18-0879 Lacey Marketplace - v2

PAUL SLEETH BILLY SLEETH PATRICK ALLEN
206.518.9547 206.518.9567 206.858.8434
[email protected] [email protected] [email protected]

EXECUTIVE THE NKF CAPITAL MARKETS TEAM is pleased to present the following valuation and disposition
SUMMARY
proposal of Lacey Marketplace to First Western Development Services (FWDS).

There is a severe lack of institutional quality, anchored shopping centers available on the West Coast, specifically in the
Pacific Northwest, creating high demand from investors seeking quality retail investments. Lacey Marketplace is the
dominant regional community center and draw in the entire Lacey trade area and will be well received by the investment
community.

It is NKF’s belief that three major factors should determine First Western Development Service’s choice of broker to
market the asset. The team should be able to demonstrate its undeniable ability to:

• Differentiate the asset.
• Access all buyer pools.
• Demonstrate, through experience, the above in an aggressive and credible marketing process.

The successful execution of these tasks will achieve FWDS’s objective of obtaining the highest price and best terms for
the asset. NKF believes the following proposal will demonstrate that the NKF Capital Markets Team provides the critical
tools necessary and is uniquely qualified to help FWDS achieve this goal. NKF is extremely motivated to represent
FWDS in the marketing and sale of Lacey Marketplace and our high level respect for you firm increases our desire to
perform above your expectations. Thank you for the opportunity to present the following marketing proposal.

?WHY NKF

DIFFERENTIATION OF THE ASSET
ACCESS TO & QUALIFICATION OF BUYERS
AGGRESSIVE AND CREDIBLE MARKET PROCESS
MARKET PRESENCE

DIFFERENTIATION
OF LACEY MARKETPLACE

• Institutional-quality center • Positive leasing traction Due to NKF’s unparalleled local market expertise and direct
• Costco, Home Depot shadow-anchored • Contracted rental increases knowledge of the project,
• Solid demographics and strong daytime population of 105k
- Dominant location within strong retail trade area THE TEAM WILL BE ABLE TO
• ___% of income from nationally recognized tenants within 3 mile radius SUCCESSFULLY PRESENT THE
• Future break-up value
- Lease Term with three new 10 year leases • Excellent location at major I-5 interchange PROPERTY’S STRENGTHS
• Solid, credit tenant mix, providing stability and credit • Being offered without debt
• Regional location & draw in comparison to other retail investments, effectively demonstrating
• 99% occupancy how the asset will outperform its competitors, thereby achieving
top pricing.

NKF’s West Coast team is currently the MOST ACTIVE in the Our Team is located in Seattle and SPECIALIZES IN THE
PUGET SOUND REGION, PROVIDING CREDIBILITY
marketing and disposition of Community Centers throughout the West
Coast. to the property story and strength.

We have had a HIGHER EXECUTION RATE AND HAVE Over the past six years, Paul and Billy have SOLD MORE RETAIL
SOLD MORE CENTERS over the past 12 months than our INVESTMENT PROPERTIES IN THE SEATTLE
REGION THAN ALL OTHER FIRMS COMBINED.
competitors, despite the market shift during this timeframe. NO OTHER FIRM HAS THE IN-DEPTH
KNOWLEDGE of Lacey Marketplace or the Greater Puget Sound
Paul Sleeth and Billy Sleeth will PERSONALLY DIRECT ALL
TOURS. The importance of this cannot be overstated, as the tours will trade area, which will prove invaluable in obtaining the maximum pricing.

be imperative in achieving top pricing. Paul and Billy have sold approximately $3.4 BILLION OF
RETAIL INVESTMENT PROPERTIES in the Pacific
NKF West Coast Team has CLOSED ON $___ OVER THE
past 12 months, and currently HAVE $____ OF RETAIL Northwest and have the established reputation as the Northwest’s
INVESTMENTS in the market. number one retail investment team.
Our Team has sold the MOST COMPARABLE AND RECENT
CENTERS TO TRADE in the Puget Sound Region.

ACCESS TO AND The disposition of Lacey Marketplace will combine our team’s extensive experience and relationships in the investment community, our
Q UA L I F I C AT I O N
OF BUYERS experience in selling retail investment properties in the Greater Puget Sound, and our proven program for exposing institutional quality offerings

to local, national, and international capital markets. Our team’s local knowledge and experience in the center’s
immediate trade area, and our ability to access local, national and international capital markets
is second to none.

Our NKF debt and structured finance team PROVIDES BUYERS Through our team’s direct database, global network, national coverage PAUL AND BILLY HAVE SOLD
CONVENIENT ACCESS TO CAPITAL. of capital markets, partnership with dominant brokers nationally, and MORE THAN 70 PERCENT OF
knowledge of all major investors looking for investment properties in the ALL WASHINGTON STATE RETAIL
Our team has consistently outperformed its competition by INVESTMENT TRANSACTIONS IN
Pacific Northwest, WE WILL ACCESS ALL POTENTIAL
SUCCESSFULLY PRESENTING A PROPERTY’S BUYERS FOR LACEY MARKETPLACE WITH MORE THE PAST THREE YEARS.
STRENGTHS IN COMPARISON TO OTHER RETAIL SUCCESS THAN OUR COMPETITORS.
INVESTMENTS, effectively demonstrating how the asset would Paul Sleeth and Billy Sleeth consistently
With more than 16,000 entities that own, manage, consult or that sell more retail investments in
outperform its competitors, and thereby achieving pricing well above
expectations. are trying to buy property, our team’s database also INCLUDES Washington—in terms of both volume and
EVERY RETAIL PROPERTY AND ITS OWNER, IN number of transactions—than any other
Our team dominates the GROCERY/COMMUNITY CENTER EXCESS OF 10,000 SQUARE FEET IN THE PACIFIC company does.
ANCHORED RETAIL INVESTMENT SPACE. NORTHWEST.
Paul and Billy are involved in fully
We TRACK ALL SOLD TRANSACTIONS – ALL Our team has EXCELLENT WORKING RELATIONSHIPS underwriting all assets, providing in-depth
SECTORS IN ADDITION TO RETAIL – to source 1031 WITH ALL INSTITUTIONAL AND PRIVATE knowledge of the financial and operational
INVESTORS who are investing or trying to invest in the Pacific
exchange buyers. aspects of Lacey Marketplace.
Northwest.

Our industry relationships provide WIDE CROSS BROKERAGE
WITH OFFICE, MULTIFAMILY, AND RETAIL
BROKERS THROUGHOUT THE NATION.

AGGRESSIVE AND The NKF Team’s superior market expertise, asset knowledge, reputation and transactional experience in Washington State provide
CREDIBLE MARKET a credible platform to demonstrate why an asset demands aggressive pricing. Our team will effectively use this unsurpassed

PROCESS knowledge and transaction experience to maximize the purchase price in the “bid up” process and maintain that

price during due diligence.

ASSET REVIEW &
VALUATION

HIGHLIGHTS & CHALLENGES
KEY HINGE POINTS
PRICING MATRIX
VALUATION SUMMARY
PROFORMA
10-YEAR CASH FLOW
FINANCIAL ASSUMPTIONS
FINANCING OPTIONS
COMPARABLE TRANSACTIONS

STRENGTHS

• DOMINANT REGIONAL COMMUNITY CENTER: Lacey Marketplace contains • NEW MARVIN RD I-5 INTERCHANGE: The Marvin Way Interchange

a strong conglomeration of retail and out-positions the other competing shopping is being upgraded to a “Diverging Diamond Interchange”, which will allow
centers in the trade area. The center draws from a wide radius and is the dominant for increased traffic flow and reduced congestion. The interchange upgrade
center in the immediate trade area. highlights the traffic counts at Lacey Marketplace.

Costco & Home Depot Anchored – Although not part of the offering Costco and Home • NO DEBT: Lacey Marketplace is offered without any obligation to assume
Depot provide exceptional draw and stability to the center.
financing, providing flexibility for investors debt and equity preferences.
Grocery Component – Costco helps solidify the location and provides the grocery
component and daily draw to the center. • POTENTIAL BREAK-UP VALUE: Exploring the ability to sell the parcels

Attractive Returns individually could provide future upside and create a larger buyer pool with
more aggressive pricing on the multi-tenant shop buildings. The North retail
• CONTRACTED RENTAL INCREASES: 13 of the __ leases contain contracted strip is constructed into three distinct buildings, offering significant investor
upside by selling off the individual buildings.
rental increases. The center has ___% NOI growth over the 10-year hold period.
• TENANT SALES: The anecdotal information we have received provide an
• NEW 10-YEAR LEASES: Ulta, La-Z-Boy, and Boot Barn represent __% of the
important and strong story regarding the anchor success at this location. The
income and are all new 10-year leases. success of the seasoned tenants, combined with the three new leases, will be
an imperative part of the story to supporting solid pricing.
Scale – The ability to place approximately $___ in the Puget Sound will attract the
institutional buyer pool. Residential Growth

• MAJOR RETAIL CORRIDOR: Lacey Marketplace anchors the 3rd largest Lacey Drivers – Lacey is well positioned with connectivity to Puget Sound’s major
employment hubs. Being located minutes from Olympia provides a secure and
concentration of retail outside of Seattle and Tacoma, with trade area tenants growing employment base with ___ working at the State Capitol. In addition,
including Costco, Walmart, Target, Home Depot, Winco, LA Fitness, Safeway, Fred Lacey is located __ miles from Tacoma and ___ miles from Seattle and Bellevue.
Meyer, Lowes, Walgreens, Rite Aid, and more.

• SOLID DEMOGRAPHICS AND BUYING POWER: Average household incomes

are in excess of $91,000 within a 3 mile radius.

• EXCELLENT LOCATION: Lacey Marketplace is ideally located at the NEC of

two main arterials in downtown Lacey, Martin Way and Marvin Road, at a major I-5
interchange. The property benefits from a corner location and excellent visibility
and access.

CHALLENGES

• “CORE COMMUNITY CENTER” VS “BOX POWER CENTER”: Certain investors will classify the deal as a “box power center”

in a secondary trade area which will negatively impact pricing. No team is better suited to overcome this challenge.

The NKF team will decisively position Lacey Marketplace as a dominant Community Center in the heart of a strong primary trade area.
Our NKF West Coast Team is currently and consistently marketing comparable centers. Our ability to identify these capital sources
through the collaboration of our entire Capital Markets team collaboration is a major advantage and differentiator in the current
environment.

• OFFICE MAX: Many investors will have concerns around the Office Max concept, corporate credit rating, and lease term at this

location. These investors will underwrite this space as a vacancy upon lease expiration, putting pressure on pricing.
We will mitigate this concern by highlighting

Understanding the store sales and success at this location will be important.
Quality of the space. OfficeMax occupies the best space in the center and one of the most desirable spaces in the trade area as an
end-cap with superior visibility and access to Marvin Rd.
14,291 SF is a desirable size.
Recent absorption of three similar size spaces by Ulta, Boot Barn and La-Z-Boy. the quality of the space
The trade area occupancy is always high with zero box vacancies currently.

KEY HINGE POINTS WHICH MUST BE ADDRESSED

1 APPROPRIATELY TO ACHIEVE TOP PRICING:
2
3 Lacey positioned as “core”: Lacey must be positioned as a core, regional, trade area.

Our knowledge of the trade area and Puget Sound Region allows us to credibly position Lacey as a core trade area.
National retailers’ desire to be located in Lacey contributes to the story.
The retail sales being achieved in Downtown Lacey, and the sales leakage out of the trade area will be highlighted.
The tour is important in achieving this point as Lacey can appear to be sparsely populated and have lower income if not toured properly.

This is THE dominant Grocery Anchored center in an established and rapidly growing retail trade area:

Our team will drive this home with every investor, ensuring Lacey Marketplace is properly painted as the dominant Grocery Anchored center
and not with the “big box” brush.
No team in the PNW has sold more Grocery Anchored shopping center than NKF and we will utilize our credibility and reputation to ensure
Lacey Marketplace is properly categorized and perceived by the investment community.

OfficeMax: OfficeMax sales are soft and rent is near market.

This space is a desirable “end-cap,” significantly increasing future tenant demand for this suite.
There is zero current or historical box vacancy in the Lacey market.

COMPARABLE TRANSACTIONS

Property: GALLERIA RED ROCK LEGENDS AT SAN TAN VILLAGE BEST IN THE WEST ESPLANADE PALM VALLEY
Address: COMMONS COMMONS SPARKS MARINA MARKETPLACE 6592 W. Lake Mead SHOPPING CENTER 1478 N. Litchfield
Date Sold: 500 N. Stephanie 15 S River Road St. 1530 - 1565 East 2795 S. Market Blvd Las Vegas, NV Road Goodyear, AZ
Street Henderson, NV George, UT Street Gilbert, AZ 195 W. Esplanade
Lincoln Way 5/14/2018 2/9/2018 Drive Oxnard, CA Pending
1/26/2018 8/24/2017 Currently Under
Recent BOV $51,500,000 $87,000,000 $45,000,000
Price: $31,400,000 $33,187,500 Contract
Price PSF: $248 $36,000,000 $187
Cap Rate: $432 7.20% 9.00% $96,000,000
Square Feet: $288 275,814
Land area (AC): 7.75% 133,730 25.67 AC $187 $269 $193
Occupancy: 13.01 AC 6.75% 97% 8.00% 7.67% 7.75%
Buyer: 72,664 Columbus Pacific 465,000 356,864 232,577
Seller: 100% 124,861 34.55 AC 44.18 AC 28.271 AC
22.71 Pacific Castle, Inc. Blackstone JV DDR 94% 99% 98%
Notable Tenants: 14.02 AC Vestar Development
100% The Blackstone Bed Bath & Beyond, DRA TBD
Group LP 100% Marshalls, Big Lots,
3D Investments Weingarten Realty Brixmor DDR
Dick’s, Old Navy, N/A Jo-ann Fabric
Brixmor GAP, ULTA, PetsMart Best buy, Office De- Home Depot, Dick’s Best Buy, Total Wine,
Gerrity Group pot, Petsmart, Ba- Sporting Goods, Ross, Ulta, Barnes
TJ Maxx, Babies bies R Us, Bed Bath & Noble, Pier 1
R Us, Dollar Tree, Best Buy, Old Navy, Walmart Neighbor- Imports, Famous
Burlington, Tuesday TJ Max, Petco, & Beyond hood Market, Sta- Footwear, Dressbar,
Morning, Stein Mart, ples, Bob’s Discount Kirkland’s
Kirkland’s, Fallas GNC, Sport Clips, Furniture, Party City
GameStop, Buffalo
Parades
Wild Wings

MARKET DATA

SITE AERIAL
RETAIL AERIAL
LACEY MARKET OVERVIEW
DEMOGRAPHICS

SITE AERIAL

R E TA I L AERIAL

250 ACRE FUTURE DEVELOPMENT PROJECT
(PROPOSED OUTLET MALL)

GROCERY OUTLET

SOUTH SOUND CENTER

RETAIL AERIAL I-90 & MARVIN ROAD INTERCHANGE

I-90 & MARTIN WAY INTERCHANGE

OLYMPIA REGIONAL AIRPORT

LACEY MARKET
OVERVIEW

Lacey is situated on the southern tip of Puget Sound, between the Olympia
and greater Tacoma trade areas. Lacey Marketplace anchors the 3rd largest

concentration of retail outside of the Seattle and Tacoma retail markets.

DEMOGRAPHICS

ONE OF THE FASTEST EXCELLENT DAYTIME The population of Thurston County
GROWING CITIES IN POPULATION is projected
THURSTON COUNTY,
of 105,000 within a 3-mile radius, and TO GROW BY
just 3 miles outside the State Capitol an actual population of 47,135 (2017) APPROXIMATELY 40% OVER
of Olympia. Lacey has grown at
an annual rate of 1.45% since in the city of Lacey. THE NEXT 20 YEARS.

2010, which is faster than Olympia
(1.05%), Thurston County (1.06%)
and even the Seattle Metro Area

(1.34%).

ECONOMICS

One of the STRONGEST JOB MARKETS IN THE The city of Lacey’s median household income ($63,570) is greater Residents of Lacey have a HIGHER MEDIAN
STATE, with over 40% of local residents having employment DISPOSABLE INCOME THAN THOSE IN
than that of Olympia and is among THE HIGHEST IN OF OLYMPIA, also higher than the national average.
through the government. ANY CITY IN THURSTON COUNTY.

Lacey has a LOWER UNEMPLOYMENT RATE Lacey recorded retail sales per capita of $18,659, HIGHER
THAN THE STATE AND NATIONAL
(5.6%) than Olympia (5.7%) and Thurston County (5.7%). AVERAGES.

EDUCATION

LACEY’S RESIDENTS ARE 36% OF LACEY
AMONG THE MOST HIGHLY RESIDENTS HOLD A
EDUCATED IN THE PUGET BACHELOR’S DEGREE
SOUND REGION. Sixty-six percent OR HIGHER, which is better

of citizens over the age of 25 are in or have than the national average.
attended college, and 42 percent of those

hold at least one college degree.

North Thurston Public Schools, which Thurston County is home to Saint
Martin’s University, Evergreen
CONSISTENTLY RANK State College and South Puget
AMONG THE HIGHEST
ACADEMIC ATTAINMENT Sound Community College which
LEVELS IN WASHINGTON
STATE, provide award-winning PROVIDE A WELL-
EDUCATED WORKFORCE
educational services to 14,000 students TO LOCAL EMPLOYERS.
within Lacey and its surrounding
residential suburbs.

T R A N S P O R TAT I O N

Easily accessible from Interstate 5 and State Routes 7 161,
and 512. The city is located 35 miles south from the Sea-Tac
International Airport.
The city of Lacey has extensive regional bus routes servicing
Pierce County and parts of King County

Centennial Station in Lacey, opened in 1993, is served by
Amtrak Cascade and Coast Starlight trains which run from
Vancouver, B.C. to Los Angeles, CA.

JOINT BASE
LEWIS MCCHORD

Joint Base Lewis-McChord (JBLM) JBLM is the LARGEST
is one of only 12 joint bases MILITARY INSTALLATION

worldwide and has a TOTAL ON THE WEST COAST
ECONOMIC IMPACT OF AND THE THIRD

$6,085,300,000 ON LARGEST EMPLOYER IN
THE REGION (1.8% OF WASHINGTON STATE WITH
OVER 50,000 EMPLOYEES.
WASHINGTON
STATES GDP). Combined with family members, military
retirees and civilians, the Joint Base Lewis

– McCord supports a total population of
210,000 residents.

PUGET MEADOWS WEST AFFINITY AT LACEY

LOCATION: 8700 HANNA LANE SE LOCATION: 6950 BIRDSEYE AVE
# OF UNITS: 76
BRITTON PLACE DEVELOPER: # OF UNITS: 170
STATUS: SCHNEIDER HOMES
COMPLETED EARLY 2018 DEVELOPER: INLAND

LOCATION: 6600 BRITTON PARKWAY NE STATUS: FOUNDATION PERMIT ISSUED
# OF UNITS: 192
DEVELOPER: AND WORK BEGUN
STATUS: HALL EQUITIES GROUP
PRESLEY-ABERNETHY COURT COMPLETED LATE 2017 ARBOR CENTER II

LOCATION: 1607 ABERNETHY ROAD N.E. 5 LOCATION: 9325, 9327 & 9329 MARTIN AVE E.

# OF UNITS: 29 # OF UNITS: 29

STATUS: PERMITS ISSUED MAY 15, 2018 STATUS: PERMITS ISSUED MARCH 29, 2018

LILLY RD NE 15TH AVE NE MARTIN WAY SE REVEL

LOCATION: 211 HOH ST SE

# OF UNITS: 135

GATEWAY PLACE DEVELOPER: THE WOLFF CO.

STATUS: COMPLETED MAY 2018

MARTIN WAY E LOCATION: 6955 BIRDSEYE VIEW AVE NE MARTINDALE

# OF UNITS: 393 LOCATION: 8675 LITT DR SE

DEVELOPER: BRITTON PARKWAY # OF UNITS: 240

STATUS: PHASE 1 UNDER CONSTRUCTION DEVELOPER: THE WOLFF CO.

THE MARQ STATUS: ESTIMATED LATE 2018

14TH AVE SE LOCATION: 8515 LITT DR SE
# OF UNITS: 248
DEVELOPER:
STATUS: THE WOLFF CO.
COMPLETED 2017

RESERVE AT LACEY SENIOR APARTMENTS

LOCATION: 6110 PACIFIC AVE SE EMMERSON CROSSING
# OF UNITS: 241
DEVELOPER: LOCATION: 25TH AVE SE IN LACEY
STATUS: RESERVE AT LACEY LP
PERMIT APPROVED. # OF UNITS: 41
UNDER CONSTRUCTION SOON.
STATUS: MAY 22, 2018

WIGGINS RD SE MANNERWOOD MEADOWS
COLLEGE ST SE
LOCATION: THURSTON COUNTY, MAYES RD SE
CARPENTER RD SE
MARVIN RD SE # OF UNITS: 64 HOME LOTS
MERIDIAN RD SE
COLLEGE PARK APARTMENT ADDITION YELM HWY SESTATUS: PERMITS ISSUED APRIL 27, 2018

LOCATION: 3307 COLLEGE ST. SE 510
# OF UNITS: 24 NEW UNITS, 78 TOTAL
STATUS: PERMITS ISSUED FEBRUARY 12, 2018

LOCATION: HEWITT LAKE URBAN GROWTH
# OF UNITS:
1900 54TH AVENUE SOUTHEAST
STATUS: 38 FOR TOWNHOMES AND

DETACHED SINGLE-FAMILY UNITS
PERMITS ISSUED DECEMBER 4, 2017

b 135 Units
b
bLacey Multi-Family Apartments Ph. 2 Hawks Prairie Phase 3 k
Burton Ray Gardens b274 Units 68 Lots p
30 Lots/12 Remaining
URBAN Meadows at Morningside b
GROWTH
b79 Lots Steilacoom Ridge t b
298 Lots
Cantergrove
76 Lots b bCampus Peak

Nisqually Bend 90 Lots/30 Remaining

77 Lots

b bb

Cora St. Apts bThe Reserve Campus Estates Div. 2 Campus Estates
37 Lots/13 Remaining 56 Lots
b12 Units 300 Units

Gateway North
b bGateway Res. Div. 2 b Vicwood Campus
52 Units 49 Lots
bb b244 Lots
b bbFreestone Place
b b bb11 Lots
Townhouses at Long Lake McAllister Meadows
43 Units
Pu8g3et LMoeatsdows West

79 Lots/33 Lots Remaining

AffinMitycaAtlLliascteeyr Spring
1703U2n3itsLots

Britton Place Gateway Apartments
Freestone C2r4o8sLsointsg
393 Units

College Street Apartments Abernet1h6y CLroostssing Oak Tree
1040 Lots
Lakeview Meadows 24 Units 31 Lots
b b Lacey Senior Apartments
b b89 Units/13 RemainingDeyoe Vista b 135 Units
b33 Lots/17 Remaining b Oak Springs

Burton Ray Gardens bLacey Multi-Family 8A9paLrtmoetsnts Ph. 2
b274 Units

30 Lots/12 Remaining Steilacoom Ridge

298 Lots

bb

Summerwalk Nisqually Bend
77 Lots

42 Lots Cora St. Apts bThe Reserve Meadows at Morningside

bb b12 Units 300 Units b79 Lots

Summerwalk Div. 3 & 4 Cantergrove
98 Lots/57 Remaining 76 Lots

Townhouses at Long Lake bb b McAllister Meadows
43 Units bbFreestone Place b 83 Lots

Horizon Pointe 6A 11 Lots McAllister Spring
323 Lots
38 Lots/15 Remaining Freestone Crossing
16 Lots
bb College Street Apartments Oak Tree

² Horizon Pointe Division 6B Lakeview Meadows 24 Units b b1040 Lots
31 Lots
b b89 Units/13 RemainingDeyoe Vista Oak Springs
b33 Lots/17 Remaining
89 Lots

Summerwalk Development
42 Lots
Status
bb
b Application Submitted
Summerwalk Div. 3 & 4 b Preliminary
98 Lots/57 Remaining b Final

0 1,7503,500 7,000 10,500 14,000 17,500
Feet
Horizon Pointe 6A
38 Lots/15 Remaining

bb

Horizon Pointe Division 6B
31 Lots

DEMOGRAPHICS

49,748 $284,800

ESTIMATED MEDIAN
POPULATION HOME VALUE

$84,068 4.98%

AVERAGE IN PAST 12
HOUSEHOLD INCOME MONTHS

Population 1 mile 3 miles 5 miles
2000 Population 7,625 31,153 75,483
2010 Population 8,043 40,341 90,737
2018 Population 8,784 46,232 101,648
2023 Population 9,335 50,170 109,463
2000-2010 Annual Rate 0.54% 2.62% 1.86%
2010-2018 Annual Rate 1.07% 1.67% 1.39%
2018-2023 Annual Rate 1.22% 1.65% 1.49%
2018 Male Population 48.7% 48.6% 48.2%
2018 Female Population 51.3% 51.4% 51.8%
2018 Median Age 34.6 37.0 38.2
Median Household Income
2018 Median Household Income $62,747 $78,046 $73,701
2023 Median Household Income $73,004 $88,662 $83,361
2018-2023 Annual Rate
Average Household Income 3.07% 2.58% 2.49%
2018 Average Household Income
2023 Average Household Income $73,913 $95,549 $90,192
2018-2023 Annual Rate $85,925 $111,672 $104,917
Per Capita Income
2018 Per Capita Income 3.06% 3.17% 3.07%
2023 Per Capita Income
2018-2023 Annual Rate $28,469 $36,262 $35,582
$32,966 $42,229 $41,216

2.98% 3.09% 2.98%

DISPOSITION
STRATEGY

TARGET BUYER/BUYER PROFILE

MARKETING PROCESS
& TIMELINE

BEST-IN-CLASS
MARKETING MATERIALS

TARGET BUYER PROFILES

Several buyer “groups” will pursue Lacey Marketplace. Our continuous marketing of institutional quality retail assets, our tracking of all major West Coast purchases, and
the exchange of information through our NKF Capital Markets national network has given us up to date knowledge of the most aggressive capital sources for major retail
investments on the West Coast. In addition, our local market expertise and track record provides us with strong relationships and access to the most aggressive regional/local
capital sources for retail investments in Washington State. The opportunity to place roughly $____ million in one of the highest sought after markets on the West Coast will
bring out the best and most aggressive buyers from these buyer groups. The quality of Lacey Marketplace will generate strong interest from several buyer groups.

REAL ESTATE INVESTMENT TRUSTS (REITS) are a major source of investment capital

throughout the United States. They maintain strong portfolios in the markets where they invest and prefer
strategic, market share acquisitions. Both public and private REITs have been aggressive in Seattle recently for
core grocery anchored product and will heavily pursue Lacey Marketplace.

PENSION FUND ADVISORS, LIFE INSURANCE COMPANIES AND
OTHER INSTITUTIONAL INVESTORS are the backbone of the retail investment market. They have

been a continuous player in the retail investment market for decades, and have recently been consistent aggressive
players for properties that fit their criteria.

FAMILY TRUSTS/PRIVATE INVESTORS are extremely active and aggressive investors in the

Seattle/West Coast market. There are multiple private capital investors on the West Coast who have the ability to close
Lacey Marketplace cash and the ability to out-bid and compete on terms with institutional investors. Seattle has an
above average number of private cap investors with strong grocery anchored portfolios.

LET’S DISCUSS IF WE WANT THIS. FOREIGN CAPITAL flow into the U.S. continues

to increase with an appetite for gateway cities and core product which Lacey Marketplace provides. First Western
Development Services will benefit from NKF’s global exposure to the most active foreign investors to ensure maximum
pricing is achieved and this buyer pool is exposed to the offering.

TARGET BUYER LIST

Below are some prominent examples of active and potential purchasers for Lacey Marketplace:

MARKETING PROCESS » » Liaison with attorneys,
& TIMELINE » Processing of confidentiality due diligence consultants
& principals
agreements & access to
deal room » Facilitate collection,
» Tracking of investor activity documentation & delivery
» Property tours of due diligence materials
» Investor qualifying
» Circulation of tracking report » Proceed with release of
books, records & reports

» Resolve title
issues–facilitate
acceptable policy

» Removal of contingencies
» Close per PSA

PRE-MARKETING MARKETING BUYER DUE DILIGENCE

week 1 through 3 PROCESS SELECTION & CLOSE

week 4 through 11 week 12 through 14 per psa

» Gather due diligence information » »
» Review of tenant leases Multimedia production »
» Lease abstracts/ARGUS modeling Research data collection » Best & final round
» Coordinate war room data » Provide best & final access to
»
» Property condition report » Finalize investor distribution list tier two documents
» Tenant sales report »
» Environmental report » NGKF Investors » Select buyer
» Operating statements » NGKF Global » Execute Purchase & Sale
» Property tax bills » Real Capital Markets
» CAM reconciliation » Client’s approvals of financial run Agreement
» Tenant lease documents

BEST IN CLASS
MARKETING
M AT E R I A L S

MARKETING TEASER E-BLAST

PROFESSIONAL PROPERTY VIDEO CUSTOM OFFERING MEMORANDUM

NKF RETAIL
INVESTMENT TEAM

THE NKF DIFFERENCE
NKF TEAM STRUCTURE
NKF CAPITAL MARKETS
NKF RELEVANT TRANSACTIONS
CLIENT REFERENCES

THE NKF
DIFFERENCE

When you appoint the NKF Team to lead the
successful disposition of Lacey Marketplace,

you’re not only getting the most

dominant brokerage team in the Pacific

Northwest, you’re ensuring the most

experienced, and capable capital

markets team on the West Coast is

working together to maximize pricing

for your disposition. Our capital markets

teams host regular conference calls to ensure every
deal we see gets maximum global exposure to the
most active investors. The unparalleled experience
of NKF Capital Markets team ensures Lacey
Marketplace reaches the highest possible pricing
available in the market.

NKF TEAM STRUCTURE

NATIONAL REACH TEAM LEADERSHIP

NORTHERN PACIFIC NORTHWEST MID-ATLANTIC
CALIFORNIA

NICHOLAS BICARDO PAUL SLEETH BILLY SLEETH PATRICK ALLEN GEOFFREY MILLERD MATHEW ADLER PAUL SLEETH BILLY SLEETH
BRANDON ROGOFF
FOREIGN FINANCING
SOUTHERN CAPITAL LIAISON
CALIFORNIA
2 0 professionals ALEX FOSHAY JESSE LOWE
& HAWAII dedicated to this
portfolio disposition SOLO DISPO FINANCIAL
ROB IPPOLITO COORDINATOR ANALYSIS
GLENN RUDY
CJ OSBRINK IN MATTIE TONSETH LARRY WASS
DENNIS WEINS PHOENIX OFFICE

MARKETING

JULIE RIOS NEETU PATEL
KRISTEN FOURNIER GISELLE CASTRO

PETE BETHEA BILL BAUMAN

NKF CAPITAL NORTHERN CALIFORNIA TEAM PACIFIC NORTHWEST TEAM
MARKETS
$1.07B $876.8M
LOCAL DOMINANCE 32 54
NATIONAL CREDIBILITY
SOUTHERN CALIFORNIA TEAM MID-ATLANTIC TEAM
Last 36 Months
$1.11B $3.05B
$ 6 . 1 1 B total consideration 31 48
1 6 5 total ransactions

NKF RELEVANT TRANSACTIONS

$175M $131M $51.75M $490M $47.817M $41M

HAGGEN/TOP FOODS FACTORIA MALL LAKELAND TOWN STERNCO SHOIPPING INTERBAY URBAN FOUR CORNERS
PORTFOLIO Bellevue CENTER CENTER CENTER SHOPPING CENTER
Auburm Bellevue Seattle
Puget Sound Area SF: ±513,499 Maple Valley
SF: ±930,704 Cap: 5.20% SF: ±125,142 SF: ±113,233 SF: ±80,560 SF: ±120,822
Cap: N/A Sales Date: May 2012 Cap: 5.50% Cap: 4.75% Cap: N/A Cap: 5.95%
Sales Date: May 2015 Sales Date: Apr 2015 Sales Date: May 2012
Sales Date: Oct 2012 $35.988M Sales Date: Oct 2012
$32.25M $350M $32.2M
$37M $32M

TOWN CENTER AT LAKE KLAHANIE SHOPPING WOODINVILLE PLAZA CANYON CROSSING BRIDLE TRAILS JAMES CENTER
FOREST PARK CENTER Woodinville Fredrickson Kirkland Tacoma
Lake Forest Park
SF: ±250,127 Sammamish SF: ±170,804 SF: ±120,565 SF: ±105,590 SF: ±140,240
Cap: 5.60% SF: ±66,895 Cap: 5.32% Cap: 4.50% Cap: 5.20% Cap: 6.30%
Cap: 5.18% Sales Date: Jun 2015 Sales Date: Apr 2013 Sales Date: Oct 2016 Sales Date: January 2015
Sales Date: Oct 2014 Sales Date: July 2016

CLIENT REFERENCES

REGENCY CENTERS TOURMALINE CAPITAL / SEQUOIA CAPITAL

Craig Ramey, Senior Vice President, Lake Oswego, OR Jonathan Cheng, President, San Diego, CA
Barry Argalas, Senior Vice President, Transactions, Jacksonville, Mark Oei, Managing Director of Real Assets Strategies,
FL Howard Overton, Vice President, Transactions, Menlo Park, CA
San Francisco, CA
LOJA
RPAI
Tom Engberg, CEO & CIO, Walnut Creek, CA
Shane Garrison, COO & CIO, Oakbrook, IL
Mike Hazinski, Vice President, Acquisitions, Oakbrook, IL SCHOTTENSTEIN STORES CORPORATION

ROIC Jeffrey Gould, Vice President, Columbus, OH

Stuart Tanz, CEO, San Diego, CA GRAMOR DEVELOPMENT
Richard Schoebel, President, San Diego, CA
John Graham, President, Lynnwood, WA
KIMCO REALTY CORPORATION
PHILLIPS EDISON & COMPANY
|Matt Golden, Managing Director, Vista, CA
Conor Flynn, Chief Operating Officer, New Hyde Park, NY Hal Scudder, Chief Investment Officer, Salt Lake City, UT
Ray Edwards, Vice President, New Hyde Park, NY Paul Mittmann, West Coast Acquisitions, Irvine, CA

MERLONE GEIER PARTNERS CENTERCAL

Brad Geier, President, San Diego, CA Jean-Paul Wardy, Senior Vice President, El Segundo, CA
Susan Overton, Vice President, San Diego, CA
MADISON MARQUETTE
DONAHUE SCHRIBER
David Brainerd, Managing Director, Washington DC
Pat Donahue, CEO, Costa Mesa, CA Chad Eisenbud, Director of Investments, San Francisco, CA
David W. Mossman, Executive Vice President and CIO,
Costa Mesa, CA Jack Steinhauer, Director Acquisitions and
Development, Costa Mesa, CA

The distributor of this communication is performing acts for which a real estate license is required. The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express
or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.

1420 FIFTH AVENUE, SUITE 2150 SEATTLE, WA 98101

PAUL SLEETH BILLY SLEETH PATRICK ALLEN
Executive Managing Director Executive Managing Director Retail Investments

206.518.9547 206.518.9567 206.858.8434
[email protected] [email protected] [email protected]

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