500 Naches Ave. SW, Renton, WA A 100% Boeing Leased Single ...

A 100% Boeing Leased Single Tenant Office Building.Capital Markets - Institutional Group500 Naches Ave. SW, Renton, WA

A 100% Boeing leasedClass “A” Office BuildingSeattle Area (Renton, WA)THE OFFERINGCBRE, as exclusive advisor, is pleased to offer for salea 100% fee simple interest in Rivertech Corporate Center,an architecturally appealing Class “A” office building 100%leased to The Boeing Company (S&P: BA). The Property,located in the Seattle suburb of Renton, Washington,consists of 70,101 square feet contained in anattractive three-story, steel-framed structure featuringa large two-story atrium. Rivertech Corporate Centeris situated in the Blackriver Corporate Park, a fullydeveloped master-planned office campus situatedalong a 100 acre riparian green belt. The Propertyhas served as the corporate headquarters for BoeingCapital Corporation, a wholly-owned subsidiary ofThe Boeing Company, for the past fifteen years.Rivertech Corporate Center provides an excellentopportunity to acquire a statement property leasedto one of America’s premier corporations located in afundamentally strong and dynamic market.

The Property has served as the corporateheadquarters for Boeing Capital Corporation,a wholly-owned subsidiary of The BoeingCompany, for the past fifteen years.investment highlightsBlue-Chip Credit TenancyFully leased by The Boeing Company (NYSE: BA), Rivertech Corporate Center is the corporate headquarters to Boeing’s wholly owned subsidiary,Boeing Capital Corporation. As the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraftcombined, Boeing generated over $68 billion in annual revenue in 2011. Boeing has an investment-grade credit rating of “A” by Standard &Poor’s, “A2” by Moody’s, and is consistently ranked in the top 40 of Fortune’s Global 500.CAPTIVE TENANTBoeing has occupied Rivertech Corporate Center for over 15 years as Boeing first occupied 38,067 SF in mid-1997 and has renewed their leaseof the building four times throughout that period with the latest renewal extending through August 2017. Boeing Capital’s top executives office inthe Rivertech building where they enjoy a secure, high image location within the Renton office market close to Boeing’s Renton 737 assembly plant.Boeing is currently expanding the plant to accommodate its newest variant, the 737 MAX, and, within the next five years, anticipates hiring close to1,000 new employees in Renton.A VIBRANT PUGET SOUND OFFICE MARKETThe Puget Sound region is experiencing a broad-based economic expansion, adding more than 10,000 jobs in the Seattle Metro area alone overthe past 12 months. As a result, the office market benefited from approximately 900,000 square feet of positive absorption in 2010 with anadditional 2.0 million square feet of absorption in 2011, the majority of which was driven by the rapid expansion of Seattle-based organizationsincluding Boeing, Amazon.com and the Bill and Melinda Gates Foundation.ROBUST SEATTLE JOB GROWTHOver the past four quarters, Seattle has averaged 2.1% annual growth in office employment. Over the next five years, CBRE EconometricsAdvisors predicts Seattle will achieve continued positive office job growth of 2.2% per year. Furthermore, office employment is expected to reachits previous peak in 2013, considerably ahead of most markets on the West Coast. Net absorption is expected to average 1.1 million square feetper year while new supply is expected to average only 446,000 square feet over the next 5 years. Office rents, on average, are projected to grow4.9% per year for the next 5 years. A key driver for this job growth is Seattle’s highly educated workforce, with nearly 56% of the Seattle adultpopulation having obtained a college-level degree.IMPROVING MARKET FUNDAMENTALSThe second quarter of 2012 marked the ninth straight quarter of positive net absorption in the Puget Sound region where the majority of newleasing has been concentrated in high quality office and flex buildings. Seattle was ranked as the second best office market for acquisitionsnationally in the recent ULI Emerging Trends study and had the top overall buy versus sell market ranking differential. Rivertech Corporate Centeris located in Renton, WA, a submarket within the 9.8 million square foot South Seattle Office Market. Renton comprises nearly 1/3 of the totalSouth Seattle office market. Class “A” rents have increased substantially in Renton during 2012 with recent leasing activity driving overall Class“A” vacancy down to just 6.14%.KEY LOCATIONRivertech Corporate Center has good access to both I-5 and I-405 with driving times of approximately 10 minutes to downtown Seattle, 15minutes to Bellevue and 5 minutes to Seattle-Tacoma International Airport. Westfield Southcenter, the largest mall in the state of Washington,is less than 5 minutes away from Rivertech Corporate Center. With nearly 1.8 million square feet of retail and service amenities, Southcenterrecently completed a 450,000 square foot expansion.EXCELLENT YIELD AT Major Discount to ReplacementRivertech Corporate Center’s in-place income, leveraged with favorable available debt, offers an immediate double-digit cash-on-cash return at abasis that is significantly below replacement cost in the supply constrained Renton office submarket.Rivertech Corp. Ctr.

INVESTMENT CONTACTS:STEVE SUTHERLANDFirst Vice PresidentT 425.462.6927sr.sutherland@cbre.comCRAIG WILSONSenior Vice PresidentT 425.462.6922craig.wilson@cbre.comSCOTT SCHUMACHERFirst Senior Vice PresidentLic. 1078450T 310.363.4903scott.schumacher@cbre.comKEVIN SHANNONVice ChairmanLic. 00836549T 310.363.4910kevin.shannon@cbre.comMARKET CONTACTS:GEOFF PENDERGASTFirst Vice PresidentT 425.462.6950geoff.pendergast@cbre.comED HOGANFirst Vice PresidentT 206.442.2715ed.hogan@cbre.comCapital Markets Debt and EquityJAMES BACHT 206.830.6475james.bach@cbre.comPROPERTY INFORMATION – 500 Naches Avenue Renton, WAYear BuiltDescriptionBuilding SizeNumber ofBuildings1990Three story steel-framed office building featuring a two-story atrium, tintedglass bands.70,101 SFOneSite AreaOccupancyParking217,800 SF (5.0 acres)100%331 Stalls4.7/1,000 SFFINANCIAL INFORMATIONOffering Price$11,890,000 ($170/psf)Year One NOI $950,970Year One Cap Rate 8.0%Three Year Average 13.02%Cash-on-CashBroker Lic. 004099872221 W. Rosecrans AvenueSuite 100El Segundo, CA 90245T 310.363.4900F 310.363.4912© 2012 CBRE, Inc. This information has been obtained fromsources believed reliable. We have not verified it and make noguarantee, warranty or representation about it. Any projections,opinions, assumptions or estimates used are for example only anddo not represent the current or future performance of the property.You and your advisors should conduct a careful, independentinvestigation of the property to determine to your satisfaction thesuitability of the property for your needs.