Buchan Bakery Condominiums - Bread Boys, LLC

BREAD BOYS, LLC REAL ESTATE DEVELOPMENT

FIRST YOU GET THE BREAD, THEN YOU GET THE POWER, THEN YOU GET THE RESPECT. - GEORGE “THE BAKER” BUCHAN

TABLE OF CONTENTS

PROPOSAL

DESIGN

RISK MITIGATION

02 INVESTMENT SUMMARY

15 ZONING SUMMARY

46

CONDOMINIUM LIABILITY

03 EXECUTIVE SUMMARY

16 PROJECT AREA SUMMARY

47

RISK MITIGATION

04 DEVELOPMENT TEAM

17 DESIGN CONCEPT

48

DUE DILIGENCE

19 MATERIALS & FINISHES

49 APARTMENT CONVERSION

26 FLOOR PLANS

50

MARKET RESEARCH 05

SENSITIVITY ANALYSIS

SEATTLE MARKET SUMMARY FINANCIALS

06 SEATTLE HOUSING TRENDS

APPENDIX

07 HOUSING SUPPLY & DAYS ON MARKET

35 SCHEDULE & ENTITLEMENTS

52

08

36

53 PRO FORMA MODEL

MULTI-FAMILY SUPPLY HISTORY

PROJECT COSTS SUMMARY

ACKNOWLEDGEMENTS

38 SALES SUMMARY

66

40 MARKETING PLAN

73 WALLINGFORD DEMOGRAPHICS

09 NEIGHBORHOOD PROFILE

41 SALES & LEASING TIMELINE

76

AREA STACK DIAGRAM

10

WALLINGFORD MAP

42

FINANCING

77

SALES COMPS

11

SEATTLE MAP

43

INVESTOR SPLITS

82 TITLE REPORT

44

RETURNS SUMMARY

87 SALES & MARKETING STRATEGY

WALLINGFORD PROFILE

12 SITE & VICINITY ACCESS 13

TARGET BUYER

14

RETAIL PROFILE

CONSTRUCTION ESTIMATE

CONSTRUCTION 45 CONSTRUCTION COSTS

BREAD BOYS, LLC

01

INVESTMENT SUMMARY

PROJECT TYPE CONDOMINIUM LOCATION WALLINGFORD NUMBER OF UNITS 84 TOTAL COST $49,240,933 INVESTOR EQUITY $19,942,578 INVESTOR PROFIT $9,842,262 INVESTOR IRR 24% INVESTOR MULTIPLE 1.5x

BREAD BOYS, LLC

02

EXECUTIVE SUMMARY Bread Boys, LLC is soliciting an equity partner for the Buchan Bakery development, an 84-unit condominium mixed-use project at 1604 North 34th Street in Seattle, Washington.

The site is located in the Wallingford neighborhood on North 34th Street, bound by Densmore Ave N to the east and Woodlawn Ave N to the west. The development is an assemblage lot of approximately 27,000 square feet that allows retail and residential developments up to a height of 55’. The proposed five-story development consists of 84 condominium units with an average size of 739 square feet, 16,501 square feet of retail space for multiple tenants, and 129 below-grade parking stalls. The Essential Baking Company, a bustling neighborhood fixture currently located on the site, will be the anchor retail tenant for the new development. Complementing the baking company, a boutique grocery store and brew pub will serve frequent pedestrian traffic in the area.

The Buchan Bakery development is distinguished from other low-rise condominium investment opportunities because of its unique architectural design, the rich history of the site, and its location within a desirable urban neighborhood. The development addresses the growing demand for quality forsale housing product in Seattle’s core neighborhoods. For years the city’s growing condominium shortage has deprived first time home buyers and downsizers of an affordable home-ownership option.

The Buchan Bakery condominiums feature spacious studio, one bedroom, and two bedroom units in a carefully-crafted and thoughtful addition to the neighborhood. The floorto-ceiling windows, complemented by nine and a half foot ceilings, fill each unit with natural light. Interior finishes of exposed wood and simple elegant materials create a tasteful palette rooted in the craftsman history of the Pacific Northwest. The same motifs are carried to the exterior – shaping a distinguished building clad in contemporary black brick, grey cedar siding, and glass. A rooftop amenity room and deck provides space for residents to host guests, dine, drink, and enjoy views of downtown, the Cascades, the Olympics, and the mighty Mount Rainier.

Wallingford is one of Seattle’s classic streetcar suburbs, defined by early twentieth century bungalows and low-rise apartment buildings nestled between popular neighborhood retail strips. The Buchan Bakery site is located one block from the world-renowned Gas Works Park and is within walking distance of many popular retail and restaurant destinations. The site features dramatic views of the Cascade and Olympic Mountains, Lake Union, and downtown Seattle.

From an employment perspective, Wallingford is home to well-known local businesses Adobe, Brooks Running and Tableau. The neighborhood’s strategic location between two of the city’s major thoroughfares, Interstate 5 and State Route 99, provides residents convenient access into the central business district. Seattle’s central business district The project site is home to the historic Buchan Bakery is located three miles to the south and is home to countless building, a modest single-story brick building that nationally-known employers, including Amazon, Google, exemplifies Wallingford’s industrial past. The business itself, Facebook, Nordstrom, F5 and Zillow. perhaps best known for sponsoring the amateur basketball team of the same name during the 40s, 50s, and 60s, has Bread Boys, LLC is confident that the unique qualities of been a fixture of the neighborhood since it was built. Bread the site, combined with the development team’s 40 years of Boys, LLC intends to leverage the rich legacy of the Buchan real estate experience, strongly position the joint venture to Bakery by nominating the façade as a Seattle Landmark and deliver a best-in-class living experience to our residents and making it a defining feature in the project. exceptional returns to our investors.

ALEX GAUPER

NOAH GREEN

SLOAN RITCHIE

KEVIN SIMPSON-VERGER

JOHN TUPPER

FINANCIAL DIRECTOR

DESIGN DIRECTOR

MANAGING DIRECTOR

RESEARCH DIRECTOR

OPERATIONS DIRECTOR

BREAD BOYS, LLC

03

DEVELOPMENT TEAM

ALEX GAUPER

NOAH GREEN

SLOAN RITCHIE

KEVIN SIMPSON-VERGER

JOHN TUPPER

FINANCIAL DIRECTOR

DESIGN DIRECTOR

MANAGING DIRECTOR

RESEARCH DIRECTOR

OPERATIONS DIRECTOR

Sloan’s primary role with Bread Boys is strategic project vision and execution. Sloan also supports construction efforts, with a focus on planning an pre-construction, as well as overall project risk mitigation.

Kevin over se e s re al e st ate market investment sales and market research at Bread Boys.

Mr. Simpson-Verger uses his s ophistic ate d knowle dge of technology, data, outsourcing, and financial models to support the firm’s project delivery efforts.

As Operations Director at Bread Boys, John oversees project management and construction.

John supports project delivery ef for t s with his subst antial experience is cost estimating, project scheduling, contracts, and project management.

As a Seattle native, Kevin started his career in real estate sales b r o ke r a g e, sp e ci ali zin g o n condominium, townhome, and single family sales for clients in the Sloan holds Bachelor of Sociology Seattle and Eastside area. from Whitman College and a MBA from the University of Washington Kevin holds a Bachelor of Foster School of Business.

Accounting from the University of Washington Foster School of Business.

Previously, John worked at Seattlebased construction management firm as a Senior Project Engineer.

John has extensive experience in a variety of project types, including mid-rise and high-rise shell and core construction and tenantimprovement build-outs. John is a Seattle native and his spent his entire life in the Pacific Northwest.

At Bread Boys, LLC Mr. Gauper is tasked with leading the team’s financial underwriting efforts as well as project feasibility analysis.

As Design Director at Bread Boys, Noah is responsible for project design, creative vision, and project entitlement. Noah’s past experience coordinating complex Alex also plays a critical role in the multidisciplinar y projects has deal capitalization process via the enabled him to execute designsourcing of both investment capital excellence architecture that aligns and project financing. with the project schedule and Before joining the firm, Alex was an budget. investment manager at a SeattleNoah started his career at the based commercial real estate Seattle branch of an international investment firm that specialized in architecture and design services acquisition of institutional-grade firm. Noah’s portfolio of work multifamily properties. focuses on design, documentation, Alex holds a Bachelor of Arts and p ermi t ting ef fo r t s fo r in Accounting from Washington progre s sive commercial and State University and is a licensed residential high-rise projects.

C er tif ied Public Account ant Noah holds a Bachelor of (Active).

Architecture from the University of Oregon School of Design and is a licensed architect in Washington State.

BREAD BOYS, LLC

Before joining Bread Boys, Sloan was the principal of a Seattle in-fill development and general contracting firm that specialized in multifamily projects.

John holds a Bachelor of Science in Construction Management and a Bachelor of Arts in Finance from Washington State University.

04

SEATTLE MARKET SUMMARY

ANNUAL JOB GROWTH PAST 3 YEARS 55,000 PROJECTED POPULATION GROWTH BY 2040 1,400,000 SEATTLE UNEMPLOYMENT RATE 3.9% CONSTRUCTION PIPELINE FOR FUTURE EMPLOYEES 41,142 OFFICE UNDER CONSTRUCTION 7,200,000 SF IN-MIGRATION PER WEEK 1,200 HIGH-TECH JOB GROWTH PAST 2 YEARS 33,000 / 25.7% MEDIAN HOME PRICE $820,000

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05

SEATTLE HOMES FOR SALE

6,000

5,000

4,000

3,000

2,000

1,000

2009

2010

2011

2012

SEATTLE

BREAD BOYS, LLC

2013

2014

2015

2016

2017

2018

2019

WALLINGFORD

06

HOUSING SUPPLY

8 6 4 2 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2011

2012

2013

2014

2015

2016

2017

2018

2019

DAYS ON MARKET 50 40 30 20 10 2009

2010

SEATTLE

BREAD BOYS, LLC

WALLINGFORD

07

MULTI-FAMILY SUPPLY HISTORY

7,500 7,000 6,500 6,000 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2000

2001

2002

2003

2004

2005

2006

APARTMENTS

BREAD BOYS, LLC

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

CONDOMINIUMS

08

NEIGHBORHOOD PROFILE

BREAD BOYS, LLC

09

WALLINGFORD MAP

Lake Washington

Husky Stadium

520

Montlake Cut

University District

Future Light Rail Station

Montlake

UW Light Rail Station

Northlake 520

5 5

Eastlake

Fremont

Gas Works Park

Lake Union

BREAD BOYS, LLC

10

SEATTLE MAP University District

Husky Stadium

520

Montlake Cut

5

Bellevue Northlake

Fremont

520

5

Washington Park Arboretum

Lake Washington

Volunteer Park

Lake Union Capitol Hill

99

Cal Anderson Park

South Lake Union

Queen Anne

5

First Hill

Seattle Center Seattle CBD Belltown

5

99

Pike Place Market

Int’l District

Seattle Aquarium

Pioneer Square

Great Wheel

Union Station

99

KEY

Pier 52 Ferry Terminal Ferry Terminal Amtrak/Sounder Light Rail

Elliott Bay

Future Light Rail

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11

SITE & VICINITY ACCESS

WALKING, 15 MINUTE RADIUS

BIKING, 15 MINUTE RADIUS

TRANSIT, 15 MINUTE RADIUS

WALKING, 30 MINUTE RADIUS

BIKING, 30 MINUTE RADIUS

TRANSIT, 30 MINUTE RADIUS

BREAD BOYS, LLC

12

RESIDENT PROFILE

COURTNEY

BRADY

NEIL & MIA

28 YEARS OLD

35 YEARS OLD

EARLY 30s

JUNO THERAPEUTICS, SENIOR RESEARCH ASSOCIATE

GOOGLE, SENIOR SOFTWARE ENGINEER

UW, PEDIATRICIAN & FACEBOOK, PRODUCT MANAGER

$160,000 / YEAR SALARY

$180,000 / YEAR SALARY

$380,000 / YEAR COMBINED SALARY

“I WANT TO LIVE IN A NEIGHBORHOOD WITH CHARM AND CHARACTER, BUT STILL BE CLOSE TO WORK.”

“I BRING MY FRENCH BULLDOG WITH ME EVERYWHERE, HE HAS 2,400 INSTAGRAM FOLLOWERS.”

“WE NEED A HOME BIG ENOUGH FOR A FAMILY, WITHOUT THE HASSLE OF HOMEOWNERSHIP.”

URBAN ONE BEDROOM

TRADITIONAL ONE BEDROOM

TWO BEDROOM, TWO BATH

$605,000

$630,000

$1,035,000

MONTHLY MORTGAGE (10% DOWN)

MONTHLY MORTGAGE (10% DOWN)

MONTHLY MORTGAGE (10% DOWN)

$4,035

$4,192

$6,736

HOUSING COST AS PERCENTAGE OF SALARY

HOUSING COST AS PERCENTAGE OF SALARY

HOUSING COST AS PERCENTAGE OF SALARY

30%

28%

21%

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13

RETAIL TENANT PROFILE

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14

ZONING AREA SUMMARY

ZONING C2P-55(M) LOT SIZE 27,360 SF LOT DIMENSIONS 118’ x 226’ FAR 3.25 1 MAX FAR AREA 88,920 SF HEIGHT LIMIT 59’ 2

RESIDENTIAL FAR AREA 69,395 SF COMMERCIAL FAR AREA 16,714 SF TOTAL FAR AREA 86,109 SF UNUSED FAR AREA 2,811 SF

1. includes + .25 FAR bonus for mixed-use development (SMC 23.47A.013) 2. includes + 4’ bonus for 13’ floor-to-floor at street level (SMC 23.47A.012.A.1.a)

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15

PROJECT AREA SUMMARY

TOTAL GROSS AREA 126,457 SF NUMBER OF FLOORS 5 NUMBER OF UNITS 84 AVERAGE UNIT SIZE 739 SF PARKING STALLS 129

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16

BUCHAN BAKERY HISTORY

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17

BUCHAN BAKERS BASKETBALL TEAM

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18

DESIGN CONCEPTS, EXTERIOR

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19

DESIGN CONCEPTS, COURTYARD

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20

DESIGN CONCEPTS, RETAIL

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21

DESIGN CONCEPTS, INTERIOR

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22

VIEW FROM SOUTHWEST

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23

VIEW FROM MIDBLOCK

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24

VIEW NORTH 34TH STREET

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25

PLAN, GROUND FLOOR 1 Gated Access

4 Storage Units

2 Waiting & Mail

5 Trash & Retail Loading

3 Bicycle Storage

R Retail

5 3

Densmore Avenue North

Woodland Avenue North

4

2

R 11,129 SF

R 5,372 SF 1

North 34th Street

BREAD BOYS, LLC

26

PLAN, SECOND FLOOR

12 units features spacious private decks

2-BR

1-BR

1-BR

1-BR

1-BR

1-BR

S

S

2-BR

1

Residential Elevators

2

Common Amenity

S

Studio

1-BR One Bedroom 2-BR Two Bedroom 1-BR

1-BR 2

1 1-BR

1-BR

2-BR

3-BR Three Bedroom

1-BR

1-BR

1-BR 1-BR

1-BR

1-BR

3-BR

SCALE 1/32” = 1’-0” 0

8

16

32

64

Interior courtyard for residents

BREAD BOYS, LLC

27

PLAN, THIRD FLOOR

Residents access units from exterior corridor

2-BR

1-BR

1-BR

1-BR

1-BR

1-BR

S

S

2-BR

1

Residential Elevators

S

Studio

1-BR One Bedroom 2-BR Two Bedroom 3-BR Three Bedroom

1-BR

1-BR 1 1-BR

1-BR

2-BR

1-BR

1-BR

1-BR 1-BR

1-BR

1-BR

3-BR

SCALE 1/32” = 1’-0” 0

8

16

32

64

Opening to street lets more light into the courtyard

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28

PLAN, FOURTH FLOOR

Zoning setback creates opportunity for balconies

2-BR

1-BR

1-BR

1-BR

1-BR

1-BR

S

S

2-BR

1

Residential Elevators

S

Studio

1-BR One Bedroom 2-BR Two Bedroom 3-BR Three Bedroom

1-BR

1-BR 1 1-BR

1-BR

2-BR

1-BR

1-BR

1-BR 1-BR

1-BR

1-BR

3-BR

SCALE 1/32” = 1’-0” 0

8

16

32

64

Views of Lake Union start at this level

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29

VIEW, FOURTH FLOOR

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30

PLAN, FIFTH FLOOR

2-BR

1-BR

1-BR

1-BR

1-BR

1-BR

S

S

2-BR

1

Residential Elevators

S

Studio

1-BR One Bedroom 2-BR Two Bedroom 3-BR Three Bedroom

1-BR

1-BR 1 1-BR

1-BR

2-BR

1-BR

1-BR

1-BR 1-BR

1-BR

1-BR

3-BR

SCALE 1/32” = 1’-0” 0

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8

16

32

64

31

VIEW, FIFTH FLOOR

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32

PLAN, ROOF

1

Residential Elevators

2

Common Amenity

1

2 SCALE 1/32” = 1’-0” 0

8

16

32

64

Amenity deck design allows for private gathering for multiple groups

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33

PLAN, PARKING

Security gate separates residential and retail parking

1

Residential Elevators

2

15% Ramp to Street

2

1

86 STALLS, LEVEL P1 43 STALLS, LEVEL P2

SCALE 1/32” = 1’-0” 0

8

16

32

64

Parking ratio is based on one residential stall per bedroom

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34

M

A

M

J

J

A

INITIAL DESIGN 2 MONTHS

S

O

N

D

J

F

M

A

M

J

J

A

S

O

N

ENTITLEMENT, MUP, DR, LPB 16 MONTHS

D

J

2023

2022 F

M

A

M

J

J

A

S

O

N

D

J

F

M

CONSTRUCTION 16 MONTHS

A

M

J

J

A

S

O

N

D

UNIT SALES 10 MONTHS

MARKETING 42 MONTHS

BREAD BOYS, LLC

SALES COMPLETE

PROJECT COMPLETION

PERMITS ISSUED

PRE-SALES 32 MONTHS

PERMIT SUBMITTAL

F

EARNEST MONEY

J

2021

2019

2020

SCHEDULE & ENTITLEMENTS

35

PROJECT COSTS SUMMARY

TOTAL HARD COSTS

PER UNIT

PER NRA

PER GSF

PERCENT

$31,962,048

$380,501

$304

$253

65%

LAND (PURCHASE & PREP)

$8,775,000

$104,464

$83

$69

18%

FINANCING COSTS

$1,284,391

$15,290

$12

$10

3%

SOFT COSTS

$3,903,180

$46,466

$37

$31

8%

DEVELOPER FEE

$1,141,210

$13,586

$11

$9

2%

OPERATING COSTS

$2,175,104

$25,894

$21

$17

4%

$49,240,933

$586,202

$468

$389

100%

TOTAL PROJECT COSTS

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36

UNIT MIX SUMMARY

3-BR

STUDIOS 19%

S

2-BR

ONE BEDROOMS 62% TWO BEDROOMS 14% THREE BEDROOMS 5%

BREAD BOYS, LLC

1-BR

37

SALES SUMMARY, RESIDENTIAL

UNIT COUNT

UNIT SIZE

PRICE

PRICE PSF

STUDIO

8

382 SF

$455,000

$1,191

URBAN ONE

8

611 SF

$605,000

$990

1X1

62

600 SF

$630,000

$1,050

2X2

12

1,321 SF

$1,035,000

$783

3X2

4

1,763 SF

$1,240,000

$703

TOTAL

84

AVERAGE

BREAD BOYS, LLC

$58,620,000 739 SF

$697,857

$945

38

SALES SUMMARY, RETAIL

SIZE

RENT

ANNUAL

CAM/MONTH

CAM TOTAL

TOTAL

TYPE

TENANT 1

11,129 SF $29.00/SF

$322,741

$11,129

$133,548

$456,289

NNN

TENANT 2

5,372 SF $32.00/SF

$171,904

$5,372

$64,464

$236,368

NNN

16,501 SF $29.98/SF

$494,645

$9,255

$198,012

$692,657

LESS 10% VACANCY

$(69,266)

TOTAL RETAIL NOI

$425,379

RESIDUAL VALUE AT 5.25% CAP

$8,102,463

TOTAL

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39

MARKETING PLAN

• TRADITIONAL SIGNAGE • CUSTOM WEBSITE • PRE-MARKETING • NWMLS, CBA & COSTAR • NATIONAL PORTAL ADVERTISING • BROKERAGE PORTAL ADVERTISING • INTERNATIONAL PORTAL ADVERTISING • RESERVATIONS • ON-SITE SALARIED SALES AGENT • BROKERAGE COMMUNITY MARKETING • PROFESSIONAL PHOTOGRAPHY & STAGING

BREAD BOYS, LLC

40

SALES & LEASING TIMELINE

MUTUAL ACCEPTANCE • MARKETING AND PRE-SALES START ONCE FEASIBILITY CONTINGENCY IS SATISFIED • DEVELOPMENT TIMELINE DELIVERS PROJECT COMPLETION PRIOR TO BEGINNING PEAK SALES SEASON 2022

PRESALES • ENGAGE COMMERCIAL TENANTS • IDENTIFY ANCHOR RETAIL TENANT • RESIDENTIAL PRESALES

BUILDING COMPLETION • ASSUMES RESIDENTIAL SELLOUT PERIOD OF 10 MONTHS • ASSUMES RETAIL LEASE-UP PERIOD OF 10 MONTHS, FOLLOWED BY RETAIL SELLOUT

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41

FINANCING

FIXED OR FLOATING RATE? INTEREST ONLY

FLOATING YES

LIBOR

2.50%

INTEREST RATE SPREAD

3.00%

LOAN TO COST

MAXIMUM CONSTRUCTION LOAN

BREAD BOYS, LLC

55.00%

$27,082,513

42

INVESTOR SPLITS

ALLOCATION CONTRIBUTIONS

SPLITS

INVESTOR

DEVELOPER

90.0%

10.0%

$19,942,578

HURDLE RETURN

INVESTOR

DEVELOPER EQUITY

40.50%

INVESTOR EQUITY

55.00%

FINANCING

$2,215,842

DEVELOPER

TIER 1

10.0%

90.0%

10.0%

TIER 2

15.0%

80.0%

20.0%

TIER 3

THEREAFTER

60.0%

40.0%

BREAD BOYS, LLC

4.50%

43

RETURNS SUMMARY

EQUITY CONTRIBUTION

$22,158,420

EQUITY RECAPTURE AND PROFIT

$35,079,650

UNLEVERAGED IRR

20.5%

LEVERAGED IRR

28.2%

EQUITY MULTIPLE

BREAD BOYS, LLC

1.6x

44

CONSTRUCTION COSTS

CONSTRUCTION • 5 OVER 1 CONSTRUCTION • 1 1/2 LEVELS OF UNDERGROUND PARKING • DESIGN-BID-BUILD CONSTRUCTION • NO SOILS OR WATER TABLE ISSUES • 16 MONTH CONSTRUCTION DURATION • AIR COOLED VRF SYSTEM • UNDERGROUND PARKING LEVEL – 126 STALLS

COSTS • TOTAL BUILDING COST - $238/SF • CONDO UNIT CONSTRUCTION COST - $280/SF • PARKING GARAGE COST - $34,000/STALL

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45

CONDOMINIUM LIABILITY

CURRENT CONDO RISK • SIX-YEAR BROADLY DEFINED DEFECT LIABILITY, COMPLY WITH “ALL LAWS”, STRICT LIABILITY FOR DEVELOPERS • PRESUMPTION OF LAWSUITS (FRIVOLOUS AND OTHERWISE)

PROPOSED NEW LEGISLATION • REDUCES PERSONAL LIABILITY OF HOA OFFICERS, GRANTS SPECIFIC IMMUNITY • REDUCES DEFECT LIABILITY FROM “ALL LAWS” TO MORE RESTRICTIVE DEFECT DEFINITION TO DEFECTS THAT “CAUSE HARM” • PENDING BILL WOULD REQUIRE A MAJORITY OF THE HOA (NOT JUST THE BOARD) VOTE TO SUE DEVELOPER

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46

RISK MITIGATION STRATEGY

PRECAUTIONS • WRAP / OCIP POLICY $15 MILLION LIMITS • ENVELOPE ENGINEER, DETAILING QA / QC PROGRAM • HISTORIC PRESERVATION ARCHITECT

POST-OCCUPANCY • CONSTRUCTION CONCIERGE FOR WARRANTY ($50K / YEAR) $300K • LEGAL FUND $ 1.5 MILLION • DEVELOPER WILL OWN A UNIT THROUGH THE LIABILITY PERIOD, AND JOIN THE HOA BOARD • TRACK NEW CONDOMINIUM LAWS IN 2019

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47

DUE DILIGENCE

TITLE • COVENANT ON TITLE FROM WA DEPT OF ECOLOGY: PREVIOUS KNOWN CONTAMINANTS FROM HISTORICAL COMMERCIAL ACTIVITIES • NEGOTIATED AN ENVIRONMENTAL HOLDBACK AND INDEMNIFICATION FROM THE SELLER

SOILS & GEOTECH • TEST BORINGS INDICATE COMPETENT SOILS WITH ADEQUATE BEARING CAPACITY FOR THE PROPOSED STRUCTURE

ENVIRONMENTAL • PHASE 1 IDENTIFIED SOME COMMERCIAL HISTORY ON THE SITE • PHASE 2 IDENTIFIED MINIMAL PETROLEUM

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48

APARTMENT CONVERSION

RESIDENTIAL NUMBER OF UNITS

COMMERCIAL 84

AVERAGE UNIT SIZE

739 SF

ASSUMED RENT PSF

$3.25

VACANCY FACTOR GROSS RESIDENTIAL INCOME

95%

$124,800

RUBS

$126,000

MISC.

$50,400 $2,600,078

EXPENSE RATIO

40%

STABILIZED NOI

$1,560,047

BREAD BOYS, LLC

16,501 SF

ASSUMED RENT PSF

$30.00

CAM PSF

$12.00

RETAIL GROSS INCOME

$693,042

$2,419,872

PARKING INCOME

EFFECTIVE GROSS INCOME

RETAIL SQUARE FOOTAGE

STABILIZED YIELD ON COST STABILIZED NOI TOTAL PROJECT COST STABILIZED YIELD ON COST

$2,445,254 $46,778,886 5.23%

49

SENSITIVITY ANALYSIS U IRR

L IRR

MULTIPLE

BASE CASE

20.5%

28.2%

1.6x

-10% AVERAGE SALES PRICE

12.1%

17.4%

1.3x

+10% AVERAGE SALES PRICE

28.7%

38.5%

1.8x

BASE CASE

20.5%

28.2%

1.6x

100% LEASED & $25 PSF AVERAGE LEASE

18.6%

25.7%

1.5x

33% LEASED & $30 PSF AVERAGE LEASE

12.2%

17.5%

1.3x

BASE CASE

20.5%

28.2%

1.6x

+10% TOTAL PROJECT COSTS

11.1%

16.3%

1.3x

-10% TOTAL PROJECT COSTS

32.7%

42.9%

1.9x

BASE CASE

20.5%

28.2%

1.6x

+10 MONTHS

14.8%

20.2%

1.6x

RESIDENTIAL SALES PRICING

COMMERCIAL SALES PRICING

CONSTRUCTION COSTS

SELLOUT PERIOD

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50

QUESTIONS

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51

ACKNOWLEDGMENTS

CHRIS ANGUS, SELLEN CONSTRUCTION DEAN JONES, REALOGICS EUGENIA WOO, HISTORIC SEATTLE JAMES BACH, CBRE JEFF HENDERSON, CBRE JEREMIAH JOLICOEUR, ALLIANCE RESIDENTIAL COMPANY JOHN TEUTSCH , TEUTSCH PARTNERS, LLC MARC COLUCCIO, SOLTERRA MARIA ROYER, REAL RETAIL MATT BLACK, SELLEN CONSTRUCTION MATT ELLIOT, SENECA GROUP MICHAEL NANNEY, SECURITY PROPERTIES SARAH EDDY, PERKINS + WILL

BREAD BOYS, LLC

52

PRO FORMA MODEL

APPENDIX

Project Summary

U IRR

L IRR

Multiple

20.5%

28.2%

1.6x

Bread Boys, LLC 1325 4th Avenue Suite 400 Seattle, WA 98101

RETURNS

PROJECT OVERVIEW

RETURN ANALYSIS - TOTAL PROJECT Equity Contribution Equity Recapture and Profit Unleveraged IRR Leveraged IRR Equity Multiple

22,158,420 35,079,650 20.5% 28.2% 1.6x

Project Name Model Version Address

Buchan Bakery Condominiums Pre-Acquisition 1604 N. 34th Street Seattle, WA 98103 27,360

Area Sq. Ft. Floors EQUITY CASH FLOWS 2019

Investment (2,077,593)

2020 2021

(20,080,827) -

2022

-

TIMING & FINANCING TIMELINE

GENERAL

Total Return -

Profit (2,077,593)

-

(20,080,827) -

34,329,650

5

No. Units GSF SF - Residential SF - Commercial FAR

84 126,457 105,142 21,315 3.25

Avg. Floor Plate

18,246

Project Start Date Enter Land Contract Development Period Due Diligence

Description Four stories of wood-framed for-sale residential units located above a single-story concrete podium currently planned for retail use. Project is located at the intersection of N. 34th and Woodlawn Avenue N. at the south end of Seattle's Wallingford neighborhood. Project includes 1.5 floors of below grade parking.

34,329,650

-

-

-

PROJECT COST

-

-

-

Hard Costs

$

31,962,048

$

380,501

$

304

$

253

65%

Land (Purch & Prep) Financing Costs Soft Costs Developer Fee Operating Costs

$ $ $ $ $

8,775,000 1,284,391 3,903,180 1,141,210 2,175,104

$ $ $ $ $

104,464 15,290 46,466 13,586 25,894

$ $ $ $ $

83 12 37 11 21

$ $ $ $ $

69 10 31 9 17

18% 3% 8% 2% 4%

Total Project Cost

$

49,240,933

$

586,202

$

468

$

389

100%

(22,158,420)

750,000 35,079,650

750,000 12,921,230

End

Total

Per Unit

Per NRA

Per GSF

Months

5/1/2019

6/30/2019

2

Pre-Development

7/1/2019

10/31/2020

16

Construction

11/1/2020

2/28/2022

16

Condo Sales Period Retail Space Sale

3/1/2022

12/31/2022 1/1/2023

10 0

Litigation Reserve Period

3/1/2022

2/29/2028

72

34 Selling 2.0 units per week

Total Development Period Sellout Period

Total Months - Due Diligence to Reversion

2023 2024 2025 2026 2027 2028 Total

Start 5/1/2019 5/1/2019

105

Percent FINANCING Construction Financing Construction Loan Equity Contribution Total

$ 27,082,513 $ 22,158,420

55.0% 45.0%

$ 49,240,933

STABILIZATION Net Value Project Cost Value Created

Total $ 61,412,163 $ 49,240,933 $ 12,171,230

$ $ $

Per Unit 731,097 586,202 144,896

8%

2% 4%

3%

Hard Costs Land (Purch & Prep) Financing Costs Soft Costs

18%

Developer Fee 65%

BREAD BOYS, LLC

Operating Costs

53

PRO FORMA MODEL

Floor Plates 6 5 4 3 2 1 -1 -2 Total

BREAD BOYS, LLC

APPENDIX

Floor Area Floor-to-Floor Height 57.5' 10.50 47.0' 10.50 36.5' 10.50 26.0' 10.50 15.5' 15.50 0.0' 9.50 -9.5' 9.50 -19.0' -

Assumed Area 1,000 16,506 16,506 16,947 16,247 25,026 23,146 11,573 126,951

Amenity / Admin Entry Lobby Bike Storage Storage Egress Area Interior Courtyard Roof Amenity Total Amenity

Area 1,683 533 2,221 1,300 2,069 2,926 10,732

Location (Level) 1 1 1 1 2 6

Commercial Retail #1 Retail #2

Area 11,129 5,372

Location (Level) 1 1

Total Commercial

16,501

Studio -

-

2 2 2 2

8

Urban 1 -

-

2 2 2 2

8

Studios 1 Bedrooms 2 Bedrooms 3 Bedrooms

Unit Mix 1x1 2x2 13 3 13 3 13 3 13 3 52 12

3x2 -

-

1 1 1 1

4

Units 21 21 21 21 84

19% 62% 14% 5%

54

PRO FORMA MODEL

APPENDIX

ACQUISITION / PREP COST

$104,464/unit

Land Acquisition Date Land: Land Acquisition Purchase Price Land Deposit @ 5% Soft: Legal Title / Inspections Other Total Land Price Per SF

11/1/2020

$

Cash Flow 8,500,000

$

425,000

$ $ $

200,000 25,000 50,000

$

8,775,000 321

$

$ / SF 311

5.00%

HARD COSTS (CONSTRUCTION) Contract: Foundations Substructure Superstructure Exterior Closure Roofing Interior Construction Conveying Systems Plumbing HVAC Fire Protection Electrical General Conditions Hoisting Equipment Site Work Subtotal Construction Direct Subcontractor Default Insurance

OPERATING / HOLDING COSTS

$25,894/unit Costs

Property Taxes Insurance (During Construction) Utilities (During Construction) Marketing Budget Initial HOA Reserve Funding Construction Concierge Retail Tenant Improvements Total

$ $ $ $ $ $ $ $

255,054 200,000 50,000 420,000 125,000 300,000 825,050 2,175,104

$380,501/unit $ / PSF $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

5 15 30 33 6 44 5 10 10 4 16 14 7 1 8

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

$ / Unit 8,188 21,963 45,979 49,393 9,239 66,418 6,875 15,048 15,584 5,328 24,365 20,952 10,857 950 11,696

$

2

$

3,660

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

$ Total 687,778 1,844,861 3,862,263 4,148,996 776,112 5,579,087 577,500 1,264,041 1,309,049 447,579 2,046,624 1,760,000 912,000 79,810 982,500 26,278,200

1.00% $

265,857

Escalation Contingency

2.00% $

537,030

B&O Taxes GL Insurance General Contractor Fee Construction Contract: Sales Tax Wrap Insurance Total

0.69% $ 0.55% $ 3.00% $ $ 10.10% $ 1.00% $ $ $

Total

BREAD BOYS, LLC

Total

$13,586/unit 3.0% $

Costs 1,141,209.96

$

1,141,210

$46,466/unit

$

$ $ $ 1.00% $ $ 15,000 $ $ $ $ $ $ $ $ $ $ 10.00% $

Costs 20,000 200,000 50,000 285,458 50,000 1,260,000 10,000 50,000 15,000 10,000 25,000 450,000 1,072,887 50,000 3,548,345 354,835

$

3,903,180

$

181,320 144,530 831,432 28,545,823 2,883,128 533,097 31,962,048 253 PSF

DEVELOPER FEE Developer Fee

Soft Costs: Initial Design Feasibility Legal (Land Use, P-ship, Const, Retail, etc.)

Legal / HOA Formation Permit / Fees Inspections Architect & Engineering thru Const.

Parking & Traffic Analysis Other Miscellaneous Public Relations Market Study / Appraisal Reports Security Graphic Design & Marketing MHA Payment Condo Survey Soft Costs Sub-total Soft Cost Contingency

307,455

Design Contingency

SOFT COSTS (A&E)

PROJECT COST SUMMARY Acquisition / Prep Cost Operating / Holding Costs Hard Costs (Construction) Developer Fee Soft Costs (A&E) Project Costs before Financing Costs Construction Interest

Architect & Engineering Design & Construction Docs Structural / Shoring Civil / Survey Mechanical / Electrical / Plumbing Interior Design Landscape Envelope Environmental Geotechnical Acoustic / ADA / Other Historical Consultant

31 PSF

$586,202/unit $ $ $ $ $ $ $

Costs 8,775,000 2,175,104 31,962,048 1,141,210 3,903,180 47,956,542 864,391

Loan Fee

$

270,000

Closing Costs Total Costs

$ $

150,000 49,240,933

55

PRO FORMA MODEL

APPENDIX

Condo Unit Mix and Sales Price Unit Description Studio Urban 1 1x1 2x2 3x2

Market Rate Units # of Units

Type Studio Urban 1 1x1 2x2 3x2

Unit Size 8 8 52 12 4

Total Average

382 611 600 1,321 1,763

84

Unit Mix % 10% 10% 62% 14% 5%

62,048

100%

8 8 52 12 4

Base Avg:

739

Parking Assumptions

Parking Types Residential Retail

Total SF 3,056 4,888 31,200 15,852 7,052

# of Units $ $ $ $ $

84 $ $

Price Per Unit 425,000 575,000 600,000 975,000 1,150,000

$ $ $ $ $

Price Per SF 1,113 941 1,000 738 652

55,500,000 660,714 $

894

Selling & Closing Costs

Spaces

Totals / Average

Sales Price Sales Price Per Space Total 104 $ 30,000 $ 3,120,000 25 $ $ -

129

$

Commissions Closing Costs Condo Retail Parking Total

4.00% 2.50% 6.50% 4.00%

$ $ $ $ $ $

2,220,000 1,387,500 3,607,500 324,099 202,800 4,134,399

3,120,000

Litigation Holdback Target Holdback for Litigation Reserve Holdback Per Unit Sold Assumed Reserve Retention % Collected Reserve Amount @ Reserve Period End

BREAD BOYS, LLC

$ $ $

1,500,000 17,857 50.00% 750,000

56

PRO FORMA MODEL

Tenant 1 Tenant 2

Tenant

Total

APPENDIX

SF 11,129.00 5,372.00

Start 3/1/2022 3/1/2022

End 2/29/2032 2/28/2027

16,501.00

Rent/ SF 29.00 32.00

Annual Rent 322,741.00 171,904.00

Monthly CAM 11,129.00 5,372.00

CAM / PSF / Mo. 1.00 1.00

CAM Total 133,548.00 64,464.00

Total 456,289.00 236,368.00

29.98

494,645.00

9,254.77

1.00

198,012.00

692,657.00

Rent/ SF 29.00 32.00

Annual Rent 322,741.00 171,904.00

Monthly CAM 11,129.00 5,372.00

CAM / PSF / Mo. 1.00 1.00

CAM Total 133,548.00 64,464.00

Total 456,289.00 236,368.00

29.98

494,645.00

9,254.77 12.00

1.00 12.00

198,012.00

692,657.00

Type NNN NNN

Modeled - Pro Forma Tenant 1 Tenant 2

Tenant

Total

SF 11,129.00 5,372.00

Start 3/1/2022 3/1/2022

16,501.00

Property Taxes Retail Rent CAM

$ $

Potential Income Vacancy Gross Income Retail NOI Reserves Total Retail NOI 5.25% Value

BREAD BOYS, LLC

End 2/29/2032 2/28/2027

Per SF

29.98 -

Year 1 Pro Forma 494,645.00 -

$ $ $

29.98 4.20 25.78

494,645.00 69,265.70 425,379.30

$ $ $

25.78 25.78

425,379.30

Y1 Vacancy 10% 10%

Adj. Total 410,660.10 212,731.20 623,391.30

78,549.00 Total Square Footage 5.56 Taxes PSF

425,379.30 $

491

$

8,102,463

57

BREAD BOYS, LLC

Total Acq., Development, Operating, Financing Costs Percentage financed (Loan to Cost) Loan for improvements

Financing Costs Loan Fee Construction Loan Interest Reserve Closing Costs (Title, escrow & legal) Total

Development / Acquisition Costs / Operating Costs Acquisition Costs Operating Costs Construction - Hard Costs (includes contingency) Construction - Soft Costs (includes contingency) Development Fee Total

Development Period (Mos) Due Diligence Thru Construction Add'l Months to Refi (Condo Sales Period)

LOAN CALCULATION

Total Costs (Acq., Dev., & Financing) Maximum Construction Loan Required Equity

Assumptions: Fixed or Floating Rate?

LIBOR Interest Rate Spread Loan to Cost

SUMMARY

$

$

1.00% $ $ $ $

$ $ $ $ $ $

$ $ $

49,240,933 55.0% 27,082,513

270,000 864,391 150,000 1,284,391

Costs 8,775,000 2,175,104 31,962,048 3,903,180 1,141,210 47,956,542

34 10

49,240,933 (27,082,513) 22,158,420

Floating 2.50% 3.00% 55.00%

PRO FORMA MODEL APPENDIX

58

PRO FORMA MODEL

APPENDIX

Total SOURCES AND USES OF FUNDS Sources Net Condo Sales Construction Draw (+) Residual (Property Sale) (+) Equity Contribution (+) Collection of Litigation Reserve (+) Total Sources Uses

Land Acquisition & Prep Costs (-) New Operating Costs (-) Soft Costs (-) Soft Cost Contingency (-) Hard Cost - Construction (-) Receiver Fee (-) Loan Fees & Closing Costs (-) Construction Loan Repayment (-) Equity Recapture / Profit (-) Total Uses

EQUITY SCHEDULE Beginning Balance Equity Contribution (-) Equity Recapture / Profit (+) Equity Recapture (Ending Balance) CONSTRUCTION LOAN SCHEDULE Loan Amount Not Drawn (ex. Int Reserv) Beginning Principal Balance Draw Interest (Interim) Construction Loan Paid from Condo Sales Ending Principal Balance Maximum Equity Maximum Construction Loan Balance Maximum Allowable Construction Loan IRR Cash Flow (Leveraged) IRR Cash Flow (Unleveraged) Total Project Cost Project Value Net Unleveraged IRR

BREAD BOYS, LLC

2019

2019

2019

2019

2019

2019

May-19

Jun-19

Jul-19

Aug-19

Sep-19

Oct-19

53,309,700 26,218,122 8,102,463 22,158,420 750,000 110,538,705

677,299 677,299

252,299 252,299

114,799 114,799

114,799 114,799

114,799 114,799

114,799 114,799

(8,775,000) (2,175,104) (3,548,345) (354,835) (31,962,048) (1,141,210) (420,000) (27,082,513) (35,079,650) (110,538,705)

(562,500) (104,363) (10,436) (677,299)

(137,500) (104,363) (10,436) (252,299)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(22,158,420) 35,079,650 12,921,230

(677,299) (677,299)

(677,299) (252,299) (929,599)

(929,599) (114,799) (1,044,398)

(1,044,398) (114,799) (1,159,198)

(1,159,198) (114,799) (1,273,997)

(1,273,997) (114,799) (1,388,796)

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

22,158,420 25,483,212 27,082,513

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

28.19% 20.54%

(677,299) (677,299)

(252,299) (252,299)

(114,799) (114,799)

(114,799) (114,799)

(114,799) (114,799)

(114,799) (114,799)

49,240,933 61,412,163 12,171,230 20.54%

677,299 (677,299)

252,299 (252,299)

114,799 (114,799)

114,799 (114,799)

114,799 (114,799)

114,799 (114,799)

26,218,122 26,218,122 864,391 (27,082,513) -

59

PRO FORMA MODEL

APPENDIX

2019

2019

2020

2020

2020

2020

2020

2020

2020

2020

2020

Nov-19

Dec-19

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

114,799 114,799

114,799 114,799

114,799 114,799

114,799 114,799

114,799 114,799

114,799 114,799

114,799 114,799

114,799 114,799

114,799 114,799

114,799 114,799

114,799 114,799

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(104,363) (10,436) (114,799)

(1,388,796) (114,799) (1,503,596)

(1,503,596) (114,799) (1,618,395)

(1,618,395) (114,799) (1,733,195)

(1,733,195) (114,799) (1,847,994)

(1,847,994) (114,799) (1,962,793)

(1,962,793) (114,799) (2,077,593)

(2,077,593) (114,799) (2,192,392)

(2,192,392) (114,799) (2,307,192)

(2,307,192) (114,799) (2,421,991)

(2,421,991) (114,799) (2,536,790)

(2,536,790) (114,799) (2,651,590)

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

(114,799) (114,799)

(114,799) (114,799)

(114,799) (114,799)

(114,799) (114,799)

(114,799) (114,799)

(114,799) (114,799)

(114,799) (114,799)

(114,799) (114,799)

(114,799) (114,799)

(114,799) (114,799)

(114,799) (114,799)

114,799 (114,799)

114,799 (114,799)

114,799 (114,799)

114,799 (114,799)

114,799 (114,799)

114,799 (114,799)

114,799 (114,799)

114,799 (114,799)

114,799 (114,799)

114,799 (114,799)

114,799 (114,799)

BREAD BOYS, LLC

60

PRO FORMA MODEL

APPENDIX

2020

2020

2020

2021

2021

2021

2021

2021

2021

2021

2021

Oct-20

Nov-20

Dec-20

Jan-21

Feb-21

Mar-21

Apr-21

May-21

Jun-21

Jul-21

Aug-21

114,799 114,799

10,734,978 10,734,978

2,239,978 2,239,978

2,239,978 2,239,978

2,239,978 2,239,978

302,859 1,937,119 2,239,978

2,239,978 2,239,978

2,239,978 2,239,978

2,239,978 2,239,978

2,239,978 2,239,978

2,239,978 2,239,978

(104,363) (10,436) (114,799)

(8,075,000) (83,658) (104,363) (10,436) (1,997,628) (43,893) (420,000) (10,734,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(2,651,590) (114,799) (2,766,389)

(2,766,389) (10,734,978) (13,501,367)

(13,501,367) (2,239,978) (15,741,345)

(15,741,345) (2,239,978) (17,981,323)

(17,981,323) (2,239,978) (20,221,301)

(20,221,301) (1,937,119) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 -

26,218,122 302,859 302,859

25,915,263 302,859 2,239,978 1,266 2,544,103

23,675,285 2,544,103 2,239,978 10,650 4,794,731

21,435,307 4,794,731 2,239,978 20,091 7,054,800

19,195,329 7,054,800 2,239,978 29,598 9,324,375

16,955,351 9,324,375 2,239,978 39,177 11,603,531

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

1.16%

9.70%

18.29%

26.91%

35.56%

(114,799) (114,799)

(10,734,978) (10,734,978)

(2,239,978) (2,239,978)

(2,239,978) (2,239,978)

(2,239,978) (2,239,978)

(1,937,119) (2,239,978)

(2,241,244)

(2,250,628)

(2,260,069)

(2,269,576)

(2,279,155)

114,799 (114,799)

10,734,978 (10,734,978)

2,239,978 (2,239,978)

2,239,978 (2,239,978)

2,239,978 (2,239,978)

2,239,978 (2,239,978)

2,241,244 (2,241,244)

2,250,628 (2,250,628)

2,260,069 (2,260,069)

2,269,576 (2,269,576)

2,279,155 (2,279,155)

BREAD BOYS, LLC

61

PRO FORMA MODEL

APPENDIX

2021

2021

2021

2021

2022

2022

2022

2022

2022

2022

2022

Sep-21

Oct-21

Nov-21

Dec-21

Jan-22

Feb-22

Mar-22

Apr-22

May-22

Jun-22

Jul-22

2,239,978 2,239,978

2,239,978 2,239,978

2,239,978 2,239,978

2,239,978 2,239,978

2,239,978 2,239,978

2,239,978 2,239,978

5,330,970 127,551 5,458,521

5,330,970 127,551 5,458,521

5,330,970 127,551 5,458,521

5,330,970 127,551 5,458,521

5,330,970 127,551 5,458,521

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (104,363) (10,436) (1,997,628) (43,893) (2,239,978)

(83,658) (43,893) (5,330,970) (5,458,521)

(83,658) (43,893) (5,330,970) (5,458,521)

(83,658) (43,893) (5,330,970) (5,458,521)

(83,658) (43,893) (5,330,970) (5,458,521)

(83,658) (43,893) (5,099,624) (231,346) (5,458,521)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) (22,158,420)

(22,158,420) 231,346 (21,927,074)

14,715,373 11,603,531 2,239,978 48,812 13,892,320

12,475,395 13,892,320 2,239,978 58,515 16,190,814

10,235,417 16,190,814 2,239,978 68,300 18,499,092

7,995,439 18,499,092 2,239,978 78,136 20,817,206

5,755,461 20,817,206 2,239,978 88,035 23,145,219

3,515,483 23,145,219 2,239,978 98,016 25,483,212

1,275,505 25,483,212 127,551 108,030 (5,330,970) 20,387,823

1,147,955 20,387,823 127,551 86,526 (5,330,970) 15,270,930

1,020,404 15,270,930 127,551 64,892 (5,330,970) 10,132,402

892,854 10,132,402 127,551 43,091 (5,330,970) 4,972,074

765,303 4,972,074 127,551 21,166 (5,099,624) 21,166

44.26%

52.99%

61.75%

70.56%

79.40%

88.28%

97.20%

77.76%

58.25%

38.65%

18.96%

(2,288,789)

(2,298,493)

(2,308,278)

(2,318,114)

(2,328,013)

(2,337,994)

5,095,389

5,116,894

5,138,528

5,160,328

231,346 5,182,254

2,288,789 (2,288,789)

2,298,493 (2,298,493)

2,308,278 (2,308,278)

2,318,114 (2,318,114)

2,328,013 (2,328,013)

2,337,994 (2,337,994)

235,581 5,330,970 5,095,389

214,076 5,330,970 5,116,894

192,442 5,330,970 5,138,528

170,642 5,330,970 5,160,328

148,716 5,330,970 5,182,254

BREAD BOYS, LLC

62

PRO FORMA MODEL

APPENDIX

2022

2022

2022

2022

2022

2023

2023

Aug-22

Sep-22

Oct-22

Nov-22

Dec-22

Jan-23

Feb-23

5,330,970 127,551 5,458,521

5,330,970 127,551 5,458,521

5,330,970 127,551 5,458,521

5,330,970 127,551 5,458,521

5,330,970 127,551 5,458,521

(83,658) (43,893) (148,716) (5,182,254) (5,458,521)

(83,658) (43,893) (127,641) (5,203,329) (5,458,521)

(83,658) (43,893) (127,551) (5,203,419) (5,458,521)

(83,658) (43,893) (127,551) (5,203,419) (5,458,521)

(83,658) (43,893) (127,551) (5,203,419) (5,458,521)

(0) (8,102,463) (8,102,463)

(21,927,074) 5,182,254 (16,744,820)

(16,744,820) 5,203,329 (11,541,491)

(11,541,491) 5,203,419 (6,338,072)

(6,338,072) 5,203,419 (1,134,653)

(1,134,653) 5,203,419 4,068,767

4,068,767 8,102,463 12,171,230

637,753 21,166 127,551 90 (148,716) 90

510,202 90 127,551 0 (127,641) 0

382,652 0 127,551 0 (127,551) 0

255,101 0 127,551 0 (127,551) 0

127,551 0 127,551 0 (127,551) 0

0.08%

0.00%

0.00%

0.00%

0.00%

0.00%

5,182,254 5,203,329

5,203,329 5,203,419

5,203,419 5,203,419

5,203,419 5,203,419

5,203,419 5,203,419

8,102,463 8,102,463

127,641 5,330,970 5,203,329

127,551 5,330,970 5,203,419

127,551 5,330,970 5,203,419

127,551 5,330,970 5,203,419

127,551 5,330,970 5,203,419

0 8,102,463 8,102,463

BREAD BOYS, LLC

8,102,463 8,102,463 -

-

0 0 (0) 0

12,171,230 12,171,230 -

0 0 0

0.00%

-

-

(0) 0 (0)

63

PRO FORMA MODEL

APPENDIX

Equity Allocation Allocation Contributions

$

LP Investor 90.0% 19,942,578

$

Error Check Net Project CF Net Partnership CF

Sponsor 10.0% 2,215,842

$ $

OK 12,921,230 12,921,230

Return on Capital Tier 1 Tier 2 Tier 3 Monthly Cash Flows Month Ending Investor Developer Total Sponsor Cash Flow Distributions Contributions Net Cash Flow IRR Equity Multiple LP Investor Cash Flow Distributions Contributions Net Cash Flow IRR Equity Multiple

Jul-19 (103,319) $ (11,480) $ (114,799) $

Aug-19 (103,319) $ (11,480) $ (114,799) $

Sep-19 (103,319) $ (11,480) $ (114,799) $

Oct-19 (103,319) $ (11,480) $ (114,799) $

Nov-19 (103,319) $ (11,480) $ (114,799) $

Dec-19 (103,319) $ (11,480) $ (114,799) $

Jan-20 (103,319) $ (11,480) $ (114,799) $

Feb-20 (103,319) $ (11,480) $ (114,799) $

Mar-20 (103,319) $ (11,480) $ (114,799) $

Apr-20 (103,319) (11,480) (114,799)

$ $ $

5,294,810 2,215,842 3,078,968 51.49% 2.39

$ $ $

$ 67,730 $ (67,730) $

$ 25,230 $ (25,230) $

$ 11,480 $ (11,480) $

$ 11,480 $ (11,480) $

$ 11,480 $ (11,480) $

$ 11,480 $ (11,480) $

$ 11,480 $ (11,480) $

$ 11,480 $ (11,480) $

$ 11,480 $ (11,480) $

$ 11,480 $ (11,480) $

$ 11,480 $ (11,480) $

11,480 (11,480)

$ $ $

29,784,839 19,942,578 9,842,262 23.91% 1.49

$ $ $

$ 609,569 $ (609,569) $

$ 227,069 $ (227,069) $

$ 103,319 $ (103,319) $

$ 103,319 $ (103,319) $

$ 103,319 $ (103,319) $

$ 103,319 $ (103,319) $

$ 103,319 $ (103,319) $

$ 103,319 $ (103,319) $

$ 103,319 $ (103,319) $

$ 103,319 $ (103,319) $

$ 103,319 $ (103,319) $

103,319 (103,319)

609,569 609,569 (609,569)

609,569 5,080 227,069 841,719 (227,069)

841,719 7,014 103,319 952,052 (103,319)

10.0%

Contributions from Sponsor Distributions to Sponsor Sponsor IRR Error Check

10.0% 10.0% 10.0%

$ $ 12.556% $

Total Distributions Cash Flow Remaining

$ $

$ $ $ $ $ $

67,730 $ $ (67,730) $ -

$ $

$ $ $ $ $ $

25,230 $ $ (25,230) $ -

$ $

$ $ $ $ $ $

11,480 $ $ (11,480) $ -

$ $

609,569 7,620 227,069 844,259 (227,069)

$ $ $ $ $ $ $

844,259 10,553 103,319 958,131 (103,319)

$ $ $ $ $ $ $

11,480 $ $ (11,480) $ 958,131 11,977 103,319 1,073,427 (103,319)

$ $ $ $ $ $ $ $ $

1,063,306 8,861 103,319 1,175,486 (103,319)

$ $ $ $ $ $

11,480 $ $ (11,480) $ 1,073,427 13,418 103,319 1,190,165 (103,319)

$ $ $ $ $ $ $ $ $

1,175,486 9,796 103,319 1,288,601 (103,319)

$ $ $ $ $ $

11,480 $ $ (11,480) $ 1,190,165 14,877 103,319 1,308,361 (103,319)

$ $ $ $ $ $ $ $ $

1,288,601 10,738 103,319 1,402,659 (103,319)

$ $ $ $ $ $

11,480 $ $ (11,480) $ 1,308,361 16,355 103,319 1,428,035 (103,319)

$ $ $ $ $ $ $ $ $

1,402,659 11,689 103,319 1,517,667 (103,319)

$ $ $ $ $ $

11,480 $ $ (11,480) $ 1,428,035 17,850 103,319 1,549,205 (103,319)

$ $ $ $ $ $ $ $ $

1,517,667 12,647 103,319 1,633,634 (103,319)

$ $ $ $ $ $

11,480 $ $ (11,480) $ 1,549,205 19,365 103,319 1,671,890 (103,319)

$ $ $ $ $ $ $ $ $

1,633,634 13,614 103,319 1,750,567 (103,319)

$ $ $ $ $ $

11,480 $ $ (11,480) $ 1,671,890 20,899 103,319 1,796,108 (103,319)

$ $ $ $ $ $ $ $ $

1,750,567 14,588 103,319 1,868,475 (103,319)

$ $ $ $ $ $

1,868,475 15,571 103,319 1,987,365 (103,319)

11,480 $ $ (11,480) $

11,480 (11,480)

1,796,108 22,451 103,319 1,921,878 (103,319)

$ $ $ $ $ $ $ $ $

-

20.0%

$ $

67,730 -

$ $

25,230 -

$ $

11,480 -

$ $

11,480 -

$ $

11,480 -

$ $

11,480 -

$ $

11,480 -

$ $

11,480 -

$ $

11,480 -

$ $

11,480 -

$ $

11,480 -

$ $

11,480 -

$ $

-

$ $

-

$ $

-

$ $

-

$ $

-

$ $

-

$ $

-

$ $

-

$ $

-

$ $

-

$ $

-

$ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

60.0% 40.0%

$ $ $ $ $ $ $

$ $ $ $ $ $

15.0%

80.0%

609,569 609,569 (609,569)

952,052 7,934 103,319 1,063,306 (103,319)

$ $ $ $ $ $ 18.397% $

15.0%

Total Distributions Cash Flow Remaining

BREAD BOYS, LLC

Sponsor 10.0% 20.0% 40.0%

Jun-19 (227,069) $ (25,230) $ (252,299) $

$ $ $ $ $ 12.556% $

Tier 3 - 60% / 40% Split Distributions to LP Distributions to Sponsor Total Distributions

LP Investor 90.0% 80.0% 60.0%

May-19 (609,569) $ (67,730) $ (677,299) $

10.0% 90.0% 90.0%

Contributions from Sponsor Distributions to Sponsor

Hurdle Return 10.0% 15.0% Thereafter

$ $ $

Tier 1 - Pari Passu Beginning Balance (LP Capital Account) LP Req'd Return to hit Hurdle 1 Contributions from LP Distributions to LP (Hurdle 1) Ending Balance (LP Capital Account) LP IRR Error Check

Tier 2 - 75% / 25% Split Beginning Balance (LP Capital Account) LP Req'd Return to hit Hurdle 2 Contributions from LP Prior Distributions Distributions to LP (Hurdle 2) Ending Balance (LP Capital Account) LP IRR Error Check

Splits

1,921,878 24,023 103,319 2,049,221 (103,319)

64

PRO FORMA MODEL

Residential Number of Units Avg. Unit Size Assumed Rent PSF Annual Gross Potential Rent Vacancy Factor Gross Residential Income Parking Income RUBS Misc.

Effective Gross Income Expense Ratio Stabilized NOI

BREAD BOYS, LLC

APPENDIX

$ $ $ $ $ $ $ $

84 739 3.25 2,419,872 95% 2,298,878 124,800 126,000 50,400 2,600,078 40% 1,560,047

Commercial Retail Square Footage Assumed Rent PSF $ CAM PSF $ Retail Gross Income $ Current Yield on Cost Current NOI $ Total Project Cost $ Current Yield on Cost

16,501 30.00 12.00 693,042 2,253,089 46,778,886 4.82%

Stabilized Yield on Cost Stabilized NOI $ 2,445,254 Total Project Cost $ 46,778,886 Stabilized Yield on Cost 5.23%

65

CONSTRUCTION ESTIMATE, SUMMARY

APPENDIX

1604 N 34th St Feasibility Study

February 12, 2019

N/A - Conceptual Estimate

Estimate Summary 1604 N 34th St

SYSTEMS $

$/GSF

Parking % of Ttl $

$

Retail $/SF

$

Condo $/SF

$

Site Development $/SF

$

$/SF

100 200

Foundations Substructure

$785,615 $1,844,861

$6.54 $15.35

2.7% 6.4%

$222,780 $1,844,861

6.54 54.13

$107,850 $0

6.54 0.00

$454,985 $0

6.54 0.00

$0 $0

0.00 0.00

300 400 500

Superstructure Exterior Closure Roofing

$3,875,276 $4,154,689 $776,112

$32.24 $34.57 $6.46

13.5% 14.5% 2.7%

$51,179 $212,470 $48,788

1.50 6.23 1.43

$870,375 $473,962 $0

52.75 28.72 0.00

$2,953,722 $3,468,258 $727,324

42.43 49.83 10.45

$0 $0 $0

0.00 0.00 0.00

600 700 800

Interior Construction Conveying Systems Plumbing

$5,579,087 $577,500 $1,264,041

$46.42 $4.80 $10.52

19.4% 2.0% 4.4%

$408,996 $0 $119,291

12.00 0.00 3.50

$184,800 $0 $24,750

11.20 0.00 1.50

$4,985,291 $577,500 $1,120,000

71.62 8.30 16.09

$0 $0 $0

0.00 0.00 0.00

800 800

HVAC Fire Protection

$1,309,049 $447,579

$10.89 $3.72

4.6% 1.6%

$102,249 $132,924

3.00 3.90

$118,800 $53,625

7.20 3.25

$1,088,000 $261,030

15.63 3.75

$0 $0

0.00 0.00

900 1000 1050 1100

Electrical General Conditions Hoisting Equipment

$2,046,624 $1,760,000 $912,000 $79,810

$17.03 $14.64 $7.59 $0.66

7.1% 6.1% 3.2% 0.3%

$271,925 440,000 $228,000 $24,810

7.98 12.91 6.69 0.73

$78,017 $440,000 $228,000 $0

4.73 26.67 13.82 0.00

$1,651,681 $440,000 $228,000 $55,000

23.73 6.32 3.28 0.79

$45,000 $440,000 $228,000 $0

1.72 16.77 8.69 0.00

$982,500

$8.17

3.4%

$0

0.00

$0

0.00

$0

0.00

$982,500

37.45

$18,010,791 258.75

$1,695,500

64.63

1200 Sitework

$26,394,743 $219.61 92.0%

Subtotal Construction Direct

$

$4,108,272 120.54

$2,580,180 156.37

Subcontractor Default Insurance Design Contingency

1.17% 1.00%

$308,818 $267,036

$2.57 $2.22

1.1% 0.9%

$48,067 $41,563

1.41 1.22

$30,188 $26,104

1.83 1.58

$210,726 $182,215

3.03 2.62

$19,837 $17,153

0.76 0.65

Escalation Contingency B&O Taxes GL Insurance Fee

2.00% 0.69% 0.55% 3.00%

$539,412 $196,887 $157,854 $835,942

$4.49 $1.64 $1.31 $6.96

1.9% 0.7% 0.6% 2.9%

$83,958 $30,645 $24,570 $130,112

2.46 0.90 0.72 3.82

$52,729 $19,246 $15,431 $81,716

3.20 1.17 0.94 4.95

$368,075 $134,348 $107,714 $570,416

5.29 1.93 1.55 8.19

$34,650 $12,647 $10,140 $53,698

1.32 0.48 0.39 2.05

Subtotal Construction Indirect

Total Construction Cost w/o WSST

$19.19 $238.79

8.0%

$358,915

10.53

$225,415

13.66

$1,573,494

22.61

$148,126

5.65

$4,467,187

131.07

$2,805,594

170.04

$19,584,285

281.35

$1,843,626

70.27

Project GSF Stalls $/GSF

120,191 129 $238.79

34,083 129 $131.07

16,500 NA $170.04

69,608 NA $281.35

26,235 NA $70.27

$/Stall

NA

$34,629

NA

NA

NA

Total Construction Cost w/Alternates

Project GSF

BREAD BOYS, LLC

$2,305,949 $28,700,692

$28,700,692

126,457

$238.79

$4,467,187 131.07 40,349

$2,805,594 170.04 16,500

$19,584,285 281.35 69,608

$1,843,626 26,235

-

70.27

66

CONSTRUCTION ESTIMATE, DETAILED

APPENDIX

1604 N 34th St Feasibility Study

February 12, 2019

N/A - Conceptual Estimate

Estimate Detail PROJECT STATISTICS / METRICS

QNTY PROJECT TOTAL GSF

DESCRIPTION

UNIT

127,769

QNTY

Gross Occupied Area.

UNIT

UNIT $

27, 360

Site SF:

COMMENTS

GSF

Parking

Retail

Condo

Sitework

PROJECT

$ / Total GSF

TOTAL $

TOTAL $

TOTAL $

TOTAL $

TOTAL $

120,191

100 FOUNDATIONS Concrete Foundations Foundations Allowance @ New Building, Parking Elevator Pit Premium Allowance

-

-

-

-

-

-

1,311

cyds

580.00

215,690

104,418

440,507

-

760,615

5.95

2

each

12,500.00

7,089

3,432

14,479

-

25,000

0.20

-

-

-

-

-

Foundations Subtotal

$ $

222,780 6.54

$ $

107,850 6.54

$ $

454,985 9.62

$ $

-

$

-

785,615

$

6.15

785,615

200 SUBSTRUCTURE Mass Excavation Mass Excavation Subgrade @ ROW

-

-

-

-

-

-

13,192

tcyd

44.50

587,053

-

-

-

587,053

4.59

1

lsum

40,000.00

40,000

-

-

-

40,000

0.31

-

-

-

-

-

-

-

-

-

637,920

4.99

Shoring Systems Soldier Pile/Lagging System w/Tiebacks

7,200

sqft

88.60

637,920 -

-

-

-

-

-

24,083

sqft

9.50

228,789

-

-

-

228,789

1.79

Concrete Substructure Slab-on-Grade Shotcrete Foundation Walls CIP Foundation Walls

7,200

sqft

32.50

234,000

-

-

-

234,000

1.83

600

sqft

42.00

25,200

-

-

-

25,200

0.20

-

-

-

-

-

-

7,800

sqft

10.50

81,900

-

-

-

81,900

0.64

1

lsum

10,000.00

10,000

-

-

-

10,000

0.08

-

-

-

-

-

Waterproofing Waterproofing @ Below Grade Walls Misc Waterproofing Allowance, Garage Substructure Subtotal

$

1,844,861

$

$

54.13

$

-

$ $

-

$ $

-

$

1,844,861

$

14.44

1,844,861

300 SUPERSTRUCTURE Existing Building Structure

-

-

-

-

-

-

150

lnft

1,250.00

-

-

187,500

-

187,500

1.47

-

-

-

-

-

-

450

gsfs

42.00

18,900

-

-

-

18,900

0.15

Concrete Superstructure, Retail

16,500

gsfs

50.00

-

825,000

-

-

825,000

6.46

Concrete Superstructure, Residential Podium

25,794

gsfs

42.00

-

-

1,083,348

-

1,083,348

8.48

Wood Stick Framed Superstructure, Residential

64,806

gsfs

24.00

-

-

1,555,344

-

1,555,344

12.17

-

-

-

-

-

-

-

-

26,227

0.21

Existing Faรงade Shoring System, Buchan Bldg New Building Structure Concrete Superstructure, Parking

Miscellaneous Structure Miscellaneous Steel, Parking

40,349

gsfs

0.65

26,227

Firestopping/Safing, Parking

40,349

gsfs

0.15

6,052

-

-

-

6,052

0.05

Miscellaneous Steel, Retail

16,500

gsfs

1.50

-

24,750

-

-

24,750

0.19

Firestopping/Safing, Retail

16,500

gsfs

1.25

-

20,625

-

-

20,625

0.16

Miscellaneous Steel, Condo

90,600

gsfs

0.20

-

-

18,120

-

18,120

0.14

BREAD BOYS, LLC

67

CONSTRUCTION ESTIMATE, DETAILED

APPENDIX

1604 N 34th St Feasibility Study

February 12, 2019

N/A - Conceptual Estimate

Estimate Detail PROJECT STATISTICS / METRICS

QNTY PROJECT TOTAL GSF

DESCRIPTION

UNIT

127,769

QNTY

Firestopping/Safing, Condo Structural Tie-In Premium @ Existing Faรงade

Gross Occupied Area.

UNIT

UNIT $

90,600

gsfs

0.85

240

lnft

135.00

Parking

Retail

Condo

Sitework

PROJECT

$ / Total GSF

TOTAL $

TOTAL $

TOTAL $

TOTAL $

TOTAL $

120,191

-

-

Superstructure Subtotal

$ $

400 EXTERIOR CLOSURE

27, 360

Site SF:

COMMENTS

GSF

51,179 1.50

-

$ $

870,375 52.75

77,010

-

77,010

0.60

32,400

-

32,400

0.25

$ $

2,953,722 62.48

-

$ $

-

-

$

3,875,276

$

30.33

3,875,276

-

New Building Parking Exterior Finish Wall Allowance @ Garage Entry Thermal Envelope Walls @ Speedramp

490

sqft

70.00

34,300

-

-

-

34,300

0.27

1,836

sqft

25.50

46,818

-

-

-

46,818

0.37

Thermal & Moisture Protection @ Cores/Shafts

38,253

gsf

0.35

13,389

-

-

-

13,389

0.10

Thermal Stick Pin Insulation @ Soffit

22,758

gsf

3.50

79,653

-

-

-

79,653

0.62

-

-

-

HM Doors/Frames incl Hardware

6

ea

1,885.00

11,310

-

-

-

11,310

0.09

AL/GL@ Elevator Lobbies

2

ea

4,500.00

9,000

-

-

-

9,000

0.07

Overhead Coiling Grille

1

ea

18,000.00

18,000

-

-

-

18,000

0.14

-

-

-

-

-

-

Storefront System Rehabilitation, Landmark Compliant

1,100

sqft

195.00

-

214,500

-

-

214,500

1.68

New Flashings/Waterproofing

3,946

sqft

7.75

-

30,585

-

-

30,585

0.24

New Backup Framing w/Insulation @ Existing

3,946

sqft

9.20

-

36,307

-

-

36,307

0.28

504

sqft

5.25

-

2,646

-

-

2,646

0.02

330

sqft

7.50

-

2,475

-

-

2,475

0.02

2,655

sqft

52.00

-

138,064

-

-

138,064

1.08

-

-

-

-

9,600

0.08 0.09

Openings

New Building Retail Exterior Finish Walls, Existing Faรงade

Existing Buchan Brick, Cleaned/Sealed incl Repair Allowance Concrete Base Repair/Repaint Exterior Finish Wall Allowance @ New, Alley Facing Doors & Windows HM Doors/Frames incl Hardware

5

each

1,920.00

OH Coiling Doors

1

each

12,000.00

All Glass Entrances Glass/Alum Door Incl. Hardware, Landmark Compliant Louvers and Vents Premium Allowance

-

9,600

-

-

12,000

-

-

12,000

-

-

-

-

-

-

2

leaf

12,000.00

-

24,000

-

-

24,000

0.19

5,046

sqft

0.75

-

3,785

-

-

3,785

0.03

-

-

-

-

-

-

540

sqft

180.00

-

-

97,200

-

97,200

0.76

New Building Condo Raw Core Exterior Finish Walls, Existing Faรงade Window System Replacement, Landmark Compliant New Flashings/Waterproofing

1,537

sqft

7.75

-

-

11,912

-

11,912

0.09

New Backup Framing w/Insulation @ Existing

1,537

sqft

9.20

-

-

14,140

-

14,140

0.11

Concrete/Tile Cornice/Bands, Cleaned/Repainted

165

sqft

3.75

-

-

619

-

619

0.00

Existing Brick, Cleaned/Sealed incl Repair Allowance

832

sqft

5.25

-

-

4,368

-

4,368

0.03

34,827

sqft

62.00

-

-

2,159,300

-

2,159,300

16.90

Exterior Finish Wall Allowance @ New Typical Floors

BREAD BOYS, LLC

68

CONSTRUCTION ESTIMATE, DETAILED

APPENDIX

1604 N 34th St Feasibility Study

February 12, 2019

N/A - Conceptual Estimate

Estimate Detail PROJECT STATISTICS / METRICS

QNTY PROJECT TOTAL GSF

DESCRIPTION

UNIT

127,769

QNTY

Exterior Finish Wall Allowance @ New Shared Walls Exterior Finish Wall Allowance @ New Main Lobby

Gross Occupied Area.

UNIT

UNIT $

27, 360

Site SF:

COMMENTS

GSF

Parking

Retail

Condo

Sitework

PROJECT

$ / Total GSF

TOTAL $

TOTAL $

TOTAL $

TOTAL $

TOTAL $

120,191

4,880

sqft

62.00

-

-

302,581

-

302,581

2.37

317

sqft

135.00

-

-

42,728

-

42,728

0.33

Exterior Finish Wall Allowance @ New Penthouse Enclosure

1,814

sqft

75.00

-

-

136,013

-

136,013

1.06

Exterior Finish Wall Allowance @ Backside of Parapet Walls

3,343

sqft

15.00

-

-

50,138

-

50,138

0.39

Mechanical Screen Allowance incl Structural Support

1,860

sqft

115.00

-

-

213,900

-

213,900

1.67

950

lnft

350.00

-

-

332,500

-

332,500

2.60

-

-

-

-

-

-

11,520

-

11,520

0.09 0.09

Balcony Guardrail Decks at Condo Units Doors & Windows HM Doors/Frames incl Hardware

6

each

1,920.00

OH Coiling Doors

1

each

12,000.00

-

All Glass Entrances Glass/Alum Door Incl. Hardware, Main Lobby

2

Glass/Alum Door Incl. Hardware, Accessible Roofs Louvers and Vents Premium Allowance

-

-

12,000

-

12,000

-

-

-

-

-

-

-

-

16,000

-

16,000

0.13

leaf

8,000.00

12

leaf

4,000.00

-

-

48,000

-

48,000

0.38

43,831

sqft

0.35

-

-

15,341

-

15,341

0.12

Exterior Closure Subtotal

-

-

-

$

212,470

$

473,962

$

3,468,258

$

$

6.23

$

28.72

$

73.37

$

500 ROOFING

-

Horizontal Waterproofing

-

-

$

-

4,154,689

$

32.52

4,154,689

-

-

-

-

-

-

-

450

sqft

18.00

8,100

-

-

-

8,100

0.06

-

-

-

-

-

-

20,992

sqft

22.00

-

-

461,824

-

461,824

3.61

-

-

-

-

-

-

9,000

sqft

28.00

-

-

252,000

-

252,000

1.97

-

-

-

-

-

-

1

LS

10,000.00

-

-

10,000

-

Excluded

-

-

-

-

-

-

-

Traffic Coatings @ Garage, Entry Ramp

2,630

sqft

7.75

20,383

-

-

-

20,383

0.16

Traffic Coatings @ Garage, Mech Room

2,620

sqft

7.75

20,305

-

-

-

20,305

0.16

-

-

-

-

-

-

-

-

3,500

-

3,500

0.03

-

-

-

-

-

-

-

-

-

-

Not Required

-

-

Not Required

-

-

-

Fluid Applied Waterproofing @ Parking Lid/Transitions, New Membrane Roofing incl Rough Carpentry/Flashings Membrane Roofing incl Flashings/Insulation, New Paver Systems Pedestal Paver/Decking Systems @ L3 Rooftop Development Rooftop Equipment/Planters/Accessories Traffic Coatings

Roof Accessories Roof Hatch incl Ladder, Existing

1

each

3,500.00

Canopies Canopies @ Outdoor Deck Canopies @ Street Level

Roofing Subtotal

-

$

48,788

$

$

1.43

$

-

$

727,324

$

$

15.39

$

-

$

766,112

$

6.00

776,112

600 INTERIOR CONSTRUCTION

BREAD BOYS, LLC

69

CONSTRUCTION ESTIMATE, DETAILED

APPENDIX

1604 N 34th St Feasibility Study

February 12, 2019

N/A - Conceptual Estimate

Estimate Detail PROJECT STATISTICS / METRICS

QNTY PROJECT TOTAL GSF

DESCRIPTION

UNIT

127,769

QNTY

Gross Occupied Area.

UNIT

UNIT $

27, 360

Site SF:

COMMENTS

GSF

Parking

Retail

Condo

Sitework

PROJECT

TOTAL $

TOTAL $

TOTAL $

TOTAL $

TOTAL $

New Building

$ / Total GSF 120,191

-

-

-

-

-

-

Parking Interior Construction

34,083

gsf

12.00

408,996

-

-

-

408,996

3.20

Retail Interior Construction, Shell/Core Only

16,500

gsf

11.20

-

184,800

-

-

184,800

1.45

-

-

-

-

-

-

-

-

255,000

-

255,000

2.00

Condo Interior Construction Main Lobby Main Elevator Lobby

1,020

sqft

250.00

125

sqft

250.00

-

-

31,250

-

31,250

0.24

75,159

SF

54.00

-

-

4,058,586

-

4,058,586

31.77

Core Interior Construction

4,250

sqft

38.00

-

-

161,500

-

161,500

1.26

Service/BOH/Loading Dock

5,113

sqft

35.00

-

-

178,955

-

178,955

1.40

-

-

-

-

-

-

-

-

50,000

-

50,000

0.39

-

-

250,000

-

250,000

1.96

-

-

-

-

-

Typical Condo Unit @ 900 SF

Stairs & Railings Courtyard Entry Stair Allowance

1

lsum

50,000.00

Courtyard Feature Stairs Allowance

1

lsum

250,000.00

Interior Construction Subtotal

$

408,996

$

184,800

$

4,985,291

$

$

12.00

$

11.20

$

105.46

$

700 CONVEYING Elevators Systems Complete MRL Elevator, Passenger, P1-L6

14

stps

38,500.00

70

lnft

550.00

Trash Chutes Trash Chute

$ $

$

-

5,579,087

$

43.67

5,579,087

-

-

-

-

-

-

-

-

-

-

539,000

-

539,000

4.22

-

-

-

-

-

-

-

-

38,500

-

38,500

0.30

Conveying Systems Subtotal

-

-

$ $

-

$ $

577,500 12.22

$ $

-

-

$

-

577,500

$

4.52

577,500

800 PLUMBING New Building Plumbing Systems, Parking

34,083

Plumbing Systems, Retail

16,500

Plumbing Systems, Condo

64

gsf gsf units

-

-

-

-

-

-

3.50

119,291

-

-

-

119,291

0.93

1.50

-

24,750

-

-

24,750

0.19

17,500.00

-

-

1,120,000

-

1,120,000

8.77

-

-

-

-

w/HVAC

-

-

-

-

-

-

Plumbing System Precon/Modeling/Design Fees Plumbing Subtotal

$ $

119,291 3.50

$ $

24,750 1.50

$ $

1,120,000 23.69

$ $

-

$

1,264,041

$

9.89

1,264,041

800 HVAC New Building HVAC Systems, Parking

34,083

HVAC Systems, Retail

16,500

HVAC Systems, Condo

BREAD BOYS, LLC

64

gsf gsf units

-

-

-

-

-

-

3.00

102,249

-

-

-

102,249

0.80

7.20

-

118,800

-

-

118,800

0.93

17,000.00

-

-

1,088,000

-

1,088,000

8.52

70

CONSTRUCTION ESTIMATE, DETAILED

APPENDIX

1604 N 34th St Feasibility Study

February 12, 2019

N/A - Conceptual Estimate

Estimate Detail PROJECT STATISTICS / METRICS

QNTY PROJECT TOTAL GSF

DESCRIPTION

UNIT

127,769

QNTY

Gross Occupied Area.

UNIT

UNIT $

HVAC System Precon/Modeling/Design Fees HVAC Subtotal

27, 360

Site SF:

COMMENTS

GSF

$ $

Parking

Retail

Condo

Sitework

PROJECT

$ / Total GSF

TOTAL $

TOTAL $

TOTAL $

TOTAL $

TOTAL $

120,191

-

-

-

-

102,249 3.00

$ $

118,800 7.20

$ $

1,088,000 23.01

$ $

-

Excluded

-

-

-

$

-

1,309,049

$

10.25

1,309,049

800 FIRE PROTECTION New Building Fire Protection Systems, Parking

34,083

gsf

3.90

-

-

-

-

-

-

132,924

-

-

-

132,924

1.04

Fire Protection Systems, Retail

16,500

gsf

3.25

-

53,625

-

-

53,625

0.42

Fire Protection Systems, Condo

69,608

gsf

3.75

-

-

261,030

-

261,030

2.04

Fire Protection Subtotal

$ $

132,924 3.90

$ $

53,625 3.25

$ $

261,030 5.52

$ $

-

-

$

-

447,579

$

3.50

447,579

900 ELECTRICAL New Building Electrical Systems, Parking

34,083

gsf

7.00

-

-

-

-

-

-

238,581

-

-

-

238,581

1.87

Electrical Systems, Retail

16,500

gsf

3.75

-

61,875

-

-

61,875

0.48

Electrical Systems, Condo

69,608

gsf

22.75

-

-

1,583,582

-

1,583,582

12.39

-

-

45,000

45,000

0.35

33,344

16,142

68,099

-

117,586

0.92

-

-

-

-

Excluded

-

-

-

-

-

-

Electrical Systems, Sitework

1

lsum

45,000.00

Electrical Systems, Temp Elec

1

lsum

125,000.00

Electrical Precon/Modeling/Design Fees Electrical Subtotal

$ $

271,925 7.98

$ $

78,017 4.73

$ $

1,651,681 34.94

$ $

45,000

$

5.46

2,046,624

$

16.02

2,046,624

1000 GENERAL REQUIREMENTS General Requirements

16

mnth

110,000.00

440,000

440,000

440,000

440,000

Preconstruction Services General Requirements Subtotal

$ $

440,000 12.91

$ $

440,000 26.67

$ $

440,000 9.31

$ $

440,000

1,760,000

13.77

Excluded

-

-

$

1,760,000

53.43

1,760,000

$

13.77

1050 HOISTING Tower Crane, Luffer

9

mnth

70,000.00

157,500

157,500

157,500

157,500

630,000

4.93

Man/Material Hoist

6

mnth

47,000.00

70,500

70,500

70,500

70,500

282,000

2.21

-

-

-

-

-

Hoisting Subtotal

$ $

228,000 6.69

$ $

228,000 13.82

$ $

228,000 4.82

$ $

228,000

$

912,000

27.69

912,000

-

12,500

$

7.14

1100 EQUIPMENT Security Control Equipment, Garage & Courtyard

BREAD BOYS, LLC

1

lsum

12,500.00

12,500

-

-

0.10

71

CONSTRUCTION ESTIMATE, DETAILED

APPENDIX

1604 N 34th St Feasibility Study

February 12, 2019

N/A - Conceptual Estimate

Estimate Detail PROJECT STATISTICS / METRICS

QNTY PROJECT TOTAL GSF

DESCRIPTION

UNIT

127,769

QNTY

Parking Entry Clearance Bars/Signage, Garage Parking Precast Wheelstops, Garage Window Washing Equipment, Davit System

Gross Occupied Area.

UNIT

UNIT $

27, 360

Site SF:

COMMENTS

GSF

Parking

Retail

Condo

Sitework

PROJECT

$ / Total GSF

TOTAL $

TOTAL $

TOTAL $

TOTAL $

TOTAL $

120,191

2

each

2,500.00

5,000

-

-

-

5,000

86

each

85.00

7,310

-

-

-

7,310

0.06

1

lsum

55,000.00

-

-

55,000

-

55,000

0.43

Equipment Subtotal

$ $

24,810 0.73

$ $

-

$ $

55,000 1.16

$ $

-

0.04

-

$

-

79,810

$

0.62

79,810

1200 SITEWORK Site Preparation Erosion Control

1

lsum

35,000.00

Building Demolition, Buchan Building

1

lsum

250,000.00

Hazardous Material Abatement Site Demolition

1

lsum

35,000.00

Site Improvements

-

-

-

-

-

-

-

-

-

35,000

35,000

0.27

-

-

-

250,000

250,000

-

-

-

-

-

Excluded

-

-

-

-

35,000

35,000

0.27

-

-

-

-

-

-

Sidewalks/Curbs

1

lsum

70,000.00

-

-

-

70,000

70,000

0.55

Concrete Paving

1

lsum

45,000.00

-

-

-

45,000

45,000

0.35

Site Specialties

1

lsum

10,000.00

-

-

-

10,000

10,000

0.08

Curb & Gutter - CIP

1

lsum

7,500.00

-

-

-

7,500

7,500

0.06

Traffic Striping/Signage

1

lsum

5,000.00

-

-

-

5,000

5,000

0.04

Landscape & Irrigation

1

lsum

45,000.00

-

-

-

45,000

45,000

0.35

-

-

-

-

-

-

-

-

-

180,000

180,000

1.41

-

-

-

-

-

-

-

-

-

50,000

50,000

0.39

Site Civil & Mechanical Utilities Site Utilities Complete

1

lsum

180,000.00

1

lsum

50,000.00

Site Electrical Utilities Communications Infrastructure Electrical Systems Street Use Fees

1

lsum

125,000.00

-

-

-

125,000

125,000

0.98

1

lsum

125,000.00

-

-

-

125,000

125,000

0.98

Sitework Subtotal

$ $

BREAD BOYS, LLC

-

$ $

-

$ $

-

$

982,500

$

119.31

-

$

982,500

$

7.69

982,500

72

WALLINGFORD DEMOGRAPHICS

APPENDIX

Wallingford Resident Info

BREAD BOYS, LLC

73

WALLINGFORD DEMOGRAPHICS

BREAD BOYS, LLC

APPENDIX

74

WALLINGFORD DEMOGRAPHICS

BREAD BOYS, LLC

APPENDIX

75

AREA STACK DIAGRAM

APPENDIX

HEIGHT

F2F

GROSS

FAR, RES

OVERRUN

69.50'

194 SF

ROOF

57.50'

18,344 SF

165 SF

RESIDENTIAL RETAIL PARKING

UNITS

47.00'

10.50'

18,344 SF

15,973 SF

21

36.50'

10.50'

18,799 SF

15,973 SF

21

26.00'

10.50'

18,799 SF

16,224 SF

21

15.50'

10.50'

24,617 SF

15,015 SF

21

.00'

15.50'

27,360 SF

6,045 SF

-9.50'

9.50'

24,018 SF

86

-19.00'

9.50'

12,009 SF

43

SITE

RESIDENTIAL

BASE FAR TOTAL FAR SITE SIZE

3.00 3.25 27,360 SF

MAX AREA USED AREA REMAINING

MAX FAR

88,920 SF

MIN AMENITY

USED FAR REMAINING

86,109 SF 2,811 SF

GROSS AREA RESIDENTIAL COMMERCIAL

105,142 SF 21,315 SF

PARKING TOTAL

36,027 SF 162,484 SF

BREAD BOYS, LLC

FAR, COM

16,714 SF

COMMERCIAL 82,080 SF 69,395 SF 12,685 SF 3,470 SF 752 SF 78.43% 84

UNIT SIZE EFFICIENY UNITS

MAX AREA USED AREA REMAINING

82,080 SF 16,714 SF 65,366 SF

MHA PAYMENT COMMERCIAL RESIDENTIAL TOTAL

$ $ $

96,499 976,388 1,072,887

UNIT MIX STUDIO 1 BEDROOM 2 BEDROOM 3 BEDROOM TOTAL

8 60 12 4 84

10% 71% 14% 5% 100%

76

COMMERCIAL LAND SALE COMPS

THE ESSENTIAL BAKING COMPANY

APPENDIX

6 | SALE COMPARABLES

Sale Comps

THE ESSENTIAL BAKING COMPANY

Land Sale Comps 4

Subject Property

Sale Price:

$10,000,000

Lot Size:

27,443 SF

Year Built:

1926

Building SF:

12,810 SF

Price PSF:

$780.64

Perfectly located corner Assemblage off of North 34th St & Woodlawn Ave N in the heart of Wallingford! 1 - Story, 12,810 SQFT Retail Building on a 27,433 SQFT Lot. Fully Leased Building, with 5+ Year Long Established Tenant, NNN Lease - $144,000 SGI - 1.2% Cap. Current Zoning: C2 - P40. Proposed Zoning: C2 - P55. This lot offers a Developer to build Mixed Use, Residential, Retail, Office, Hotel, Etc.

4200 Stone Way N

5

$1,380,000

Lot Size:

5,434 SF

Price PSF:

$253.96

Price / AC:

$11,062,348

Closed:

05/25/2018

4

4302 - 4318 Stone WAy N Seattle, WA 98103

1

Sale Price:

$4,500,000

Lot Size:

13,068 SF

Sale Price:

$8,600,000

Lot Size:

23,661 SF

Year Built:

1965

Building SF:

8,580 SF

Price PSF:

$363.47

Price / AC:

$15,832,635

Price PSF:

$524.48

Closed:

08/20/2018

Occupancy:

100%

According the listing broker and the buyer, this property sold for land value. There were no permits or entitlements in place. The owner is an apartment developer and will eventually tear the building down and will construct a multifamily project. NC2 - P40

4612 Stone Way N

5

3 Parcel of Land Totaling 23,661 SQFT. Current Zoning: NC2 - P40, Proposed Zoning: NC2 - P55(M). Fully Leased to Studio Fathom & Stoneway Harware.

6

Seattle, WA 98103

Apothecary Apartment Project 3845 Bridge Way N | Seattle, WA 98103

Sale Price:

$1,550,000

Lot Size:

8,800 SF

Year Built:

1966

Building SF:

2,400 SF

Price PSF:

$645.83

Closed:

03/21/2018

2

Buyer plans to develop a 3-Story Apartment Building, 40 units, 0 parking, Small Efficiency Dwelling Units. Zoning: NC2 - P30

3

Sale Price:

Owner/User, Zoning: NC2 - P40

Seattle, WA 98103

2

4102 Stone Way N Seattle, WA 98103

1604 N 34th St | Seattle, WA 98103

1

6 | LAND SALE COMPARABLES

Sale Price:

$1,750,000

Lot Size:

3,485 SF

Price PSF:

$502.15

Price / AC:

$21,873,744

6

The Apothecary Apartment Project represents a unique opportunity to purchase a permitted 4-story, multi-family project with the ability to have a 502 use in the zone. Located on its own block in Fremont, the modern, smaller unit design is perfectly positioned for its target demographic with close-by transit options, bike storage, and abundant light with street views from every unit. On the ground floor is a desirably sized retail unit, plus one live-work unit. With one glass-walled staircase, an interior staircase, and an interior elevator, tenants will have multiple, convenient access points.

906 N 46th St

Current: NC3 - P40, Proposed

7

Seattle, WA 98103

Episcopal Bookstore 3833 Stone Way N | Seattle, WA 98103

Sale Price:

$2,300,000

Lot Size:

5,000 SF

Price PSF:

$460.00

Price / AC:

$20,037,600

Closed:

08/20/2018

3

Oct. 23, 2018: Land Use Application to subdivide one development site into eight parcels. The construction of live-work units is under Project #6593274-CN. This subdivision of property is only for the purpose of allowing sale or lease of the individual live-work units. Development standards will be applied to the original parcel and not to each of the new lots.

Sale Price:

$950,000

Lot Size:

2,784 SF

Price PSF:

$341.24

Price / AC:

$14,864,224

Closed:

01/03/2019

Occupancy:

100%

7

Zoning: C1 - 40

Zoning: C1 - 40

Each Office Independently Owned and Operated kwcommercial.com

BREAD BOYS, LLC

22

Each Office Independently Owned and Operated kwcommercial.com

23

77

COMMERCIAL RETAIL LEASING COMPS

THE ESSENTIAL BAKING COMPANY

APPENDIX

7 | RETAIL LEASING COMPARABLES

Retail Leasing Comps

4

Stoneway Apartments 1235 N 45th St | Seattle, WA 98103

1604 N 34th St | Seattle, WA 98103 Lease Rate: N/A

Space Size: 0 SF

Year Built:

Lot Size:

27,443 SF

No. Units:

Perfectly located corner Assemblage off of North 34th St & Woodlawn Ave N in the heart of Wallingford! 1 - Story, 12,810 SQFT Retail Building on a 27,433 SQFT Lot. Fully Leased Building, with 5+ Year Long Established Tenant, NNN Lease - $144,000 SGI - 1.2% Cap. Current Zoning: C2 - P40. Proposed Zoning: C2 - P55. This lot offers a Developer to build Mixed Use, Residential, Retail, Office, Hotel, Etc.

1

7 | RETAIL LEASING COMPARABLES

Retail Leasing Comps

Subject Property

1926

THE ESSENTIAL BAKING COMPANY

Lease Rate:

$32.00 SF/year

Lease Type:

NNN

Space Size:

1,500 SF

Year Built:

2007

Bldg Size:

65,732 SF

Lot Size:

28,706 SF

No. Units:

1

Occupancy:

100%

4

$32 Base Rent, $6 NNN, No Additional Information in regards to Terms/Length of Lease.

Wallingford 45 1601 N 45th St | Seattle, WA 98103 Lease Rate:

$30.00 SF/year

Lease Type:

NNN

Space Size:

2,688 SF

Year Built:

2018

Bldg Size:

36,000 SF

Lot Size:

13,699 SF

No. Units:

1

Occupancy:

100%

1

$30 Base Rent, $7.50 NNN, No Additional Information in regards to Terms/Length of Lease.

2

Wallingford 45 1601 N 45th St | Seattle, WA 98103 Lease Rate:

$30.00 SF/year

Lease Type:

NNN

Space Size:

1,027 SF

Year Built:

2018

Bldg Size:

36,000 SF

Lot Size:

13,669 SF

No. Units:

1

Occupancy:

100%

2

$30 Base Rent, $7.50 NNN, No Additional Information in regards to Terms/Length of Lease.

3

Smith & Burns 1321 N 45th St | Seattle, WA 98103 Lease Rate:

$30.00 SF/year

Lease Type:

NNN

Space Size:

3,467 SF

Year Built:

2015

Bldg Size:

99,367 SF

Lot Size:

24,829 SF

No. Units:

1

Occupancy:

100%

3

$30 Base Rent, $6.50 NNN, No Additional Information in regards to Terms/Length of Lease. Orange Theory Fitness - Tenant

Each Office Independently Owned and Operated kwcommercial.com

BREAD BOYS, LLC

26

Each Office Independently Owned and Operated kwcommercial.com

27

78

COMMERCIAL CONDO SALES COMPS

THE ESSENTIAL BAKING COMPANY

APPENDIX

8 | CRE CONDO SALE COMPARABLES

Commercial Condo Sale Comps

THE ESSENTIAL BAKING COMPANY

Commercial Condo Sale Comps 4

Subject Property

Sale Price:

$10,000,000

Lot Size:

27,443 SF

Year Built:

1926

Building SF:

12,810 SF

Price PSF:

$780.64

Perfectly located corner Assemblage off of North 34th St & Woodlawn Ave N in the heart of Wallingford! 1 - Story, 12,810 SQFT Retail Building on a 27,433 SQFT Lot. Fully Leased Building, with 5+ Year Long Established Tenant, NNN Lease - $144,000 SGI - 1.2% Cap. Current Zoning: C2 - P40. Proposed Zoning: C2 - P55. This lot offers a Developer to build Mixed Use, Residential, Retail, Office, Hotel, Etc.

Landings Lake Union

5

$950,000

Lot Size:

25,265 SF

Year Built:

2008

Building SF:

215,190 SF

Price PSF:

$4.41

CAP:

6.00%

Closed:

09/28/2018

Occupancy:

100%

1519-1521 3rd Ave #101 - 102 | Seattle, WA 98101 1

$650,000

Lot Size:

5,663 SF

Sale Price:

$2,850,000

Lot Size:

6,534 SF

Year Built:

1999

Building SF:

55,425 SF

Year Built:

1913

Building SF:

51,880 SF

Price PSF:

$11.73

Closed:

08/15/2018

Price PSF:

$54.93

CAP:

6.40%

Occupancy:

100%

Closed:

06/28/2018

5

#101 - 102, 1st Floor Units, 7,640 SQFT Retail, $2,850,000, 6.4% Cap Rate, Tenants include Myano Nails & Spa and a Sprint PCS Store.

The Eastlake

6

3213 - 3221 Eastlake Ave E #1 | Seattle, WA 98102

The Cosmopolitan 819 Virginia St #C1 | Seattle, WA 98101

2

Sale Price:

$1,075,000

Lot Size:

21,344 SF

Sale Price:

$2,530,000

Lot Size:

14,375 SF

Year Built:

2003

Building SF:

32,549 SF

Year Built:

2007

Building SF:

524,733 SF

Price PSF:

$33.03

Closed:

09/28/2018

Price PSF:

$4.82

CAP:

3.67%

Occupancy:

100%

Closed:

02/21/2019

Occupancy:

100%

#110, 1st Floor Office/Medical Condo, 2,728 SQFT, Sold for $1,075,000 on 09/28/18, Owner/User, Sale Leaseback.

6

#C1, 1st Floor Retail - 2,301 SQFT, 3.67% Cap Rate, Sold for $2,530,000, 7-Eleven 5 Year Lease, NNN.

Brix

7

530-539 Broadway Ave E #538 | Seattle, WA 98102

1425 Dexter Ave 1425 Dexter Ave #A & #B | Seattle, WA 98109

3

Sale Price:

$1,480,000

Lot Size:

39,496 SF

Sale Price:

$2,150,000

Lot Size:

25,265 SF

Year Built:

2008

Building SF:

45,750 SF

Year Built:

1992

Building SF:

143,296 SF

Price PSF:

$32.35

CAP:

6.00%

Price PSF:

$15.00

Closed:

09/27/2018

Closed:

10/25/2018

Occupancy:

100%

#538, 1st Floor Unit, 2,899 SQFT Retail, Sold for $1,480,000, 6% Cap Rate, Leased to a Anejo Tequila Bar - 5 Years, with 5 Year Option, NNN Lease.

Each Office Independently Owned and Operated kwcommercial.com

BREAD BOYS, LLC

4

Fischer Studio Building

Sale Price:

1st Floor, #C3, 1,662 SQFT, Office - $650,000. Owner User Sale.

3

Sale Price:

Unit R104 + 106, 1st Floor, Office/Retail, 2,069 SQFT, Sold on 09/28/18 - $950,000, 6% Cap Rate

215 NE 40th St #C | Seattle, WA 98105

2

Gallery 2911 2nd Ave # R104 + 106 | Seattle, WA 98121

1604 N 34th St | Seattle, WA 98103

1

8 | CRE CONDO SALE COMPARABLES

7

Vacant. 2 Commercial Condos - 5,371 SQFT of Retail, 2,615 SQFT of Office, Sold for $2,150,000 - 09/27/2018

30

Each Office Independently Owned and Operated kwcommercial.com

31

79

RESIDENTIAL CONDO SALES COMPS

THE ESSENTIAL BAKING COMPANY

APPENDIX

9 | RES CONDO SALE COMPARABLES

Residential Condo Sale Comps

THE ESSENTIAL BAKING COMPANY

Residential Condo Sale Comps 4

Subject Property

Sale Price:

$10,000,000

Lot Size:

27,443 SF

Year Built:

1926

Building SF:

12,810 SF

Price PSF:

$780.64

Perfectly located corner Assemblage off of North 34th St & Woodlawn Ave N in the heart of Wallingford! 1 - Story, 12,810 SQFT Retail Building on a 27,433 SQFT Lot. Fully Leased Building, with 5+ Year Long Established Tenant, NNN Lease - $144,000 SGI - 1.2% Cap. Current Zoning: C2 - P40. Proposed Zoning: C2 - P55. This lot offers a Developer to build Mixed Use, Residential, Retail, Office, Hotel, Etc.

Hendon Condominiums

$605,400

5

Year Built:

2018

Lot Size:

1

6

590 1st Ave S | Seattle, WA 98104 $689,900

Year Built:

2018

Lot Size:

2

7

1601 N 45th St | Seattle, WA 98105 $524,950

Year Built:

2018

Lot Size:

4

Encore

Sale Price:

$383,800

Year Built:

2020

Lot Size:

18,716 SF

5

Edison

Sale Price:

$424,950

Year Built:

2019

Lot Size:

5,120 SF

6

The Emerald 121 Stewart St #406 | Seattle, WA 98101

5,130 SF

3

Neighborhood: Wallingford, Average HOA Dues: $350 / Month, Note: Condo Sales was unsuccessful, and developer decided to convert them to apartments. The Price/SQFT that they were going for their 1 bedrooms was between $898.89 - $1,030.65.

Each Office Independently Owned and Operated kwcommercial.com

BREAD BOYS, LLC

9,500 SF

Neighborhood: Capitol Hill, Average HOA Dues: $273 / Month, Median Price: $424,950, Median Price/SQFT: $733.93, Median SQFT: 579

Wallingford 45

Sale Price:

Lot Size:

121 12th Ave E | Seattle, WA 98102 17,518 SF

Neighborhood: Pioneer Square, Average HOA Dues: $336 - $1,043 / Month, Median Price: $689,900, Median Price/SQFT: $894.81, Median SQFT: 777

3

2018

Neighborhood: Columbia City, Average HOA Dues: $1 / Month ?, Median Price: $383,800, Median Price/SQFT: $775.35, Median SQFT: 495

Gridiron

Sale Price:

$409,475

Year Built:

4689 Martin Luther King Jr Way S | Seattle, WA 98108 11,806 SF

Neighborhood: Phinney Ridge, Average HOA Dues: $312 - $555 / Month, Median Price: $605,400, Median Price/SQFT: $742.82, Median, SQFT: 815

2

Sale Price:

Address: 750 11th Ave E Seattle, WA 98102, Neighborhood: Capitol Hill Average HOA Dues: $341 - $396 / Month, Note: Nothing has SOLD yet in this building, only ACTIVE/PENDING Listings. Median Price: $409,475, Median Price/SQFT: $759.69, Median SQFT: 539

308 N 68th St | Seattle, WA 98103 Sale Price:

750 On The Hill 750 11th Ave E | Seattle, WA 98102

1604 N 34th St | Seattle, WA 98103

1

9 | RES CONDO SALE COMPARABLES

34

Sale Price:

$587,000

Year Built:

2020

Lot Size:

8,365 SF

7

Neighborhood: Downtown Seattle, Average HOA Dues: $521+ / Month, Note: Nothing has SOLD yet in this building, only ACTIVE/PENDING Listings. Median Price: $587,000, Median Price/SQFT: $943.72, Median SQFT: 622

Each Office Independently Owned and Operated kwcommercial.com

35

80

RESIDENTIAL CONDO SALES COMPS

THE ESSENTIAL BAKING COMPANY

APPENDIX

9 | RES CONDO SALE COMPARABLES

Residential Condo Sale Comps 8

Spire 600 Wall St | Seattle, WA 98121 Sale Price:

$890,950

Year Built:

2020

Lot Size:

10,700 SF

8

Neighborhood: Belltown, Note: Nothing has SOLD yet in this building, only ACTIVE/PENDING Listings. Average HOA Dues: $973+ / Month, Median Price/SQFT: $1,164.64, Median SQFT: 765

9

KODA 450 S Main St | Seattle, WA 98104 Sale Price:

$968,880

Year Built:

2020

Lot Size:

14,400 SF

9

Neighborhood: International District Note: Nothing has SOLD yet in this building, only ACTIVE Listings. Average HOA Dues: $502+ / Month, Median Price: $968,880, Median Price/SQFT: $1,121.38, Median SQFT: 864

10

Wallingford Seattle, WA 98103 Sale Price:

$944,950

Year Built:

2018

Lot Size:

800 SF

10

Analysis - 01/01/17 - 03/24/19:, Active: 4 Townhomes, Pending: 1 Townhomes, Sold: 39 Townhomes, Median Selling Price: $944,950, Median SQFT: 1,553, Median Price/SQFT: $608.46, Median Beds/Baths: 3 Bed / 2.25 Bath, Median Days on Market: 19

Each Office Independently Owned and Operated kwcommercial.com

BREAD BOYS, LLC

36

81

TITLE REPORT

APPENDIX

ALTA Commitment for Title Insurance ISSUED BY

COMMITMENT CONDITIONS 1.

DEFINITIONS (a) “Knowledge” or “Known”: Actual or imputed knowledge, but not constructive notice imparted by the Public Records. (b) “Land”: The land described in Schedule A and affixed improvements that by law constitute real property. The term “Land” does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is to be insured by the Policy. (c) “Mortgage”: A mortgage, deed of trust, or other security instrument, including one evidenced by electronic means authorized by law. (d) “Policy”: Each contract of title insurance, in a form adopted by the American Land Title Association, issued or to be issued by the Company pursuant to this Commitment. (e) “Proposed Insured”: Each person identified in Schedule A as the Proposed Insured of each Policy to be issued pursuant to this Commitment. (f) “Proposed Policy Amount”: Each dollar amount specified in Schedule A as the Proposed Policy Amount of each Policy to be issued pursuant to this Commitment. (g) “Public Records”: Records established under state statutes at the Commitment Date for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge. (h) “Title”: The estate or interest described in Schedule A.

2.

If all of the Schedule B, Part I—Requirements have not been met within the time period specified in the Commitment to Issue Policy, this Commitment terminates and the Company’s liability and obligation end.

3.

The (a) (b) (c) (d) (e) (f)

4.

COMPANY’S RIGHT TO AMEND The Company may amend this Commitment at any time. If the Company amends this Commitment to add a defect, lien, encumbrance, adverse claim, or other matter recorded in the Public Records prior to the Commitment Date, any liability of the Company is limited by Commitment Condition 5. The Company shall not be liable for any other amendment to this Commitment.

5.

LIMITATIONS OF LIABILITY (a) The Company’s liability under Commitment Condition 4 is limited to the Proposed Insured’s actual expense incurred in the interval between the Company’s delivery to the Proposed Insured of the Commitment and the delivery of the amended Commitment, resulting from the Proposed Insured’s good faith reliance to: (i) comply with the Schedule B, Part I—Requirements; (ii) eliminate, with the Company’s written consent, any Schedule B, Part II—Exceptions; or (iii) acquire the Title or create the Mortgage covered by this Commitment. (b) The Company shall not be liable under Commitment Condition 5(a) if the Proposed Insured requested the amendment or had Knowledge of the matter and did not notify the Company about it in writing. (c) The Company will only have liability under Commitment Condition 4 if the Proposed Insured would not have incurred the expense had the Commitment included the added matter when the Commitment was first delivered to the Proposed Insured. (d) The Company’s liability shall not exceed the lesser of the Proposed Insured’s actual expense incurred in good faith and described in Commitment Conditions 5(a)(i) through 5(a)(iii) or the Proposed Policy Amount. (e) The Company shall not be liable for the content of the Transaction Identification Data, if any. (f) In no event shall the Company be obligated to issue the Policy referred to in this Commitment unless all of the Schedule B, Part I—Requirements have been met to the satisfaction of the Company. (g) In any event, the Company’s liability is limited by the terms and provisions of the Policy.

First American Title Insurance Company

Commitment

File No: NCS-949283-WA1 COMMITMENT FOR TITLE INSURANCE Issued By

FIRST AMERICAN TITLE INSURANCE COMPANY NOTICE IMPORTANT-READ CAREFULLY: THIS COMMITMENT IS AN OFFER TO ISSUE ONE OR MORE TITLE INSURANCE POLICIES. ALL CLAIMS OR REMEDIES SOUGHT AGAINST THE COMPANY INVOLVING THE CONTENT OF THIS COMMITMENT OR THE POLICY MUST BE BASED SOLELY IN CONTRACT. THIS COMMITMENT IS NOT AN ABSTRACT OF TITLE, REPORT OF THE CONDITION OF TITLE, LEGAL OPINION, OPINION OF TITLE, OR OTHER REPRESENTATION OF THE STATUS OF TITLE. THE PROCEDURES USED BY THE COMPANY TO DETERMINE INSURABILITY OF THE TITLE, INCLUDING ANY SEARCH AND EXAMINATION, ARE PROPRIETARY TO THE COMPANY, WERE PERFORMED SOLELY FOR THE BENEFIT OF THE COMPANY, AND CREATE NO EXTRACONTRACTUAL LIABILITY TO ANY PERSON, INCLUDING A PROPOSED INSURED. THE COMPANY'S OBLIGATION UNDER THIS COMMITMENT IS TO ISSUE A POLICY TO A PROPOSED INSURED IDENTIFIED IN SCHEDULE A IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF THIS COMMITMENT. THE COMPANY HAS NO LIABILITY OR OBLIGATION INVOLVING THE CONTENT OF THIS COMMITMENT TO ANY OTHER PERSON. COMMITMENT TO ISSUE POLICY Subject to the Notice; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions; and the Commitment Conditions, First American Title Insurance Company, a Nebraska Corporation (the "Company"), commits to issue the Policy according to the terms and provisions of this Commitment. This Commitment is effective as of the Commitment Date shown in Schedule A for each Policy described in Schedule A, only when the Company has entered in Schedule A both the specified dollar amount as the Proposed Policy Amount and the name of the Proposed Insured.

If all of the Schedule B, Part I-Requirements have not been met within six months after the Commitment Date, this Commitment terminates and the Company's liability and obligation end.

Company’s liability and obligation is limited by and this Commitment is not valid without: the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; and Schedule B, Part II—Exceptions.

If this jacket was created electronically, it constitutes an original document.

This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions.

This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions.

Copyright 2006-2016 American Land Title Association. All rights reserved.

Copyright 2006-2016 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

Form 50003700 (8-23-18)

Form 50003700 (8-23-18)

Page 1 of 10

BREAD BOYS, LLC

ALTA Commitment for Title Insurance (8-1-16) Washington

Page 2 of 10

ALTA Commitment for Title Insurance (8-1-16) Washington

82

TITLE REPORT

6.

APPENDIX

LIABILITY OF THE COMPANY MUST BE BASED ON THIS COMMITMENT (a) Only a Proposed Insured identified in Schedule A, and no other person, may make a claim under this Commitment. (b) Any claim must be based in contract and must be restricted solely to the terms and provisions of this Commitment. (c) Until the Policy is issued, this Commitment, as last revised, is the exclusive and entire agreement between the parties with respect to the subject matter of this Commitment and supersedes all prior commitment negotiations, representations, and proposals of any kind, whether written or oral, express or implied, relating to the subject matter of this Commitment. (d) The deletion or modification of any Schedule B, Part II—Exception does not constitute an agreement or obligation to provide coverage beyond the terms and provisions of this Commitment or the Policy. (e) Any amendment or endorsement to this Commitment must be in writing and authenticated by a person authorized by the Company. (f) When the Policy is issued, all liability and obligation under this Commitment will end and the Company’s only liability will be under the Policy.

7.

IF THIS COMMITMENT HAS BEEN ISSUED BY AN ISSUING AGENT The issuing agent is the Company’s agent only for the limited purpose of issuing title insurance commitments and policies. The issuing agent is not the Company’s agent for the purpose of providing closing or settlement services.

8.

PRO-FORMA POLICY The Company may provide, at the request of a Proposed Insured, a pro-forma policy illustrating the coverage that the Company may provide. A pro-forma policy neither reflects the status of Title at the time that the pro-forma policy is delivered to a Proposed Insured, nor is it a commitment to insure.

9.

ARBITRATION The Policy contains an arbitration clause. All arbitrable matters when the Proposed Policy Amount is $2,000,000 or less shall be arbitrated at the option of either the Company or the Proposed Insured as the exclusive remedy of the parties. A Proposed Insured may review a copy of the arbitration rules at http://www.alta.org/arbitration.

ALTA Commitment for Title Insurance ISSUED BY

Schedule A

First American Title Insurance Company File No: NCS-949283-WA1

Transaction Identification Data for reference only:

Issuing Agent: First American Title Insurance Company National Issuing Office: 920 Fifth Avenue, Suite 1200, Seattle, Commercial Services WA 98104 Issuing Office's ALTA® Registry ID: Reference No.: UW CRE Class Commitment No.: NCS-949283-WA1 Property Address: 1604 N 34th St, Seattle, WA 98103

Issuing Office File No.: NCS-949283-WA1 Escrow Officer Name:

Revision No.:

Escrow Officer Number: Escrow Officer Email: Escrow Assistant Name: Escrow Assistant Number: Escrow Assistant Email: Title Officer Name: Lavonne Bowman Title Officer Number: (206)615-3269 Title Officer Email: lavbowman@firstam.com SCHEDULE A

1.

2.

Commitment Date: February 21, 2019 at 8:00 AM Policy to be Issued: (a)

☒ 2006 ALTA® Standard Owner's Policy Proposed Insured: To Be Determined

Amount $To Be Determined

Premium $To Be Determined

Tax $To Be Determined

$

$

(b)

☐ ALTA® Policy Proposed Insured:

$

(c)

☐ ALTA® Policy Proposed Insured:

$

3.

The estate or interest in the Land described or referred to in this Commitment is Fee Simple

4.

The Title is, at the Commitment Date, vested in: North 34th LLC, a Washington limited liability company

5.

The Land is described as follows: See Exhibit "A" attached hereto and made a part hereof

This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions.

This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions.

Copyright 2006-2016 American Land Title Association. All rights reserved.

Copyright 2006-2016 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

Form 50003700 (8-23-18)

Form 50003700 (8-23-18)

Page 3 of 10

BREAD BOYS, LLC

ALTA Commitment for Title Insurance (8-1-16) Washington

Page 4 of 10

ALTA Commitment for Title Insurance (8-1-16) Washington

83

TITLE REPORT

APPENDIX

Schedule BI & BII

ALTA Commitment for Title Insurance

ALTA Commitment for Title Insurance

ISSUED BY

ISSUED BY

First American Title Insurance Company File No: NCS-949283-WA1

Schedule BI & BII (Cont.)

First American Title Insurance Company File No: NCS-949283-WA1

SCHEDULE B, PART II

SCHEDULE B, PART I

Exceptions

Requirements All of the following Requirements must be met: 1.

The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land. The Company may then make additional Requirements or Exceptions.

2.

Pay the agreed amount for the estate or interest to be insured.

3.

Pay the premiums, fees, and charges for the Policy to the Company.

4.

Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records.

THIS COMMITMENT DOES NOT REPUBLISH ANY COVENANT, CONDITION, RESTRICTION, OR LIMITATION CONTAINED IN ANY DOCUMENT REFERRED TO IN THIS COMMITMENT TO THE EXTENT THAT THE SPECIFIC COVENANT, CONDITION, RESTRICTION, OR LIMITATION VIOLATES STATE OR FEDERAL LAW BASED ON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, GENDER IDENTITY, HANDICAP, FAMILIAL STATUS, OR NATIONAL ORIGIN. The Policy will not insure against loss or damage resulting from the terms and provisions of any lease or easement identified in Schedule A, and will include the following Exceptions unless cleared to the satisfaction of the Company: 1.

Any defect, lien, encumbrance, adverse claim, or other matter that appears for the first time in the Public Records or is created, attaches, or is disclosed between the Commitment Date and the date on which all of the Schedule B, Part I-Requirements are met.

2.

Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records.

3.

Any facts, rights, interests, or claims which are not shown by the Public Records but which could be ascertained by an inspection of the Land or by making inquiry of persons in possession thereof.

4.

Easements, claims of easement or encumbrances which are not shown by the Public Records.

5.

Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the Public Records.

6.

(A) Unpatented mining claims; (B) Reservations or exceptions in patents or in Acts authorizing the issuance thereof; (C) Water rights, claims or title to water; whether or not the matters excepted under (A), (B) or (C) are shown by the Public Records; (D) Indian Tribal Codes or Regulations, Indian Treaty or Aboriginal Rights, including easements or equitable servitudes.

7.

Any lien, or right to a lien, for services, labor or materials or medical assistance heretofore or hereafter furnished, imposed by law and not shown by the Public Records.

8.

Any service, installation, connection, maintenance, construction, tap or reimbursement charges/costs for sewer, water, garbage or electricity.

This page is only a part of a 2016 ALTAÂŽ Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions.

This page is only a part of a 2016 ALTAÂŽ Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions.

Copyright 2006-2016 American Land Title Association. All rights reserved.

Copyright 2006-2016 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

Form 50003700 (8-23-18)

Form 50003700 (8-23-18)

Page 5 of 10

BREAD BOYS, LLC

ALTA Commitment for Title Insurance (8-1-16) Washington

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ALTA Commitment for Title Insurance (8-1-16) Washington

84

TITLE REPORT

APPENDIX

File No.: NCS-949283-WA1 SCHEDULE B - SECTION 2 (continued) SPECIAL EXCEPTIONS 9.

General Taxes for the year 2019.

Tax Account No.: 408330-6880-08 Amount Billed: $23,507.42 Amount Paid: $0.00 Amount Due: $23,507.42 Assessed Land Value: $2,599,200.00 Assessed Improvement Value: $0.00 (Affects Lots 5 and 6)

11.

14.

The terms and provisions contained in the document entitled "Restrictive Covenant" recorded April 3, 2001 as Recording No. 20010403001111 of Official Records.

15.

Deed of Trust and the terms and conditions thereof.

Grantor/Trustor: North 34th LLC, a Washington limited liability company Grantee/Beneficiary: Mary B. Foster Trustee: Chicago Title Insurance Company Amount: $800,000.00 Recorded: July 28, 2011 Recording Information: 20110728000061

16.

Evidence of the authority of the individual(s) to execute the forthcoming document for North 34th LLC, a Washington limited liability company, copies of the current operating agreement should be submitted prior to closing.

17.

Title to vest in an incoming owner whose name is not disclosed. Such name must be furnished to us so that a name search may be made.

18.

Unrecorded leaseholds, if any, rights of vendors and security agreement on personal property and rights of tenants, and secured parties to remove trade fixtures at the expiration of the term.

19.

Prior to issuance of an extended coverage policy, the Company will require an Owner's Affidavit be completed and submitted to the Company for approval prior to closing. The Company reserves the right to make any additional requirement as warranted.

Lien of the Real Estate Excise Sales Tax and Surcharge upon any sale of said premises, if unpaid. As of the date herein, the excise tax rate for the City of Seattle is at 1.78%.

Levy/Area Code: 0010 For all transactions recorded on or after July 1, 2005: • A fee of $10.00 will be charged on all exempt transactions; • A fee of $5.00 will be charged on all taxable transactions in addition to the excise tax due.

10.

File No.: NCS-949283-WA1

General Taxes for the year 2019.

Tax Account No.: 408330-6895-01 Amount Billed: $23,515.71 Amount Paid: $0.00 Amount Due: $23,515.71 Assessed Land Value: $2,599,200.00 Assessed Improvement Value: $1,000.00 (Affects Lots 7 and 8)

12.

Potential charges, for the King County Sewage Treatment Capacity Charge, as authorized under RCW 35.58 and King County Code 28.84.050. Said charges could apply for any property that connected to the King County Sewer Service area on or after February 1, 1990.

Note: Properties located in Snohomish County and Pierce County may be subject to the King County Sewage Treatment Capacity Charges. To verify charges contact: (206) 296-1450 or CapChargeEscrow@kingcounty.gov.

13.

The terms and provisions contained in the document entitled "Public Place Indemnity Agreement" recorded May 7, 1999 as Recording No. 9905071385 of Official Records.

(Affects Lots 7 and 8)

This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions.

This page is only a part of a 2016 ALTA® Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions.

Copyright 2006-2016 American Land Title Association. All rights reserved.

Copyright 2006-2016 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

Form 50003700 (8-23-18)

Form 50003700 (8-23-18)

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BREAD BOYS, LLC

ALTA Commitment for Title Insurance (8-1-16) Washington

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ALTA Commitment for Title Insurance (8-1-16) Washington

85

TITLE REPORT

APPENDIX

File No.: NCS-949283-WA1

File No.: NCS-949283-WA1 ISSUED BY

First American Title Insurance Company

Exhibit A

INFORMATION NOTES

A. Effective January 1, 1997, and pursuant to amendment of Washington State Statutes relating to standardization of recorded documents, the following format and content requirements must be met.

Failure to comply may result in rejection of the document by the recorder.

File No: NCS-949283-WA1

The Land referred to herein below is situated in the County of King, State of Washington, and is described as follows: LOTS 5, 6, 7 AND 8, BLOCK 70, ALL IN LAKE UNION ADDITION TO THE CITY OF SEATTLE, ACCORDING TO THE PLAT THEREOF RECORDED IN VOLUME 1 OF PLATS, PAGE 238, RECORDS OF KING COUNTY, WASHINGTON.

B. Any sketch attached hereto is done so as a courtesy only and is not part of any Title Commitment or Policy. It is furnished solely for the purpose of assisting in locating the Land and First American expressly disclaims any liability which may result from reliance made upon it.

C. The description can be abbreviated as suggested below if necessary to meet standard requirements.

The full text of the description must appear in the document (s) to be insured.

Lots 5-8, Block 70, Lake Union Add. to The City of Seattle, Vol. 1, Pg. 238 APN: 408330-6880-08 APN: 408330-6895-01 D. A fee will be charged upon the cancellation of this Commitment pursuant to the Washington State Insurance Code and the filed Rate Schedule of the Company.

This page is only a part of a 2016 ALTAÂŽ Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions.

This page is only a part of a 2016 ALTAÂŽ Commitment for Title Insurance issued by First American Title Insurance Company. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions.

Copyright 2006-2016 American Land Title Association. All rights reserved.

Copyright 2006-2016 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

Form 50003700 (8-23-18)

Form 50003700 (8-23-18)

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BREAD BOYS, LLC

ALTA Commitment for Title Insurance (8-1-16) Washington

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ALTA Commitment for Title Insurance (8-1-16) Washington

86

SALES & MARKETING STRATEGY

APPENDIX

Sales & Marketing Strategy: •

•

•

Traditional Signage: o We would have Professional For Sale Signage on Woodlawn Ave N, N 34th St & Densmore Ave N, including ‘Text this Number for More Information’ as a means of capturing prospective buyers cell numbers to follow up with immediately.

Custom Website: o We plan to build a custom website for the building showcasing the different Unit Mix for Residential & Commercial Units, Gallery Photos and Overall Experience Future Residential Prospective Buyers and Commercial Tenants could expect using Renderings from our Architecture Department.

Pre-Marketing: o We would begin Pre-Marketing the Residential Condominiums and Commercial Retail Space via our Website through & Social & Google PPC to generate interest, as well as through the NWMLS, CBA & Costar. o Our target market for the would be Residential Renters with a Household Income greater than $140,000+ within a 3 mile radius of the location.

•

NWMLS, CBA & Costar: o We would list one of our Studio, 1 Bed, 2 Bed, 3 Bed and Commercial Spaces via NWMLS, CBA & Costar as means of advertising that they will be available in the near future for Purchase or Lease.

•

National Portal Advertising: o We would market and advertise the units for sale via National Portals such as Zillow, Trulia, Loopnet, Crexi.

•

Brokerage Portal Advertising: o We would market and advertise the units for sale via National Portals such as Keller Williams, Windermere, Remax, Redfin, Etc.

•

International Portal Advertising: o We would market and advertise the units for sale via International Portals through KWLS (Keller Williams Listing Service) which including sites like Juwaii.

•

Reservations: o We would allow reservations for individual units requiring a 5% Fully Refundable Earnest Money Deposit.

•

On-Site Salaried Sales Agent:

o We would have an On-Site Salaried + Bonus Sales Agent from 9am - 5pm M-F, and Saturday from 10am - 4pm to conduct showings and tours of the Residential & Commercial Space.

•

Brokerage Community Marketing: o We would Mail, Email and Call the top Residential Brokers & Retail Tenant Rep. Brokers within Seattle to offer them the opportunity to come to a Private Brokers Open before the Model Home was open to the Public as a means of generating interest for the Residential & Commercial Units.

•

Photography: o Once we had a Model Unit completed, we would have Professional Photography & Videography completed as a means of showing the unit from an Interior, Exterior and Aerial perspective.

•

Staging: o We would have the Model Unit Professional Staged with a Scandinavian style influence.

•

Floor Plan: o We will showcase all the different Floor Plans available, so prospective buyers can have an idea of the overall layout.

As the on-site sales agent at Bread Boys, LLC, Rusty is led to believe he is an integral part of on-site sales and unit showings. Rusty has unparalleled interpersonal skills and relies on his ability to linger uncomfortably to close on the deal.

ON-SITE SALES AGENT RUSTY TUPPER

BREAD BOYS, LLC

Rusty is a three-time national champion at the Tulsa hide-andseek invitational.

Rusty has some high school experience.

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