CONSTITUTION PLAZA 357 CONSTITUTION WAY IDAHO FALLS, ID

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com JAMIE ANDERSON 208 472 2842 jamie.anderson@colliers.

1 Offering Memorandum 357 CONSTITUTION WAY IDAHO FALLS, ID SCOTT FEIGHNER JAMIE ANDERSON DON ZEBE JARED ZEBE

2 Property Overview Profile Property Name: Constitution Plaza Address: 357 Constitution Way, Idaho Falls Building Size: 16,648 SF Highlights»» Award winning historic preservation of a redeveloped urban building (City of Idaho Falls, 2014)»» Abundant parking with both surfaced and secured subterranean lots»» Prepared redevelopment concepts for adjacent lot Land Size: ±0.45 Acres»» Highly visible in growing downtown submarket Parcels: RPA A Parking: On-site with open, covered & secured spaces Year Built: 1904 Major remodel/update 2013»» Completely remodeled throughout with high ceilings, exposed brick, a large break area and professional kitchen»» Contact broker for showing; do not disturb lessee

3 Valuation This owner-user opportunity is for Constitution Plaza, an award winning historic preservation of a redeveloped urban building. The building has been beautifully renovated into a modern office building with exposed brick and high-end finishes throughout. Located on Constitution Way in Downtown Idaho Falls the building is central to amenities and easily accessible. The US Census Bureau recently named Idaho as the fastest growing state in the nation. This approach is based on the proposition that an informed purchaser would pay no more than the cost of producing a substitute property with the same utility as the property. It is particularly applicable when the property being valued involves relatively new improvements which represent the highest and best use of the land or when relatively unique or specialized improvements are located on the site and there exist no comparable properties on the market. In calculating the appropriate replacement cost, we make a determination of the replacement cost of a new building. Adjustments are made to this figure to reflect loss in value resulting from physical deterioration (depreciation) was well as functional, external, and economic obsolescence. Category $ PSF SF Value Building Shell $ ,648 $2,164, Site Land Size $ ,741 $690, Cost per Stall of Parking Structure (2:1,000) $40, $1,440, Tenant Improvements $ ,648 $998, Soft Costs (incl. Financing) $ ,648 $166, New Property Replacement Costs $ ,648 $5,460,535 Depreciation (Age of Improvements) $(115.00) 16,648 $(1,914,520.00) Depreciated Building Replacement Cost $ $3,546,015.00

4 Floor Plan Main Level

5 Floor Plan Upper Level

6 Floor Plan Lower Level

7 Gallery

8 Location Constitution Way SITE SITE Park Ave B Street Shoup Ave

9 Demographics 357 Constitution Way 1 Mile 3 Miles 5 Miles POPULATION 2018 Estimated Population 11,505 61, , Projected Population 12,838 68, , Census Population 10,777 57,492 86,695 Projected Annual Growth 2017 to % 2.1% 2.0% HOUSEHOLD 2018 Estimated Households 4,772 23,180 34, Projected Households 5,174 24,833 36, Census Households 4,449 21,471 30,884 Projected Annual Growth 2017 to % 1.4% 1.4% INCOME 2017 Est. Average Household Income $41,055 $70,234 $74, Est. Median Household Income $37,561 $56,590 $59,755 MISC Median Home Value $125,922 $158,326 $164, Median Rent $554 $633 $ Average Commute Time Est. Median Age Est. Labor Population Age 16+ 8,894 46,291 69, Est. Total Household Expenditure $183 M $1.26 B $1.94 B

10 Prepared Concepts The building also includes a prepared concepts for additional redevelopment directly West of the site on the corner of Park Ave and Constitution Way. Park Ave & Constitution Way Colliers International Idaho 755 West Front Street, Suite 300 Boise, Idaho

Business Incentives TAX REIMBURSEMENT INCENTIVE (Created July 1, 2014)» Bring new high-wage jobs to Idaho and your company could be eligible to receive up to a 30% refund on sales, payroll &

» SkyWest Airlines was the first company in Idaho to take advantage of the new incentive.

The company will also benefit from the Idaho Department of Labor s Workforce Development Training Fund program.

11 Business Incentives TAX REIMBURSEMENT INCENTIVE (Created July 1, 2014)» Bring new high-wage jobs to Idaho and your company could be eligible to receive up to a 30% refund on sales, payroll & corporate income taxes for up to 15 years.» Companies must provide wages above the county average, and create at least 50 new jobs in an urban area, or 20 in a rural area.» SkyWest Airlines was the first company in Idaho to take advantage of the new incentive. They received a TRI credit of 25% for a term of 12 years in addition to a robust package from the City of Boise in infrastructure build out and financing. The company will also benefit from the Idaho Department of Labor s Workforce Development Training Fund program. WORKFORCE DEVELOPMENT TRAINING FUND» Minimum $2,000 per new job created, paid directly to the company IDAHO OPPORTUNITY FUND» Legislation created in 2013, established a new grant program which allows the Director of Idaho Department of Commerce to direct funds to projects for infrastructure needs within the community. This $3 million fund will be used within this year to help close new projects. IDAHO BUSINESS ADVANTAGE (For qualifying companies)» Increases the Investment Tax Credit to 3.75% against the corporate income tax» Real Property Improvement Tax Credit of 2.5% against corporate income tax» New Jobs Tax credit increases the corporate income tax credit per job depending on wages paid» Sales and Use Tax Rebate of 25%» Small Employer Growth Incentive 3% INVESTMENT TAX CREDIT» A credit against Idaho corporate income tax for qualifying new investment in tangible personal property IDAHO POWER INDUSTRIAL EFFICIENCY INCENTIVE» Cash incentives for energy efficient designs

Area Overview IDAHO TAX OVERVIEW Sales and Use Tax in Idaho is 6%. This would apply to items purchased or consumed in Idaho.

any equipment or material used in research and development activities. We do not tax services including telecommunication services, and utilities such as water, gas, electricity, or natural gas.

8% Bannock County Average Range: 0.8-1.2% Canyon County Average Range: 1.5% - 2.5% Elmore County Average Range: 1.8% Idaho does not have an inventory tax. Corporate Income Tax Computed at 7.

Corporations that are taxable in Idaho and another state or country or are part of a unitary group of corporations, use a 3 factor formula to ascertain how much of the business is conducted in Idaho.

These three factors, with the sales factor being double weighted for all taxpayers except for electrical and telephone companies, are totaled and divided by 4 to compute the Idaho apportionment

12 Area Overview IDAHO TAX OVERVIEW Sales and Use Tax in Idaho is 6%. This would apply to items purchased or consumed in Idaho. Exemptions are available for equipment and raw materials used directly in manufacturing, processing, or fabrication; clean rooms used in semiconductor and semiconductor equipment manufacturing; and any equipment or material used in research and development activities. We do not tax services including telecommunication services, and utilities such as water, gas, electricity, or natural gas. In our region we do not have any local option sales tax. Property Tax personal (machinery/equipment) and real (land/ buildings) based on market value Rates: Ada County Average Range: 1.1% - 1.8% Bannock County Average Range: % Canyon County Average Range: 1.5% - 2.5% Elmore County Average Range: 1.8% Idaho does not have an inventory tax. Corporate Income Tax Computed at 7.4% of the Idaho taxable income of a corporation. Corporations that are taxable in Idaho and another state or country or are part of a unitary group of corporations, use a 3 factor formula to ascertain how much of the business is conducted in Idaho. The apportionment formula is made up of a property factor, a payroll factor, and a sales factor. These three factors, with the sales factor being double weighted for all taxpayers except for electrical and telephone companies, are totaled and divided by 4 to compute the Idaho apportionment factor. The Idaho apportionment factor is then applied to the business income of the corporation to compute income assigned to Idaho. Non-business income allocable to Idaho is added to the income apportioned to Idaho to arrive at Idaho taxable income. Colliers International Idaho 7% 6% CORPORATE INCOME TAX SALES & USE TAX $7.25/hr 1.91% #2 BEST STATE Property tax rate (2013 Tax Foundation Study) 7.1% 755 West Front Street, Suite 300 Boise, Idaho STATE UNEMPLOYMENT INSURANCE RATE 1.6%-7.8% PERSONAL INCOME TAX RATE RANGE Rate range on a bracketed system based on income levels UNION MEMBERSHIP (NAT L AVG: 11.9%) PROPERTY EXEMPTION First $100,000 of personal property is exempt from taxation IDAHO IS A right to work STATE MINIMUM WAGE

13 357 Constitution Way Idaho Falls, ID SCOTT FEIGHNER JAMIE ANDERSON DON ZEBE JARED ZEBE

SALE SUMMARY JEROME RETAIL CENTER

SALE SUMMARY JEROME RETAIL CENTER 124-128 EAST YAKIMA STREET JEROME, ID 83338 MIKE CHRISTENSEN 208 472 2866 mike.christensen@colliers.com STEVE DI LUCCA 208 280 4033 steve.dilucca@colliers.com Investment