Downtown Bellingham Office / Retail Duplex. Offered at $940, Net Operating Income / Cash Flow Forecast: $85K Projected Cap Rate: 9.

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1 Presenting: Cornwall Avenue Downtown Bellingham Office / Retail Duplex 12,500 Square Feet of Office / Retail on 3 Floors Offered at $940,000 7,100 SF on Upper Floors, 5,400 SF on Basement Level 2017 Net Operating Income / Cash Flow Forecast: $85K Projected Cap Rate: 9.11% Occupy one side and completely offset the mortgage with Rents from 1509 Prime downtown location directly across from the Pulic Market Excellent signage visiilty with strong walk-in traffic potential suitale for many types of uses including health and wellness, salon / spa, Daycare, specialty retail, usiness services, etc. Reecca Heathcock Managing Broker Phone: Heathcock@gmail.com All information contained herein is supplied y the seller to the est of his/her knowledge, ut is suject to verification y the purchaser, and the roker assumes no responsiility for the correctness thereof, in accordance with the law. This property is offered without respect to race, gender, color, creed, familial status, national origin or handicapale access King Street, #1 Bellingham, WA 98229

2 1511 Cornwall Space Highlights Excellent usiness signage opportunity on exterior, with prominent randing oth aove front entry and on monument sign Pluming on oth floors, including a kitchenette on main floor, restrooms and additional office + lunchroom on asement floor Main floor includes front reception, 5 private offices, kitchenette, and a large great room in ack which could e used as a conference room, training room or exercise space. Potential to add athroom to main floor. Move-in ready space with eautiful walnut wood trim and large office windows that allow privacy and natural light Location has ample off-street parking and additional employee parking spaces availale for lease Additional office space, ample storage, employee lunchroom, and two additional private entry points into space from asement floor. Potential to sulet space, lease-to-own, and possile purchase with owner carry Reecca Heathcock, Managing Broker l exp Commercial l 1321 King Street #1, Bellingham WA l Phone: , Heathcock@gmail.com

3 1509 Cornwall Space Highlights Current Tenant is Planned Parenthood and has occupied space for almost 6 years. Main floor includes front reception and loy, 5 private offices and an admin area, kitchenette pluming, a large conference room, men and women s athrooms, an employee reak area, and stairs leading to mezzanine floor. Remodeled in 2011 to add an additional conference room and additional office on the main floor and to enhance use of the mezzanine level, conversion of mezzanine level storage area into additional offices, enlarged athroom, and increased natural light into the space via skylights. Pluming on oth main and mezzanine floors. Reecca Heathcock, Managing Broker l exp Commercial l 1321 King Street #1, Bellingham WA l Phone: , Heathcock@gmail.com

4 1511 Cornwall Floorplans Total Area: 5,374 (Main Flr Area = 2,675 SF, Basement Area = 2,699 SF) Reecca Heathcock, Managing Broker l exp Commercial l 1321 King Street #1, Bellingham WA l Phone: , Heathcock@gmail.com

5 1509 Cornwall Post-2011 Floorplans (remodeling enhancements made in 2011) TOTAL AREA = 7,188 sq ft 1st Flr Office Area = 2,772 SF Approx. Basement Storage Area = 2,654 2nd Flr Office Area = 942 SF 2nd Flr Storage Area = 820 SF 2011 Modifications: Main Floor: Additional office added Dividing wall etween offices 3 & 4 removed to create conference room BREAK AREA Mezzanine Floor: Break room converted to a restroom and closet converted to a reak room CONFERENCE ROOM Storage area #1 converted to two additional offices hvac and skylights added to upper level Reecca Heathcock, Managing Broker l exp Commercial l 1321 King Street #1, Bellingham WA l Phone: , Heathcock@gmail.com

6 Cornwall 10 YEAR CASH FLOW AND EQUITY FORECASTS With Financing, 26.6% down, 5% interest, 10 Fixed, 30 Amortization Cash Flow Owner Occupy 1511 Cornwall, continue leasing 1509 Cornwall Net Operating Income (0) $ 44,520 $ 45,856 $ 47,231 $ 48,648 $ 50,108 $ 51,611 $ 53,159 $ 54,754 $ 56,397 $ 58,089 Less Annual Mortgage (1) $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 Total Annual Cash Flow $ (280) $ 1,056 $ 2,431 $ 3,848 $ 5,308 $ 6,811 $ 8,359 $ 9,954 $ 11,597 $ 13,289 $ 62,372 Total Rent Savings: $ 41,124 $ 42,358 $ 43,628 $ 44,937 $ 46,285 $ 47,674 $ 49,104 $ 50,577 $ 52,095 $ 53,657 $ 471,441 Cash Flow Straight Income Property Lease oth 1509 and 1511 Cornwall Net Operating Income (0) $ 85,644 $ 88,213 $ 90,860 $ 93,586 $ 96,393 $ 99,285 $ 102,263 $ 105,331 $ 108,491 $ 111,746 Less Annual Mortgage (1) $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 $ 44,800 Total Annual Cash Flow $ 40,844 $ 43,413 $ 46,060 $ 48,786 $ 51,593 $ 54,485 $ 57,463 $ 60,531 $ 63,691 $ 66,946 $ 533,812 Equity / Appreciation Forecast (2) Market Value of Property $ 940,000 $ 958,800 $ 977,976 $ 997,536 $ 1,017,486 $ 1,037,836 $ 1,058,593 $ 1,079,765 $ 1,101,360 $ 1,123,387 Owner Down Payment $ 250,000 Less Loan Payoff Balance $ 690,000 $ 679,086 $ 667,557 $ 642,514 $ 628,925 $ 614,570 $ 599,407 $ 585,911 $ 571,775 $ 555,587 Owner's Equity $ 279,714 $ 310,419 $ 355,022 $ 388,561 $ 423,266 $ 459,186 $ 493,854 $ 529,585 $ 567, Totals 10 Totals Assumptions: (0) Based on total average rents + NNN of $12.63 in 2017, then 3% annual increases (1) Based on financing terms that include a 10 year fixed interest rate of 5% (ased on swap products). (2) Future property value is unknown and strictly an estimate. Valuation forecast ased on income approach, if rents increase 3% annuallly.

7 Bellingham Office / Retail Market Study Listed, Sold Properties in the Vicinity of Cornwall Avenue BELLINGHAM # Street Name Status Asset Class Sq.Ft. Sold Price Sold Price / Sq.Ft. Days on Sold Date Market Property Type Built Rem. Lot size 1316 King St Sold Office 4,236 $ 497,500 $ /1/ Office Meridian St Sold Office 8,212 $ 1,395,000 $ /15/ Office E St Sold Office 2,480 $ 500,000 $ /5/ Office Elm St Sold Office 2,429 $ 488,000 $ /14/ Office Harris Ave 106 Sold Retail,Office 525 $ 94,989 $ /17/ Office Harris Ave 107 Sold Retail,Office 636 $ 105,231 $ /17/ Office Harris Ave 108 Sold Retail,Office 600 $ 99,779 $ /17/ Office Alpine Way Sold Office 3,784 $ 525,000 $ /25/ Office Northwest Dr Sold Office 13,176 $ 700,000 $ /30/ Office Prospect St Sold Retail,Office 4,770 $ 795,000 $ /11/ Mixed Use Meridian St Sold Retail,Office 8,800 $ 1,100,000 $ /4/ Mixed Use Central Ave Sold Retail,Office 2,736 $ 300,000 $ /3/ Mixed Use Garden St Sold Retail,Office 5,662 $ 725,000 $ /16/ Office Forest Sold Office 5,740 $ 960,000 $ /7/ Office I St Sold Office 1,067 $ 235,000 $ /28/ Office Prospect St Sold Retail,Office 14,300 $ 1,750,000 $ /17/ Office Squalicum Way Sold Retail,Office,In 1825 $ 305,000 $ /17/ Industrial Meridian St Sold Retail,Office 5,600 $ 650,000 $ /19/ Office Meridian St Sold Retail,Office 10,460 $ 925,000 $ /11/16 85 Retail Squalicum Way Sold Retail,Office,In 1643 $ 230,000 $ /2/16 2,862 Office State St Sold Retail,Office 573 $ 121,000 $ /15/ Mixed Use Railroad Ave Sold Retail,Office 11,000 $ 2,100,000 $ /11/ Retail th & Finnegan Sold Retail,Office 13,195 $ 1,990,000 $ /4/ Mixed Use th St Sold Retail,Office 20,000 $ 1,990,000 $ /4/ Office th St Sold Retail,Office 20,000 $ 2,400,000 $ /4/ Office Westerly Rd Sold Retail,Office 15,000 $ 1,960,000 $ /1/ Office Cornwall Ave Sold Retail,Office 6875 $ 595,000 $ /5/ Office Lincoln St Sold Office 2,693 $ 290,000 $ /4/15 50 Office Samish Way Sold Office 5,034 $ 689,000 $ /1/ Office $ SUBJECT # Street Name Status Asset Class Sq.Ft. Sales Price Sales Price / Sq.Ft. Sold Date Days on Market Cornwall Ave. Availale Retail,Office 7,100 $ 940,000 $ N/A N/A Property Type Office, Retail Built Rem. Lot size