ASPI Commerce Park 1 & NE Patton Blvd, Moses Lake, WA

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ASPI Commerce Park 1 & 2 5803 NE Patton Blvd, Moses Lake, WA Exclusively

1 ASPI Commerce Park 1 & NE Patton Blvd, Moses Lake, WA Exclusively represented by Cramer Foster cfoster@ Jeff Kraft jkraft@ 2016

2 Table of Contents 1. Property Description Property Information Site Plan Location Map Aerials 2. Executive Summary 3. Tenant Bios Coca-Cola Southern Wine and Spirits WeHash Technologies Corporation Parker Hannifin 4. Financial Summary Rent Roll

3 Property Description

4 Property Description Property Description PROPERTY PROFILE Sale Price $5,557,429 NOI $344,438 Tenants Building SF Land SF / Acres Coca-Cola, Southern Wine & Spirits, WeHash Technologies Corporation & Parker Hannifin Corporation 50,000 total SF (Commerce 1: 25,000 SF, Commerce 2: 25,000 SF) 179,032 SF / 4.11 acres Grant County Parcel Numbers # Dock-High Doors 14 # Grade-Level Doors 9 Clear Height 24 Column Spacing 50 Electrical Capacity 2.5 megawatts Year Built Commerce 1: 2000, Commerce 2: 2008

5 Property Description

6 5803 NE Patton Blvd OM Property Description

7 Property Description

8 Executive Summary

9 Executive Summary Grant County is located in the central part of Washington State within a geographical area known as the Columbia Basin area, bounded by the Columbia River and Grand Coulee Dam to the north, the Columbia River and Priest Rapid and Wanapum Dams to the west, Columbia National Wildlife Refuge to the south; and, the agricultural lands within the Columbia Basin Project to the east. The subject property is located a few miles northerly of the city of Moses Lake. Grant County encompasses an area of 2,791 square miles and ranks fourth among the state s thirtynine counties in size. Relative to transportation, in addition to the roadway system of east/west Interstate 90, State Route 28, and U.S. Highway 2 and north/south roadways State Routes 17 and 283, there is also good rail service (Burlington Northern- Santa Fe and Union Pacific, plus Amtrak service), bus service offered by Greyhound Bus Lines, and trucking services. The Northern Columbia Basin Railroad Project is a proposed rail construction project to promote economic development in the Moses Lake area. The purpose of the project is to provide rail service to lands designated for industrial development in the northern part of the city of Moses Lake as well as to the south and east of the Grant County International Airport (GCIA), to enhance opportunities for economic development, and to attract new raildependent businesses to those areas. The Port of Moses Lake made a formal application to the federal Surface Transportation Board (STB) to construct a new rail line from the town of Wheeler to the Grant County International Airport. Airports include the Grant County International Airport (formerly Larson Air Force Base) as well as Moses Lake, Quincy, and Ephrata municipal airports. Grant County International Airport encompasses 4,700 acres and includes five runways. The main runway is 13,500 feet long and 200 feet wide and was an alternate runway for the NASA Space Shuttle. The Boeing Company also uses the airport facilities for flight testing of new aircraft. Additionally, in July of 2014 Mitsubishi announced they will be testing the new Mitsubishi Regional Jet at Grant County Airport. The Moses Lake Municipal Airport includes a 2,513 foot runway, which serves both private and charter aircraft traffic. In general, Grant County s economy is influenced by, and reflects many similar characteristics to the greater Central Washington agricultural economy. Based on the most recent annual data from the Washington State Employment Security Department, the civilian labor force in the Moses Lake MSA (Grant County) is 45,080, with total nonagricultural employment of 26,220. The largest Moses Lake MSA employment sectors are Service Providing (20,490 persons) and Good Producing (5,730 persons).

10 Executive Summary The top five major employment sectors within Grant County are as follows: Agriculture Manufacturing Government Services Residents Outside Income 10,141 persons 8,843 persons 7,197 persons 3,622 persons 3,119 persons The top five major employers for within Grant County are as follows: Genie Industries Moses Lake School District Grant County PUD Grant County Government Wal-Mart Tarex Takata 1,400 persons 951 persons 722 persons 633 persons 615 persons Major industries in the county include agriculture, heavy construction, government, medical care, and manufacturing. The agri-business is one of the largest employment sectors in the county and Grant County provides a diverse variety of agricultural products. Grant county farmers produce winter and spring wheat, potatoes and hay, apples, cherries, and other fruits along with corn, asparagus, spearmint, peppermint as well as a number of other crops, which production of wine and grapes as increasingly active industry segment. The county is the largest potato producing county in the nation. There have been several new businesses that have located in Grant county in the past five to six years and others are indicating interest in the area. The main draw to the area for manufacturing and data base companies is the low cost of electricity and the availabilities of utilities. Columbia Colstor built a 218,000 square foot cold storage facility in Quincy, which added thirty-five jobs to the area. Ask.com is an internet search engine company located in the former Titan Building in Moses Lake, and which employs about thirty people.

11 Executive Summary Aviation Technical Services (ATS) located in the Port of Moses Lake s 102,000 square foot hangar at the Grant County International Airport in March of ATS is the largest third party, single site transport aircraft maintenance provider in North America. ATS services more than 450 aircraft per year for companies including Southwest Airlines, UPS, Alaska Airlines, Greenpoint Technologies, and the military. Initial employement at the Moses Lake facility is 50 full time people but is expected to grow by an additional 100 jobs over the next few years. ATS has partnered with the Big Bend Community College s Aviation programs for internships allowing the local workforce a direct path to employment. The Grant County EDC began working with Genie Industries in the fall of 1998 to help the company locate a suitable manufacturing site. Genie moved quickly and in March of 1999, they leased a 487,000 square foot facility from the Port of Moses Lake. In less than a year, they had 70 employees. Employment at the facility grew steadily and was up to 400 by the summer of Only two years later, in 2007, employment had doubled to 800. In 2011, Genie extended its lease at the Port of Moses Lake for an additional 15 years. Current employment is now at approximately 1,400 making Genie the largest employer in Grant County. Intuit, which produces QuickBooks, Quicken, and TurboTax, selected a sixty-three acre parcel in Quincy and completed their facility in Intuit employs about thirty-eight people. Yahoo! developed a data center in Quincy in 2007 that is used to store data that is essential to the Yahoo! search engine. Yahoo! employs about fifty people at the data center. The Katana Company manufactures windmill towers for power generation and began operation in the Port of Ephrata in 2007 and employs over 100 people. Microsoft developed a data base center at the Port of Quincy s Industrial Park (Microsoft Columbia Data Center). The data Center is used to house information that is essential to Microsoft s Windows Live internet service and employs about fifty people. ML Fab Company, a glass fabrication business, moved to Moses Lake in 2006 and employs more than fifty people. One of the largest companies to locate in Grant County is Renewable Energy Corporation Silicon s (REC) $970 million expansion project located in Moses Lake for the production of polysilicon. The Grant County Economic Development Council helped local and state officials to secure over $2.5 million in grants and low interest loans to expand public infrastructure that is critical to the REC Silicon project. The new facility, on which construction began in 2006, is twenty floors in height and houses several fluid bed reactors that produce 6,500 metric tons of polysilicon for use in electricity producing panels. Reportedly, there is an expansion of the REC Silicon plant planned for the near future.

12 Executive Summary Construction of a $110 million carbon fiber manufacturing plant to supply materials to BMW for part of a future line of electric cars was recently completed. SGL Automotive Carbon Fibers LLC is a joint venture between SGL Carbon and BMW Auto. The joint venture was formed to manufacture carbon fiber for use in the chassis of BMW s Megacity Vechicle. The first phase of this project employs about eighty people. As the City of Moses Lake supplies the required water and sewer utilities for development, there are plans to annex 1,098 acres within the Randolph Road area, and the City of Moses Lake has obtained agreement from more than 65% of the landowners in the area for approval of the annexation. Unemployment in Grant County continues to be somewhat less of a problem than other parts of Washington, principally because of a historically heavy reliance of agriculture. This industry segment will be undergoing a major expansion due to an increased supply of water for expansion of irrigable land within the Columbia Basin Irrigation Project. The U.S. Bureau of Reclamation diverts water from the Columbia River at Grand Coulee Dam, pumps it uphill, and delivers water mainly through canals to the Columbia Plateau. The Columbia Basin Project is located in East-Central Washington and currently serves about 671,000 acres, or approximately 65% of the 1,029,000 acres originally authorized by Congress, in parts of Grant, Lincoln, Adams, and Franklin Counties, with some northern facilities located in Douglas County. Non-recreational surface water use is dictated by the Columbia Basin Project, which diverts water from the Columbia River below the Grand Coulee Dam through a series of irrigation canals and siphons. Some of the water flows into the lake and into Potholes Reservoir by way of Rocky Coulee Waterway and Crab Creek. On February 17, 2009, President Obama signed the America Recovery and Reinvestment Act of 2009 (ARRA), Title IV of which appropriates $1 billion in funds to the U.S. Bureau of Reclamation for developing water projects. In April 2009, the Bureau allocated $50 million (5% of its ARRA appropriation) to expand a large, Columbia Basin water pipe called the Weber Siphon, which will double the capacity of the Columbia Basin Irrigation Project to transport Columbia River water underneath Interstate 90 freeway to serve an additional 10,000 acres and potential of irrigation of up to 140,000 acres of land south of Interstate 90 and easterly of the current Columbia Basic Project service area. This expansion would allow for expanded production of these lands for agricultural products. Grant County is centrally located within the State of Washington and takes advantage of business opportunities from both the Seattle area market westerly of the Cascade Mountains and the Spokane market in the Inland Empire to the east. Lower cost land and lower average wage rates in the area, coupled with the area s low utility rates, makes this area very attractive for many businesses. The area continues to be more densely populated and has continued a shift away from its formerly near complete dependence on agricultural resources as an economic base, to a diversified heavy and light industrial economy that includes companies relocating from more populated areas of Western Washington to take advantage of these economic features. This trend is anticipated to continue, though preponderance of the county remains rural/agriculture in nature. Overall, the Grant County economy reflects many of the same trends present within the greater Central Washington region. Creating diversity in the industrial economic base will be a key factor in maintaining and promoting the health and long-term viability of Grant County.

Executive Summary Rail - Port of Moses Lake/Northern Columbia Basin RR Engineering and Environmental - Project Map Local leaders have developed a project proposal that includes five segments or

13 Executive Summary Rail - Port of Moses Lake/Northern Columbia Basin RR Engineering and Environmental - Project Map Local leaders have developed a project proposal that includes five segments or phases. WSDOT's feasibility study indicates that the cost to construct each of these segments will range from $1.8 million to $70 million. The Washington State Legislature directed WSDOT to use the remaining $1.7 million to work with the Port of Moses Lake and the federal Surface Transportation Board to develop the required environmental documents for the project. Copyright WSDOT 2014

14 Tenant Bios

Beverages bearing trademarks owned by, or licensed to, Coca-Cola account for 1.9 billion of the approximately 57 billion beverage servings of all types consumed worldwide every day. www.coca-cola.

15 Coca-Cola The Coca-Cola Company is the world s largest beverage BUILDING PHOTO company. Coca-Cola s finished beverage products bearing their trademarks, have been sold in the United States since 1886 and are now sold in more than 200 countries. Beverages bearing trademarks owned by, or licensed to, Coca-Cola account for 1.9 billion of the approximately 57 billion beverage servings of all types consumed worldwide every day. New York Stock Exchange: KO Fortune 500 Rank: 57th Annual Sales: $47 Billion This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

Southern Wine and Spirits Largest spirits and wine distributor in the United States BUILDING PHOTO with over $10 Billion in revenue marketing to 35 states.

5 billion annual revenue This information supplied herein is from sources we deem reliable.

16 Southern Wine and Spirits Largest spirits and wine distributor in the United States BUILDING PHOTO with over $10 Billion in revenue marketing to 35 states. Founded in 1968 employing over 12,500 people. Ranked within the Top 50 Forbes largest private companies. #32 Forbes Largest Private Companies $10.5 billion annual revenue This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

WeHash Technologies Corporation WeHash Technologies Corporations facility is a computer BUILDING PHOTO data center with enhanced heavy power capabilities.

17 WeHash Technologies Corporation WeHash Technologies Corporations facility is a computer BUILDING PHOTO data center with enhanced heavy power capabilities. The function of the data center is proprietary and confidential. This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

Parker Hannifin Corporation Founded in 1918 with annual sales exceeding $13 BUILDING PHOTO Billion, Parker Hannifin is the worlds leading diversified manufacturer of motion technologies and systems.

New York Stock Exchange: PH Annual Sales: $13 Billion #642 Forbes Global Largest Private Companies 2000 This information supplied herein is from sources we deem reliable.

18 Parker Hannifin Corporation Founded in 1918 with annual sales exceeding $13 BUILDING PHOTO Billion, Parker Hannifin is the worlds leading diversified manufacturer of motion technologies and systems. The company employs approximately 58,000 people in 49 countries around the world. New York Stock Exchange: PH Annual Sales: $13 Billion #642 Forbes Global Largest Private Companies 2000 This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. Consult your attorney, accountant, or other professional advisor.

19 Financial Summary

20 Financial Summary RENT ROLL Suite Tenant SF SF% Occup. Start Lease Start Lease End Lease Term Annual Rent Monthly Rent Annual Rent PSF Monthly Rent PSF Increases A2 Coca-Cola 5,000 10% 01/04/06 02/25/13 03/31/19 3 years $28, $2, $5.75 $0.47 A4 A6 Southern Wine* 20,000 40% 04/01/13 01/11/13 03/31/20 7 years $160, $13, $7.01 $0.58 $9,600 (02/11/18) A8 WeHash Technologies Corporation 10,000 20% 09/01/14 09/15/14 09/14/19 5 years $72, $6, $7.20 $0.60 A10 A12 Parker Hannifin 15,000 30% 01/01/09 04/25/08 12/31/19 5 years $83, $6, $5.57 $0.46 TOTAL 50, % $344, $28, $6.88 $0.57 *Notes on Southern Wine: Rent is Modified Gross.

BRYAN WAGGONER Office: (602) TRACY GLASS. Office: (602)

BRYAN WAGGONER Office: (602) TRACY GLASS. Office: (602) Insight Land & Investments 7400 E McDonald Dr, Ste 121 Scottsdale, Arizona 85250 602.385.1515 www.insightland.com All information furnished regarding property for sale, rental or financing is from sources