Way Seattle, WA

11/16/15 70,796

1986

$22,410,000

$317

5.2% Brickman

KBS Realty Advisors


• Residential condominiums located on 7th, 8th, and 9th floors are not a part of this transaction


Mountain Pacific

11808-11820 Northup Way Bellevue, WA

2/20/15 91,009

1983

$22,100,000

$243

7.0% Schnitzer West

Toctherman


Stack House

1265 Republican St Seattle, WA

2/13/15 36,600

1904-2013

$21,938,000

$599

N/A JP Morgan Chase

Vulcan


• Office portion of $148.7M total transaction which included a Class A apartment building

Pioneer Building

606 1st Ave Seattle, WA

12/22/15 72,000

1892-1974

$20,500,000

$285

N/A Level Office

Sun Capital Corporation


• Buyer plans to turn the building into a co-working facility

• Previously acquired for $12.3M in January 2014

CBIC Building

1213 Valley St Seattle, WA

2/20/15 35,351

1990

$20,500,000

$580

N/A Seattle Cancer Care Alliance

Donald Sirkin

• Acquired for occupancy - Seattle Cancer Care Alliance will be the lone tenant

East Campus Corporate Park I

32001 32nd Ave S Federal Way, WA

3/30/15 105,807

2001

$17,900,000

$169

7.8% Sterling Realty

Ilahie Holdings


24



Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

701 Dexter Ave


11/25/15 61,528

1984

$17,700,000

$288

4.0% / 7.5%

(stabilized)

Unico

SEBCO, Inc.


Bel-Kirk 520

11120 NE 33rd Pl Bellevue, WA

1/16/15 93,064

1988-2005

$16,500,000

$177

7.0% Schnitzer West

Rosen-Harbottle


Waterworks Marina & Offices

1800-1836 Westlake Ave N Seattle, WA

3/11/15 47,911

1963-1972

$16,200,000

$338

5.8% Temperate Paradise Properties

Columbia West Properties


• One Class B building and two Class C buildings

Former Federal Reserve Bank SF


3/31/15 99,148

1950

$16,000,000

$161

N/A Martin Selig Real Estate

GSA

• Historic site was acquired in an auction sale

• Class C building


Columbia Business Park

13429-13431 NE 20th St Bellevue, WA

6/26/15 67,523

1974-2000

$15,914,000

$236

5.0% Propet USA

Broderick Group


• Part of four building portfolio sale that included Retail and Flex properties

Willows Commerce Park II - Building C

9805 Willows Rd NE Bellevue, WA

5/12/15 80,705

1999

$14,990,000

$186

6.8% Menlo Equities

Wyndham Worldwide


• Sale leaseback to Wyndham Worldwide

NCR Building

15400 SE 30th Pl Bellevue, WA

6/24/15 47,572

1985

$13,825,000

$291

6.1% Eastgate Office Corporation

Keystone Development




Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Bridgeport Medical Center

7308 Bridgeport Way N Lakewood, WA

2/27/15 31,074

2005

$13,750,000

$442

6.9% Physicians Realty Trust

Gallashea Properties


• Sale leaseback

Southcenter Place

16400 Southcenter Pky Tukwila, WA

12/3/15 64,725

1979

$11,880,000

$184

7.1% JCR Development

Steelwave



Seattle


2015 Seattle industrial sales ($10M+) overview

Sales volume more than doubles, surpassing $1 billion

Seattle’s economy is prospering, largely due to the strength of industrial sector employment. The trade, transportation and utility sector, as well as the construction industry, have been two of the main drivers of job growth in Puget Sound within the past year. According to the Associated General Contractors of America, Washington state added 9,900 construction jobs last year, representing a 5.9 percent gain. With a flourishing housing market, an abundance of large infrastructure projects and pre-recession levels of commercial development, the near term outlook for construction looks positive. The aerospace, food/beverage and logistics industries have helped drive growth in the ports of Seattle and Tacoma. In response to fierce competition throughout North America, in August 2015, the two ports officially joined forces to create the Northwest Seaport Alliance. The alliance, which is the first of its kind in North America, unified management of the two ports’ marine cargo terminals and related functions. This helped the region handle more than 3.5 million TEUs in 2015, an increase of 4.0 percent over 2014, despite the Chinese economy slowing down. The NW Seaport Alliance is expecting to see an increase in cargo volumes and related jobs in the region in 2016.

Sales volume of Puget Sound industrial properties increased by an astonishing 161.5 percent year-over-year, with $1.1 billion in assets trading hands in 2015. Not only was total volume up, the frequency of trades increased, as 26 transactions over $10 million closed. This is the most industrial sales the market has seen in a year since 2007. Furthermore, average pricing on a per-square-foot basis increased 20.9 percent year-over-year to $110, and cap rates declined 70 basis points to an average of 5.7 percent. The cap rate compression in the market has been significant, as it’s currently 350 basis points below the high of 9.2 percent in 2009. While there were no $100-million-plus portfolio sales in 2014, two deals exceeded $200 million in 2015. The year ended on a high note, as the two largest deals both occurred in the fourth quarter. Global Logistics Properties purchased $4.6 billion in assets from

Industrial Income Trust, and several of these properties, totaling $225.5 million, were located in the Seattle metro area. Clarion Partners acquired the Segale Business Park located In Tukwila, from Segale Properties for $202.8 million. The twelve building portfolio includes a data center and three office buildings. Several buyers in the market this year participated in multiple transactions. CenterPoint Properties, Gramercy Property Trust, Industrial Property Trust, Terreno Realty, and the aforementioned Global Logistics Properties are groups that seem particularly bullish on the Seattle industrial market, given their recent acquisitions.

The increase in sales volume should not come as a surprise, as investor interest has been high for several years, there was simply more product available in 2015. The rampant sales activity does not appear to slow down in the near future, as Seattle was ranked as the number one most desirable market in the U.S. for investment in the industrial sector, according to PWC and ULI’s Emerging Trends in Real Estate 2016 report. 64 percent of respondents to the Emerging Trends in Real Estate 2016 survey recommended buying industrial property in Seattle. Additionally, 27 percent of respondents placed a “hold” rating on industrial product, while the remaining 9 percent minority recommended selling. Institutional investors have clearly taken notice of the strong market fundamentals over the last three years and have been aggressive in acquiring both existing product, typically through unsolicited offers, as well as land in order to develop new product in the near-mid-term. These forward commitments for product demonstrate pent up demand for well-located industrial assets and this type of pre-commitment buying has only returned to the Puget Sound market in recent years. With the local economy continuing to strengthen, the outlook for the Puget Sound industrial market is positive. Moving into 2016, we expect the industrial market to continue to perform well, both in terms of demand from tenants and interest from institutional investors.

30

Seattle industrial leasing

2015 MARKED THE STRONGEST YEAR FOR THE PUGET SOUND INDUSTRIAL MARKET IN RECENT HISTORY.

2015 was a banner year for the industrial market

2015 marked the strongest year for the Puget Sound industrial market in recent history. Market vacancy in the region dropped 80 basis points year-over-year to its current rate of 3.6 percent, which is the lowest rate in more than 10 years. Every cluster in the region – Seattle, Kent Valley, Pierce County, Eastside, and Northend – has seen vacancy drop in the last 12 months. Vacancy in the Seattle cluster dropped 30 basis points in the fourth quarter, to an astounding 1.6 percent. The Eastside market has the highest vacancy rate at 5.6 percent, which represents a decline of 100 basis points year-over-year and still places it firmly in landlords’ favor. There were a total of 28 leases signed in 2015 that exceeded 100,000 square feet. All but two of these major leases took place in the Southend. Pent-up demand from large users has been building for quite some time. Most large users have had very few options in the market and have had to look at new development in order to meet their needs.

Currently, there is 11.5 million square feet of gross demand in the market. Thirty-four tenants with requirements exceeding 100,000 square feet account for roughly 8.7 million square feet of that demand. Owners are seeking to address this demand, and there has been a construction boom in Puget Sound over the last three years. More than 9.2 million square feet has been added to the market since the beginning of 2013, 4.1 million of which was added in 2015. An additional 2.6 million square feet are currently under construction. The overwhelming majority of development

projects are speculative, with approximately 30 percent of the inventory currently preleased. New development in the Kent Valley and Pierce County markets has been outpaced by leasing activity, which has helped to keep vacancy low. At this point, projected new supply is not close to servicing the tenant demand in the market.

For the fifth consecutive year net absorption surpassed 3.0 million square feet. Net absorption exceeded 1.0 million square feet each of the last three quarters in 2015, and ended the year at 6.2 million square feet. This is the most absorption the market has seen in any year since 2007. Furthermore, a staggering 15.5 million square feet of space has been taken down in the last three years. As a result of this strong leasing activity, rental rates continue to increase significantly, and are expected to rise through 2016. We haven’t seen a market so weighted in the landlord’s favor in many years. It is putting tremendous pressure on tenant’s approaching renewals, which are seeing their proposed rents increasing by 20-30 percent. When they are forced into the market to tour, they are finding few options that will work for them without sacrificing their desired location and/or building quality. It is expected that the conditions in the Puget Sound industrial market will remain in favor of landlords in the near future.


Seattle industrial sales & statistics


Seattle 47,085,219 1.6% $0.85 453,097

Eastside 32,045,652 5.6% $1.08 280,493

Northend 28,085,558 5.0% $0.57 551,700

Kent Valley 109,536,466 2.9% $0.57 1,809,604

Pierce County 60,561,421 4.8% $0.56 3,114,494

2015 Total Market 277,314,316 3.6% $0.71 6,209,388

2014 Total Market 273,193,567 4.4% $0.69 4,936,285

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Number of Sales 14 35 19 9 11 14 20 25 24 26

Price/SF Highest (ind) $140 $164 $151 $100 $115 $187 $125 $288 $198 $194

CAP Rate Average 6.8% 5.9% 6.6% 9.2% 7.4% 7.2% 6.5% 6.3% 6.4% 5.7%

Price/SF Highest (flex) $206 $237 $199 $207 $156 $257 $180 $190 $122 $171


Industrial market statistics


Industrial market statistics include industrial and flex inventory over 10,000 sf, single-tenant, multi-tenant and owner-occupied.

3232

Port of Seattle and Port of Tacoma historical total TEU’s

2015 TEU container volume

4,500,000

2,500,000

4,000,000

2,000,000

3,500,000

1,500,000

2007 2008

Seattle*

Tota

l TEU

’s

Tacoma* * In 2014 Port of Seattle and Port of Tacoma began combining their statistics

2009 2010 2011 2012 2013 2014* 2015

500,000

3,000,000

1,000,000

0

2007 2008 2009 2010 2011 2012 2013 2014 2015

Seattle 1,973,504 1,704,492 1,584,596 2,153,685 2,049,733 1,885,680 1,592,753 * *

Tacoma 1,924,929 1,861,358 1,545,853 1,412,869 1,443,550 1,678,778 1,863,408 * *

Total TEU’s 3,898,433 3,565,850 3,130,449 3,566,554 3,493,283 3,564,458 3,456,161 3,393,522 3,529,446



Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

IIT Portfolio

Multiple

11/4/15 1,938,562

Various

$225,536,000

$116

5.6% Global Logictics Properties

Industrial Income Trust

• Washington portion of $4.6B portfolio sale

Segale Business Park

1800-18349 Andover Park W Tukwila, WA

12/1/15 1,213,009

1979

$202,800,000

$167


Segale Properties

• 99% of warehouse space leased at time of sale

• $125/SF is the estimated allocation of the industrial portion

• Twelve building portfolio sale includes a data center and three office buildings, which total approx. 110,000 SF and are 75% leased

Seattle Logistics Center

4201-4601 6th Ave S Seattle, WA

4/10/15 360,058

1971-1991

$63,250,000

$176

N/A Prologis

Alaska Distributors

• Short-term leaseback by K2

• 231,000 SF now available for lease

• Two property portfolio sale

Portfolio Sale

Woodinville Corporate Center

17627 128th Pl NE Woodinville, WA

2/27/15 893,000

1988 / 1995

$60,437,000

$68

N/A GIC / Global Logistics Properties

Blackstone

• Part of $8.1B portfolio sale

Tukwila Commerce Center

800-820 Industry Dr Tukwila, WA

2/27/15 475,414

1976 / 1990

$52,866,000

$111


Blackstone


• Includes Flex and Manufacturing buildings

Southcenter West Business Park

1185 Andover Park W Tukwila, WA

2/27/15 299,280

1972 / 1985

$30,211,000

$101


Blackstone


Mill Creek Distribution Center

21804 76th Ave S Kent, WA

2/27/15 220,899

1988 / 1995

$23,854,000

$108


Blackstone


Seattle industrial-flex sales ($10M+)

34


Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

West Valley Business Center

22405-22473 72nd Ave S Kent, WA

2/27/15 152,420

1981 / 1995

$15,007,000

$98


Blackstone


Valley Freeway Business Center

25612-25802 74th Ave S Kent, WA

2/27/15 132,125

1990 / 1995

$13,242,000

$100


Blackstone


Port Commerce Center

2309 Milwaukee Way Tacoma, WA

4/17/15 1,027,356

1990-2008

$57,200,000

$56

5.9% Principal Real Estate Investors

Northwest Building LLC


• Four building portfolio sale

• Ground lease with the Port of Tacoma

West Willows Tech Center

8705-8809 148th Ave NE Redmond, WA

3/31/15 166,833

1984-1985

$28,500,000

$171

6.8% Burnstead

ScanlanKemperBard / HighBrook


• Five building portfolio sale

Algona II Distribution Center

701-851 Milwaukee Ave N Algona, WA

1/16/15 263,291

1990

$28,254,000

$107

N/A Precision CastParts Corp.

Clarion Partners


• Buyer will be owner-user

Intracorp Industrial Center

3011 70th Ave E Fife, WA

3/31/15 324,220

1994

$26,354,000

$81

6.3% CenterPoint Properties

Gibraltar Industries


• Sale leaseback for a term of 5 years

Medline Building - Valley Distribution Center

4800 E Valley Hwy Sumner, WA

9/30/15 227,964

2004

$20,800,000

$91

N/A Exeter Property Group

Medline Industries


• Part of multi-market portfolio sale

• 2-year leaseback to Medline

West Valley Business Park

6520 S 190th St Kent, WA

3/5/15 214,970

1989

$18,500,000

$86

6.0% Gramercy Property Trust

LBA Realty


• Part of a three building West Coast portfolio




Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

West Waterway - Building 7-C

3546 W Marginal Way SW Seattle, WA

4/6/15 170,633

1975

$18,250,000

$107

5.5% CenterPoint Properties

ITB Holding Company


• Sale leaseback

Propet USA

2415 W Valley Hwy N Auburn, WA

6/11/15 162,100

1991

$17,015,000

$105

5.3% Industrial Property Trust

Propet USA


• Off-market transaction

• Sale leaseback

Boise Cascade Building


12/14/15 158,168

1981

$14,875,000

$94

6.0% Terreno Realty

OfficeMax


• Short term leaseback

• Building now available for lease

Tamarack Building

1607 136th Ave E Sumner, WA

9/21/15 159,250

2015

$14,333,000

$90

N/A Design Imports India

Panattoni

• Owner-user sale


Overlake Business Park

2801-2899 152nd Ave NE Redmond, WA

2/27/15 94,211

1979

$13,900,000

$148

N/A Sound Transit

PS Business Parks


• Buyer plans to demolish buildings

Ryerson Building

2306 B St NW Auburn, WA

5/8/15 109,585

1999

$13,000,000

$119

6.4% Gramercy Property Trust

Eric B Benson Trust


• Part of three building portfolio sale that included properties in California

Harbour Reach Business Park

4640 Campus Pl Mukilteo, WA

7/1/15 100,160

2001

$12,900,000

$129

6.0% TA Realty

Otto Development


Wulff Industrial Park

301 30th St NE Auburn, WA

5/28/15 104,600

2000

$12,500,000

$120

5.0% Northwest Building LLC

Stockbridge


• Buyer was coming out of a 1031 Exchange

36



Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Larsen Building

14513 32nd St Sumner, WA

12/23/15 98,203

2015

$12,400,000

$126

5.6% Bixby Land Company

Panattoni


• Two property portfolio sale

Kent Corporate Park

22422-22430 72nd Ave S Kent, WA

7/2/15 136,014

1979-1982

$12,250,000

$90

6.2% Terreno Realty

Erlinda Patridge


• In-place rents are below market and property has significant deferred maintenance

WTM Building


4/3/15 60,900

1972

$11,820,000

$194

6.0% Flatiron Properties

Dino Simone


Northwest Center Building

7272 W Marginal Way S Seattle, WA

10/16/15 98,028

1989

$11,500,000

$117

N/A LBA RV-Company

Northwest Center

• Seller to lease back 14,500 SF of 2nd floor office

• Balance of the building was vacant at time of sale

West Valley Distribution Center

19030 W Valley Hwy Kent, WA

4/27/15 138,296

1978

$11,200,000

$81


ScanlanKemperBard / Oaktree


Lincoln Storage Building

8420 S 190th St Kent, WA

4/16/15 115,322

1992

$11,150,000

$97

5.7% Terreno Realty

Lincoln Corporate Logistics


• Tenants are Lincoln Moving & Storage and Intellectual Ventures

Former Sparklett’s Building

401 Lund Rd Auburn, WA

11/3/15 64,858

1988

$11,100,000

$171


Columbia Pacific Advisors


• 10-year lease in place with Ferguson

• Building is on 4+ acres

North Kent Industrial Center

7820-7828 S 200th St Kent, WA

8/10/15 101,686

1981-1982

$10,358,000

$102


Daniel McCabe


• Two building portfolio sale


Seattle

40

2015 Seattle retail sales ($10M+) overview

Market sees the most trades in any single year since 2006, but volume declines

With 27 transactions over $10 million, 2015 was the most active year for retail investment sales since 2006. However, despite increased activity, total sales volume decreased by 22.9 percent year-over-year, with $645.7 million in assets trading hands. 2015 lacked the jaw-dropping deals we have seen in previous years, as there were no sales of over $100 million. Contrast that with 2013 when five such deals occurred, and 2014 when two massive sales transacted, and it’s easy to see why volume was down in 2015. The largest transaction of the year occurred in the first quarter, when Donahue Schriber purchased Lakeland Town Center in an off market transaction from Loja Real Estate for $51.2 million, or $409 per square foot. The Auburn strip center, home to tenants such as Haggen, Starbucks and McDonald’s, was 100 percent leased at time of sale and traded at a cap rate of 4.9 percent, one of the lowest of the year. Average cap rates as a whole ended the year at 6.3 percent, up 30 basis points year-over-year. Despite increasing slightly, cap rates remain significantly below the 10-year historical average and 250 basis points lower than the high of 8.8 percent recorded in 2009.

The first sale of the year closed in early-January, when Eliat Management purchased 6th Avenue Plaza from Rosen-Harbottle for $17.2 million, or $124 per square foot. The Tacoma community center was 92 percent leased at time of sale with tenants such as Goodwill, Sears Outlet, Artco Crafts and Harbor Freight Tools. In addition to kicking off the year, this transaction was noteworthy because the sales price was 16.6 percent higher than the original listing

price, when the property came on the market in the second quarter of 2014. The high water mark for pricing in 2015 was achieved in February, when K & H Sutter Company purchased a Walgreens in the Tacoma Suburban submarket from Columbia Retail Group for $10.0 million, or $701 per square foot. This is the third highest priced retail transaction in the last ten years, behind only Pacific Place and Meridian Center, both of which closed in 2014. More than half of the total volume in 2014 came from building sales in the city of Seattle. 2015 saw just two retail properties trade in Seattle, for a total of $67.5 million.

Seattle was ranked as the 20th most desirable market in the U.S. for investment in the retail sector, down eight spots from last year, according to PWC and ULI’s Emerging Trends in Real Estate 2016 report. 32 percent of respondents to the Emerging Trends in Real Estate 2016 survey placed a “buy” rating on retail property in Seattle. The largest segment of respondents, 49 percent, recommended holding retail product, while the remaining 19 percent minority recommended selling. Demand for the Puget Sound retail market remains high, as evidenced by the fact that the frequency of trades has increased for five consecutive years. Whereas 2013 sales volume was driven primarily by the transactions of high profile malls, 2015 was similar to 2014, in that shopping centers drove volume. With many owners opting to hold, competition should be very high amongst investors for the prime retail properties that are made available in 2016.

THE HIGH WATER MARK FOR PRICING IN 2015 WAS $701 PER SQUARE FOOT


Seattle retail leasing

With desirable demographics, market fundamentals continue to strengthen

2015 was a positive year for the Puget Sound retail market, as strong leasing activity pushed vacancy down 60 basis points to its current rate of 4.3 percent, which represents the lowest level since 2007. According to the Downtown Seattle Association, more than 42 new retail stores opened downtown in the first six months of last year. Seattle is not the only segment of the market that is experiencing strong demand, however, as net absorption in every cluster in the Puget Sound market - Downtown Seattle, Eastside, Northend, Southend and Tacoma - was overwhelmingly positive. A total of more than 1.4 million square feet of space was taken down in 2015, with the Northend accounting for nearly half of all regional absorption. Tacoma, which has struggled with elevated vacancy in recent years, saw the second most absorption in Puget Sound, as more than 220,000 square feet of space was taken down, dropping overall vacancy to 6.4 percent. Downtown Seattle remains the tightest market, as vacancy dropped 50 basis points year-over-year to just 2.2 percent. Subsequently, rental rates in Downtown Seattle increased 4.4 percent, to an average of $24.90 per square foot. Overall asking rental rates for the region increased just 0.2 percent year-over-year, as growth was minimal in the four non-Seattle clusters. Rents remain very reasonable when compared to major retail destinations in the U.S. This may not be the case for long, however, as tenant demand continues to outpace supply, particularly for core urban product. 500,000 square feet of inventory was delivered to the market in 2015, and just 162,000 square feet of product is currently under construction.

Several interesting stories came out in regards to the Puget Sound retail market in 2015. Amazon opened a bookstore in University Village and launched AmazonNow, which provides one hour shipping on select items, Target announced a partnership with InstaCart to provide grocery delivery, and Uber launched the restaurant delivery service UberEats. Perhaps no single story

gained more national attention than REI’s #OptOutside campaign. While most retailers expand hours to include all or part of Thanksgiving and open early on Black Friday, the Seattle-based outdoor retailer went to the other end of the spectrum, opting to close on Thanksgiving and Black Friday in order to give their employees and customers the day off. For REI the added publicity appears to have paid off, as online traffic increased 10 percent on Thanksgiving and 26 percent on Black Friday when compared with last year, according to SimilarWeb.

Employment growth in Seattle continues to outpace the national average, and the retail trade sector was one of the strongest performers in 2015. Seattle has started to phase in the $15 minimum wage law; the first mandatory increase took effect, raising the minimum wage to $11 an hour on April 1st. Although it is only the first increase we are already beginning to see some unintended consequences. Despite a five-year period of steady job growth in the restaurant industry, 700 jobs (0.5 percent) were lost in the Seattle area between January and September, according to AEI. Restaurant jobs in the rest of the state have increased by 5,800 (6.6 percent) over the same time period. Considering an additional $4 will be added in the near future, it will be interesting to see if this trend continues and if so, what the impact will be on other retail sectors. The ongoing residential construction boom should continue boosting local retail sales. The glut of well-paid, younger residents in the market is resulting in an increase in demand for groceries and luxury goods. While retail construction has started to come back, the inventory growth is occurring very gradually.

42

Seattle retail sales & statistics

Submarket Size (RSF) VacancyAvg. Rental Rate

(NNN)Net Absorption RSF

Downtown Seattle 26,210,599 2.2% $24.90 168,485

Eastside 27,778,460 3.3% $22.79 193,595

Northend 46,544,914 4.0% $16.85 677,037

Southend 31,309,288 4.7% $16.36 178,712

Tacoma 41,331,235 6.4% $15.10 227,825

2015 Total Market 173,174,496 4.3% $17.56 1,445,654

2014 Total Market 172,010,039 4.9% $17.53 1,885,341

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Number of Sales 28 19 4 8 7 15 16 18 22 27

Price/SF Highest $518 $467 $380 $404 $305 $387 $512 $509 $849 $701

CAP Rate Average 6.4% 5.9% 7.2% 8.8% N/A 7.0% 6.4% 6.4% 6.0% 6.3%


Retail market statistics



Seattle retail sales ($10M+)


Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Lakeland Town Center

1400-1418 Lake Tapps Pky E Auburn, WA

3/13/15 125,142

2002

$51,200,000

$409

4.9% Donahue Schriber

Loja Real Estate


• Tenants include Haggen, Starbucks, McDonald’s, Subway, and Verizon


Sternco Center

14509-14747 NE 20th St Bellevue, WA

12/10/15 113,223

1987-1990

$49,000,000

$433

4.9% ROIC

Allan L. Sternoff


• Major tenants include Goodwill, Seattle Lighting, and Asian Food Center

Interbay Urban Center

1819-1827 15th Ave W Seattle, WA

4/22/15 80,560

2008

$47,818,000

$594

4.7% Donahue Schriber

TRF Pacific


• Major tenants include Whole Foods and Petco


Four Corner Square

23800 SE Kent Kangley Rd Maple Valley WA

12/16/15 119,579

1985

$41,500,000

$347

5.6% ROIC

Kite Realty Group


• Major tenants include Johnsons Home & Garden Improvement Center, Walgreens, and Grocery Outlet

Green Firs Towne Center

3800-3902 Bridgeport Way W University Place, WA

9/28/15 144,943

1977-201

$36,000,000

$248

5.6% Principal Financial

PMF Investments


• Major tenants include Safeway, Big Lots, Rite Aid, and Trader Joe’s

Totem Lake Malls

12500-12632 120th Ave NE Kirkland, WA

4/22/15 287,827

1972-1974

$35,500,000

$123

N/A CenterCal Properties / PCCP

Coventry Realty Advisors


• Planned redevelopment to include retail, office, and apartments


Woodinville Plaza

14001-14235 NE Woodinville Duvall Rd Woodinville, WA

6/10/15 174,548

1981-2003

$35,263,000

$202

5.1% Retail Properties of America

AFL-CIO


• Major tenants include Albertsons, TJ Maxx, OfficeMax, Dollar Tree, and Rite Aid

44



Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Home Depot

4602 Center St Tacoma, WA

6/30/15 137,024

2000

$32,655,000

$238

6.1% Inland Group

ARCP


Ballinger Village

20120-20336 Ballinger Way NE Shoreline WA

12/22/15 113,315

1960-1987

$23,750,000

$210

6.6% Merlone Geier Partners

Pacific Coast Development



Lynnwood Square

19800 44th Ave W Lynnwood, WA

2/9/15 148,772

1969-2001

$23,000,000

$155

6.9% Merlone Geier Partners

Burkheimer Management / American National Insurance


• Anchor tenants are Grocery Outlet and Sports Authority


Everett Village Center

1124 SE Everett Mall Way Everett, WA

8/31/15 122,375

1979-2007

$22,500,000

$184

7.8% Stockbridge

Mano Realty Investments


• Major tenants include Best Buy, Bed Bath & Beyond, Bank of America, Sleep Country, and PetsMart

Renton Highlands Safeway Plaza

4250-4300 NE 4th St Renton, WA

3/10/15 64,288

1996

$21,914,000

$341

7.5% Spirit Realty Capital

Safeway


• Sale leaseback


Snoqualmie Ridge Town Center

7708-7802 Center Blvd SE Snoqualmie, WA

4/8/15 61,591

2003-2007

$20,098,000

$326

6.3% David Ta-Wel Kao

Northwest Capital Corp (Mark McDonald)


• Tenants include Snoqualmie Ridge Supermarket, Snoqualmie Ridge Medical Center, Infusion Bar & Grill, and Starbucks

Ge orgetown Center

5963 Corson Ave S Seattle, WA

7/27/15 74,178

1986

$19,662,000

$265

9.3% Spire General Partner

GRP Inc.


• Part of a portfolio sale that included a Class B warehouse building



Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Surprise Lake Square

900 Meridian Ave E Milton, WA

8/24/15 91,958

1983-2007

$19,500,000

$212

6.5% Tourmaline Capital

Washington Capital Management


• Major tenants include Dollar Tree and Rite Aid

Coal Creek Marketplace

6920-6950 Coal Creek Pky SE Newcastle, WA

8/27/15 52,145

1991

$17,600,000

$338

5.4% Retail Properties of America

Joshua Green Corporation


• QFC is the anchor tenant

Mill Creek Crossing

18001 Bothell Everett Hwy Bothell, WA

8/14/15 50,549

1985-2009

$17,454,000

$345

N/A Lakha Investments

The Echelbarger Company


6th Avenue Plaza

5401 6th Ave Tacoma, WA

1/9/15 139,107

1986

$17,200,000

$124

7.3% Eliat Management

Rosen-Harbottle


• Major tenants include Goodwill, Sears Outlet, Artco Crafts, and Harbor Freight Tools

• Property originally went on the market in Q2 2014 with a listing price of $14.75M

Whole Foods Market

3515 Bridgeport Way W University Place, WA

5/15/15 37,595

2015

$15,500,000

$412

5.4% Kenneth Kim

Versus Partners


Village Square

16150 NE 85th St Redmond, WA

8/24/15 43,915

1983

$14,800,000

$337

5.5% Alaskan Copper & Brass Company

Washington Capital Management


46



Total SF Year Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Panther Lake

20662 108th Ave SE Kent, WA

12/7/15 69,090

1985-2004

$14,680,000

$212

6.4% US Realty

Kimco


• Major tenants include Rite Aid and Dollar Tree

• Buyer also acquired adjacent vacant Albertsons property

Center Plaza

2006 S 320th St Federal Way, WA

7/17/15 73,978

1979

$14,270,000

$193

7.0% Northwest Capital Corporation

Cratsenberg Properties


LA Fitness

27417 Pacific Hwy S Federal Way, WA

10/15/15 45,000

2007

$12,200,000

$271

7.1% Realty Income Properties

Ashton Capital Corporation


Sawyer Village

27203 216th Ave SE Maple Valley, WA

12/15/15 29,315

2008

$11,850,000

$404

6.5% Robert Chapman

CLCH Integrity Land


Haggen

15332 Aurora Ave N Shoreline, WA

6/29/15 52,276

1967-1990

$10,697,000

$205

6.3% Sound Northwest Properties

Garrison Investment Group


• Business operated as a Safeway until February 2015

Renton Honda

200 SW Grady Way Renton, WA

6/26/15 37,535

1990

$10,075,000

$268

N/A Robert D Lamphere

Robert F. Greenwell Co.


• Property was purchased by the tenant

Walgreens

2024 6th Ave Tacoma, WA

2/9/15 14,330

2011

$10,052,000

$701

5.6% K & H Sutter Company (David Gronowski)

Columbia Retail Group



Seattle


2015 Seattle multifamily sales (10M+) overview

Driven by all-time peaks in employment and high wage earners flooding the marketplace, the Seattle

area is experiencing a seemingly insatiable demand for apartments

The Seattle metro rose to new heights in 2015. Driven by all-time peaks in employment and high wage earners flooding the marketplace, the area is experiencing a seemingly insatiable demand for apartments.

Seattle’s reputation as Cloud City and the Silicon Valley of the Northwest, coupled with a well-educated workforce, is attracting more and more firms to the market. Recent success is pushing others to increase their already strong presence within the region. Companies such as Amazon, Facebook and Expedia are expanding rapidly; Amazon growing its office footprint large enough to accommodate up to 70,000 employees; Facebook quadrupling its local headcount; and Expedia announcing plans to relocate to a waterfront campus with space for at least 3,000 employees. And this is just the beginning. Other traditional namesakes including Microsoft and Boeing continue to prosper, offering local job multipliers of 6.8 and 3.5, respectively. Nearly 100,000 people from out of state were issued drivers licenses in King, Snohomish and Pierce Counties in 2015, further illustrating the attraction of the Seattle MSA.

As population and job counts rise, the need for housing grows. An already restrictive “for sale” residential market puts extensive strain on the existing supply of apartment units. While the development pipeline may appear robust, it is still unlikely to meet projected demands in the near-term. Surging demand is also pushing rents up at a rate of 10.5 percent year-over-year, as compared to 6.4 percent nationally. Higher incomes, especially in the specialized fields of high-tech and bio-tech, are allowing landlords to adjust premiums upward during unit turns. New construction rents are also reaching new levels as they are still perceived as relatively inexpensive by out-of-state transplants.

The flight to affordability and early stages of the Millennial migration are also driving increased interest in Seattle’s suburban markets. This includes the Northend areas of Lynnwood, Bothell and Everett; the Eastside cities of Bellevue, Kirkland, Issaquah and Redmond; and Southend municipalities such as Renton, Kent, Federal Way and Tacoma.

Multifamily sales in the region were notable with $3.9 billion in closed deals during 2015 (for $10M assets and larger). The Premiere on Pine highrise apartments achieved the largest overall price, selling for $243,350,000. It also recorded the highest price per square foot at $784. The largest suburban trade was the Avana in Bothell. The transaction was completed for $143,327,000. New construction, mid-rise sales reestablished benchmarks during 2015 with Sunset Electric earning $650 a square foot in Seattle and The Luke reaching $507 a square foot on the Eastside. Cap rates remained relatively stable throughout the year, averaging close to 4 percent for Class A core assets. The overall market averaged cap rates of 4.5 percent to 5 percent.

With underlying fundamentals running strong, the outlook for 2016 and beyond remains exceptionally positive. The economic engines driving the Seattle metro continue to fire on all cylinders, and meaningful advancements on the job-front are announced on a regular basis with no signs of slowing down. This plays well for the multifamily market, where investors will reap the gains of a well-paid and renter-centric residential base.

52

Seattle multifamily sales & statistics

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Number of Sales 121 93 57 15 36 45 17 49 84 91

Highest Price/Unit $285,965 $407,083 $417,391 $211,957 $321,078 $350,000 $509,800 $690,583 $606,383 $636,192

CAP Rate Average 5.4% 5.1% 5.8% 6.4% 6.4% 5.8% 5.5% 5.1% 5.2% 4.9%


Sales matrix (10M+)

SURGING DEMAND IS PUSHING RENTS UP AT A RATE OF 10.5 PERCENT YEAR-OVER-YEAR, COMPARED TO 6.4 PERCENT NATIONALLY


Seattle multifamily sales ($10M+)

Property Closing Date Sale Price$ Per Unit

$ Per SF

UnitsYear Built

Cap rate BuyerSeller

Premiere on Pine


7/9/15 $243,350,000

$625,103

$784

386

2014

3.8% Heitman

Holland Partners

The Stack House

1280 Harrison St Seattle, WA

2/13/15 $150,500,000

$465,783

$607

278

2013

4.2% JP Morgan Asset Management

Vulcan

Dimension by Alta

225 Cedar St Seattle, WA

9/21/15 $144,000,000

$483,221

$749

298

2014

4.0% Heitman

Wood Partners

Avana 522

18101 126th Ave NE Bothell, WA

12/14/15 $143,327,000

$256,858

$292

558

1997

5.0% Blackstone Group

Greystar

Rollin Street Flats


2/9/15 $138,203,000

$636,192

$592

208

2009

4.2% Stockbridge Capital Group

Vulcan

Viktoria


5/14/15 $130,000,000

$514,185

$720

249

2014

4.0% Benedict Canyon Equities

Goodman Real Estate

Resort at Forbes Creek

11110 Forbes Creek Dr Kirkland, WA

5/29/15 $128,000,000

$258,065

$314

496

1988

4.7% Greystar

Interland Corporation

Union: South Lake Union


6/22/15 $111,000,000

$382,447

$540

284

2013

4.0% TIAA-CREF

Holland Partners

5454



$ Per SF

UnitsYear Built


One Thousand 8th Avenue


6/30/15 $93,000,000

$264,957

$435

351

1950

4.4% Sequoia Equities

Acacia Capital

Fairways

4901 Fairwood Blvd NE Tacoma, WA

10/30/15 $81,000,000

$148,624

$159

545

1989


Fairfield Residential

Taluswood

4208 236th St SW Mountlake Terrace, WA

8/31/15 $80,465,000

$157,158

$197

512

1986

5.2% Waterton Residential

Holland Partners

Verve


10/1/15 $78,000,000

$464,161

$685

161

2014


Columbia Pacific Advisors

Fulton’s Crossing and Landing

120 SE Everett Mall Way Everett, WA

10/8/15 $74,000,000

$146,825

$185

504

1989

5.2% Strata Equity

Archon Group

The Luke

8280 164th Ave NE Redmond, WA

10/28/15 $73,750,000

$354,567

$507

208

2015


Resmark

Firdale Village

9501 244th St SW Edmonds, WA

6/4/15 $69,100,000

$179,016

$218

386

1987

5.1% Intercontinental Real Estate

Eaton Vance Investment Mangement

Velo Fremont

3635 Woodland Park Ave N Seattle, WA

9/15/15 $65,075,000

$380,556

$612

171

2014

4.2% Greystar

Mack Urban

55Seattle & Portland 2014 Investment Overview 55


$ Per SF

UnitsYear Built


Six Oaks

18333 Bothell Way NE Bothell, WA

10/15/15 $63,000,000

$293,126

$358

203

2014

4.6% Belkorp

MainStreet Property Group

Alley 24

241 Yale Ave N Seattle, WA

2/20/15 $58,200,000

$323,752

$450

172

2006

4.2% Greystar

Vulcan

Ray

3636 Stone Way N Seattle, WA

9/15/15 $54,450,000

$384,380

$593

137

2015

4.3% Greystar

Mack Urban

Old Town Lofts

16175 Cleveland St Redmond, WA

10/20/15 $52,697,000

$331,988

$464

149

2014

4.7% Equity Residential

WhiteCo Residential

Summit at Lake Union


10/15/15 $48,500,000

$323,333

$430

150

1995

4.0% The Ezralow Company

Equity Residential

REO Flats


2/26/15 $47,100,000

$405,940

$642

108

2014

4.3% ASB Real Estate Investments

Madrona Real Estate

Olde Redmond Place

7001 Old Redmond Rd Redmond, WA

1/15/15 $47,000,000

$244,792

$293

192

1986

4.8% Gerson Bakar & Associates

Equity Residential

Berkshire

1300 Eagle Ridge Dr S Renton, WA

12/23/2015 $46,600,000

$170,073

$238

274

1979

5.1% MIG Real Estate

Holland Partners

56



$ Per SF

UnitsYear Built


Walden Pond

9900 12th Ave W Everett, WA

7/23/15 $46,500,000

$147,152

$152

316

1990

5.1% Starwood Capital Group

Holland Partners

Gates of Redmond

15325 NE Redmond Way Redmond, WA

1/15/15 $45,250,000

$251,389

$296

180

1984

4.9% Gerson Bakar & Associates

Equity Residential

Pine+Minor

1551 Minor Ave Seattle, WA

2/26/15 $43,000,000

$345,850

$599

120

2013

4.4% PrivatePortfolio Group

Gerding Edlen

Barclay / Broadway

412 Broadway Ave Seattle, WA

4/7/15 $42,000,000

$332,464

$519

118

2012

4.3% CalFox Real Estate Investments

Gerding Edlen

Sunset Electric

1111 E Pine St Seattle, WA

3/31/15 $41,750,000

$425,083

$650

92

2014

4.2% ASB Real Estate

The Wolff Company

Oakwood Seattle South Lake Union


7/29/15 $41,000,000

$404,000

$599

100

2013

4.0% Oakwood Worldwide

Mesirow Financial

Vue Kirkland

11733 NE 131st Pl Kirkland, WA

10/29/15 $40,975,000

$204,875

$346

200

1978

4.8% Acacia Capital

Pacific Urban Residential

Renton Woods

12000 SE Petrovitsky Rd Renton, WA

12/1/15 $40,500,000

$155,769

$177

260

1989

5.3% Abacus Capital Group

PASSCO Real Estate



$ Per SF

UnitsYear Built


Lenora

211 Lenora St Seattle, WA

6/16/15 $40,400,000

$348,843

$545

107

1999

* no cap rate - sold vacant

CWS Capital Partners

Unico

Somerset

25220 109th Ct SE Kent, WA

6/4/15 $40,350,000

$122,644

$152

329

1986

5.4% TruAmerica Multifamily

Fowler Property Acquisitions

Aperture on Fifth

206 5th Ave N Seattle, WA

7/15/15 $40,226,000

$379,491

$595

106

2014

4.1% PrivatePortfolio Group

L & P Partners

Waters Edge

6305 S 238th Pl Kent, WA

2/10/15 $40,200,000

$132,237

$150

304

1986

5.2% Security Properties

Holland Partners

Somerset Green

4249 129th Pl SE Bellevue, WA

11/30/15 $40,200,000

$398,020

$213

101

1986

4.9% Grosvenor

Carmel Partners

Seasons

3711 164th St SW Lynnwood, WA

1/14/15 $39,800,000

$174,561

$194

228

1988

4.9% The Guardian Life Insurance Company of America


Vue

3261 SW Avalon Way Seattle, WA

12/1/15 $38,000,000

$342,342

$466

111

2014

4.6% CWS Capital Partners

Paragon Real Estate Advisors

Lakeside Landing

1414 S Mildred St Tacoma, WA

7/15/15 $37,700,000

$83,778

$107

450

1970

5.6% Hamilton Zanze & Company

Bianco Properties

58



$ Per SF

UnitsYear Built


Windsor

4415 NE 5th St Renton, WA

9/4/15 $36,750,000

$181,931

$188

202

1988



Commons at Federal Way

190 S 334th St Federal Way, WA

12/11/15 $34,000,000

$130,769

$173

260

1980



Green Leaf Skyline

3322 S 222nd Pl Kent, WA

9/16/15 $34,000,000

$177,083

$169

195

1984

5.0% Green Leaf Partners

Carmel Partners

Pearl

1500 E Madison St Seattle, WA

12/21/15 $33,500,000

$367,259

$550

80

2008

4.5% Equity Residential

Barrientos

Woodcreek

14611 Admiralty Way Lynvwood, WA

11/16/15 $33,100,000

$201,829

$199

164

2000

4.7% Rise Properties

Mosaic Homes

Deer Creek

6115 111th St E Puyallup, WA

10/14/15 $32,500,000

$126,953

$142

256

2000

5.7% Lowe Enterprises

Matteson Companies

Griffis Seattle South at Brookside

28700 34th Ave S Auburn, WA

7/22/15 $32,300,000

$182,486

$173

177

2004

5.6% Griffis Residential

Carmel Partners

Cypress Cove

1202 N Pearl St Tacoma, WA

12/30/15 $30,500,000

$92,424

$115

330

1987

5.8% ConAm

Then-Kui Liew



$ Per SF

UnitsYear Built


Madison at Alderwood Park

18031 36th Ave W Lynnwood, WA

9/29/15 $30,350,000

$161,436

$217

188

1982


Equus Capital Partners

Park Metro


2/2/15 $29,095,000

$352,500

$410

78

2014

4.5% Wilsey Management

Evergreen Point Development

Nickel Creek


10/8/15 $29,000,000

$151,042

$175

192

1986

5.3% Strata Equity Group

Archon Group

Waterbrook

10615 SE 250th Pl Kent, WA

9/22/15 $27,000,000

$142,857

$133

189

1981

5.3% Susan Lew

Security Properties

Brisa

12402 Admiralty Way Everett, WA

9/30/15 $26,365,000

$133,157

$161

198

1987

5.2% Thayer Manca Residential

Security Properties

Park 120

120 W Casion Rd Everett, WA

12/14/15 $25,500,000

$102,410

$130

249

1968



19th & Mercer

526 19th Ave E Seattle, WA

12/16/15 $25,150,000

$430,855

$583

50

2014

4.6% Joe Mayer

Meriwether Partners

Row


8/13/15 $24,650,000

$99,798

$132

247

1981

5.5% Fowler Property Acquisitions

Sheng Real Estate Investments

60



$ Per SF

UnitsYear Built


Westwater

221 1st St Kirkland, WA

12/1/15 $24,600,000

$356,522

$351

62

2001


William A. Petter

Union

2111 SW 352nd St Federal Way, WA

8/13/15 $21,800,000

$89,344

$147

244

1985



Madison at Ridgegate

24808 100th Pl SE Kent, WA

9/24/15 $21,600,000

$141,176

$162

153

1990



Sheridan


1/16/15 $20,700,000

$363,158

$824

57

1914

N/A Chainqui Development of Taiwan

Aram Properties

Village at Lake Meridian

10925 SE 259th St Kent, WA

7/16/15 $19,000,000

$107,345

$133

177

1980


Fowler Property Acquisition

Eagle’s Landing

2201 104th St S Tacoma, WA

3/2/15 $18,500,000

$80,435

$88

230

1989

5.5% Goodman Real Estate

Michael J. Wensman

Avia


9/30/15 $18,250,000

$152,083

$175

120

1969


Carmel Partners

Emerald Place

3117 S 192nd St SeaTac, WA

11/18/15 $18,100,000

$115,287

$135

157

1967


Olympic Investors



$ Per SF

UnitsYear Built


Cascadia Pointe

8710 5th Ave W Everett, WA

10/8/15 $18,000,000

$148,760

$157

121

1990


Archon Group

Foster Creek

15110 McAdam Rd S Tukwila, WA

7/13/15 $17,700,000

$98,883

$129

179

1978

5.8% Investors Management Group

David M. Dufenhorst

Constellation

1455 S Puget Dr Renton, WA

12/11/15 $17,000,000

$128,788

$183

132

1985



Maple Glen

5424 212th St SW Mountlake Terrace, WA

5/15/15 $17,000,000

$160,377

$201

106

1986



Mirabella

805 112th St SE Everett, WA

10/8/15 $16,500,000

$141,026

$133

117

1991


Archon Group

Saratoga

11812 E Gibson Rd Everett, WA

10/8/15 $16,000,000

$149,533

$160

107

1989


Archon Group

N-Habit Belltown

2217 3rd Ave Seattle, WA

9/30/15 $16,100,000

$304,174

$481

49

2014

4.5% Sares-Regis Group of Nor Cal

Daly Partners

Village at Juanita Beach (Starboard Apartments)

9311 NE 118th Ln Kirkland, WA

2/4/15 $15,650,000

$195,625

$208

80

1986

4.8% Mosaic Homes

George M. Glass

62

Seattle multifamily sales (10M+)


$ Per SF

UnitsYear Built


Woodside (The Argyle)

2517 S 316th Ln Federal Way, WA

6/9/15 $15,500,000

$96,875

$125

159

1984


William Y. Kwan

Luna Sol

11415 Slater Ave NE Kirkland, WA

10/23/15 $14,430,000

$277,500

$334

52

2010

4.6% Sidhu Enterprises

Eric Campbell

Cedardale

2501 SW 336th St Federal Way, WA

5/22/15 $13,675,000

$108,532

$145

126

1982

5.3% Pathfinder Partners

Bianco Properties

Latitude

12907 E Gibson Rd Everett, WA

1/20/15 $13,550,000

$125,463

$168

108

1986

5.4% Friedkin Realty Group

Security Properties

Midtown Lofts

1142 Fawcett Ave Tacoma, WA

9/3/15 $13,500,000

$259,615

$237

50

2011

5.2% John Evilsizor Realty

O’Connor & Associates

Aravia

2300 Brookdale Rd E Tacoma, WA

5/14/15 $13,200,000

$114,783

$106

115

2001


Envizage Development Group

BLVD

2136 S 272nd St Kent, WA

8/13/15 $12,950,000

$95,926

$132

135

1986



Steeplechase

8311 83rd Ave Ct SW Lakewood, WA

7/30/15 $12,230,000

$90,593

$108

135

1992


Spinnaker Management



$ Per SF

UnitsYear Built


Lighthouse

10710 SE 256th St Kent, WA

7/16/15 $11,500,000

$151,316

$164

76

2002



Pointe East

2524 62nd Ave E Fife, WA

2/11/15 $11,400,000

$91,935

$108

124

1986


John M. Miller

1800 Eastlake

1800 Eastlake Ave E Seattle, WA

3/31/15 $11,000,000

$314,286

$456

30

1999

4.4% Luke K. Snyder

Su Development

Pinewood Village

33311 18th Ln S Federal Way, WA

3/16/15 $10,800,000

$104,854

$113

103

1989

5.4% Carl D. Barnes

John Chan

Evergreen


4/20/15 $10,700,000

$89,167

$127

120

1990

5.6% Abacus Capital Group

Williams Investment

Mariner Court


4/30/15 $10,600,000

$113,978

$136

93

2000

5.5% Sidhu Enterprises

Inland Group

Madison Court

1922 42nd Ave E Seattle, WA

10/16/15 $10,500,000

$375,000

$449

28

1988

3.3% Derby Holding

Madison Court

Amara

124 N 103rd St Seattle, WA

12/21/15 $10,300,000

$183,929

$258

47

1990

3.8% Weidner Apartment Homes

Civetta Properties

64



$ Per SF

UnitsYear Built


Rivergrove (The Retreat)

7413 142nd Ave E Sumner, WA

1/9/15 $10,250,000

$77,652

$92

132

1976

5.8% Goodman Real Estate

James K. Pease

Puget Vista

411 W Republican St Seattle, WA

3/31/15 $10,150,000

$298,529

$360

34

1967

4.7% Tierra Group

The Stratford Company

Corinthian

3039 S 154th St SeaTac, WA

6/30/15 $10,120,000

$106,526

$146

95

1968

5.5% Housing Authority of King County

Kauri Investments

PORTLAND

PORTLAND

Market Overview

Continued economic growth and overall strengthening market fundamentals continue to solidify Portland as a market with yield and value for institutional investors. Employment in the metro area grew by 41,600 new positions in 2015, representing robust growth of 3.7 percent and the largest annual growth since the early 90’s. Economic expansion has been diverse with both office and industrial using firms. Portland continues to garner outsized attention from national media outlets touting the amazing quality of life, foodie scene and relatively affordable cost of living. The reality of what Portland has to offer is finally soaking in and businesses and real estate investors around the country are reacting.

In migration of the sought-after young and highly educated to Portland is driving job growth in the high tech sector as employers increasingly follow the talent. While pricing is escalating across all property types, Portland remains a relative bargain compared to its West Coast neighbors, both in terms of cost of living and in terms of cost of doing business. Perhaps growth in the Portland market can best be explained by one of the CEO’s of a tech firm that has recently elected to expand its Portland area presence; “We hired people from all over the country and gave them the choice between living in San Francisco or Portland. 100% chose Portland.”


Portland

Title right

68


2015 Portland office sales ($10M+) overview

Strong sales volume surpasses all years except 2007

The year 2015 saw total office sales surpass $1 billion for the first time since 2007, with institutional investors playing an increasingly active role. The market saw 21 transactions over $10 million take place during the year for a total of $1.077 billion in investment activity, an increase of 69 percent over 2014. Over the year investors pursued core assets in the CBD and core plus and value add assets in both the CBD and suburban submarkets. Institutional investment continues to look for opportunities in Portland as the city’s strong fundamentals and somewhat higher cap rates move the city from being a place of interest to a destination for institutional investors.

Enticed by the CBD’s solid market fundamentals, investors were highly motivated as trophy downtown assets came to market. In the largest single building sale ever recorded in Portland, LaSalle Investment/Unico sold the US Bancorp Tower to UBS/Unico in the third quarter. The sale set the year’s high mark for both single asset price and total square footage at $372.5 million and 1,100,707 square feet, respectively. The sale posted a strong cap rate of 4.9 percent. Also in the third quarter, Starwood and Kaufman Jacobs sold Block 300 to Prudential for $155 million with a cap rate of 4.4 percent on 87 percent occupancy at the time of sale. The building had recently undergone a significant lobby remodel repositioning to capture tech tenants. Additionally, Block 300 benefitted from significant government leasing with long term leases at very healthy rents. Also downtown, Overton Pearl sold to Empire Square Group with backing from Middle-East investment funds, setting the market’s high water mark for price per square foot at $499. WDC Properties sold the building for a total of $30.9 million with a 6.0 percent cap rate.

While the fundamentals of Portland’s rising real estate market brought value to well performing assets, these same fundamentals pushed investors to the city’s numerous value-add assets. CH2M

Center sold late in the second quarter with an occupancy rate of 79 percent. In 2012, the asset was fully leased when it was purchased by SKB and Wayzata Investment Partners for $38.7 million with a cap rate of 8.8 percent. This most recent transaction saw Wayzata/SKB sell the asset to Goldman Sachs/SKB for $55 million with a cap rate of 4.9 percent as SKB recapitalized. The comparatively low occupancy level holds value-add potential for the new owner, allowing them to capture rising market rents and demand for urban office space. KOIN Center sold early in 2015 for $88 million. The asset was purchased by SKB/Prudential from APIC with an 84 percent occupancy rate and a 4.4 percent cap rate. The asset last sold in 2012, when APIC purchased it from New York Life for $57 million with a 6.7 cap rate and 79 percent occupancy rate. The new owners have initiated plans to renovate the lobby and reposition the building to capture creative tenant demand in the area. Finally, One Pacific Square sold early in the year with an occupancy rate of 92 percent. The deal saw new market entrant, Menlo Equities purchase the asset for $48.5 million, representing a 13 percent increase over the 2006 purchase by Ashforth/GE Capital.

Of the year’s 21 transactions, nearly half (nine) took place in the suburbs. Early in the year, Blackstone purchased $3.3 billion in US real estate assets from GE Capital which included two properties in the Portland metro area. Rock Creek Corporate Center traded at an allocated $23 million and $160 per square foot and Sunset Corporate Park traded for $22 million and $165 per square foot. The most intriguing suburban deal in 2015 saw Zurich Alternative Asset Management purchase the fully stabilized Summit Building for $13.2 million with a cap rate of 6.8 percent from Prudential, demonstrating the increasing interest in stabilized suburban assets. Several other suburban assets came to market in 2015 but will close in the first quarter of 2016, adding to the activity in the suburbs.

70

Robust demand propels market to top of national heap

Portland’s office market saw 783,626 square feet of net demand in 2015, close to 20 percent higher than the 10-year historical average for net absorption, pushing market vacancy to a new historical low. Portland has seen five consecutive years of above average demand, while construction deliveries have been significantly below average until this year. This office market momentum has pushed vacancy to the new low of 8.9 percent. Portland now boasts the third lowest metro area vacancy of all major markets tracked by JLL, behind Salt Lake City, Nashville, and San Francisco. Demand for office space in Portland continues to be driven by technology firms, with more than 22 percent of all leasing activity attributed to high-technology and information. Market improvement was diverse, and the suburban areas demonstrated solid demand accounting for 33 percent there. Large spaces remained scarce and the scarcity drove users to protect their positions by renewing early and signing leases in office space to be delivered over the next 18 months.

Rents in the Portland market have increased notably over the past year, with overall metro area rents jumping 9.3 percent in 2015, compared to an average annual rent growth of 3.2 percent over the past 10 years. Market-wide Class A rents increased 6.6 percent year-over-year, with CBD Class A rents easily surpassing the $30 mark and now standing at $31.26, the highest level ever seen in the area. Class B rents in the CBD are also showing increasing momentum, with year-over-year rent growth of 15.4 percent for 2015. Strong demand from creative users is instrumental in driving this rental rate growth. Building class has become increasingly irrelevant and secondary to the amenities and finishes sought-sought after by creative users. Creative users have therefore had a significant impact on how owners are repositioning their buildings and driving a strong shift in office market preferences for amenities. Those amenities must now include a fitness center with shower facilities, bike storage/spa with repair facilities, conferencing, curated retail, community spaces and outdoor spaces.

The construction pipeline has filled considerably in the past year with 1.5 million square feet of office product currently under construction (with all but one of the projects being speculative and in the Central City). The market had 887,648 square feet in the pipeline at the end of 2014. Deliveries are up as well with 477,490 square feet delivering in 2015, compared with just 123,050 in 2014. A large amount of development is in the form of redevelopment, as developers look to capitalize on well-located, but functionally obsolete buildings which appeal to the growing number of expanding creative and high-tech firms in Portland. Large projects including Park Avenue West, Pearl West, and The Oregonian are expected to deliver in early 2016, which will add substantial supply to the CBD inventory. However, almost 50 percent of the product delivering in the CBD is already committed to tenants.

The Westside suburbs have been in growth mode for the past three years and vacancy has improved dramatically. With Westside suburban vacancy now sitting at 11.3 percent, the market has seen a strong recovery, dropping 60 basis points in the past year and 200 basis points since 2013. This has led to Class A rental rate increases of 4.2 percent year-over-year, with Sunset Corridor Class A up 5.3 percent over the same timeframe. Rents are far from justifying any new construction in the suburbs, so expect rents to jump considerably before any suburban speculative construction is contemplated.

Driven by the high price of new construction, expect rental rates to continue their ascent as properties deliver to the market. Vacancy will likely bump up slightly when deliveries hit the market, but is not expected to rise beyond 9.3 percent for the metro area, with the CBD likely seeing vacancy modestly higher. Institutional investment in the market will continue to drive the trend of re-positioning buildings; particularly for Class A buildings with vacant space, as new owners try to capture creative demand. This will further push rental rate growth in the market.

Portland office leasing


Portland office sales & statistics


Central City 25,179,658 6.7% $29.60 368,265

Eastside 6,267,741 7.7% $20.98 159,494

Westside 20,912,731 11.3% $23.14 135,713

Vancouver Suburbs 6,339,404 10.4% $19.87 120,154

2015 Total Market 58,699,534 8.9% $24.59 783,626

2014 Total Market 59,281,808 9.5% $22.22 1,373,669

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Number of Sales 14 28 9 5 5 5 9 14 18 21

Price/SF Highest $275 $442 $271 $159 $197 $356 $443 $399 $460 $496

CAP Rate Average 7.1% 6.7% 7.1% 7.6% 8.4% 7.4% 8.3% 7.3% 7.2% 5.6%

Sales Volume $702M $1.8B $518M $180M $200M $282M $247M $437M $638M $1.0B

Office market statistics


72

Portland office sales ($10M+)


Total SFYear Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

US Bancorp Tower

111 SW 5th Ave Portland, OR

8/26/15 1,100,707

1983

$372,500,000

$338

4.9% TPF Equity REIT (UBS)

LaSalle Investment Mgmt/Unico

• CBD Core asset

• Partial Interest Sale – Unico is maintaining 2-3% share


• Major tenants include US Bank, WebTrends, New Relic, Survey Monkey

Block 300

308 SW 2nd Ave Portland, OR

8/4/15 365,560

1991

$155,252,000

$424

4.4% Prudential

Starwood/

Kaufman Jacobs

• CBD Core asset

• 6.3% cap on year 3 stabilized


• Major Tenants include Aruba, Army Corps of Engineers & Puppet Labs

KOIN

222 SW Columbia St Portland, OR

1/23/15 355,705

1984

$88,000,000

$247

4.8% SKB/Prudential

American Pacific International Capital

• Off Market Deal

• CBD Core asset

• Cap based on in-place income


• New owners plan to invest in lobby upgrades and reposition building

CH2M Center


5/5/15 221,037

1982

$55,000,000

$248

4.5% Goldman Sachs/SKB

SKB/Wayzata Capital


• Asset located on fringe of CBD

• Major Tenants, CH2M Hill & LifeWise Health Plan of Oregon

• Off market transaction

One Pacific Square

220 NW 2nd Ave Portland, OR

1/20/15 240,338

1983

$48,500,000

$202

6.9% Menlo Equities

Ashforth/GE Capital

• 92.3% leased at time of sale

• Menlo plans to invest capital to upgrade lobby and capture rent growth

• NW Natural Gas occupies 71% of building with expiration in 5/20



Total SFYear Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

The Everett Bldg

121 NW Everett St Portland, OR

9/30/15 107,000

1999

$47,300,000

$442

6.2% NWEA

Washington RE Holdings

• Cap rate is an estimate

• Owner/User purchased building

• 100% occupied at time of sale by NWEA

• Property included above market parking of 1.8/1000 & 193 stalls

White Stag Block

24 NW First Ave Portland, OR

11/1/15 137,559

2008

$42,600,000

$310

N/A University of Oregon Foundation

Venerable Properties


• University of Oregon occupied 67% of building at time of sale

2100 River Parkway

2100 SW River Pky Portland, OR

1/30/15 96,266

1995

$35,350,000

$367

6.6% BDC Advisors

CalSTERS/Clarion



Overton Pearl

1455 NW Overton St Portland, OR

1/23/15 62,300

2011

$30,890,000

$495

6.0% Empire Square Group

WDC Properties


• Major tenant is GSA - leasing 62% with 10+ years remaining on term

• LEED Platinum Certified

GE Portfolio Sale

Sunset Corporate Park

22823 NW Bennett St Hillsboro, OR

Rock Creek Corp Ctr

3400 NW John Olsen Pl Hillsboro, OR

7/15/15 133,221

1998

144,031

1999

$22,000,000

$165

$23,000,000

$160

6.4%

7.0%

Blackstone

GE Capital

• Part of $3.3B portfolio sale that totaled 181 buildings

• OR portion consisted of 2 parks with 6 buildings totaling 277,252 SF

• Cap rates are estimates

74

Portland office sales ($10M+)


Total SFYear Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

West End Building

4101 SW Kruse Way Lake Oswego, OR

7/15/15 88,872

1980/2003

$20,100,000

$226

N/A Yakima

City of Lake Oswego


• Yakima will remodel building and will occupy 65,000 SF initially with plans to grow into balance

Riverview Tower

900 Washington St Vancouver, WA

8/31/15 163,853

1991

$18,750,000

$114

N/A Al Angelo Co

Cana Realty Group


• No major tenants in building

• Seller was distressed at time of sale

• Pre-negotiated sale price

New Market Theatre Block

115 SW Ash St Portland, OR

7/1/15 86,254

1871/1984

$15,500,000

$179

5.5% Swift Real Estate Partners

Beardsley


• Historic, Class C building

• Buyer plans on major renovations and potential future development on site

OGI Campus

2000 NW Walker Rd Hillsboro, OR

4/30/15 270,000

1987

$15,100,000

$56

N/A Southwest Value Partners

Criteria Properties

• Sale includes 40-acre campus with 15 buildings and 270,000 SF of office and lab space

• Included Bronson Creek office building (85,000 SF)

Mason Ehrman Building

222-234 NW 5th Ave Portland, OR

1/8/15 90,000

1940/2001

$14,500,000

$161

N/A GAW Capital/Downtown Properties

Kalberer

• Two buildings - 80,000 SF office and 30,000 SF warehouse (included 20,000 SF of basement)

• PDC is major tenant (60,000 SF) with 10+ years remaining

• Bought for redevelopment potential of warehouse



Total SFYear Built

Sale Price$ Per SF

Cap rate

BuyerSeller

Comments

Tidewater Cove Offices

5101-5721 SE Columbia Way Vancouver, WA

10/15/15 66,000

2004

$14,300,000

$216

6.9% Beardsley Development

Linda Hickey


• 1031 exchange

The Summit Building

1260 NW Waterhouse Ave Hillsboro, OR

6/8/15 72,109

1995

$13,200,000

$183

6.8% Zurich Alternative Asset Management

Prudential


• Major tenant is Columbia Sportswear

Block 90

322 NW 14th Ave Portland, OR

5/12/15 48,058

1939/2007

$12,900,000

$268

6.5% HP Investors

Vallaster


• Sale includes office and retail portion, not residential condos

4550 Macadam Bldg

4550 SW Macadam Ave Portland, OR

9/29/15 54,616

1956/1993

$12,250,000

$224

6.0% Kensington Management

Macadam Partners



Under Armour

2815-2831 SW Barbur Blvd Portland, OR

4/21/15 68,698

1977

$10,000,000

$145

N/A Rob Brewster

Watumull/Winkler

• Former All Star Fitness being re-developed into office for Under Armour

• Vacant at time of sale

Durham Plaza

16650 SW Upper Boones Ferry Rd Portland, OR

5/15/15 41,821

1962/1980

$10,000,000

$239

6.2% Kalberer Co.

Durham Plaza, LLC

• Major Tenant: Lanier Worldwide



Portland

78

2015 Portland industrial sales ($10M+) overview

Sales volume up, deliveries in mid stride

Sales volume for industrial product jumped to over $730 million in 2015, more than double the volume sold in 2014 and more than 600 percent of the volume the market has averaged during the previous seven years. Of the sales in 2015, $627 million in 8 transactions were institutional investments while the remaining transactions were owner/user or local acquisitions. Deliveries are beginning to surge, particularly in the NE Columbia Corridor, and owners are seeing this as a sign of a peak in asset value, leading to an increase in properties hitting the market.

Strong demand from institutional investors has led to cap rate compression, particularly for premium assets. While the average cap rate for trades in 2014 was 7.1 percent, the number dropped to 6.2 percent in 2015. Though 2014 brought the first transaction with a sub 6.0 percent cap rate in recent history, 2015 saw all but two of the institutional transactions include a sub 6.0 percent cap rate. The third quarter acquisition of Kelley Point Distribution Center by Industrial Property Trust for $73.5 million from Bentall Kennedy included the year’s lowest cap rate of 5.4 percent. Rents are rising quickly in Portland which is leading to cap rate compression. Portland saw two substantial portfolio sales take place; IndCor Properties portfolio, consisting of 2.9 million square feet in 44 buildings and, the Industrial Income Trust portfolio consisting of over 1 million square feet in eight properties. The IndCor Properties portfolio had the year’s highest price tag at $253.3 million (allocated) and was purchased by GIC/Global Logistics Properties with a 6.0 percent cap rate. The Industrial Income Trust portfolio sold for $110.6 million in the fourth quarter to Global Logistics Properties with a 5.6 percent cap rate.

The strong demand from institutional investors seems to have priced owner/users out of the market and limited the number of assets captured by local investors. While 2014 saw 35 percent of sales volume go to owner/users, that activity was severely reduced in 2015 with only one property over $10 million going to an owner/user, representing less than 3 percent of sales volume for the year. Local investors also remained active in the Portland market, but were limited in their ability to capture assets, with just two sales going to local and regional groups. Harsch Investment Properties expanded their local holdings by over 700,000 square feet with the purchase of the Parkside Business Center for $73.5 million from Deutsche Bank. The transaction included 33 buildings and 7 storage structures, and had an occupancy rate of 93 percent. The 101,578 square foot Milwaukie Business Park was sold by PS Business Parks to Pacific NW Properties for $10.9 in the first quarter. The flex park had an occupancy rate of 97 percent.

Leading up to 2015, Portland had seen a limited number of quality assets come to market. As market fundamentals strengthened during the year, however, multiple large transactions took place. The area’s economy is forecast to maintain its strength over the next several years and new developments are stabilizing quickly in Portland’s heated industrial market; as such, expect continued heightened interest by local and institutional investors alike, as the potential for future value remains strong.

SALES VOLUME JUMPED TO OVER $730 MILLION IN 2015, MORE THAN DOUBLE THE VOLUME SOLD IN 2014 AND MORE THAN 600 PERCENT OF THE VOLUME THE MARKET HAS AVERAGED DURING THE PREVIOUS SEVEN YEARS.


Portland industrial leasing

Construction volumes up to meet strong demand

Portland’s traded-sector economy supports a strong and vibrant industrial market and includes traded sector clusters such as active apparel companies, electronics manufacturers, food and beverage, and “clean” technology companies. A “traded-sector” economy is defined as one where goods and services are used outside the region. Area manufacturers contribute significantly to Portland’s traded sector economy and computer and electronic manufacturing dominate the area. The industrial supersectors which include trade, transportation & utilities, manufacturing and construction, are all performing strongly with each sector showing employment growth in the range of 3 percent. This strong industrial employment growth has been driving demand for-and construction of-new industrial product.

Metro area net absorption has historically averaged 2.2 million square feet on an annual basis with construction averaging 2.0 million square feet. 2015 saw the market absorb 4.3 million square feet with 2.9 million square feet delivering, far surpassing 2014 numbers and historic averages. Metro area vacancy dropped to its lowest level in over 30 years, now sitting at 3.8 percent. Industrial leasing volume was strong during the year and market activity sustained the growth seen in the second half of 2014. Growth has been driven by a wide range of industries, as the market has started to diversify its industrial base. In addition to

computer and electronics manufacturing and distribution, the area saw robust demand from food and beverage distribution companies as well as auto and auto-related firms. The area has also seen a surge in activity from third party logistics providers driven by strong millennial population growth as Portland continues to be a favorite destination of in migrating young and educated workers.

The market is seeing significant new construction break ground. 2014 saw 2.2 million square feet of deliveries; 2015 saw 2.9 million square feet deliver; and there are currently 2.0 million square feet of warehouse/distribution and manufacturing space under construction. There are also many known projects set to begin in the first quarter of 2016. 2015 saw many prominent developments deliver, including Specht’s Interstate Crossroads at 492,544 square feet and Holland Partner Group’s Cameron Distribution Center at 320,795 square feet. This new development activity demonstrates confidence in demand in the NE/Columbia Corridor. Shovel-ready industrial land is in very limited supply within Portland’s urban growth boundary, and this barrier to entry should continue to keep new supply in check. While average asking rents ended 2015 down imperceptibly from 2014, asking rents for new product has bumped up considerably, driven by new institutional owners and new construction pricing.

2015 SAW 2.9 MILLION SQUARE FEET DELIVER; AND THERE ARE CURRENTLY 2.0 MILLION SQUARE FEET OF WAREHOUSE/DISTRIBUTION AND MANUFACTURING SPACE UNDER CONSTRUCTION

80

Portland industrial sales & statistics

Submarket Size (RSF) Vacancy Avg. Rental Rate Net Absorption (RSF)

Eastside 90,930,627 3.7% $0.48 2,426,025

Westside 60,347,184 3.5% $0.54 1,766,365

Clark County 16,213,468 4.0% $0.52 146,870

2015 Total Market 167,491,279 3.8% $0.50 4,339,260

2014 Total Market 164,980,769 4.8% $0.51 2,699,116

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Number of Sales 13 17 5 1 1 2 5 5 15 11

Price/SF Highest $207 $156 $112 $52 $59 $44 $63 $95 $133 $153

CAP Rate Average 7.8% 6.9% 7.0% 9.5% 9.2% N/A 7.4% 7.4% 7.1% 6.2%

Sales Volume $454M $377M $84M $40M $28M $32M $173M $103M $320M $732M

Industrial market statistics



Portland industrial sales ($10M+)


Total SFYear Built

Sale Price$ Per SF


Comments

IndCor Portfolio

(11 parks)

158th Com Ctr

15929 Cameron Blvd

Park 217 Business Ctr

11950 SW Garden Pl

Yeon Business Ctr

3315 NW 26th Ave

Airport Business Ctr

7002 NE 79th Ct

Airport Way Com Park

14105 NE Airport Way

Argyle Industrial Park

2321 NE Argyle St

Cascade Business Ctr

10575 SW Cascade Blvd

Nelson Business Ctr

14344 SW 72nd Ave

Swan Island Indust Ctr

3002 N Wygant

Southwest Com Ctr

7500 SW Tech Ctr Dr

Wilsonville Dist Ctr

29555 SW Boones Ferry Rd Portland, OR

2/27/15 2,904,178

Various

380,930

256,530

218,976

230,248

205,000

104,160

159,411

402,410

85,840

93,750

766,923

$253,300,000

$87

$33,700,000

$36,800,000

$15,400,000

$25,300,000

$20,600,000

$19,000,000

$9,200,000

$32,900,000

$7,100,000

$8,500,000

$44,800,000

6.1% GIC (Govt of Singapore) / GLP (Global Logistics Properties)

IndCor Properties

• Part of a larger, national $8.1 billion portfolio

• Pricing is based on allocation

82

Portland industrial sales ($10M+)


Total SFYear Built

Sale Price$ Per SF


Comments

Global Logistics Portfolio

(3 parks)

Northgate Industrial Ctr

5409 N Marine Dr

Foster 205 Com Ctr

11411 SE Foster Rd

Southshore Com Ctr

4122 NE 185th Dr Potland, OR

11/15/15 1,131,878

Various

131,500

272,146

728,232

$110,600,000

$98

$13,100,000

$26,900,000

$70,600,000

5.6% GLP (Global Logistics Properties)

Industrial Income Trust


• Part of a 295 property national transaction

Parkside Business Center

7721-8360 SW Nimbus Beaverton, OR

3/31/15 735,073

1981

$73,550,000

$100

6.8% Harsch Investment Properties

RREEF

• 33 buildings and 7 storage structures


Kelley Point Distribution Center

15925 N Lombard St Portland, OR

9/1/15 1,034,500

2000

$73,500,000

$71


Bentall Kennedy

• 95.1% leased at time of sale

Northwest Corporate Pk

3571-3599 NW Yeon Ave Portland, OR

9/17/15 678,026

1970-1975

$58,200,000

$86

6.9% Prologis

CalSTRS

• 10 building industrial park



Tualatin Corporate Center

19701 SW 95th Pl Tualatin, OR

4/1/15 401,688

1990-1996

$36,100,000

$91

5.6% Stockbridge

Crow Holdings


• 7-building Class A quality park on 25.6 acres



Total SFYear Built

Sale Price$ Per SF


Comments

Parkway Woods Business Park

26600 SW Parkway Ave Wilsonville, OR

12/2/15 581,513

1975

$32,700,000

$56

7.5% SKB

Xerox Corporation

• 53% vacant at time of sale

• 3 Buildings

• Xerox leased back 184,000 square feet

Birtcher Center @ Townsend Way

22637-23070 NE Townsend Way Fairview, OR

7/15/15 397,934

2007

$34,500,000

$87

5.7% Invesco

Cornerstone RE Advisors

• 3 building park


FedEx

6447 N Cutter Cir Portland, OR

12/16/15 212,015

2015

$32,417,015

$153

5.8% Cordia Capital Mgmt

Setzer Properties

• Sale Lease Back



Ogden Business Center

2200 NE 65th Ave Vancouver, WA

9/1/15 214,427

1975

$18,050,000

$84

N/A Educational Service District

Christensen Group

• 5 buildings


• Owner/user transaction

• Educational Service District occupies 3 of 5 buildings

Milwaukie Business Park

4020-4160 SE International Way Milwaukie, OR

2/13/15 101,578

1982

$10,900,000

$107

8.2% Pacific NW Properties

PS Business Park


• Incubator/flex park


Portland


86

2015 Portland retail sales ($10M+) overview

Investment sales surge as cap rates decline

Institutional interest in Portland area retail properties remained strong in 2015, driven by solid population and economic growth and favorable regional demographics. While institutional interest had been growing over the previous two years, 2015 set a new benchmark with institutional investment, helping push total retail real estate sales over $1 billion for the first time in Portland’s history. The year’s total volume represents a 57 percent increase over 2014 with neighborhood centers being the most sought-after property type. Super regional malls saw significant activity during the year with both the Washington Square Mall and Wesfield Vancouver Mall changing hands. In the fourth quarter, GIC Real Estate purchased Washington Square Mall from The Macerich Company for $485.2 million. Also in the fourth quarter, USAA Real Estate/Blum Capital/Centennial Real Estate Company purchased the Westfield Mall in Vancouver for $169.8 million from the Westfield Group. Both super regional malls had strong occupancy at the time of sale and were part of much larger multi-state portfolio transactions. Overall pricing has escalated, with the average price per square foot jumping to $282, up 10.8 percent year-over-year but not yet back to the market peak of 2006 when average pricing was $311 per square foot. Cap rates have compressed again this year, dropping to 6.6 percent, their lowest level since 2008 and down from 7.3 percent in 2014.

Grocery-anchored shopping centers dominated investor activity as the Haggen bankruptcy led to numerous transactions with Albertsons, Safeway and Haggen’s. The deal had a per-square foot basis of $223 and a 7.5 percent cap rate. Other active buyers included Retail Opportunity Investments Corp, who purchased the Johnson Creek Shopping Center, Tigard Promenade, Sunnyside Village and the Tigard Safeway, and Seritage Growth Properties, who bought Sears at Washington Square Mall and Clackamas Town Center as part of a much larger portfolio sale. Early in the third quarter, Spirit Realty Capital purchased three Albertson stores directly from the operator for $26.8 million. Albertsons will lease the stores back from Spirit.

2015 SET A NEW BENCHMARK WITH INSTITUTIONAL INVESTMENT, HELPING PUSH TOTAL RETAIL REAL ESTATE SALES OVER $1 BILLION FOR THE FIRST TIME IN PORTLAND’S HISTORY.


Portland retail leasing

Strong demographics propel retail market

Portland remains a destination for the young and educated as millennials continue to move to the area in search of quality of life and affordability. A recent national retail study ranked Portland area retail sales up the most of all major metro areas in the US, up 9.2 percent, while US average sales were up just 1.8 percent. These sales have been driven by Portland’s above-average population growth and outstanding job growth. The market’s reputation as a tech-center continues to be a draw, Oregon was the number one destination for US migration again this year, with the highest number of new residents coming from California. Further proof of Portland’s economic prowess came in its number eight ranking of best performing large metro’s from the Milken Institute’s 2015 release. The report calls out Portland’s solid job and wage growth as well as its strong concentration in the high tech sector. While this growth has been a boon to the local economy in the form of increased retail sales, it has also had a significant impact on the area’s affordability with housing prices up more than 14 percent in 2015.

The strong growth of the millennial cohort has had a significant impact on the Portland retail market as this demographic has a demonstrated preference for urban living, and retail is following

rooftops. As multifamily construction has exploded in Portland’s urban neighborhoods, so has the street level retail that is being built with these projects. The move toward urbanization is leading people to move back into cities in search of a shorter commute, walkable communities, and a live-play-work environment. This is also leading to significantly more mixed-use urban residential development with storefront/urban retail space designed to meet the needs of these residents.

Portland’s retail market saw solid improvement in 2015 with strong net absorption coming in at over 700,000 square feet, pushing vacancy to 4.6 percent, down 40 basis points from 2014. While average asking rents fell 15 percent during Portland’s downturn, they have been rebounding for the past three years, regaining 3.3 percent during 2015. Construction remains minimal, with just over 800,000 square feet delivering to the market during the year. This could present a challenge for expanding retailers, since vacancy is already at pre-recession levels.

A RECENT NATIONAL RETAIL STUDY RANKED PORTLAND AREA RETAIL SALES UP THE MOST OF ALL MAJOR METRO AREAS IN THE US, UP 9.2 PERCENT WHILE US AVERAGE SALES WERE UP JUST 1.8 PERCENT.

88

Portland retail sales & statistics


CBD 4,773,902 4.3% $19.69 -57,365

Clark County 18,447,034 6.7% $16.90 342,672

I-5 Corridor 10,895,411 4.0% $21.61 121,787

Lloyd District 5,437,468 6.1% $15.76 -124,225

Northeast 20,421,444 4.4% $17.35 119,777

Northwest 1,833,949 3.6% $21.45 122,920

Southeast 22,339,792 3.9% $15.86 134,674

Southwest 13,601,139 3.8% $18.16 74,252

Westside 9,568,828 3.7% $18.30 -28,780

2015 Total Market 107,318,284 4.6% $17.42 705,712

2014 Total Market 105,945,347 4.8% $16.86 1,081,265

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Number of Sales 13 14 6 4 9 4 5 9 13 20

Price/SF Highest $393 $633 $636 $173 $328 $209 $533 $405 $564 $643

CAP Rate Average 6.8% 6.5% 6.6% 8.5% 7.9% 9.7% 6.4% 7.4% 7.3% 6.6%

Sales Volume $322M $383M $93M $89M $311M $70M $151M $677M $668M $1.0B

Retail market statistics



Portland retail sales ($10M+)


Total SFYear Built

Sale Price$ Per SF


Comments

Washington Square Mall

9301 SW Washington Square Rd Tigard, OR

11/2/15 1,443,000

1974/2005

$485,206,752

$336

N/A GIC Real Estate

The Macerich Company



• Major tenants Nordstrom, Macys, and Dick’s Sporting Goods

• Price is allocated

• Partial interest sale

Westfield Vancouver Mall

8700 NE Vancouver Mall Dr Vancouver, WA

12/15/15 637,289

1977/2004

$169,800,000

$266

N/A USAA Real Estate / Blum Capital / Centennial Real Estate Company

Westfield


• Super regional mall


• Major tenants JCPenney, Sears, Macy’s, Cinetopia, Gold’s Gym, Old Navy

Sears at Washington Square Mall


11/2/15 228,537

1973

$76,845,250

$336

N/A GIC Real Estate

The Macerich Company



• Partial interest sale

• Single tenant Sears

Johnson Creek Shopping Center

9159 SE 82nd Ave Portland, OR

11/9/15 109,209

2005

$32,100,000

$294

5.6% Retail Opportunity Investments Corp

NewQuest Properties/Walton Street Capital


• Neighborhood center

• Major tenants include: Trader Joe’s, Lamps Plus, Walgreens

The Pointe at Bridgeport

7174 SW Hazelfern Rd Portland, OR

12/15/15 48,478

2007

$31,150,277

$643

N/A Crow Holdings

KemperCo


• 4 buildings across from lifestyle center

• Major tenants include Key Bank, Starbucks, Verizon, Jimmy John’s, Qdoba

90



Total SFYear Built

Sale Price$ Per SF


Comments



4/30/15 228,537

1973

$27,400,000

$120

4.9% The Macerich Company

Sears Holding Corporation


• Sale leaseback

• Partial interest

Portfolio Sale

Albertson’s

14300 SW Barrows Rd Tigard, OR

16199 SW Boones Ferry Rd Lake Oswego, OR

16200 SW Pacific Hwy Tigard, OR

6/12/15 120,139

1980

1965

1988

$26,826,611

$223

7.5% Spirit Realty Capital

Albertsons

• Part of 20 property multi-state portfolio


• Sale leaseback

Tigard Promenade


7/29/15 88,199

1996

$24,825,930

$281

5.9% Retail Opportunity Investments Corporation

Terrama Retail Centers

• Part of 2 property portfolio (sold with Sunnyside Village)

• 4 building Neighborhood center

• 94% occupied at time of sale

• Major tenants include Safeway, Supercuts, Petco

Trails End Marketplace

19721 Hwy 213 Oregon City, Oregon

7/10/15 102,395

2000

$20,100,000

$196

10.0% Loja Trails End

Trails End Oregon Investors


• Major tenants include Haggen, Carls Jr, Texaco

Orchard Supply

4030 NE Halsey St Portland, OR

2/20/15 42,404

1963/2015

$20,000,000

$471

N/A Dunn Property Group

Oppidan Investment

• Former bowling alley


• Redeveloped into Orchard Supply Hardware and sold to current owner



Total SFYear Built

Sale Price$ Per SF


Comments

Canyon Town Center

11959 SW Canyon Rd Beaverton, OR

10/15/15 51,600

1989

$17,475,000

$339

6.7% Rasoul Oskouy

William C Floberg


• Major tenants include Home Goods, Big 5, Sleep Train



7/6/15 228,537

1973

$16,518,044

$72

4.9% Seritage Growth Properties

Sears Holding Corporation


• 2 buildings included

• Sale represents 50% interest

New Seasons

4500 SE Woodstock Blvd Portland, OR

10/19/15 25,000

2015

$15,680,000

$627

N/A Robinson Partners

First Western Development

• Recently re-developed into New Seasons Market


Safeway


7/29/15 54,142

1995

$15,239,691

$281


Terramar Retail Centers


• Part of a regional portfolio sale of 8 properties

San Rafael Shopping Center

1950 NE 122nd Ave Portland, OR

9/15/15 105,000

1989

$15,000,000

$143

N/A Winco Foods

Harsch


• Free standing retail

92



Total SFYear Built

Sale Price$ Per SF


Comments

Sunnyside Village Square

14600 SE Sunnyside Rd Clackamas, OR

7/29/15 89,506

1997

$13,674,071

$153


Terrama Retail Centers

• Part of 2 property portfolio (sold with Tigard Promenade)

• 4 building Neighborhood center


• Major tenants include Haggen, Safeway, Starbucks, Ace Hardware

Evo

200 SE Martin Luther King Jr Blvd Portland, OR

11/15/15 25,430

1893

$10,709,203

$421

N/A Levan Boise Real Estate Holdings

First Western Development


• Tenant is Evo

• Urban retail storefront

Albertsons

1855 Blankenship Rd West Linn, OR

3/25/15 47,451

1997

$10,100,000

$213

N/A Walt & Carol Ordermann

Garrison Investment Group

• Part of a portfolio sale of 14 properties in several states

• Property will be converted into Haggen


Sears at Clackamas Town Center

11800 SE 82nd Ave Portland, OR

7/7/15 144,321

1980

$10,100,000

$70

6.7% Seritage Growth Properties

Sears Holdings Corporation

• Part of a portfolio sale of 292 properties


Safeway

13719 SE Mill Plain Blvd Vancouver, WA

11/10/15 68,164

1994

$10,000,000

$147

7.0% Beardsley Development

Barclay’s Realty


• Safeway is tenant

Title right

94


Portland

Seattle & Portland 2015 Investment Overview

2015 Portland multifamily sales ($10M+) overview

97

Multifamily sales volume hits all time record

In 2015, the Portland multifamily investment market continued to gain momentum. The greater Portland metro area led the nation in rent growth with reported gains of 14.8 percent over the past year. Vacancy rates also reached a record low of 2.9 percent in this continuously supply-constrained market. New construction lags behind current demand and this shortage is expected to stay pronounced as job opportunities and in-migration remain high.

Overall market rents are averaging just over $1.30 per square foot. Downtown Portland is leading the way at $2.15 per square foot. The majority of new multifamily developments have occurred in the downtown and close in urban areas. Although these assets command greater rent premiums, swift absorption underscores the pent up desire for modern, urban living. It is expected that the greater Portland area will experience an influx of up to 30,000 residents each year for the next four to five years. With less than 9,000 units under construction, however, there is not nearly enough new rental product in the pipeline to keep pace with the expanding renter pool. This combination of factors will keep upward pressure on rents and hold vacancy down.

The influx of renters is spurred in large part by the thriving economy and high prospects for employment. The metro area has experienced job growth of 3.7 percent year-over-year, a statistic that places Portland among the top performing major cities in the country. Incomes are also top-tier as recent research shows roughly 35 percent of new jobs earn workers six digit salaries. With a relatively low cost of living compared to other key metros on the West Coast such as Seattle, San Francisco and Los Angeles, Portland offers exceptional potential for continued rent growth.

Investors are capitalizing on the strength of the Portland market, trading assets worth more than $1.7 billion last year – a new record for the metro region. Cap rates are dropping overall, with typical deals averaging between 5 and 5.5 percent. For new construction at the institutional-level (50 or more units), median prices are at their highest in recent memory, earning $525 per square foot and $330,000 per unit, respectively. Top deals for 2015 included Mint Urban Riverplace, which sold for $97.2 million. The Janey also transacted at $45 million, establishing a new benchmark for institutional new construction at $648 per square foot.

Looking forward, expectations remain high for a landlord-favorable environment. Portland is expected to stay ahead of much of the country in many drivers influential to the multifamily market. Absorption and rent premiums will keep trending upward as more high-paying jobs bring new talent to the market, with a particular emphasis on tech-based work and the millennial generation. Additional evidence of Portland’s multifamily market strength can be found in the office market, which saw a banner year in 2015, further adding to the demands of the apartment market. Proposed multifamily developments further out in the pipeline will not be able to keep pace with the ongoing needs of the rental population, even if all 20,000+ proposed units are delivered. This will keep occupancy near historic highs, affording investors the opportunity to achieve strong returns and optimize operating income.

98

Portland multifamily sales & statistics

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total # of sales 25 27 21 8 16 21 20 20 37 49

Highest price per unit $146,610 $294,077 $455,340 $184,659 $285,149 $395,000 $267,241 $343,017 $456,710 425,000

Cap rate average 6.1 5.2 5.4 7.2 5.9 5.7 5.7 5.6 5.6 5.3

Total sales volume $458M $845M $725M $167M $463M $760M $725M $702M $1.2B $1.7B


INVESTORS ARE CAPITALIZING ON THE STRENGTH OF THE PORTLAND MARKET, TRADING ASSETS WORTH MORE THAN $1.7 BILLION LAST YEAR – A NEW RECORD FOR THE METRO REGION.


Portland multifamily sales ($10M+)


$ Per SF

UnitsYear Built


Mint Urban Riverplace

2083 SW River Dr Portland, OR

9/18/15 $97,200,000

$335,172

$311

290

1991

5.3% NFN Investments

Cardinal Group Investments

Village at Main Street

30050 Town Center Lp W Wilsonville, OR

12/15/15 $95,000,000

$204,741

$195

464

1998/2005

5.6% Vams Sterling Pointe Commercial

Marathon RE Services

Sterling Pointe

14437 SW Teal Blvd Beaverton, OR

9/4/15 $91,080,000

$144,571

$159

630

1988

6.0% Prime Group

DHIJ Management

Wyndham Park Apartments

14700 SW Scholls Ferry Rd Beaverton, OR

6/10/15 $63,900,000

$151,064

$191

423

1985

5.8% Holland Partners

Kunz Investments

The Parker


3/17/15 $63,500,000

$358,757

$535

177

2014

4.4% Invesco Real Estate

Astor Pacific

The Terrene at the Grove

8890 SW Ash Meadows Cir Wilsonville, OR

8/31/15 $59,500,000

$206,597

$204

288

2014

5.6% Jackson Square Properties

Holland Partners

Museum Place

1010 SW Jefferson St Portland, OR

6/19/15 $59,500,000

$290,385

$388

140

2004

4.9% Zurich Alternative Asset Management

AEW Capital Management

Jory Trail at the Grove

8520-8750 SW Ash Meadows Blvd Wilsonville, OR

1/27/15 $59,000,000

$182,099

$187

324

2012

5.7% M&C Properties

Holland Partners

100



$ Per SF

UnitsYear Built


Greenleaf at River Pointe


12/16/15 $55,000,000

$141,753

$161

388

1994


Kennedy Wilson

Waterhouse Place

600 NW 158th St Beaverton, OR

9/24/15 $54,550,000

$195,520

$212

279

1999

5.7% Sequoia Equities

Holland Partners

Canyon Creek Apartment Villages

26310 SW Canyon Creek Rd Wilsonville, OR

4/30/15 $49,500,000

$132,353

$136

374

2000

6.1% Aukum Management

Eastern Western Corporation

Redwood Creek Apartments

12015 SW Walden Ln Beaverton, OR

4/6/15 $48,750,000

$120,074

$142

406

1980

6.2% Tandem Property Management

Abacus Capital Group

Domaine at Villebois

28900 SW Villebois Dr Wilsonville, OR

6/26/15 $48,030,000

$175,274

$182

274

2007

5.7% Principal Global Investors

The Carlyle Group

The Cordelia


7/14/15 $47,800,000

$354,074

$531

135

2014

4.4% TIAA-CREF

Mill Creek Residential Trust

206 Apartments

2499 NW 206th Ave Hillsboro, OR

6/29/15 $47,340,000

$233,207

$271

203

2014

5.3% Praedium Group

Arbor Custom Homes

Bridge Creek

29925 SW Rose Ln Wilsonville, OR

9/15/15 $46,750,000

$148,413

$171

315

1981





$ Per SF

UnitsYear Built


Andover Park

15282 SW Teal Blvd Beaverton, OR

6/30/15 $45,250,000

$188,542

$194

240

1989

5.8% DiNapoli Capital Partners

UDR

The Janey

1155 NW Everett St Portland, OR

12/16/15 $45,000,000

$368,709

$595

112

2012

4.2% Oakwood Worldwide

Columbia Investments

Boulder Creek

28740 SW Ashland Loop Wilsonville, OR

9/15/15 $44,739,438

$151,147

$169

296

1990



Burnside 26

2625 E Burnside St Portland, OR

8/4/15 $41,500,000

$303,442

$511

135

2014

4.5% BlackRock

Capstone Partners

Element 170

1563 SW 172 Ter Beaverton, OR

2/13/15 $39,000,000

$160,494

$218

243

2014


Metropolitian Land Group

Avalon Apartments

20300 SE Morrison Ter Gresham, OR

10/30/15 $32,890,000

$146,159

$173

225

2004

5.8% Friedkin Realty Group

American Capital Group

Montclair Terrace

4824 SW Oleson Rd Portland, OR

10/29/15 $32,800,000

$162,376

$176

202

1981

5.8% Resource Real Estate

Bascom Northwest Ventures

Green Leaf Springs

4545 NE 125th Pl Portland, OR

11/1/15 $29,050,000

$109,211

$130

266

1974

6.2% Latitude Management Real Estate Investors

Green Leaf Partners

102



$ Per SF

UnitsYear Built


Arnada Pointe Apartment Homes

4820 NE Hazel Dell Ave Vancouver, WA

8/18/15 $28,000,000

$140,000

$146

200

1997

5.9% Strada Equity

Holland Partners

The Park At Tualatin

7800 Sw Sagert St Tualatin, OR

7/15/15 $28,000,000

$133,333

$174

210

1979



Springville Oaks

16320 NW Canton St Portland, OR

12/15/15 $28,000,000

$250,000

$248

112

2015

5.6% Praedium Group

Arbor

Miramonte Lodge

12200 SE McLoughlin Blvd Portland, OR

7/21/15 $27,800,000

$120,346

$170

231

1989


Holland Partners

Powell Valley Farms

1500 SW Pleasant View Dr Gresham, OR

6/15/15 $27,750,000

$121,711

$142

228

2003


Sunnyside Construction & Development

Heatherbrae Commons

10303 SE Bell Ave Milwaukie, OR

12/8/15 $26,500,000

$152,299

$173

174

1995

5.8% Kennedy Wilson

Guardian Real Estate Services

Parkside Apartment Homes

2831 SE Palmquist Rd (Part of Portfolio) Gresham, OR

3/26/15 $24,533,400

$109,037

$121

225

1999

6.1% Kohlberg Kravis Roberts & Company

Crossbeam Capital



$ Per SF

UnitsYear Built


Woodspring


7/23/15 $22,000,000

$127,907

$124

172

1991


Transpacific Investments

Tualatin View Apartments

18480 SW Boones Ferry Rd Tualatin, OR

4/29/15 $21,970,000

$104,619

$109

210

1994


Grand Peaks Properties

The Addison Apartments


8/13/15 $21,700,000

$147,619

$131

147

2008


Matteson Companies

Fieldstone Apartments

20650 NE Halsey St Fairview, OR

10/15/15 $20,800,000

$135,065

$136

154

1997

6.0% Affordable Housing Associates

Montagne Development

Prestige Plaza

305 E Mill Plain Blvd Vancouver, WA

9/1/15 $20,360,000

$203,630

$265

100

2014

5.6% John Evilsizor Realty

Prestige Development

Courtyard at Cedar Hills

13643 SW Electric St Beaverton, OR

7/30/15 $19,850,000

$136,897

$149

145

1969

6.1% Virtu Investments

Prime Group

Summerlinn

400 Springtree Way Westlinn, OR

6/19/15 $19,200,000

$160,000

$123

120

2001

6.2% The Reliant Group

Steven F. Hansen

Central Eastside Lofts

111 NE 6th Ave Portland, OR

1/21/15 $18,900,000

$249,121

$429

70

2013

4.7% Juniper Management

Andrews Management

104



$ Per SF

UnitsYear Built


Harbour Court Apartments

910 N Harbour Dr Portland, OR

2/27/15 $17,700,000

$178,788

$179

99

2000

5.8% ConAm

Goodman Real Estate

Willow Grove Apartments

11835-11981 SW Center St (Part of Portfolio) Beaverton, OR

2/27/15 $17,300,000

$145,378

$156

119

1989


Praedium Group

The Bluffs

12601 SE River Rd Portland, OR

7/21/15 $16,500,000

$120,438

$155

137

1968


Holland Partners

Haven at Charbonneau

8755 SW Illahee Ct Wilsonville, OR

6/4/15 $16,000,000

$126,984

$146

126

1990



The Mark at Lake Oswego

15000 Davis Ln Lake Oswego, OR

10/8/15 $15,500,000

$189,024

$217

82

1989

5.6% Pacific Urban Residential


Jasper Place

18300 NW Walker Rd (Part of Portfolio) Beaverton, OR

2/27/15 $14,800,000

$148,000

$165

100

1986


Praedium Group

Village on Seventh

12800 SE 7th St Vancouver, WA

12/14/15 $14,750,000

$141,827

$136

104

1992





$ Per SF

UnitsYear Built


Hanover

3150 SW 185th Ave Beaverton, OR

12/11/15 $13,500,000

$160,714

$175

84

1998



Jasper Square

15195-15211 SW Walker Rd (Part of Portfolio) Beaverton, OR

2/27/15 $12,900,000

$155,422

$159

83

1987


Praedium Group

West Slope Terrace

8585 SW Canyon Ln Portland, OR

6/11/15 $12,700,000

$132,292

$126

96

1969

6.0% Daniel E. Casey

David M. Dufenhorst

Westover Tower Apartments

930 NW 25th Pl Portland, OR

2/24/15 $12,400,000

$177,143

$397

70

1950

4.8% Prometheus Real Estate Group

Langley Investment Properties

Red Tail Canyon

8149 SE Aspen Summit Dr Portland, OR

2/2/15 $12,010,000

$164,479

$138

73

2004

5.8% Pathfinder Partners

JBH Company

The Township

700 SE 5th Ave Canby, OR

9/4/15 $12,000,000

$129,032

$130

93

1999



Beaumont Village Apartments

4419-4439 NE Fremont St Portland, OR

2/27/15 $11,500,000

$230,000

$372

50

2014

5.0% Bluestone Communities

Everett Custom Homes

The Astoria

1913 NE 73rd Ave Portland, OR

12/18/15 $11,250,000

$165,441

$276

68

1947

5.5% West Valley Properties


601 Union Street, Suite 1100, Seattle, WA 98101 tel +1 206 607 1700 fax +1 206 607 1701

225 108th Avenue NE, Suite 550, Bellevue, WA 98004 tel +1 425 974 4000 fax+1 425 974 4020

1120 Couch Street, Suite 500, Portland, OR 97209 tel +1 503 972 8000 fax +1 503 972 8001

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