OFFERING MEMORANDUM HIDDEN OAKS 2600 GABLE RD. ST. HELENS, OREGON PRICE: $6,800,000

OFFERING MEMORANDUM HIDDEN OAKS 2600 GABLE RD. ST. HELENS, OREGON PRICE: $6,800,000

OFFERING MEMORANDUM Table of Contents INVESTMENT SUMMARY PAGE 3 PROPERTY INFORMATION PAGE 5 MARKET OVERVIEW PAGE 13 COMPARABLES PAGE 18 FINANCIAL OVERVIEW PAGE 24 TRANSACTION GUIDELINES PAGE 28 Exclusive Advisors This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 2600 Gable Rd. St. Helens, OR. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. For further information regarding the purchase and sale of this asset, to register to receive due diligence materials, schedule a tour, or to submit a bid, please contact the following Colliers International professionals: Kenneth Verbeck Associate Sean Worl Senior Associate Skip Rotticci CCIM Vice President Alex Cheng Associate DIRECT +1 503 499 0079 DIRECT +1 503 499 0082 DIRECT +1 503 499 0062 direct +1 503 499 0075 EMAIL kenneth.verbeck@colliers.com EMAIL sean.worl@colliers.com EMAIL skip.rotticci@colliers.com EMAIL alexander.cheng@colliers.com 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon 97204 503.223.3123 COLLIERS INTERNATIONAL P. 2

> Investment Summary

INVESTMENT HIGHLIGHTS Investment Summary The Hidden Oaks Apartments is a 72 unit apartment community located in Saint Helens, Oregon. Built in 1997, Hidden Oaks consists of seven standalone structures. The unit mix is comprised of all two bedroom and one bath apartment homes with each home being 828 square feet. All seven of the standalone structures have had new roofs installed in 2017. Columbia Blvd Gable Rd SE Powell Valley Rd Historically, vacancy rates in Columbia County have remained comfortably under five percent while rent growth has steadily increased over the past decade. Hidden Oaks is the largest multifamily asset in Columbia County. The submarket has seen little to no multifamily development in the past decade. In addition St. Helens has the highest growth rate of new residents in the Portland Metro Area and is 6th overall in the State of Oregon. With a limited pipeline and an increasing population, Hidden Oaks is well positioned to capitalize on market conditions. APARTMENT HIGHLIGHTS: Significant capital improvements Brand new roofs Significant rental upside COLLIERS INTERNATIONAL P. 4

> Property Information

PROPERTY INFORMATION Site Details PRODUCT TYPE: Multifamily ADDRESS: 2600 Gable Rd, St. Helen s, OR, 97051 GROSS LAND AREA: 83,635sf /1.92 AC OCCUPANCY: 100% YEAR BUILT: 1997 CONSTRUCTION: Wood Frame STORIES: 2 APN: 4N1W 5CD 1400 COLLIERS INTERNATIONAL P. 6

PROPERTY INFORMATION NORTH Hidden Oaks McCormick Park COLLIERS INTERNATIONAL P. 7

PROPERTY INFORMATION Exterior Photos COLLIERS INTERNATIONAL P. 8

PROPERTY INFORMATION Interior Photos COLLIERS INTERNATIONAL P. 9

> Market Overview

MARKET OVERVIEW City of St. Helens St. Helens is the county seat of Columbia County, Oregon. It was founded by Captain H. M. Knighton, a native of New England, in 1845 as Plymouth. The name was changed to St. Helens in the latter part of 1850 for its view of Mount St. Helens some 39 miles away in Washington. The population was 12,883 athe 2010 census. St. Helens was established as a river port on the Columbia River in the 1840s, In 1853, the Pacifica Mail Steamship Company tried to make the city their only stop on the Columbia Rivers. Portland s merchants boycotted this effort, and the San Fransisco steamship Peytona helped break the impasse. The Lewis and Clark Expedition passed through and camped in the area that is now St. Helens on the night of November 5, 1805 while on their way to the Pacific Ocean. According to the Portland State University Population Research Center, the Certified Population Estimate as of July 1, 2016 is 13,120. Growth in the area has been about 3,100 People in 16 years. St. Helens is located on the southeastern Columbia County, on the Columbia River, approximately 30 miles northwest of Portland, Oregon. Major employers today include forest products, mining and manufacturing operations. St. Helens offers convenience to Highway 30, Columbia River and the railroad. New industrial businesses can take advantage of the Enterprise Zone in certain locations of the City. COLLIERS INTERNATIONAL P. 11

MARKET OVERVIEW Demographics DISTANCE TO/FROM PROPERTY 1 MILE 3 MILE 5 MILE 2017 Total Population: 7,735 18,893 22,303 2022 Population: 7,999 19,534 23,055 Pop Growth 2017-2022:.24 1.12 1.07 Average Age: 51 52 53 Hidden Oaks HOUSEHOLDS 2017 Total Households: 2,846 7,229 8,518 2022 Total Households: 2,986 7,581 8,930 HH Growth 2017-2022: 1.56 1.56 1.36 2017 Median Household Income: $70,552 $65,773 $67,440 2017 Average Household Size: 2.58 2.53 2.57 HOUSING 2017 Median Home Value: $XXX $XXX $XXX 2017 Renter Occupied: 1,140 2,672 2,909 COLLIERS INTERNATIONAL P. 12

MARKET OVERVIEW City of Portland Crisscrossed by rivers, mountains and vineyards, Metropolitan Portland offers more than urban adventure. Within a few minutes drive of downtown Portland are Pinotproducing wineries (most with yearround tasting rooms), kayak-friendly waterways that nudge wildlife preserves and, of course, the glorious foothills of Mount Hood. And if it s urban adventure you crave, be warned that Portland, the Rose City, isn t your run-of-themill urban megapolis. An effervescent arts community, dozens of urban parks and green spaces, a lively downtown, complete with an open air plaza that serves as the community s living room and a world-class public transportation system, are just few of the reasons that make this one of the country s most livable cities. And Oregon continues to top the list, for a consecutive year, as the top moving destination of 2016 according to the United Van Lines mover study. Its mild climate, scenery, friendly people, vibrant culture and arts community has placed Portland on the Best of lists in many publications and online surveys. Median Household income of $60,000/year Portland Metro Estimated Population Growth of 725,000 residents by 2035 - Metro Gov. COLLIERS INTERNATIONAL P. 13

MARKET OVERVIEW Employment The Brookings Institute s January 2016 Metro Monitor composite index ranks the 100 largest MSA s across job growth, unemployment, gross product range and home prices. Portland ranked 15th for overall growth and also compares favorably to other top metropolitan areas. > > 12th in average wage with a 5.3% increase over the past five years. > > 15th in GMP per capita with a 9.4% increase over the past five years. > > 22nd in jobs with a 9.7% increase over the past five years. > > 25th in employment to population ratio with a 2.2% increase over the past five years. Portland-Metro s Largest Employers Technology - 16,700 employees Health Care - 9,896 employees Health Care - 14,132 employees Health Care - 9,835 employees Hospital & University - 14,106 employees City of Portland - 9,318 employees US Federal Government - 13,900 employees State of Oregon - 7,559 employees Retail Merchandising - 10,176 employees Athletic Apparel - 7,000 employees COLLIERS INTERNATIONAL P. 14

> Comparables

RENT COMPARABLES Rent Comparables Property Name & Address YEAR BUILT/ REMODELED UNIT TYPE # OF UNITS SF RANGE RENT RANGE RENT/SF OCCUPANCY Hidden Oaks 2600 Gable Rd. St. Helens, OR 97051 1997 2bd/1ba 72 828 828 $ 730 $ 740 $ 0.89 100% Total/Wtd Avg 72 828 $ 735 $ 0.89 Arrowsmith Apartments 2415 Columbia Blvd. Helens,, OR 97051 2bd/1ba Flat 14 640 654 $ 900 $ 900 $ 1.39 2bd/1ba TH 19 848 848 $ 950 $ 950 $ 1.12 1967/1994 2bd/1.5ba TH 23 856 856 $ 1,025 $ 1,025 $ 1.20 100% Total/Wtd Avg 56 801 $ 968 $ 1.22 Picture HERE Franklin Manor 84 Shore Dr. St. Helens, OR 97051 1Bd/1Ba 8 600 600 $ 795 $ 795 $ 1.33 2Bd/1Ba 29 800 800 $ 895 $ 895 $ 1.12 1969 100% Total/Wtd Avg 37 757 $ 873 $ 1.16 Picture HERE Lincoln Square 98 Shore Drive, St. Helens OR Portland, OR 97051 1Bd/1Ba 12 552 552 $ 800 $ 900 $ 1.54 1975 2Bdr/1Bath 16 800 800 $ 1,000 $ 1,200 $ 1.38 100% Total/Wtd Avg 28 694 $ 993 $ 1.45 AVERAGE/TOTAL 1972 40 751 $ 945 $ 1.28 100% COLLIERS INTERNATIONAL P. 16

FINANCIAL OVERVIEW Rent Comparables $1,200.00 Rent $1.60 Rent/Sf $1,000.00 $1.40 $1.20 $800.00 $1.00 $600.00 $0.80 $400.00 $0.60 $0.40 $200.00 $0.20 $0.00 Hidden Oaks Arrowsmith Apartments Rent Average Franklin Manor Lincoln Square $1.60 2 Bdr Rent/Sf $0.00 Hidden Oaks Arrowsmith Apartments Rent/SF Franklin Manor Average Lincoln Square $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $- Hidden Oaks Arrowsmith Apartments Franklin Manor Lincoln Square 2 Bdr Rent/SF Average COLLIERS INTERNATIONAL P. 17

> Financial Overview

FINANCIAL OVERVIEW Rent Summary & Income Monthly Scheduled Rent Income No. of units Unit Type Approx. SF Min Max 72 2 bedroom / 1 bath 828 $ 730 $ 740 $ 0.89 $ 52,920 $ 995 $ 1.20 $ 71,640 72 $ 52,920 $ 71,640 Current Rents Average Rent/SF Pro-Forma "Rent Increase" Income Rents Rent/PSF Income Annualized Income Current Per Unit Pro-Forma Per Unit Gross Potential Rent $ 635,040 $ 8,820 $ 859,680 $ 11,940 Laundry Income Owner Actual - Trailing 3 Yr Avg $ 1,191 $ 17 $ 1,191 $ 17 Misc. Income 2% of GPR $ 9,526 $ 132 $ 9,526 $ 132 Gross Potential Income $ 645,757 $ 8,969 $ 870,397 $ 12,089 Vacancy Factor 5% $ (32,288) 5% $ (43,520) Effective Gross Income $ 613,469 $ 8,520 $ 826,877 $ 11,484 COLLIERS INTERNATIONAL P. 19

FINANCIAL OVERVIEW Expense Annualized Operating Expenses Current Per Unit Pro-Forma Per Unit Real Estate Taxes 2016 County Record - Inflated 3% $ 47,993 7.82% $ 667 $ 49,433 5.98% $ 687 Insurance Market Expense @ $175/Unit $ 12,600 2.05% $ 175 $ 12,978 1.57% $ 180 Water & Sewer Owner Actual - 2016 $ 77,534 12.64% $ 1,077 $ 79,860 9.66% $ 1,109 Electricity Owner Actual - Trailing 3 Yr Avg $ 2,262 0.37% $ 31 $ 2,330 0.28% $ 32 Garbage & Recycle Owner Actual - 2016 $ 16,271 2.65% $ 226 $ 16,759 2.03% $ 233 Management Fee & Employee Exp. Market Expense @ 3% of EGI 3% $ 18,404 3.00% $ 256 3% $ 24,806 3.00% $ 345 Payroll Market Expense $ 38,000 6.19% $ 528 $ 40,000 4.84% $ 556 Administrative & Misc Market Expense @ 1% of EGI $ 6,135 1.00% $ 85 $ 8,269 1.00% $ 115 Landscaping Owner Actual - 2016 $ 5,501 0.90% $ 76 $ 5,666 0.69% $ 79 Repairs & Maintenance Market Expense @ $600/Unit $ 43,200 7.04% $ 600 $ 43,200 7.04% $ 600 Turnover Costs Market Expense @ $200/Unit $ 14,400 2.35% $ 200 $ 14,400 2.35% $ 200 Reserves & Replacements Market Expense @ $250/Unit $ 18,000 2.93% $ 250 $ 18,000 2.93% $ 250 Total Expenses $ 300,300 $ 4,171 $ 315,701 $ 4,385 Expenses Per Sqaure Foot $ 5.04 $ 5.30 Expense Ratio of EGI 49% 38% Net Operating Income $ 313,169 $ 4,350 $ 511,176 $ 7,100 COLLIERS INTERNATIONAL P. 20

FINANCIAL OVERVIEW Pricing Financing Year 1 Current Income & Expenses Pro-Forma Price $ 6,800,000 $ 6,800,000 Down Payment 40% $ 2,720,000 40% $ 2,720,000 1st Loan Amount 60% $ 4,080,000 60% $ 4,080,000 Interest Rate 4.15% 4.15% Amortization 30 30 Monthly Payment $ 19,833 $ 19,833 Total Debt Service $ 237,996 $ 237,996 TRUE TRUE Financial Anaylsis & Vital Data Current Pro-Forma Cash Flow Before Debt Service (NOI) $ 313,169 $ 511,176 Debt Service $ 237,996 $ 237,996 Debt Coverage Ratio 1.32 2.15 Cash Flow After Debt Service $ 75,173 $ 273,180 Cash-on-Cash Return 2.8% 10.0% Capitalization Rate 4.61% 7.52% Gross Rent Multiplier 10.71 7.91 Price Per Unit $ 94,444 $ 94,444 Price Per Square Foot $ 114.06 $ 114.06 COLLIERS INTERNATIONAL P. 21

FINANCIAL OVERVIEW Rent Roll 2 bedroom / 1 bath 34 2 1 828 $ 740 $ 0.89 35 2 1 828 $ 730 $ 0.88 Unit Number Bedroom Bathroom SF Rent $/SF 36 2 1 828 $ 740 $ 0.89 1 2 1 828 $ 740 $ 0.89 37 2 1 828 $ 730 $ 0.88 2 2 1 828 $ 730 $ 0.88 38 2 1 828 $ 740 $ 0.89 3 2 1 828 $ 740 $ 0.89 39 2 1 828 $ 730 $ 0.88 40 2 1 828 $ 740 $ 0.89 4 2 1 828 $ 730 $ 0.88 41 2 1 828 $ 730 $ 0.88 5 2 1 828 $ 740 $ 0.89 42 2 1 828 $ 740 $ 0.89 6 2 1 828 $ 730 $ 0.88 43 2 1 828 $ 730 $ 0.88 7 2 1 828 $ 740 $ 0.89 44 2 1 828 $ 740 $ 0.89 8 2 1 828 $ 730 $ 0.88 45 2 1 828 $ 730 $ 0.88 46 2 1 828 $ 740 $ 0.89 9 2 1 828 $ 740 $ 0.89 47 2 1 828 $ 730 $ 0.88 10 2 1 828 $ 730 $ 0.88 48 2 1 828 $ 740 $ 0.89 11 2 1 828 $ 740 $ 0.89 49 2 1 828 $ 730 $ 0.88 12 2 1 828 $ 730 $ 0.88 50 2 1 828 $ 740 $ 0.89 13 2 1 828 $ 740 $ 0.89 51 2 1 828 $ 730 $ 0.88 52 2 1 828 $ 740 $ 0.89 14 2 1 828 $ 730 $ 0.88 53 2 1 828 $ 730 $ 0.88 15 2 1 828 $ 740 $ 0.89 54 2 1 828 $ 740 $ 0.89 16 2 1 828 $ 730 $ 0.88 55 2 1 828 $ 730 $ 0.88 17 2 1 828 $ 740 $ 0.89 56 2 1 828 $ 740 $ 0.89 18 2 1 828 $ 730 $ 0.88 57 2 1 828 $ 730 $ 0.88 58 2 1 828 $ 740 $ 0.89 19 2 1 828 $ 740 $ 0.89 59 2 1 828 $ 730 $ 0.88 20 2 1 828 $ 730 $ 0.88 60 2 1 828 $ 740 $ 0.89 21 2 1 828 $ 740 $ 0.89 61 2 1 828 $ 730 $ 0.88 22 2 1 828 $ 730 $ 0.88 62 2 1 828 $ 740 $ 0.89 23 2 1 828 $ 740 $ 0.89 63 2 1 828 $ 730 $ 0.88 64 2 1 828 $ 740 $ 0.89 24 2 1 828 $ 730 $ 0.88 65 2 1 828 $ 730 $ 0.88 25 2 1 828 $ 740 $ 0.89 66 2 1 828 $ 740 $ 0.89 26 2 1 828 $ 730 $ 0.88 67 2 1 828 $ 730 $ 0.88 27 2 1 828 $ 740 $ 0.89 68 2 1 828 $ 740 $ 0.89 28 2 1 828 $ 730 $ 0.88 69 2 1 828 $ 730 $ 0.88 70 2 1 828 $ 740 $ 0.89 29 2 1 828 $ 740 $ 0.89 71 2 1 828 $ 730 $ 0.88 30 2 1 828 $ 730 $ 0.88 72 2 1 828 $ 740 $ 0.89 31 2 1 828 $ 740 $ 0.89 Total 59,616 $ 52,920 32 2 1 828 $ 730 $ 0.88 33 2 1 828 $ 730 $ 0.88 COLLIERS INTERNATIONAL P. 22

> Transaction Guidelines

TRANSACTION GUIDELINES Offering Procedure The offering of Hidden Oaks 2600 Gable Rd St. Helens, OR being conducted exclusively by Colliers International. All questions and inquiries should be directed to the Colliers representatives listed in this memorandum. Colliers will be available to assist prospective investors with their review of the offering. On-site inspections of the property and tours of the market area can be arranged directly with Colliers. All prospective purchasers can receive the due diligence materials by contacting any one of the listing brokers to register and receive a Confidentiality Agreement. Once a signed Confidentiality Agreement is received prospective buyers will receive a link to the due diligence material folders. Please address your offers to the brokers listed below. KENNETH VERBECK Associate kenneth.verbeck@colliers.com +1 503 499 0079 SEAN WORL Senior Associate sean.worl@colliers.com +1 503 499 0082 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon 97204 503.223.3123 SKIP ROTTICCI CCIM Vice President skip.rotticci@colliers.com +1 503 499 0062 ALEX CHENG Associate alexander.cheng@colliers.com +1 503 499 0075 Offers should include, at a minimum, the following: The purchase price and closing date; The source of capital, both equity and debt, for the transaction; The amount of earnest money deposit; A statement agreeing to the due diligence, Purchase and Sale Agreement, and closing processes; and A description of assumptions utilized for the offer. COLLIERS INTERNATIONAL P. 24

TRANSACTION GUIDELINES CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the Property at Hidden Oaks 2600 Gable Rd St. Helens, OR. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. COLLIERS INTERNATIONAL P. 25

851 S.W. Sixth Ave., Suite 1200 Portland, Oregon 97204 503.223.3123 Kenneth Verbeck Associate Sean Worl Senior Associate Skip Rotticci CCIM Vice President Alex Cheng Associate DIRECT +1 503 499 0079 DIRECT +1 503 499 0082 DIRECT +1 503 499 0062 DIRECT +1 503 499 0075 EMAIL kenneth.verbeck@colliers.com EMAIL sean.worl@colliers.com EMAIL skip.rotticci@colliers.com EMAIL alexander.cheng@colliers.com