1

PROPERTY BROCHUREFull Offering Memorandum available with signed NDA

PRIDAY RETAIL CENTER1271-1285 NW Wall Street, Bend, OR

$2,800,000LAND ON WALL STREET

Land: 45,738 SF | 1.05 ACBuilding: 14,948 SF

RARE DOWNTOWNREDEVELOPMENT OPPORTUNITY

2

DAN KEMPPartner, BrokerDirect 541.848.4076Cell 541.550.8413dkemp@compasscommercial.com

PETER MAYPartner, CCIMDirect 541.848.4057Cell 541.408.3888pmay@compasscommercial.com

EXCLUSIVELY LISTED BY:

2

3

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION

MARKET OVERVIEW

CONTENTS

3

44

55

EXECUTIVE SUMMARY

6

Price $2,800,000Proforma Cap Rate 6.22%Price Per Square Foot $61.22 (land)Addresses 1271, 1285 NW Wall Street, Bend OR 97703Tax Lots 171232AB: 04700, 04800, 04900, 00099 Parcel Size 1.05 ACZoning CL – Commercial LimitedBuilding Area 14,948 SF Year Built 1950 – Remodeled 1978Number Of Buildings 2Number Of Stories 2Parking Spaces 47+Number of Tenants 9

PROP

ERTY

SUM

MARY

THE OFFERINGThis is a once in a lifetime opportunity to acquire a large strategic property in the heart of downtown Bend. The site is in the path of progress in one of the most dynamic lifestyle markets in the USA. It has a great central location, is very close to the Deschutes River, and has great access to Highway 97. The property consists of two buildings and four tax lots with plenty of on-site parking.

The Priday Retail Center represents three different opportunities to a buyer. First, there is a strong opportunity to redevelop the site. Second, it is an opportunity for an owner user to occupy the current buildings. Third, a buyer can invest in the buildings and increase existing rents to market rate which will yield a strong return.

The property is zoned Limited Commercial (CL). This zoning permits a wide range of uses including residential as part of a mixed-use development as well as retail, office, restaurant and lodging. Building heights up to 55 feet are permitted.

There are currently nine tenants in the two buildings. All tenants are currently on month-to-month leases. Due to the long-term tenancy in the buildings, all the leases are significantly under market rents. An owner user has the ability to take over all the spaces in both buildings while the investor has the ability to improve the spaces and bring rents up to market. Note in the financial section that a $40 per square foot tenant improvement allowance and leasing commissions have been included in our proforma income analysis to achieve market rents. The proforma rents used in the financial section are conservative and justifiable.

The property enjoys strong demographics with a population of 101,658 within five miles with an average household income of $88,700 and a 3% unemployment rate. There is a total population of 232,951 in the local trade area with an average household income of $80,023.

6

7

Price $2,800,000Proforma Cap Rate 6.22%Price Per Square Foot $61.22 (land)Addresses 1271, 1285 NW Wall Street, Bend OR 97703Tax Lots 171232AB: 04700, 04800, 04900, 00099 Parcel Size 1.05 ACZoning CL – Commercial LimitedBuilding Area 14,948 SF Year Built 1950 – Remodeled 1978Number Of Buildings 2Number Of Stories 2Parking Spaces 47+Number of Tenants 9

IDEAL LOCATION FOR A HOTEL OR MIXED USE

DEVELOPMENT

STRONG DEMOGRAPHICS

HIGH TOURISM AREA

WALKING DISTANCE TO DOWNTOWN SHOPS

BELOW MARKET RENTS PROVIDE FOR STRONG UPSIDE

INCOME POTENTIAL

4 TAX LOTS WITH 2 ADJACENT LOTS ALSO

FOR SALE

REDEVLOPMENT PLAY IN BEND’S OPPORTUNITY ZONE

1 RETAIL BUILDING 1 WAREHOUSE

INVESTMENT HIGHLIGHTS

7

88

99

PROPERTY OVERVIEW

1010

INSIDE BEND’S OPPORTUNITY ZONEThe Priday Retail Center falls within Bend’s Opportunity Zone making it eligible for preferential federal tax treatment when it comes to the private investment of capital gains in local businesses and land development opportunities. This makes the Priday Retail Center an attractive redevelopment play. An investor could purchase these 1.05 acres, but could also acquire the 0.79 acre to the north, listed by NAI Cascade, for a total of 1.84 acres.

10

1111

Addresses 1271, 1285 NW Wall Street, Bend OR 97703

County Deschutes County

Parcel Numbers 171232AB: 04700, 04800, 04900, 00099

Zoning CL – Commercial Limited

Building Area 14,948 SF

Year Built 1950 – Remodeled 1978

Number Of Buildings 2

Floors 2

Parking 47

Foundation Slab

Shell Brick/block

Doors Glass pedestrian entrance doors

Rollup Doors 3 grade level doors

Roof Metal

Windows Double pane encased with metal frames

Site Improvements 40+ parking spaces

Curbs & Paving Concrete curbs and sidewalks, asphalt paved parking

Walls Finished drywall

Lighting Fluorescent and incandescent fixtures

Floors Laminate, carpet, slab

Heating Natural gas forced air heating

Cooling Individual unit air conditioning

PROP

ERTY

SUM

MARY

INTE

RIOR

EXTE

RIOR

PROPERTY DETAILS

EXCELLENT ACCESS TO THE PARKWAY & 3RD STREET

LOCATED DOWNTOWN ON WALL STREET

NEW HOTEL BEING BUILT AT THE FIRST TRAFFIC LIGHT TO THE NORTH

JUST NORTH OF DOWNTOWN’S MAIN SHOPPING DISTRICT

12

CONDITION OF SALEThe Priday Retail Center is being offered for sale on an “as-is, where-is” basis.

Detailed due diligence information can be requested from the listing team. In order to view confidential information, all parties will be required to execute a Confidentiality Agreement.

All property tours must be scheduled in advance through the Compass Commercial listing team.

OFFERING TERMSPlease submit offers via email to the listing team.

Interested parties must submit a written Letter of Intent (“LOI”) or a Purchase & Sales Agreement (“PSA”) outlining the terms and conditions under which they propose to purchase the Property. Such terms must include the following:

• Purchase price• Company background and financial capability• Source of capital (Equity/Debt)• Amount and form of earnest money deposit(s)• Required contingency periods (inspection, financing, etc.),

including any extension(s)• Closing timeline

12

13

BURGEONING AREA The Milken Institute ranked the Bend Metro as

the Best Performing Small City in the nation in 2018 for the third consecutive year. The report

cites unmatched five-year job and wage growth, strong high-tech performance and substantial investment in its knowledge economy with the

Oregon State University-Cascades Innovation Co-Lab, an incubator and educational resource for entrepreneurs. The Bend Metro boasts a 3.6%

unemployment rate and projected job growth of 55.7%, compared to a national average of just

33.5%, over the next ten years.

13

1414

1515

MARKET OVERVIEW

1616

BEND, OREGONWith a population of 82,000, Bend is the seventh-largest city in Oregon and the largest city in Central Oregon, serving as its de facto commercial, recreation and social center. Situated on the eastern edge of the Cascade Range along the Deschutes River, Bend joins forested mountain highlands and high desert plateaus, offering a diverse range of scenery and outdoor activities while offering relatively convenient access to major West Coast Metropolitan Areas.

LIFESTYLE DESTINATIONBend has a deserved reputation for attracting lifestyle migrants – urban dwellers seeking amenities typically associated with larger metropolitan areas but also outdoor recreational pursuits, a beautiful setting and an accessible community feeling. As such, the city attracts families and entrepreneurs from all the West Coast metro areas as well as other major population centers. The city has been adopted as a gateway for many outdoor sports, including mountain biking, skiing and snowboarding, dog sled racing, fishing, hiking, rock climbing, white-water rafting and golf. Bend also offers a thriving arts and culture scene, and the city’s beer brewing industry and restaurants are a draw for tourists and locals alike.

Skiing at Mt. Bachelor

Downtown Bend

OSU-Cascades16

17

BEND, OREGON SUBMARKET

JOB GROWTH

19.9%Projected by 2022

WAGE GROWTH

25.2%Projected by 2022

UNEMPLOYMENT RATE

3.6%2019

BEND RETAIL MARKETBend’s Retail Market vacancy rate rose slightly from 2.77% at the end of Q4 2018 to 2.84% at the end of Q1 2019. A total of 3,040 sq. ft. of negative net absorption took place. Four out of the seven retail submarkets in Bend recorded negative net absorption, and three were positive for the quarter.

The south 97 submarket recorded 4,297 sq. ft. of negative net absorption. The central 97 submarket also lost ground, recording 5,194 sq. ft. of net negative absorption, with one lease signed and three spaces going vacant. The east side and north 97 submarkets also lost ground. In the north 97 submarket, 1,927 sq. ft. was lost, with one lease and one loss recorded. In the east side submarket, 1,310 net sq. ft. went vacant, raising the vacancy rate to 1.0%, up from 0.8%. The west side submarket gained 1,216 sq. ft. of positive absorption in the quarter. The vacancy rate now stands at 2.3%, down from 2.6% in Q4. One lease was signed in the Old Mill District of 1,272 sq. ft. lowering the vacancy rate from 1.1% to 0.6%. There is now only one space of 1,650 sq. ft. available. The Downtown submarket gained 7,200 sq. ft. of positive net absorption in Q1.

There is currently 126,798 sq. ft. available for lease city-wide, up from 123,663 sq. ft. in Q4. [Compass Points, Q1 2019]

RETAIL VACANCY

2.8%Compass Points Q1 2019

BEST PERFORMING SMALL CITIES IN THE US

#1Milken Institute – 2016, 2017 & 2018

BEST PLACES TO LIVE IN THE US

#8New York Post – 2016

1818

CENTRAL OREGONCentral Oregon has led Oregon’s population growth over the last two decades and continues to be one of the fastest growing areas of the country. For ten consecutive years Central Oregon has led the state in job growth, creating a region that is characterized by dynamic small businesses and entrepreneurial activity. The area boasts strong clusters in high technology (software, hardware and energy), advanced manufacturing, biosciences, renewable energy, brewing and distilling, value-added food products and recreation equipment.

For most residents Central Oregon is a lifestyle choice, offering a friendly environment, year-round recreation options and world-class amenities. The region is served by Roberts Field, a commercial airport offering service at Redmond Municipal Airport.

Redmond Municipal Airport

Redmond Municipal Airport provides commercial air service with 25 daily round-trip flights to Denver, Los Angeles, Phoenix, Portland, Salt Lake City, San Francisco and Seattle via four major carriers (Alaska, America, Delta and United). The airport is undergoing a $5.2 million expansion to meet the rising demand for transit in and out of the region.

18

ECONOMYCentral Oregon has a reputation for welcoming new and relocating businesses without sacrificing workforce, talent, quality healthcare, transportation or infrastructure. A driving force behind the region’s economic performance

is a collaborative and inclusive entrepreneurial community, demonstrated by the high number of new business registrations, which outpaces far larger cities. Bend, Oregon registered one new business for every 28 residents in 2017 – nearly twice the state average.

Given its size, Central Oregon boasts a high number of community resources and assets available to new and growing businesses, including the largest angel conference in the West, the Bend Venture Conference. Additionally, Oregon’s overall business costs rank significantly lower than its neighbors to the north and south. Average electricity rates, natural

gas rates, state and local sales tax rates and business tax climates in particular are significantly lower than other states in the Pacific Northwest.

19

TOURISMThe City of Bend stands at the foot of Mt. Bachelor and the scenic Cascade Mountain Range. Dubbed the “outdoor playground of the West,”over three million tourists visit Central Oregon annually. Visitors and locals alike enjoy activities such as snow and water skiing, snowboarding, golfing, hiking, cycling, spelunking, camping, fishing and backpacking. Just 26 miles north of Bend, Smith Rock State Park, one of Oregon’s 7 Wonders, is world-renowned for its rock climbing. Or if you’re a beer lover, you can work your way through the largest beer trail in the West, the Bend Ale Trail. Families can find entertainment like exploring cave tubes, visiting the High Desert Museum, floating the Deschutes River or experiencing some of the areas great annual events including Balloons Over Bend where hot air balloons fill the skies for a weekend in July.

LIFESTYLECentral Oregon offers a rare mix of city amenities and restful isolation, including the slower speed of a small town with a medical community and infrastructure not normally seen in a region of its size. Additionally, Central Oregon residents maintain a work/life balance that is difficult to achieve elsewhere.

EDUCATIONCentral Oregon is well-recognized for its high level of education, with some of the best K-12 public schools in the nation. Additionally, the region’s higher education opportunities abound. From Oregon State University-Cascades’ recent expansion to Central Oregon Community College’s four campuses in the region, there are opportunities for all to obtain a quality education.

30 GOLF COURSES

MILES OF TRAILS

THRIVING ARTS & CULTURE

300 DAYS OF SUNSHINE

30 BREWERIES & COUNTING

20

1 Mile 3 Miles 5 Miles Trade Area2019 Population 9,296 78,662 101,658 232,9512019 Daytime Population 20,824 93,684 109,294 228,4802024 Population 10,082 87,739 113,333 256,8592010-2018 Growth Rate 1.33% 2.20% 2.31% 1.98%2018-2023 Growth Rate 1.64% 2.21% 2.20% 1.97%2019 Median Age 37.6 38.1 39.1 42.92019 Households 4,431 32,439 41,373 93,2762024 Households 4,796 36,066 45,976 102,6482010-2018 Growth Rate 1.24% 2.06% 2.18% 1.90%2018-2023 Growth Rate 1.60% 2.14% 2.13% 1.93%2019 Avg. Household Size 2.08 2.40 2.44 2.472019 Avg. Household Income $81,025 $86,505 $88,700 $80,0232019 Med. Household Income $56,658 $64,380 $67,074 $61,0122019 Per Capita Income $37,378 $35,796 $36,150 $32,1522019 Avg. Home Value $547,491 $466,722 $469,334 $426,5972019 Housing Units 5,024 36,089 46,367 115,1172019 Vacant Housing Units 593 3,650 4,994 21,8412019 Owner Occupied Units 1,843 17,854 24,736 60,9782019 Renter Occupied Units 2,588 14,584 16,638 32,2982019 Population Age 18+ 7,737 61,515 79,464 184,609High School Diploma 783 8,347 10,871 34,857Bachelor’s Degree 2,113 15,555 20,320 35,542Graduate/Professional Degree 1,373 8,713 11,420 19,9772019 Businesses 1,891 5,350 5,787 10,3322019 Employees 15,256 50,934 54,731 95,8682019 Unemployment Rate 2.8% 3.5% 3.3% 4.1%

POPU

LATIO

NIN

COME

HOUS

EHOL

DSHO

USIN

GED

UCAT

ION

LABO

R

DEMOGRAPHICS

Priday Demographics

Source: ©2019 Esri

July 10, 2019

©2019 Esri Page 1 of 1

21

Priday Demographics

Source: ©2019 Esri

July 10, 2019

©2019 Esri Page 1 of 1

2222

CONFIDENTIALITY & DISCLAIMERDISCLAIMER: This marketing package has been prepared by Compass Commercial Real Estate Services (Compass Commercial) in full cooperation with the Seller of the Property solely for the purposes of providing preliminary information to prospective purchasers. It is not intended as the sole source of property and operational data and should not be relied on in place of appropriate due diligence activities. Neither Compass Commercial nor its agents can guarantee accuracy and no liability is assumed for financial, operational, physical, or other information provided herein including, but not limited to, errors and omissions, transmittal of inaccuracies, prior sale, price adjustments, or removal from marketplace without notice. Any indicated value of this investment is based upon assumptions, projections and estimates, which are variable by nature and subject to changing economic conditions. The value of this investment to you will also depend on tax and other factors, which should be evaluated by your tax and legal experts or advisors. It is your responsibility to independently confirm information received about the property to your satisfaction and you are urged to seek advice from your own attorney, CPA, design consultant, franchise representative, and/or other qualified professionals in your investigation of this opportunity.

CONFIDENTIALITY: The enclosed information is to be treated as non-public confidential business information and is to be held in strict confidence by all prospective purchasers and/or their legal agents. In no event will prospective purchasers and/or their legal agents use or reproduce for distribution any of the enclosed information for any purposes other than analysis and evaluation of the proposed sale.

DISCLOSURE: Compass Commercial reserves the right to accept referral fees, finder’s fees and supplementary payments from lenders, real estate brokers, appraisers and other professional services to which we refer clients. We suggest that when you contact a professional service referred to by Compass Commercial, you ask if this referral fee will affect the final cost that you will pay.

EXCLUSIVE: The property represented herein is exclusively listed for sale by Compass Commercial Real Estate Services. All negotiations for the purchase shall be conducted through Compass Commercial Real Estate Services.

22

2323

24

DAN KEMPPartner, BrokerDirect 541.848.4076Cell 541.550.8413dkemp@compasscommercial.com

PETER MAY, CCIMPartner, BrokerDirect 541.848.4057Cell 541.408.3888pmay@compasscommercial.com

EXCLUSIVELY LISTED BY:

PRIDAY RETAIL CENTER

1271-1285 NW Wall Street, Bend, OR