SVN | Bluestone & Hockley | 9320 SW Barbur Blvd., Suite 300, Portland, OR 97219 SALE BROCHURE

GLENDOVEERAPARTMENTS74 - 94 SE 148THPORTLAND, OR 97233

Cliff Hockley CPM, CCIMManaging Director503.222.3800cliff.hockley@svn.com

OFFERING SUMMARY

Sale Price: $1,625,000

Number Of Units: 13

Cap Rate: 5.22%

Available SF: 0 SF

Year Built: 1969

Building Size: 11,297 SF

Renovated: 2013

Zoning: High Density

Residential

Market: Outer South East

Price / SF: $143.84

PROPERTY OVERVIEWThis beautiful brick and aluminum sided building is a great mid-MultnomahCounty investment with lots of character. Most units have own laundry roomand there is also separate laundry facility onsite.

PROPERTY HIGHLIGHTS

• Off street parking

• Quality cabinetry

• Many units have patios

• Spacious apartments with washer/dryer hookups

• The property is owned by Cliff and Julie Hockley - both licensed real estatebrokers in Oregon

Property Summary

GLENDOVEER APARTMENTS | 74 - 94 SE 148TH , PORTLAND, OR 97233 SVN | Bluestone & Hockley | Page 2

Additional Photos

GLENDOVEER APARTMENTS | 74 - 94 SE 148TH , PORTLAND, OR 97233 SVN | Bluestone & Hockley | Page 3

UNIT TYPE COUNT%

TOTAL

SIZE

(SF)RENT MIN. RENT MAX RENT RENT/SF

MARKET

RENT

MARKET

RENT/

SF

DEPOSIT

1 bedroom 1 7.1 600 $890 - - $1.48 $890 $1.48

2 bedroom 1 7.1 875 $870 - - $0.99 $1,025 $1.17

2bedroom 1 7.1 875 $900 - - $1.03 $1,025 $1.17

2 bedroom 1 7.1 875 $920 - - $1.05 $1,025 $1.17

2 bedroom 1 7.1 875 $925 - - $1.06 $1,025 $1.17

2 bedroom 1 7.1 875 $930 - - $1.06 $1,025 $1.17

2 bedroom 1 7.1 875 $940 - - $1.07 $1,025 $1.17

2 bedroom 1 7.1 875 $950 - - $1.09 $1,025 $1.17

2 bedroom 2 14.3 875 $970 - - $1.11 $1,025 $1.17

2 bedroom 1 7.1 875 $995 - - $1.14 $1,025 $1.17

2 bedroom 2 14.3 875 $1,000 - - $1.14 $1,025 $1.17

Laundry room 1 7.1 200 - -

Totals/Averages 14 100% 11,300 $12,260 $0.00 $0.00 $1.08 $13,190 $1.19 $0

Unit Mix Summary

GLENDOVEER APARTMENTS | 74 - 94 SE 148TH , PORTLAND, OR 97233 SVN | Bluestone & Hockley | Page 4

Real Estate Cash Flow Analysis Page One 13 Units Cap Rate 5.22%Property Address: company name

INVESTMENT PROFORMA INVESTMENT RETURNS

Price: 1,625,000 Purchase Price Per Unit $125,000Loans: 1,137,500 Land 325,000 Capitalization Rate 5.22%Down Payment: 487,500 Improvements 1,300,000 Cash On Cash Return Year 1 3.45%Capital and Closing Cost: 24,375 Taxes 15,725 Average Cash on Cash Return 5.02%Legal & Other: LTV 70.00% Seven (7) Year Pre-Tax IRR 13.89%Investment Amount: 511,875 DCR 1.26

Encumbrances Loan Int Term Payments Due Interest Prin & Int Annual Debt Loan Closing

Amount Only In Years Per Year In Rate Payment Service Escrow Costs

Existing/New 1st Mortgage 1,137,500 n 30 12 5 4.250% 5,595.82 67,150 24,375

Existing/New 2nd Mortgage 0 0 0 0.000% 0 0

Replacement 1st Mortgage 1,137,500 n 25 12 5 4.250% 6,162.27 73,947 48,750

Proposed 2nd Mortgage 0 0 0 0.000% 0 0 Proposed 3rd Mortgage 0 0 0 0.000% 0 0 0

Figures Below Are: From Owner

ANNUAL OPERATING INCOME SCHEDULED RENT ROLL

$ % of EGI Per Unit # of Units Type Monthly Rent/ bed Total

Gross Scheduled Income 147,120 98.8% $11,317 1 1br 1 bath 890 890

Utility Income and Pet rent 8,760 5100.0% $674 1 2br 1 Bath 870 870

Gross Operating Income 155,880 104.7% $11,991 1 2br 1 Bath 900 900

Vacancy Factor (7,794) 5.0% $600 1 2br 1 Bath 920 920

Late Fee 805 -0.5% ($62) 1 2br 1 Bath 925 925

Effective Gross Income 148,891 $11,453 1 2br 1 Bath 930 930

1 2br 1 Bath 940 940

Real Estate Taxes 15,725 10.6% $1,210 1 2br 1 Bath 950 950

Insurance 5,257 3.5% $404 2 2br 1 Bath 970 1,940

Advertising 0 0.0% $0 1 2br 1 Bath 995 995

Misc 0.0% $0 2 2br 1 Bath 1,000 2,000

Workers Comp/Taxes 0 0.0% $0 0

On-site Manager 0 0.0% $0 13 Total Monthly 12,260Maintenance/Repairs 7,700 5.2% $592 Total Annual $147,120

Landscape Maint. 3,600 2.4% $277

Turning Expenses 3,500 2.4% $269 Income Growth 3.0%

Rubbish 1,925 1.3% $148 Expense Growth 3.0%

Supplies 0 0.0% $0 Land Value % of Purchase Price 20%

Electricity 947 0.6% $73 Number of Units 13

Telephone 0 0.0% $0 Years of Investment 7

Sewer/Water 8,400 5.6% $646 Investor's Tax Bracket: 30%

0.0% $0 Federal Capital Gains Tax 15%

Reserves 4,467 3.0% $344 State Capital Gains Tax 11%

Management 11,911 8.0% $916 Depreciation Recapture Rate 25%

Pest 625 0.4% $48 Straight-Line Deprecation Apartments 27.5Notes:

Total Operating Expense 64,057 43.02% $4,927

Net Operating Income 84,834 57.0% $6,526

Annual Debt Service 67,150 45.1% $5,165 Appreciation 4.0%Cash Flow Before Taxes 17,684

The information contained herein has been obtained from sources deemed to be reliable but not guaranteed by Broker. Any Projections, assumptions, opinions or estimates are used for example only and do not represent current or future performance of the property. Any prospective buyer is advised to seek advice from competent tax, financial and/or legal advisors. State and local taxes are not figured in the worksheet.

Glendoveer Village Portland

INVESTMENT ASSUMPTIONS

Broker Name Page 2--ANALYSIS Glendoveer VillageBluestone & Hockley Real Estate Services Office Phone (503) 222-3800

Encumbrances

Beginning Int Remaining Payments Due Interest Prin & Int Annual Debt

Balance Only Term Per Year In Rate Payment Service

1st Mortgage 1,137,500 n 30 12 5 4.25% 5,596 67,150

2nd Mortgage 0 0 0 0.00% 0 0Replacement 1st Mortgage 1,137,500 n 25 12 5 4.25% 6,162 73,947

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Interest only (Y/N) N N N N N N N

1st Mortgage EOY 1,118,323 1,098,315 1,077,441 1,055,661 1,032,938 1,009,229 984,494

Interest 47,973 47,142 46,275 45,370 44,426 50,239 49,212

2nd & 3rd Mortgage

Interest 0 0 0 0 0 0 0Principal Reduction 19,177 20,008 20,875 21,780 22,723 23,708 24,736

Taxable IncomeIncome Growth 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%

Expense Growth 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Effective Gross Income 148,891 153,358 157,958 162,697 167,578 172,605 177,784

-Operating Expense 64,057 65,979 67,958 69,997 72,097 74,260 76,487

Net Operating Income 84,834 87,379 90,000 92,700 95,481 98,346 101,296

-Interest 47,973 47,142 46,275 45,370 44,426 50,239 49,212

-Depreciation 47,273 47,273 47,273 47,273 47,273 47,273 47,273Taxable Income -10,412 -7,036 -3,547 57 3,782 834 4,812

Cash Flows

Net Operating Income 84,834 87,379 90,000 92,700 95,481 98,346 101,296

-Annual Debt Service 67,150 67,150 67,150 67,150 67,150 67,150 67,150

-Funded Reserves

Cash Flow before Taxes 17,684 20,229 22,851 25,551 28,332 31,196 34,146

Net Return Before Taxes 3.45% 3.95% 4.46% 4.99% 5.53% 6.09% 6.67%

Tax Liability -3,124 -2,111 -1,064 17 1,135 250 1,444

Cash Flow After Taxes 20,808 22,340 23,915 25,534 27,197 30,946 32,702Net Return After Taxes 4.07% 4.36% 4.67% 4.99% 5.31% 6.05% 6.39%

Analysis of Sale Proceeds

Original Basis 1,649,375 Sale Proceeds

+Capital Improvements 0 Sale Price 2,170,465

+Costs of Sale 173,637 -Costs Of Sale 173,637

Sub-Total 1,823,012 -Mortgage 984,494

-Depreciation 330,909 Gross Proceeds 1,012,334-Partial Sales 0 -Tax On Proceeds 173,065

AB at Sale 1,492,103 Net Proceeds 839,269

Sale Price 2,170,465 Factors

-AB 1,492,103 Gross Rent Multiplier (GRM) 11.05

Gain 678,362 Cap Rate 5.22%Capital Gains Tax 26.00% Cash on Cash Return after Tax 4.07%

Tax Liability & Recapture 173,065 IRR After Tax 11.41%

The information contained herein has been obtained from sources deemed to be reliable but not guaranteed by Broker. Any Projections, assumptions, opinions or estimates are used for example only and do not represent current or future performance of the property. Any prospective buyer is advised to seek advice from competent tax, financial and/or legal advisors. State and local taxes are not figured in the worksheet.

Location Maps

GLENDOVEER APARTMENTS | 74 - 94 SE 148TH , PORTLAND, OR 97233 SVN | Bluestone & Hockley | Page 7

9320 SW Barbur Blvd., Suite 300Portland, OR 97219T 503.222.3800C 503.267.1909cliff.hockley@svn.comWA #3364

PROFESSIONAL BACKGROUND

Cliff is a licensed Principal Broker in Washington and Oregon and hassuccessfully represented buyers and sellers of commercial, investment, andresidential properties for nearly 30 years. Cliff is also a Certified PropertyManager (CPM) and a Certified Commercial Investment Member (CCIM) withexperience in all facets of property management and commercial brokerage.He has managed warehouse, office, and retail properties as well as mobilehome parks, condominium associations, and residential properties of allsizes. He has made value improvements to buildings, developed budgets,and trained on- and off-site staff. Cliff’s strong knowledge of maintenanceenables him to advise on the best approach for major value-add projects.

Cliff holds an MBA from Willamette University and a BS in Political Sciencefrom Claremont McKenna College. He has served as member at large on thePortland IREM board and was named Certified Property Manager of the yearfor 2001 and 2003 by the Institute of Real Estate Management. He is afrequent contributor to industry newsletters and serves as adjunct professorat Portland State University, where he teaches real estate finance. Cliff is theauthor of 21 Fables, a book about real estate investing that helps investorsnavigate the rough shoals of real estate ownership

EDUCATION

Claremont McKenna College- BS Political ScienceWillamette University- MBA

CLIFF HOCKLEY CPM, CCIM

Managing Director

Advisor Bio & Contact Info

GLENDOVEER APARTMENTS | 74 - 94 SE 148TH , PORTLAND, OR 97233 SVN | Bluestone & Hockley | Page 8

All SVN® Offices Independently Owned & Operated.The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

CLIFF HOCKLEY CPM, CCIM

Managing Director503.222.3800cliff.hockley@svn.comOR #860200031

svnbluestone.com

74 - 94 SE 148th , Portland, OR 97233

BEAUTIFUL BRICK AND ALUMINUM SIDED BUILDING

FOR SALE | MULTIFAMILY

The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of theproperty within and is not to be used for any other purpose. This information should not, under any circumstances, bephotocopied or disclosed to any third party without the written consent of the SVN® Advisor or Property Owner, or usedfor any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed inthis proposal, and no other person is authorized by the Owner to provide any information or to make anyrepresentations other than contained in this Offering Brochure. If the person receiving these materials does not chooseto pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor.

Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy orcompleteness of the information contained herein, and nothing contained herein is or shall be relied upon as a promiseor representation as to the future representation of the Property. This Offering Brochure may include certain statementsand estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there canbe no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and allliability for representations or warranties, expressed or implied, contained in or omitted from this Offering Brochure, orany other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled torely solely on those representations and warranties that may be made to it in any final, fully executed and delivered RealEstate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these materials shall not lookto Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates,for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conducttheir own comprehensive review and analysis of the Property.

This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expresslyreserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property andexpressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any timewith or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the OfferingBrochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed RealEstate Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, aprospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and theSVN Advisor from any liability with respect thereto.

To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchasershould not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate PurchaseAgreement shall bind the property and each prospective purchaser proceeds at its own risk.