EXCLUSIVE AGENTS

James.Hamm@commercial-development.com CQuarders@commercial-development.com

Commercial Development & Consulting

2800 - 156th Avenue SE, Suite 135

Bellevue, WA 98007

Jim Hamm ~ Craig Quarders

(206) 352-1101

FOR SALE

INVESTMENT OPPORTUNITY

$5,600,00020038 West Valley Highway, Kent, WA 98032

Free Standing Two-Story Retail / Office Building

COMMERCIAL

DEVELOPMENT

& CONSULTINGINVESTMENT AND

BROKERAGE SERVICES

Information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of the transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine your satisfaction and the suitability of the property to your needs.

INVESTMENT HIGHLIGHTSRetail / Office Building

20038 68th Avenue S, Kent, WA 98032

Investment Overview

Property Information

Sale Price: $5,600,000 10-Year Projected

Internal Rate of Return: 8.00%

Year 1 CAP Rate: 6.75% Cost Per SF: $288 / SF

(1/1/13 – 12/31/13)

Year 2 CAP Rate: 7.04% 2013 NNN Budget: $6.17 / SF

(1/1/14 – 12/31/14)

Year 3 CAP Rate: 7.28% Average Rent: $23.77 / SF / YR

(1/1/15 – 12/31/15)

12-Mo. Gross Income: $434,035

(1/1/13 – 12/31/13)

2013 NOI: $377,728

Assessor’s Info: Parcel #: 0122049053

2012 Taxes: $50,475.35

Year Built: 2008

Land Area: 140,024 SF (3.21 acres)

Building Area: 19,425 SF (gross)

Site Frontage: 500 Lineal Feet of Frontage

Parking: 88 Stalls / 4.6 per 1,000 SF

Tenants: Quality Tenant Mix, Long-Term Leases

Two Drive-Thru’s

High Traffic & Visibility Location

Construction: High Quality, Institutional Grade, Concrete Tilt-up, Metal

Canopies, Stone Wainscots, Rock Water Feature. 20-year Roof

Warranty. Immaculately maintained by Donovan Brothers, Pride

of Ownership Bldg.

Interior Utilities: All units separately metered for electric/gas, water sub-

metered. 200-amps per bay.

Patio

Information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of the transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine your satisfaction and the suitability of the property to your needs.

Updated: November 2011

West Valley Highway (68th Avenue South)

Lobbyto 2nd FloorOffice Space

101

900 SF

102

971 SF

110

1843 SF

103

1094 SF

104

1228 SF

105

1676 SF

107

1817 SF

1111050 SF

109

872SF

Entr

y

Entr

y

108

1471 SF

Available

LATITUDE CENTERKENT, WA

Patio Seating area with Fountain

LATITUDE CENTER 20038 West Valley Highway, Kent, Washington

Demographics / Drive Times

2 miles 3 miles 5 miles

Daytime Population

56,319 108,106 258,670

Residential Population

11,932 70,730 243,295

Average Household

Income

$73,964 $66,768 $72,878

Average Family Income

$84,211 $78,990 $86,232

5-Minute Drive Time

Residential Population: 29,419

10-Minute Drive Time

Residential Population: 74,183

Source: 2010 Scan US Estimates

ABOUT LATITUDE DEVELOPMENT Latitude Development, LLC is a Joint-Venture Company between Dave Kessler, and the principals of Donovan Brothers Construction, Darrell Donovan and Kevin Donovan. The company was formed in for the purpose of pursuing build-to-suit development opportunities as well as developing quality real estate investments for long term hold. Dave Kessler: As a principal of Latitude Development, Dave's responsibility is oversee and direct the day to day operations of all development projects. Dave has over 19 years of construction and development experience. After graduating from the University of Washington with a BS in Building Construction in 1990, Dave went to work for Baugh Industrial Contractors, Inc. While at Baugh, Dave managed a variety of industrial and commercial projects ranging in size from $50,000 to $100,000,000. In 1994, Dave was hired to manage construction projects for Opus Northwest, LLC, a national development and construction company. Before transitioning to the real estate development group in 1997, Dave managed construction of more than 1.2 million SF of industrial and office buildings including multiple tenant improvements. While a development lead at Opus Northwest, Dave was responsible for land acquisition, entitlements, leasing, overseeing design and construction, and ultimately selling to project upon competition. While at Opus Northwest, Dave developed approximately 1.3 million SF of commercial, industrial and office projects.

Darrell A. Donovan: In addition to being a principal of Latitude Development, Darrell is founder and co-owner of Donovan Brothers, focuses more than 30 years of construction management expertise on client projects. Prior to founding Donovan Brothers Darrell spent 3 years as a Project Engineer with McCann construction, 6 years as a Project Manager with SDL Corporation & 4 years as a Construction Manager for Park Properties Development Company. Since 1988 Donovan Brothers has performed construction and management services on commercial and industrial projects with a total construction cost in excess of $150 million. In addition to managing the company, he directs the development of corporate policies and goals for operations, personnel, financial performance and growth.

Kevin Donovan: In addition to being a principal of Latitude Development, Kevin is co-owner of Donovan Brothers, has a diverse background in all phases of commercial construction. Kevin served 5 years with SDL and two years with Baugh Construction as a Carpenter. With Donovan Brothers Kevin has constructed fast track projects with keeping quality at top notch, and works well with owners from start to finish. He supervises the day-to-day field operations, working closely with subcontractors and suppliers to achieve schedules and budgets. Kevin strives to ensure that each project maintains a high level of quality and maximizes the owner's investment as well as pride of ownership.

SEATTLE MARKET

DOING BUSINESS

The Seattle metro area has it all: globally-recognized companies, growing small and minority-

owned businesses, highly-skilled workers, cutting-edge research and thriving industry clusters.

GLOBAL BUSINESSES

Amazon.com, Boeing Commercial Airplanes, Microsoft Corporation, Starbucks Coffee

Company, Costco, Weyerhaeuser, Nordstrom, REI, Alaska Airlines, and The Bill &

Melinda Gates Foundation. These are just some of the globally-recognized organizations

headquartered in the Seattle area.

It is estimated that one in three local jobs is tied to international trade. This isn't surprising

given Seattle's location. Seattle is equidistant from London and Tokyo and the region's marine

ports are closer to Asia than any other major port on the United States' West Coast.

SMALL AND MINORITY-OWNED BUSINESSES

Small and minority-owned businesses are a vital and thriving contributor to the Seattle metro

economy and the community at large.

The Business Index 2010, produced by the Small Business & Entrepreneurship Council

ranks the state's tax system fifth in the nation for entrepreneurship and small business. And

according to the 2010 Washington Minority Small Business Survey, conducted by the

University of Washington's Business and Economic Development Center, 36 percent of

minority-owned businesses anticipated hiring within the next three months.

HIGHLY-SKILLED WORKFORCE

Seattle consistently ranks as one of the most highly educated cities in the nation and more

than 53 percent of residents have at least a bachelor's degree. Facebook,

Salesforce.com, Zynga Inc and Google are some of the Bay Area tech companies that have

opened offices in the Seattle area to tap into the region's deep talent pool according to the

Wall Street Journal. Online real estate company Zillow describes the three main types of

residents in Seattle as highly educated professionals with high-incomes; students in higher

education; and singles with upper-scale incomes.

CUTTING-EDGE RESEARCH

Seattle is home to world-renowned public and private research institutions. That includes the

University of Washington, one of the top public universities for research funding.

Private institutions and companies also have extensive research functions. According to a

study by the Technology Alliance, Washington state has especially strong R&D spending by

business and nonprofits. In fact, business accounts for the largest share of R&D dollars in

Washington state.

THRIVING INDUSTRY CLUSTERS

The Seattle metro area has a strong base in established industry sectors, such as aerospace,

information technology and retail. It's also a center for emerging industry segments, such as

interactive media and clean technology.

For more information about Seattle's industry clusters and for assistance with expanding or

relocating a business in the area, visit the website for enterpriseseattle.org, King County's

economic development organization.

KENT MARKET

Doing Business

Kent boasts a diverse economic base. Manufacturing, distribution, warehousing, professional services and retail companies are all located here. They include a growing number of large and well-known companies like The Boeing Company's Integrated Defense Systems, Flow International Corporation, WCP Solutions, Oberto Sausage Company, and Recreation Equipment, Inc. (REI). The Kent Valley is home to a growing volume of Class-A-wired office space. It is considered the fourth-largest warehouse and distribution center in North America and has the third-largest industrial area in the United States. Connected to greater Puget Sound via Interstate 5 and five other state highways, Kent's location has helped turn it into South King County's commercial hub. The Sounder Commuter Rail also serves Kent, moving commuters conveniently and efficiently.

Manufacturing

In Kent, one out of every four jobs is related to manufacturing in food processing, metal fabrication, industrial machinery, printing, and other sub-sectors. In 2010, the Kent Chamber of Commerce, in partnership with the City of Kent, continued to move forward with the Center for Advanced Manufacturing Puget Sound (CAMPS), and continues to partner with CAMPS, a 501(c)3, to advance manufacturing in the Kent area.

The center is a catalyst for a globally competitive manufacturing sector. By helping small- and mid-sized manufacturers succeed through innovation, supply chain positioning and business development, CAMPS will help transform Puget Sound into a recognized leader in highly innovative manufacturing companies. Already there are more than 3,000 manufacturers in the Puget Sound area, and a high proportion is expected to find value in the center and its services.

Initial program and service offerings of CAMPS include interest-specific CEO councils, local networking and business matchmaking, support for its members' capital formation activities, the development and adoption of emerging technologies and practices, brokering professional consulting services through a network of independent experts carefully selected by the center, and providing access to an online knowledge base of best practices, technologies, relevant industry research, hiring and retention strategies, regulations, shared databases, and periodicals.

South King County Economic Engine Study

Since 1997, the Kent Chamber, in partnership with other South King County cities and chambers, has commissioned a study to provide a baseline analysis of the South King County economy and business community. The goal is to profile each local economy, as well as the greater South King County economy, and the city's position relative to the regional trade corridor stretching between the ports of Tacoma and Seattle.

The following information is a snapshot of the larger, more detailed study. The tables here touch on the leading economic indicators for Kent, as compared to King County and Washington State.

1997 2000 2002 2004 2006 2008 2010

Total Employment

Kent 49791 53392 59898 64277 71915 76758 78000

King County

1021350 1097246 1195130 1172845 1236592 1322384 n/a

Total Population

Kent 63702 79524 84275 84560 85650 86980 112380

King County

1659103 1737034 1774300 1788300 1835300 1916441 n/a

Average Household Income

Kent 51116 54108 55447 56819 57864 62475 62475

King County

61588 71101 73235 75434 76722 83411 62810

Washington State

51555 58653 61349 64169 65852 70754 52413

Median Value of All Owner-Occupied Homes

Kent 139985 168121 186039 193935 206398 281556 286810

King County

166385 226384 242282 259297 283546 383705 440100

Washington State

135432 158803 172288 186919 198856 262036 308100

Typical Monthly Mortgage Payment Going to Purchase the Median Priced Home

Kent 1077 1350 1306 1308 1397 1911 1217

King County

1280 1817 1701 1749 1918 2604 2149

Washington State

1042 1275 1210 1261 1346 1779 2049

Kent Economic Specialization

SIC Industry Sector Total Employees

Index

17 Construction-Special Trade Contractors 4103 1.05

Manufacturing 21584 3.16

25 Furniture and Fixtures 212 2.78

26 Paper and Allied Products 893 2.91

28 Chemicals and Allied Products 202 1.55

30 Rubber and Miscellaneous Plastics Products

1446 9.23

33 Primary Metal Industries 202 1.3

34 Fabricated Metal Products 1611 3.34

35 Industry and Commercial Machinery and Computers

1783 2.6

36 Electrical and Electronic Equipment (ex: Computers)

893 3.33

37 Transportation Equipment 10528 8.41

39 Miscellaneous Manufacturing Industries 741 2.32

Transportation, Communication & Utilities 5584 1.45

42 Motor Freight Transportation and Warehouse

3359 3.65

47 Transportation Services 713 1.98

Wholesale Trade 8982 2.46

50 Wholesale Trade – Durable Goods 4722 2.23

51 Wholesale Trade – Nondurable Goods 4260 2.82

Retail Trade 13770 0.93

59 Miscellaneous Retail 2604 1.34

Services 15620 0.5

75 Automobile Repair, Services and Parking 1114 1.31

76 Miscellaneous Repair Services 355 1.33

Source: Kent Chamber of Commerce

CONFIDENTIALITY AGREEMENT

Jim Hamm – Craig Quarders Commercial Development & Consulting, Inc. 2800 - 156th Avenue SE, Suite 135 Bellevue, WA 98007 Phone: (206) 352-1101

RE: Latitude Development Center Sale 20038 West Valley Highway Kent, WA 98032 We have requested that various materials, documents, information, and other matters regarding the Property (“Property Information”) be delivered and disclosed to you. As a condition to, and in consideration of, the delivery and disclosure of the Property Information by you to us, we agree as follows: 1. Purpose: We the undersigned have been advised that Commercial Development & Consulting, Inc. (CDC)

has been retained by Latitude Development, LLC with respect to the offering for Sale of the Property. The Owner/Developer has indicated that all inquiries and communications with respect to the contemplated Purchase and Sale of the Property be directed to CDC. All fees due CDC in connection with the sale of said Property shall be paid by Latitude Development, LLC.

2. Confidentiality: We, the undersigned, are active as a principal, and agree to use the Property Information

only for the purpose of evaluating our desire to make an offer to purchase the Property, and not for any other purpose whatsoever. We agree that all of the Property Information is confidential and that we shall not disclose any of the Property Information in any matter whatsoever to any person or entity, except to the extent that the Property Information is (a) generally publicly available through means other than delivery or disclosure by you or your affiliates, or (b) required to be disclosed by law.

3. Disclaimer and Waiver: We acknowledge that neither you nor any of your representatives makes or have

made any representations or warranties regarding the accuracy or completeness of the Property Information. 4. Commission: In the event a Sale transaction closes between Latitude Development, LLC and the

undersigned, Commercial Development & Consulting and Cooperating Brokers (if applicable) will be compensated by Latitude Development, LLC under the terms specified in a separate agreement between Latitude Development, LLC, and Commercial Development & Consulting, Inc.

Acknowledged: BUYER Acknowledged: BROKER (if applicable) Date: Date:

By: By:

Printed Name: Printed Name: Title: Title: Company: Company: Address: Address: City, ST, Zip: City, ST, Zip: Phone: Phone: Fax: Fax:

E-mail: E-mail:

Please return via e-mail to James.Hamm@commercial-development.com