A Fully Leased Investment Opportunity...Expense Ratio (OE/EGI) 27% 36% 32% Average Rent / SF / YR $14 $12 $13 Operating Expenses / SF / YR $5 $6 $6 NOI / SF $13 $11 $12 Capitalization

A Fully Leased Investment Opportunity: ±80,000 SF Multi-Tenant Office Building

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Ideal Location Outstanding Facility in Scenic Coeur d’Alene

6500 Mineral Drive Coeur d’Alene, Idaho 83815

High Quality Well Maintained Office Building Situated on 6±Acre Site (including roughly 2±acres excess) Approximate 7% Capitalization Rate on Actuals

A Fully Leased Investment Opportunity: ±80,000 SF Multi-Tenant

Office Building 6500 Mineral Drive, Coeur d’Alene, Idaho 83815

The Tenants

khco.com No warranty or representation, expressed or implied, is made by

Kiemle & Hagood Company, its agents or its employees as to the accuracy of the Information contained herein. All information

furnished is from sources deemed reliable and submitted subject to errors, omissions, change of terms and conditions, prior sale, lease or financing, or withdrawal without notice. No one should rely solely on the above information, but instead should conduct

their own investigation to independently satisfy themselves.

Location

Non Disclosure / Confidentiality

Market Overview

Offering


Executive Summary

Financial Analysis



Executive Summary

Address: 6500 Mineral Drive, Coeur d’Alene, Idaho 83815

Parcel #: C82820010030 (AIN # 240977)

Building Type: Three Story Multi-Tenant Office Building

Construction: Low Maintenance, Concrete Exterior with Extensive Glass

Land Area: 261,926+/- SF (6.01+/- acres)

Excess Land: Approximately 2.7 acres

Zoning: Commercial, City of Coeur d’Alene

Year Built: 1985

Building Area: 82,264 SF (gross building area, per county assessor)

Parking: Excellent onsite, surface parking, in excess of 4:1

Occupancy: 100% leased to four tenants

Offering Price: $10,000,000 ($9,000,000 building + $1,000,000 excess land @ $8.50 PSF)

Price / SF: $109 PSF (not including excess land)

Cap Rate: 7% based on actuals (not including excess land)

Executive Summary

Executive Summary The property has excellent visibility along Highway 95 and includes just over 6 acres, a substantial portion of which is presently unimproved.

The above aerial from Kootenai County GIS, shows the approximate location and size of excess site area.

This aerial reflects the approximate excess site area location and size.

Location

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A Fully Leased Investment Opportunity: ±80,000 SF Multi-Tenant Office Building 6500 Mineral Drive, Coeur d’Alene, Idaho 83815

Location

The Northwest

Spokane County Population

2010 CENSUS 471,221 Residents

2016 ESTIMATES 492,530 Residents

CDA to Seattle 331 Miles CDA to Portland 384 Miles

CDA to Spokane 34 Miles

CDA to Spokane Valley 28 Miles

CDA to Post Falls 10 Miles

CDA to Sandpoint 46 Miles

CDA to Boise 379 Miles

CDA to Missoula 165 Miles

2016 ESTIMATES 492,530 Residents

Coeur d’Alene (CDA) Distance to

•

•

•



Hecla Mining Building

6500 Mineral Drive

Location Hecla Mining Building

6500 Mineral Drive

HECLA MINING BUILDING Within the larger master planned community lies the 25 acre Village at Riverstone. The Village is a mixed-use, live-work-play project including four main buildings (A, B, C and D), three of which have high end residential condominiums on their upper floors. The Village is center of activity for Riverstone and Coeur d’Alene.

Market Overview

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Market Overview

Workforce

Largest Employers Kootenai County

KOOTENAI HEALTH PRIVATE 2,359

COEUR D’ALENE CASINO RESORT HOTEL PRIVATE 1,060

COEUR D’ALENE PUBLIC SCHOOLS No. 271 PUBLIC 1,003

QUALFON., INC PRIVATE 744

WAL-MART STORES PRIVATE 728

US BANK PRIVATE 718

KOOTENAI COUNTY PUBLIC 706

NORTH IDAHO COLLEGE PUBLIC 572

POST FALLS SCHOOL DISTRICT No. 273 PUBLIC 505

LAKELAND SCHOOL DISTRICT No 272 PUBLIC 451

ESTERLINE ADVANCED INPUT SYSTEMS PRIVATE 397

CITY OF COEUR D’ALENE PUBLIC 392

BUCK KNIVES PRIVATE 303

SUNSHINE MINING PRIVATE 280

IDAHO FOREST GROUP PRIVATE 250

CITY OF POST FALLS PUBLIC 171

RAYCAP, INC PRIVATE 170

COSTCO WHOLESALE CORP PRIVATE 161

CPM DEVELOPMENT CORP PRIVATE 140

ACCURATE MOLDED PLASTICS PRIVATE 135

Data Source: Spokane Journal of Business – Book of List Survey 2016

13

15 18 45

58

60

91 105

154

238

240

244

340

376 456

501

593

686

Mining

Utilities

Management of companies

Agriculture, Forestry, Fishing, Hunting

Educational Services

Information

Arts, entertainment and recreation

Transportation

Wholesale Trade

Real Estate

Adminstrative support, waste management,remediation services

Manufacturing

Other services

Accomodation and food services

Professional, scientific and technical

Health care and social assistance

Retail Trade

Construction

Breakdown of Kootenai County Industry

Number of Establishments

Data Source: US Census Bureau



Market Overview

Population

Data Source: Spokane Journal of Business

Population Changes in Idaho Counties 138,494

40,877 39,265

12,765

150,346

41,859

4,048 12,432

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Kootenai Bonner Nez Perce Shoshone

2010 2015

44,137

27,574

13,294

23,800 31,894

49,122

30,453

14,133

25,060 32,544

-

50,000

100,000

150,000

200,000

Coeur d'Alene Post Falls Hayden Moscow Lewiston

2010 2015

Population Changes in Idaho Cities

Steady 1.7% Annual Growth

Strong 2.3% Annual Growth



Market Overview

Demographics

Data Source: US Census Bureau & Regis Pro

15 Minutes 30 Minutes 60 Minutes Estimated Population (2016) 97,074 225,815 650,377 Estimated Population (2021) 105,665 242,271 682,919 Census Population (2010) 86,850 206,144 611,612 Median Age (2016) 36.8 38.1 38.1 Median Household Income (2016) $45,680 $50,404 $50,420 Average Household Income (2016) $61,087 $65,972 $67,586 Total Number of Households 38,408 88,619 257,232

Spokane, Washington / Coeur d’Alene, Idaho Combined Counties - MSA Area

642,650 2015 Estimated Population

Drive Time Demographics

Coeur d’Alene… A Playground for all of Northern Idaho and Eastern Washington



Market Overview

Commercial Real Estate Market

4.1%

8.4%

7.6%

6.1%

2.3%

0%

2%

4%

6%

8%

10%

12%

Coeur d'Alene Post Falls Rathdrum Hayden DaltonGardens

Retail Market Vacancy 2016

Overall Retail Market Vacancy: 5.4%

Total Inventory: 8,224,855 SF Total Vacant Inventory:

440,636 SF

7.0%

14.4%

0.0%

4.4%

0.0%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Coeur d'Alene Post Falls Rathdrum Hayden DaltonGardens

Office Market Vacancy 2016

7.3%

4.5% 5.1%

2.3%

3.2%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Coeur d'Alene Post Falls Rathdrum Hayden Dalton Gardens

Industrial Market Vacancy 2016



Overall Industrial Market Vacancy: 4.8% Total Inventory: 6,496,183 SF Total Vacant Inventory: 759,863 SF

Overall Office Market Vacancy: 7.7% Total Inventory: 4,042,504 SF Total Vacant Inventory: 310,538 SF

Financials

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Financials

INCOME Period Date % Year to Date

%

RENTAL INCOME Total Rental

41,123 50,745 91,868

REIMBURSEMENT 10 22 32

Average Lease Term (Remaining)

45 33 37

Average Tenant SF 4,112 2,307 2,871

Vacant SF - 1,214 1,214

Vacancy % 0% 2% 1%

Expense Ratio (OE/EGI) 27% 36% 32%

Average Rent / SF / YR $14 $12 $13

Operating Expenses / SF / YR

$5 $6 $6

NOI / SF $13 $11 $12

Capitalization Rate 6.4% 6.4% 6.2%

Indicated Pricing $8,650,000 $9,250,000 $17,900,000

Price / SF $195


Office Building 6500 Mineral Drive, Coeur d’Alene, Idaho 83815 TENANT ROSTER

Tenant Square Footage (SF)

Chief Architects 20,163

ALSC Architects 1,100

Allegiant Commercial Asset Services Group 1,668

Hecla 32,533

Common Area (Hallways, Storage, Meeting, Gym, Racquetball Court) 26,800

Total 80,264

Tenancy: The property is 100% leased and occupied by 4 tenants, including the Helca Mining Company who occupy 40% of the building. Average Remaining Term: 32+ Months Low Contract Rent, Averaging $12 PSF = Investment Upside and Lower Risk

100% LEASED Fully occupied by quality tenants, all of whom have renewed and extended leases over their tenure.

LOW CONTRACT RENTS = Averaging $12 PSF Low contract rents help reduce investment risk!

32+ MONTHS AVERAGE REMAINING TERM Limited anticipated turn over in the near future, reducing cost and risk to new ownership!

Hecla Mining Building

INCOME Period Date % Year to Date

%

RENTAL INCOME Total Rental

41,123 50,745 91,868

REIMBURSEMENT 10 22 32

Average Lease Term (Remaining)

45 33 37

Average Tenant SF 4,112 2,307 2,871

Vacant SF - 1,214 1,214

Vacancy % 0% 2% 1%

Expense Ratio (OE/EGI) 27% 36% 32%

Average Rent / SF / YR $14 $12 $13

Operating Expenses / SF / YR

$5 $6 $6

NOI / SF $13 $11 $12

Capitalization Rate 6.4% 6.4% 6.2%

Indicated Pricing $8,650,000 $9,250,000 $17,900,000

Price / SF $195

Financials A Fully Leased Investment Opportunity: 6500 Mineral Drive, Coeur d’Alene, Idaho 83815

Hecla Mining: Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, produces, and markets precious and base metal deposits worldwide. The company offers unrefined gold and silver bullion bars to precious metals traders; and lead, zinc, and bulk concentrates to custom smelters and brokers. It owns 100% interests in the Greens Creek mine in Southeast Alaska; the Lucky Friday unit located in northern Idaho; the Casa Berardi mine in Quebec, Canada; and the San Sebastian unit in Mexico. The company was founded in 1891 and is based in Coeur d'Alene, Idaho. Hecla Mining is a publically traded company (NYSE: HL). The building at 6500 Mineral Drive was originally built as corporate headquarters for Hecla Mining.

Direct Capitalization Summary Annualized

2017 $$/SF

INCOME Collected Rental Income $976,929 $11.88

Expense Reimbursements $21,768 $0.26

Total Effective Gross Income $998,697 $12.14

OPERATING EXPENSES Property Taxes $82,829 $1.01

Insurance $16,453 $0.20

Janitorial $59,108 $0.72

Repairs & Maintenance $102,376 $1.24

Common Utilities $94,507 $1.15

Management & Admin $12,083 $0.15

Misc $0 $0.00

Total Operating Expenses $367,356 $4.47

NET OPERATING INCOME $631,341 $7.67

Capitalization Rate 7.0% $0.37

Offering Price (building allocation) $9,000,000 $109

Offering Price (excess land allocation) $1,000,000 $8.50

Total Offering Price $10,000,000

Non-Disclosure / Confidentiality

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For the purposes of evaluating acquisition of 6500 Mineral Drive, you have (or will be) provided with confidential information. This information is provided with the understanding that you agree to treat any and all information concerning the Property or Ownership, whether prepared by Owner, Advisor, or otherwise, confidentially and in accordance with the following: • Property Information does not purport to be all-inclusive or to necessarily contain all the information that a prospective purchaser may desire in investigating the Property. • Property Information has been prepared for informational purposes relating to this transaction only and upon the express understanding that it will be used for only said purpose. • No information supplied may be used to the detriment of Owner, nor may any of the supplied information be used directly or indirectly by current or prospective competitors of the Owner, its respective officers, employees and representatives. • Any projections or similar materials should be considered hypothetical only and no assurances can be given as to the accuracy of assumptions or the predictability of any given result. • Information provided by third party sources and included herein shall be verified by Buyer. • Any purchase should be based on the purchaser’s owner investigations and not upon information contained herein. Neither Owner nor Broker make any express or implied representations or warranties as to the accuracy of completeness of the Property Information provided. • Should the supplied information provided through Kiemle & Hagood Company produce a Letter of Intent, leading to an offer to purchase, you agree to work through Kiemle & Hagood Company, as broker.



Casey Brazil Managing Broker [email protected] | (208) 770-2595

Contact Information

Founded in 1971, Kiemle & Hagood Company is recognized as the Inland Northwest’s leader in commercial real estate and property management services. Kiemle & Hagood currently manages over seven million square feet of space and provides service expertise in sales and leasing, facility management, development and consulting and tenant representation.

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Spokane | (509) 838-6541 Coeur d’Alene | (208) 770-2590 Kennewick | (509) 783-7663 Missoula | (406) 552-4568

No warranty or representation, expressed or implied, is made by Kiemle & Hagood Company, its agents or its employees as to the accuracy of the Information contained herein. All information furnished is from sources deemed reliable and submitted subject

to errors, omissions, change of terms and conditions, prior sale, lease or financing, or withdrawal without notice. No one should rely solely on the above information, but instead should conduct their own investigation to independently satisfy themselves.

Chris Schreiber, CCIM

Broker [email protected] | (208) 770-2593

Documents

A Fully Leased Investment Opportunity...Expense Ratio (OE/EGI) 27% 36% 32% Average Rent / SF / YR $14 $12 $13 Operating Expenses / SF / YR $5 $6 $6 NOI / SF $13 $11 $12 Capitalization