$20,241,550 WHOLE FOODS & JPMORGAN 2800 196th Street SW ...

$20,241,550

Investment Property Offering

WHOLE FOODS & JPMORGAN

2800 196th Street SW., Lynnwood, WA 98036

Presented By: Kase Abusharkh

252 Abigail Circle Danville, CA 94506 (925)348-1844 kase@

Offering Highlights

New Long Term Net Lease Structure High Quality National Tenants Scheduled 10% Increases in Rent Near Alderwood Mall with Access to Interstate 5

01/11/2012 All Sperry Van Ness? Offices Independently Owned and Operated.

Table of Contents

1

Financial Analysis

Executive Summary

Investment Information

Rent Roll Summary

2

Additional Information

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

1. Financial Analysis

All Sperry Van Ness? Offices Independently Owned and Operated.

Executive Summary WHOLE FOODS & JPMORGAN CHASE

2800 196th Street SW. Lynnwood, WA 98036 List Price Price per S.F. CAP

$20,241,550 $464.48 5.00 %

Building S.F. Percent Occupied Land Acres

43,579 100.00 % 3.68

Whole Foods & JPMorgan Chase NNN Leased Center

Cross Street Market

28th Avenue W. Greater Seattle

Tax Parcel Number Sub Market

Year Built Building Class No. of Buildings Zoning Type Parking Ratio

1996 A 1 PCD 4.86/1000

Year Renovated Location Class Corner No. of Parking Spaces No.Tenants

003726-011-002-00 Lynnwood

2011 A Yes 212 2

Property Descriptions

Construction

Originally built in 1996 as a Circuit City, the property was extensively renovated to suit Whole Foods and Chase Bank.

Renovation

Rennovations on the asset were completed in 2010 and 2011. There were over $8,000,000 in improvements funded in-part by a $3,500,000 landlord tenant improvement allowance. Whole Foods put a new roof on the entire structure. All tenant improvements for Chase Bank are responsibility of the tenant.

Parking

There is ample on-site surface parking with 212 spaces including designated handicap spaces yielding a parking ratio of 4.86 spaces per 1,000 sf of building.

Ingress/Egress

The property provides excellent ingress and egress via access points on 196th Street SW as well as 28th Avenue W./Alderwood Mall Parkway.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Major Tenants Area Property

Whole Foods Market is a foods supermarket chain based in Austin, Texas which emphasizes "natural and organic products." The company has been ranked among the most socially responsible businesses and placed third on the US Environmental Protection Agency's list of Top 25 Green Power Partners. Whole Foods is publically traded on the NASDAQ under the ticker WFM and is an S&P 500 Component. Whole Foods has an S&P rating of BB+.

JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. JPMorgan Chase, through its Chase subsidiary, is one of the Big Four banks of the United States. Chase offers more than 5,800 branches and 17,000 ATMs nationwide. JPMorgan Chase has S&P rated A investment grade credit.

Lynnwood is a city in Snohomish County, Washington. The population was 35,836 at the 2010 census, making it the fourth largest in Snohomish County and twenty-ninth largest in Washington State. The city is a mix of urban, suburban, and bedroom community to many professionals who work in Seattle. Lynnwood is known to be the "hub city" of south Snohomish County because of all the retail shopping. Straddling the junction between Interstate 5 and the north end of Interstate 405 in Washington, it is the final tangle of population on the north end of "Greater Seattle" before one continues on to other places: Everett, Bellingham, or Vancouver, BC. Its climate is wet and cool, wetter than that of Seattle. The center of the town at 44th Avenue West and 196th Southwest has the usual American panoply of small businesses, strip malls, and retail stores. Outside the commercial center of Lynnwood, to the east and north, lie Alderwood Mall (across from subject property) and single family homes.

This net leased asset is a rare offering boasting newly renovated improvements, an excellent location, and high quality tenancy. The leases call for 10% rental increases every 5 years with options and increases beyond the initial term. The leases allow for passive investment and call for limited landlord responsibilities including roof and structure (excluding membrane), structural walls/slab, and common areas. Whole Foods put a new roof on the entire building in 2011. Each tenant pays landlord 5% of CAM for management/admin. The site sits immediately adjacent to the 1.5 million square-foot Alderwood Mall. The mall is managed by General Growth Properties and has some 175 stores and kiosks with anchors including Nordstrom, Macy's, Sears, JCPenney, and AMC Theaters. Other retailers in close proximity include Lowe's Staples, Best Buy, Old Navy, Barnes & Noble, and Petco. The area has high income demographics, a dense population, and low retail vacancy. There is direct access from the site to I-5 and I-405.

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Investment Information

WHOLE FOODS & JPMORGAN CHASE 2800 196th Street SW. Lynnwood, WA 98036

Listing Price 2012 CAP 2017 CAP Price Per S.F.

$20,241,550 5.00 % 5.50 % $464.48

Building S.F. Percent Occupied Land Acres

43,579 100.00 %

3.68

Net Operating Income

2012 $1,012,077

2017 $1,113,285

2022 $1,224,614

2027 $1,347,075

Highlights

New Long Term Net Lease Structure High Quality National Tenants Scheduled 10% Increases in Rent Near Alderwood Mall with Access to Interstate 5

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.



Rent Roll Summary

Tenant Name Whole Foods Market

JPMorgan Chase NA

Start Date End Date Occupied S.F.

1/1/2012 12/31/2031 38,579

6/1/2012 5/31/2022 5,000 Total 43,579

Annual Occupied

Rent S.F.

Rent

% of Escalations / Options / Comments Total

$22.60

$872,077

88.5 % Rent increases 10% every 5 years Tenant has six 5 year options to renew. Tenant to pay percentage rent of 2% for annual sales over $25,000,000.

$28.00 $140,000 11.5 % Rent increases 10% every 5 years. Tenant has four 5 year options to renew.

$1,012,077 100.0 %

The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. All Sperry Van Ness? Offices Independently Owned and Operated.

2. Additional Information

All Sperry Van Ness? Offices Independently Owned and Operated.

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