2400 Stevens Dr, Richland, WA 99354

Northmarq, in connection with Federal National Finance Corporation, is pleased to offer for sale to qualified investors the opportunity to acquire a 6 building office portfolio located in the Stevens Center Business Park in Richland, Washington (the "Property"). The Property is 95.1% leased to 6 companies, including the United States Government operating as the U.S. Department of Energy ("DOE") who has been a tenant here since 2012. The U.S. Government carries an investment-grade credit rating of AA+ by Standard & Poor's and Aaa by Moody's.

The other tenants include Battelle Memorial Institute ("BMI"), Navarro-ATL, Washington River Protection Solutions ("WRPS"), Bechtel National ("BN"), and Central Plateau Cleanup Company ("CPCC"). BMI has been a tenant in this location for almost 45 years, since 1979. WRPS has been a tenant here since 2009, BN has been a tenant here since 2011, and CPCC has been a tenant here since 2016. That's an average of over 18 Years between these tenants. They currently have a Weighted Average Lease Term remaining of just over 4.7 Years. The average occupied rent is very reasonable across the portfolio at just over $20 PSF. Market rents are estimated to be closer to $28 PSF.

Five of the office buildings are Fee Simple and sit on a combined 28.89 Acres. The remaining building sits on a Ground Lease with the Port of Benton. That site is 5.31 acres and the Buyer may have the option to purchase the underlying ground, although the ground rent is very low and the remaining Ground Lease term is over 30 Years (see Lease Abstract for details). Furthermore, the offering includes 6 parcels, totaling 8.11 Acres of additional land as part of the purchase. One parcel includes a small building that can be leased / re-developed, while others include amenities such as walking trails, a basketball court, etc. Some of the land could potentially be developed to increase the return.

The portfolio totals 465,029 SF. The buildings were built across many years starting in 1967 through 2006. They have been very well maintained. Since 2018, the Seller has completed almost $6.6 Million in improvements (see the Individual Summary pages for details).

The Property is located in Richland, Washington. Richland is one of the Tri-Cities, including Kennewick and Pasco that are located at the confluence of the Yakima, Snake and Columbia Rivers. The three cities border one another, making the Tri-Cities feel like one uninterrupted mid-size city. Richland is located in southeast Washington, about 45 minutes north of Oregon. There are over 200,000 people within 10 miles of the Property with an average HH income of over $123,000.

Richland is home to the Hanford Nuclear Reservation and the Hanford Waste Treatment Plant, located approximately 30 minutes north of the Stevens Center Business Park. Most of these tenants are involved in one way or another with Hanford, which is a 580 square mile site created in 1943 as part of the Manhattan Project to produce plutonium for the nation's defense program. Today, more than 11,000 employees are involved in cleaning up the site, including protection of the Columbia River. The Department of Energy signed a cleanup agreement with the Environmental Protection Agency and the State of Washington on May 15, 1989, called The Tri-Party Agreement. The goal of the Tri-Party Agreement was to reach compliance with federal environmental laws. Under the Tri-Party Agreement, the cleanup was expected to take 30 years. However, as of 2023, cleanup is expected to take another 70 years. This should ensure the long-term viability of these tenants and the Stevens Center Business Park as well.

Listed by Kevin Adatto with Northmarq, WA License #21038208