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Offering MemorandumNORTH CITY RETAIL CENTER1502 NE 179th StShoreline, WA 98133Exclusively offered byParagon Real Estate Advisors600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com1

Offering SummaryParagon Real Estate Advisors is pleased to exclusively offer for sale theNorth City Retail Center. Perfectly situated in North City this property hasexceptional street appeal, good exposure, with ample parking and easyaccess. The property is 100% leased to long term tenants who have a loyalcustomer base.This is the first time the North City Retail Center has been availablefor purchase in many years and offers a buyer the rare opportunity topurchase a very well-maintained retail strip center in a location that isquickly and quietly becoming sought after by developers, retailers, andrestaurateurs who are interested in serving a neighborhood clientele. Thisproperty would make a great addition to any portfolio and provide a solidlong term investment.NameNorth City Retail CenterAddresses1502 NE 179th St, Shoreline WA 98155Parcel Number402410-0174Year Built1950 (Renovated 1990)Price 2,595,000Price Per Net Sq.Ft. 301.18Cap Rate5.43%Total Building Area8,616 Net Rentable Sq.Ft.Suites5Occupancy100%Lot Size17,575 Sq.Ft.ZoningCB600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.comNORTH CITYRETAIL CENTER2

Property SummaryAddress:1502 NE 179th St, Shoreline, WA 98155Year Built:1950/1990Existing Use:Retail Strip CenterGross Building Size:9,141 Square FeetNet Rentable Sq.Ft.8,616 Square FeetStories:Single Story Plus Mezzanine LevelOccupancy:100%Parking:25 SpacesNeighborhoodNorth CityMunicipalityShorelineTenantsCustom PureGolden BowNail CodeState FarmLiving Massage600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com3

Aerial MapSEATTLE CBDUNIVERSITY OF WAU DISTRICTWALLINGFORDLAKE CITYNORTHGATENORTH CITYRETAIL CENTERJACKSON PARKGOLF COURSE600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com4

Shoreline ied54%46%Median household income 82,500Owner OccupiedRenters51%49%Median 1 Bd/1 Bth Rent 1,403Median 2Bd/1 Bth Rent 1,929TOP JOB SECTORS: *Administrative:Management:Sales:Educational:Food %5.7%5.1%Personal Care:Comp/Mathematical:Health Practitioners:Construction:Maintenance:Arts and Recreation:Social Services:4.9%4.6%4.3%4.0%3.4%3.1%2.8%* datausa.io/profile/geo/shoreline-wa/600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com5

ShorelineShoreline is Seattle’s closest neighbor to the North.In fact, the two have basically grown together withno physical or geographical barrier in between. Forthat reason, Shoreline is appealing for commutersand anyone who wants to claim “North Seattle” astheir home.Shoreline boasts a unique history and characterderived from original settlements dating back tothe late 1800s. The quality that drew early settlersto the area remains dominant to this day: location.The City of Shoreline offers classic Puget Soundbeauty and the convenience of suburban living withthe attractions of nearby urban opportunities.From breathtaking views of Puget Sound to tennis,indoor swimming, to nature trails and beach accessto skateboarding, Shoreline’s more than 400acres of park land and open space offer a varietyof enriching recreation and outdoor experiences.The city recently invested 18.5 million to improveits parks, which include saltwater shoreline, abotanical garden, an interurban trail and hikingtrails, and newly improved athletic fields, courtsand playgrounds.Shoreline shares its south border with Seattleand downtown Seattle is approximately 12 milesaway. Public transportation is readily availableand easy to access. Metro Transit, CommunityTransit and Sound Transit all provide services tothe surrounding communities and to the centralbusiness district.600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com6

Neighborhood Amenities - 23456789101112131415161718192021222324252618North City BistroEasy Monkey TaphouseFranks Lumber/The Door StoreHamlin ParkNorthcrest ParkPagliacci PizzaNile Shrine Golf CourseEcho Lake Elementary SchoolSanmaru grillGateway TavernLenna’s CafeSafewayMeridian Park Elementary SchoolAurora MarketplaceWalgreensTown Center at Lake Forest ParkShoreline Public LibraryDicks Drive inSpartan Recreation CenterMountlake Terrace Transit CenterAurora Square Retail CenterFred MeyerShoreline Community CollegeTerrace Creek ParkShorewood High SchoolNorth City Park24714102011968261922125133172NORTH CITYRETAIL CENTER11151216523420600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com7

North CityNorth City is a quaint neighborhoodwithin the City of Shoreline offering avibrant pedestrian friendly commercialdistrict and affordable housing. Located12 miles north of Seattle, North City is a15 minute drive from downtown Seattle.This neighborhood promotes communityas seen by the annual North City Jazzwalk. The North City Business Associationin partnership with the City of Shorelinesponsor the Jazz Walk where 15th AvenueNE is closed from NE 175th to NE 180thand the street is filled with jazz, food andpeople. Another neighborhood festival theNorth City community looks forward is theannual Tree Lighting Festival that takesplace every December at Les Schwabwhere there is live music, singing andrefreshments.In very recent years developers have alsotaken note of North City as seen by thecurrent development and recent salesactivity. On January 24th, 2018, KaterraConstruction started building a 240 unitapartment complex at the corner of NE175th and 15th Avenue NE. This apartmentbuilding will have 2 towers, 2 levels ofunderground parking with no retail space.In 2007 Epic Asset Managementcompleted the 88 unit, Arabella ApartmentHomes, at the corner of NE 177th and 15thAvenue NE. Today Epic Asset Managementis building the Arabella II, an 80 unitapartment building adjacent to theArabella.As more and more people are movingNorth in search of affordable housingNorth City offers a quiet neighborhoodwithin the highly sought after ShorelineSchool District. Many shops in North Cityoffer a full range of everyday amenitiesand services including a Safeway grocerystore, Walgreens drug store, coffee shops,pubs, restaurants and more.NORTH CITYBus stops along 15th Avenue providedirect service to the Northgate TransitCenter, the Mountlake Terrace TransitCenter, and central Shoreline. Due forcompletion in 2023, the planned LynnwoodLink Extension of Sound Transit’s light railservice will have a station just over half ofa mile away from the property on the Eastside of Interstate 5 at NE 185th Street.600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com8

Neighborhood DevelopmentLocationPlanned Project1. NE 175th and 15th Ave NE240 Unit Apt (Construction Underway)2. NE 180th and 15th Ave NE Arabella I (2007)Arabella IIArabella I3. NE 180th and 15th Ave NE Arabella II (Construction Underway)4. 17563 15th Ave NESold 8.21.201717735 15th Ave NE5. 17521 15th Ave NESold 09.07.201717563 15th Ave NE6. 17735 15th Ave NESold 04.13.2017NORTH CITYRETAIL CENTER17521 15th Ave NE240 Unit Site600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com9

Lease AbstractTenantSuite SizeLease StartDateLease ExpirationDateExtensionOptionsM0nthly BaseRentMonthly CAMCustom Pure4,275 Sq.Ft.06/01/199512/31/20211 - 5 Year (12/31/2026) 5,400 1,800Golden Bow1,237 Sq.Ft.10/31/201210/31/2019None 1,980 603Nail Code1,072 Sq.Ft.06/26/200907/31/2018None 2,389 516State Farm1,032 Sq.Ft.01/01/201105/31/20201 - 5 Year (05/31/2025) 1,517 551Living Massage1,000 Sq.Ft.06/01/201509/01/2019None 1,526 474600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com10

Operating SummaryCurrentAnnualized Operating DataOccupancy100%Price 2,595,000Scheduled Gross Income 201,048Year built1950/1990Per Square Foot 301.18Less Vacancy 10,052Rentable Area8,616 Sq.Ft.Current CAP5.43%Gross Operating Income 190,996NOI 141,001Less Expenses 49,995Net Operating Income 141,001TenantSizeMonthly RentMonthly CAMCustom Pure4,275 Sq.Ft. 5,400Golden Brow1,237 Sq.Ft.Nail CodeAnnualized Operating ExpensesCurrent 1,800Real Estate Taxes2017 Actual 19,476 1,980 603Insurance2017 Actual 2,9351,072 Sq.Ft. 2,389 516Cleaning and Maintenance2017 Annualized 5,351Farmers Insurance1,032 Sq.Ft. 1,517 551Electricity2017 Annualized 2,516Living Massage1,000 Sq.Ft. 1,526 474Garbage2017 Annualized 3,068Sewer2017 Annualized 3,064Natural Gas2107 Annualized 714RepairsAs of Nov 4,954Misc2017 Annualized 3,896ReservesProforma 4,021Total Monthly IncomeMonthly Scheduled Rent 12,811Expense Reimbursement 3,943Total Monthly Income 16,754Total ExpensesCurrent Expenses/FootOperations Percent of EGI600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com 49,995 5.8024.87%11

Sound Transit Link Light RailThe Northgate Link Extension will connect theNorthgate, Roosevelt and U District neighborhoodsto downtown Seattle and the airport The elevatedNorthgate Station will be located east of 1st AveNE, spanning NE 103rd Street. Station entranceswill be on the Northgate Mall property north of NE103rd Street and near the Northgate Transit Centersouth of NE 103rd Street. Construction is currentlyunderway and this station is slated to open in 2021.The Sound Transit Lynnwood Link Extension LightRail Project will give riders a fast, frequent andreliable connection through some of the worsttraffic congestion in Washington State. Thisextension builds four new light rail stations fromNorthgate to Lynnwood along the Interstate-5corridor, two of which will be located in Shoreline,one at 148th Street and the other at 185th Street.These stations will provide access to the NorthgateMall, bus transfers at the transit center, adjacentpark-and-ride facilities, North Seattle CommunityCollege and nearby homes and businesses.NORTH CITYRETAIL CENTERSound Transit anticipates the project startingconstruction in 2018 and opening for service in 2023with daily projections estimating between 63,000and 74,000 riders each weekday by the year 2035.With trains arriving every 4 to 5 minutes riders canexpect a 16 minute commute from the station at145th and downtown Seattle. These transit times willsave approximately 14 - 16 min during peak morningcommute times.600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com12

EmploymentGreater Seattle excels at the industries of the future - the region isa center of innovation and features some of the world’s top globalbrands. Our aerospace industry is one of the largest in the world,home to Boeing Commercial Airplanes and over 800 aerospacefirms that employ 17% of all aerospace workers in the UnitedStates. Greater Seattle is also a leading center for information andcommunications technology, bolstered by industry pioneers suchas Microsoft and Amazon. As a result, our region has emerged as aworld leader in cloud computing and data visualization, and ranks4th as a global startup hub ahead of New York and Boston. Adobe Nordstrom Alaska Airlines Paccar Amazon RealNetworks Apple REI AT&T Wireless Russell Investments Boeing SpaceX Costco Starbucks Expedia, Inc. Symetra Financial Expeditors International Tableau Software F5 Networks T-Mobile Facebook Twitter Fred Hutchinson Uber Gates Foundation University of Washington Getty Images Virginia Mason Google Weyerhaeuser Microsoft Zillow Nintendo Zulilly600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com13

Map of Key EmployersELLIOTT BAY600 University Street Suite 2018 Seattle, WA 98101P 206.623.8880 E Info@ParagonREA.com ParagonREA.com14