TGW BUILDING5 0 0 S . P O RT L A N D S T R E E T

S E A T T L E , W A » QUALITY INDUSTRIAL BUILDING TOTALING ±67,431 SF (PLUS ±26,721 SF BONUS MEZZ) ON ±2.38 AC » LONG-TERM NNN LEASE TO QUALITY TENANT THROUGH JANUARY 2028 » STRATEGICALLY LOCATED WITH EXCELLENT PROXIMITY TO BOEING FIELD AND DOWNTOWN SEATTLE » IMMEDIATE ACCESS TO SR-99/SR-509 FREEWAY INTERCHANGE AND EASY ACCESS TO I-5

A C B R E N A T I O N A L PA R T N E R S I N D U S T R I A L I N V E S T M E N T O P P O R T U N I T Y

EXECUTIVE SUMMARYThe OfferingCBRE, Inc. is exclusively offering for sale TGW Building, a quality manufacturing/warehouse building totaling ±67,431 SF on ±2.38 acres in Seattle, Washington. The property is fully leased to Machinists, Inc., a precision machining company, through January 2028. This rare opportunity offers immediate access to SR-99 and SR-509 and excellent proximity to Downtown Seattle and Sea-Tac International Airport. The infill Seattle Close-In submarket is strategically located at the heart of the Puget Sound industrial market. The submarket’s diverse occupier base includes high-profile names such as Boeing, Amazon, Home Depot, Iron Mountain, Costco, UPS, and FedEx, among others. Strong tenant demand and zero new construction resulted in the lowest vacancy rate of any submarket at 3.7% and continued very strong rental growth.

* Total RSF does not include 16,781 SF of manufacturing mezzanine and 9,850 SF of 2nd/3rd-story office (totaling 26,721 SF of bonus mezz). Also excludes 4,277 SF of sheds.

PROPERTY SUMMARY

ADDRESS 500 S. Portland Street, Seattle, WA 98101

TOTAL RENTABLE AREA ± 67,431 SF - Total RSF *

LAND SIZE ±2.38 AC

COVERAGE 69.2%

OFFICE SF / %±14,775 SF / 15.7%

(excludes 16,871 SF manufacturing mezz & 4,277 SF of sheds)

OCCUPANCY 100.0%

TENANT (LEASE EXPIRATION) Machinists, Inc. (01/2028)

CLEAR HEIGHT 16’-30’

DOCK-HIGH DOORS 1

GRADE LEVEL DOORS 9

YEARS BUILT/RETROFITTED 1964/1970/1979/1985

» High-quality industrial building totaling ±67,431 SF (plus ±26,721 SF of bonus mezzanine)

» Long-term, NNN lease to Machinists, Inc. (exp. 01/2028) with 3% annual rent bumps providing steady cash flow

» Approximately 23% below-market rents, providing upside to NOI upon rollover

» Direct SR-99 and SR-509 freeway access

» Highly-desirable location in the Seattle Close-In submarket, with excellent proximity to Boeing Field and just south of Downtown Seattle

» Excellent access to Seattle’s growing population, with 3.3M people within a 25-mile radius

» The average Puget Sound lease rate has grown 7.5% annually since Q4 2014

» Seattle Close-In submarket rents are 53% higher and vacancy is 160 bps lower than overall Puget Sound

TGW BUILDING5 0 0 S . P O RT L A N D S T R E E TS E A T T L E , W A

Offering Highlights

2 T G W B U I L D I N G

INVESTMENT HIGHLIGHTS

Excellent Warehouse/Manufacturing Building » Quality industrial building totaling ±67,431 on ±2.38 acres

» ±16’-30’ Clear Height » Dock-high and grade level loading » 75 Car Stalls » 2,000 Amps of Electrical Service » Sprinklered throughout and HVAC in the office spaces

» TPO roof with 15- to 20-year roof CentiMark warranties (varies by roof section)

» Excellent ingress/egress with multiple points of access off S. Holden Street, 5th Avenue S. and S. Portland Street

» Employees can easily utilize the 132 Bus Line which stops at the corner of the property and takes passengers north into the heart of Downtown Seattle or south into Burien, just east of Sea-Tac International Airport

Long-Term, NNN Lease To Quality Tenant » 100% leased to Machinists, Inc. (“MI”), the largest precision machining shop in the Northwest U.S.

» Privately-held, non-union company in operation since 1941 and headquartered in Seattle » 7 manufacturing facilities totaling 250,000+ SF » In 2018, MI acquired Gear Works’ equipment and contracts, and signed a new 10-year lease

for the building » Builds machine parts and larger manufacturing systems for various major clients including

Boeing (for 25+ years), GE Aviation, Genie/Terex, General Dynamics, Lawrence Livermore Labs, Lockheed Martin, Northrop Grumman and Raytheon

» 2017 revenue of approximately $30 million » Long-term, NNN lease through January 2028 with 3% annual rent bumps providing steady

cash flow » Approximately 23% below-market rents providing upside to NOI upon rollover » MI sees this as a strategic investment to dramatically increase their manufacturing capacity » Mission-critical location for servicing the company’s clients

T G W B U I L D I N G 3

Strong Puget Sound Market Dynamics » Strong Puget Sound market dynamics evidenced by the low vacancy rate of 5.3% and positive net absorption of 673,089 SF in Q4 2019. » The market recorded 2.3 MSF of positive net absorption over the last four quarters which is expected continue with the growth of technology, manufacturing, and logistics » Rental rates have grown 38% since the end of 2014, approximately 7.5% annually » Lack of land sites is leading to complex assemblages in order to accommodate increased demand » Due to its strategic infill nature, the Seattle Close-In submarket currently has vacancy of just 3.7%- the tightest submarket in the region (with the next closest at 5.4%)

Strategic Location Just South Of Downtown Seattle With Excellent Freeway Access » Proximity to major transportation routes including SR-99, SR-509 and I-5 providing easy access to the greater Seattle area » Proximate to Boeing Field and only 8 miles north of Sea-Tac International Airport; Sea-Tac is the 8th-busiest airport in the U.S servicing nearly 50M passengers a year » Excellent access to the Seattle’s growing population, with an estimated 188 people moving into the area each day according to the Puget Sound Regional Council » Amazon, Microsoft and Boeing have grown organically in the region resulting in a large base of some of the nation’s most skilled employees

THERE IS CURRENTLY ZERO NEW PRODUCT UNDER CONSTRUCTION IN THE 53.1 MSF SEATTLE CLOSE-IN SUBMARKET, AND THERE IS EXTREMELY LIMITED SUPPLY OF INVESTMENT PRODUCT FOR SALE IN THIS SUBMARKET.

4 T G W B U I L D I N G

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OlympicNational Forest

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Mount RainierNational Park

KEY DISTANCES MILES MINUTES

GROUND HUBS

Federal Express Ship Center – Alaska Street, Seattle 3 13

UPS Customer Center – 7th Ave, Seattle 3 14

FREEWAYSSR-99 0.3 2SR-509 1.8 8I-5 2 9

DESTINATIONSBoeing Field 1.3 5Downtown Seattle 6 24

RAIL

Union Pacific Intermodal Argo Yard 2 10

Burlington Northern Santa Fe Stacy Yard 3 13

Burlington Northern Santa Fe Intermodal (Tukwila) 6 12

PORTSPort of Seattle 3 14Port of Tacoma 28 36

AIRPORT

Sea-Tac International Airport 8 15

REGIONAL MAP

T G W B U I L D I N G 5

TGW BUILDING

50 MI - 4.6M

25 MI - 3.3M

5 MI - 324,421

LOCAL MAP

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Detroit Ave SW

SW Peninsula Pl

Corgiat Dr S

Vis ta Ave S

RiverviewPlayfield

Boeing Field

Highland ParkPlayground

WestcrestDog Park

South ParkPlayground

DuwamishWaterway Park

Duwamish Waterway

West DuwamishGreenbelt Trails

SOUTHBEACON HILL

SOUTH PARK

NEW HOLLY

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RIVERVIEW

509

TGW BUILDINGSR-99 FWY

0.3 MI

SR-509 FWY1.8 MI

ON/OFF RAMP

6 T G W B U I L D I N G

SITE PLAN

Grade Level Doors

Dock-High Doors

Truck Gate

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RAMP TO MEZZ

WEST MEZZANINE±10,871 SF 1 TON CRANE

20 TON CRANE

1 TON CRANE

3 TON CRANE

10 TON CRANE

2 EA. 7.5 TON CRANES

2 TON CRANE

1 TON CRANE

FENCED STORAGE YARD

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LIGHT MFG AREA

10 TON CRANE20 TON CRANE

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OFFICES - 3 FLOORS±14,775 SF

(±4,925 SF / FLOOR)

S HOLDEN ST

S RIVERSIDE DR

83’

196’

180’

250’197'

95’

500 S. PORTLAND STREETMACHINISTS, INC.

±67,431 TOTAL RSF*EXP. 01/2028 LUMBER SHED

±480 SFREFUSE SHED

±912 SF

RECYCLE SHED±1,152 SF

EAST MEZZANINE±6,000 SF

OIL STORAGE SHED±1,376 SF

COMPRESSOR SHED±357 SF

* Total RSF does not include 16,781 SF of manufacturing mezzanine and 9,850 SF of 2nd/3rd-story office (totaling 26,721 SF of bonus mezz). Also excludes 4,277 SF of sheds.

T G W B U I L D I N G 7

P R O P E RT Y P H OTO S

8 T G W B U I L D I N G

A C B R E N AT I O N A L PA RT N E R S I N D U S T R I A L I N V E S T M E N T O P P O RT U N I T Y

FOR MORE INFORMATION, PLEASE VISIT OUR WEBSITE ATcbrenp-500southportlandstreet.com

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DEBT & STRUCTURED FINANCE ADVISOR

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TGW BUILDING5 0 0 S . P O RT L A N D S T R E E TS E A T T L E , W A

© 2020 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.