®

REAL ESTATE

OFFERING MEMORANDUM

Kennewick, WA

VILLAGECANAL

TRI-CITIES, WA 3

THE OFFERING 5

TABLE OF CONTENTS

TRI-CITIES DEMOGRAPHICS 4

THE OFFERING 5

SITE LAYOUT 6

GENERAL AREA INFO 3

ABOUT US 1

®REAL ESTATE

TRI-CITIES PASCO OFFICE 2

OUR HISTORY 1

LOCATION OVERVIEW 7

BUSINESSES FOR 5 MILE RADIUS 9

POPULATION TRENDS WITHIN 5 MILES 1 0

NEIGHBORING TENANTS 7

TRAFFIC 12

®REAL ESTATE

The information provided in the following document is proprietary and confidential. It

is intended to be reviewed only by the party receiving it from John L Scott Tri Cities

Pasco (JLS) and should not be made available to any other person or party without the

consent of JLS. This memorandum is delivered under the terms and conditions of a

Confidentiality Agreement, which has been executed by the recipient as Reviewer.

This document has been arranged to provide summary, unverified information to

prospective buyers, and to establish only a preliminary level of interest in the subject

property. JLS makes no guarantees or representations; regarding the information

including, but not limited to, warranties of content, accuracy and reliability. All interested

parties should go through the necessary measures to gather information, pertinent to

the subject property, to verified the accuracy of information. The information has been

prepared by sources we deemed to be reliable, however, JLS has not verified and will

not certify the information contained herein. Prospective buyers should take appropri-

ate steps to verify all of the information set in this document. JLS exclude unequivocally

all terms, conditions, and warranties arising out of this documents and excludes all

liability for loss and damages arising there from.

DISCLAIMER

®REAL ESTATE

John L. Scott strives to provide exceptional real estate experiences,whatever our client’s real estate goals may be. John L Scott pridesthemselves in being the most innovated in new technology.

John L. Scott Real Estate was founded in 1931 in downtownSeattle and is currently led by third generation chairmanand CEO J. Lennox Scott.

The Company is currently ranked one of the most productivereal estate brokerage in the nation according to RIS media.Inducted into Council of Real Estate Brokers Managers Hallof Leaders. We’ve also been recognized with awards suchas the recipient of Inman Innovator Award for “Most Inno-vative Real Estate Company in the Nation”.

Today, John L. Scott Real Estate continues to uphold thevalues and principles established by Lennox’s grandfathermore than eight decades ago, maintaining the higheststandard of professional service in residential home sales.

OUR HISTORY

Now over 3,000 Agents

110+OFFICES

37,000CLOSED

TRANSACTIONS

$14BILLION

$15+MILLION

The Numbers

1

®REAL ESTATE2

TRI-CITIES PASCO OFFICEWe are the only real estate brokerage in Southeastern Washington and Northeastern Oregon thatshares common ownership. Serving the areas of Pasco and Walla Walla Washington as well asMilton Freewater and Hermiston Oregon.

John L. Scott Real Estate Tri-Cities Pasco is a full-service brokerage companyspecializing in:

OFFICE LOCATIONJohn L Scott Tri-Cities Pasco

5109 N Road 68, Suite EPasco, WA 99301

Office : (509) 547-5542Fax: (509) 547-9336

Website: www.JohnLScott.com/TriCitiesPasco

RESIDENTIALSALES

NEW CONSTRUCTIONSALES

COMMERCIALREAL ESTATE SALES

COMMERCIALDEVELOPMENT

RESIDENTIALDEVELOPMENT

AGRICULTURALSALES

PROPERTYMANAGEMENT

LAND USEPLANNING

POINT OF CONTACTGeoff GuidryManaging Broker

Cell: (509) 520-0505Email: gguidry@johnlscott.com

Website: www.JohnLScott.com/gguidry

®REAL ESTATE

Right in the heart of the PNW, the Tri-Cities isthe perfect place to grow your business.

Situated at the confluence of the Columbia,Snake and Yakima River, the Tri-Cities repre-sents the Pasco-Kennewick-Richland MSA in

Benton and Franklin Counties.

When it comes to business, the Tri-Cities offersbetter locations, faster permitting, and a

smarter workforce!

3

THE TRI-CITIES

®REAL ESTATE

TRI-CITIES DEMOGRAPHICSPOPULATION

Tri-Cities, MSABenton County

KennewickRichlandWest Richland

Franklin CountyPasco

2000 Census191,822142,47554,75138,7088,38549,34732,066

2010 Census253,340175,17773,91748,05811,81178,16359,781

2018 Estimate289,960197,42081,85055,32015,32092,54073,590

WORKFORCE

Labor ForceEmploymentUnemploymentUnemployment RateWA State Unemployment Rate

139,939134,1935,7464.1%3.9%

200+WINERIES/BREWERIES

WITHIN 60 MIN

24MUSEUMS &

ART GALLERIES

6COMMUNITY &PERFORMING

ARTS THEATERS

12PUBLIC LIBRARIES

Jan Avg HJan Avg LJuly Avg HJuly Avg LDays of Sun

41°F28°F88°F59°F300

Avg AnnualPercipitaion:Avg AnnualSnowfall:

8.3 Inches

6.0 Inches

Source: US Census and WA Office of Financial Management Forecasting. July 2018

Source: September 2018 Data, WA State Employment Security Department

125PUBLIC PARKS

10GOLF COURSES

2SPORTS TEAMS

Source: TRIDEC

300RESTAURANTS

4

®REAL ESTATE

THE OFFERINGThe offering Canal Village will consist of two single story office/retail buildings with a shared central parking area. Phase one of the build will be a3600 SF stand alone building and a 5280 SF retail strip center. Phase 2 will be the construction of a 1 5,000 SF 2 story building with retail andoffices on the lower level and Condos on the upper level.

Offering Financial TermsRent is $22 per square foot per year NNN.NNN include Real Estate Taxes, Insurance, Building Maintenance, Common Area Maintenance etc. estimated to be approximately $4.50 per sq.ft per year.

Tenant ImprovementsThe space is offered with all exterior parking, landscaping, lighting and monument sign, with building complete to the vanilla shell stage

5

Site Layout

3,855 USF+DECKS JLS CONFERENCE ROOM 2,940 USF

E

RESTROOMS

RESTROOMS

OPENTO ENTRY BELOW

BALCONY

DECK

UP

UP DN

JLS OFFICES OFFICEPOSSIBLE MULTIPLE TENANTS

DN

SITE LAYOUTThe proposed site layout consist of the 2 buildings of Phase I , full ingress/egress on Canal Drive, circulation for drive-through traffic

on both buildings, and ample parking. Not shown is the additional space for future Phase II

®REAL ESTATE6

Canal DriveBuilding 1 3,600 GSFBuilding 2 5,280 GSF

OUTDOORSEATING

FULL INGRESSEGRESS

DRIVE-THROUGH

PROFESSIONALLYLANDSCAPED

AMPLEPARKING

MONUMENTSIGNAGE

LOCATION OVERVIEW NEIGHBORING TENANTS

®REAL ESTATE7

Wrigley Dr & N Road 76, Pasco, WA 99301BUSINESSES FOR 5 MILE RADIUS

Retail & Wholesale

Financial/Insur/Real Estate

Services

Information

Health Care & Social Assist

Manufacturing

Construction

Utilities & Waste Mgmt

Public Admin & Sales

Agriculture, Mining & Fishing

0 20 40 60 80 100 120 140

*This information is deemed reliable, but not guaranteed and should be independently verifiedSource: CoStar

®REAL ESTATE8

POPULATION TRENDS WITHIN 5 MILESPopulation 1 Mile 3 Mile 5 Mile

2019 Total Population: 10,606 37,521 122,5902024 Population: 11,365 40,477 132,747

Pop Growth 2019-2024: 7.16% 7.88% 8.29%Average Age: 30.00 32.50 34.30

Households2019 Total Households: 3,363 12,310 43,484HH Growth 2019-2024: 7.02% 7.66% 8.17%Median Household Inc: $69,323 $76,157 $60,117

Avg Household Size: 3.10 3.00 2.702019 Avg HH Vehicles: 2.00 2.00 2.00

HousingMedian Home Value: $178,537 $215,344 $188,504

Median Year Built: 2005 2004 1986

POPULATION GROWTH HOUSEHOLD GROWTH

70

80

90

100

120

110

130

140

2000 Census 2010 Census 2019 Estimate 2024 Projection

(Thousands)

22%20%18%16%14%12%10%8%6%

19.30 20.08

7.16 7.02

2010-2019 2019-2024

20%18%16%14%12%10%8%6%

17.71 18.83

7.02 7.13

2010-2019 2019-2024

*This information is deemed reliable, but not guaranteed and should be independently verifiedSource: CoStar

1 MileCounty

®REAL ESTATE 9

2019 Med Household Inc 2019 Households by Household Income

2019 Median Age 2019 Population by Race

2019 Renter vs. Owner 2019 Employed vs. Unemployed

$70k$68k$66k$64k$62k$60k$58k

$69,232

$58,892

30%25%20%15%10%5%0%

<$25k $25k-$50k

$50k-$75k

$75k-$100k

$100k-$125k

$125k-$150k

$150k-$200k

$200k+

12.1718.27

16.03

22.04

28.38

21.7517 14 13

107 6 3.81 4.18

1.933.64

30.230.029.829.629.429.229.028.8

30.0

29.0 Am. Indian &Alaskan

Hawaiian &Pacific Island

White

100%90%80%70%60%50%40%30%20%10%0%

Black Asian Other

76.51%

23.49%

57.60%

32.10%

Rent Own Rent Own

94.62% 93.80%

Empl Unempl Empl Unempl

5.38% 6.20%

87.59 90.12

2.67 2.81 1.03 1.68 4.92 2.43 0.29 0.4 3.5 2.56

POPULATION TRENDS WITHIN 5 MILES

*This information is deemed reliable, but not guaranteed and should be independently verifiedSource: CoStar

1 MileCounty

®REAL ESTATE10

TRAFFIC REPORTW Canal Dr - Kennewick, WA

*This information is deemed reliable, but not guaranteed and should be independently verifiedSource: CoStar

®REAL ESTATE 11

Collection StreetN Edison StN Edison StW Quinault AveW Metaline AveW Mealine Ave

Cross StreetW Okanogan Ave S

W Stagit Ave NN Jefferson PI E

N Irving St EN Arthur St E

Traffic Count1384724185432328253999

Year20182018201820162018

Distance0.06 mi0.17 mi0.34 mi0.34 mi0.35 mi

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TriCities Pasco Office | 5109 N Rd 68, Pasco, WA 99301 | (509)5475542This office is independently owned and operated.

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REAL ESTATE

5331

W CANALDRIVEKennewick, WA