Cooper Mountain Kennel 21150 SW Farmington Road, Beaverton, OR 97007

Sale Price: $3,100,000 Exclusively Offered by Goode Realty Group William Goode, Broker 20030 SW Johnson Street, Aloha, OR Cell: 503-319-2248

Executive Summary Property Overview Cooper Mountain Kennel is located 4 miles west of Hwy 217 and two blocks west of 209th and Farmington Road. The kennel is a 68-run dog and cat boarding kennel comprised of a main building- housing the office, grooming areas, cattery and the radiantly heated dog runs. Adjacent to the main complex is a maintenance building. On the south end of the property sits a 3-bedroom, 2-full bath manufactured home with vaulted ceilings and a large family room. Directly west is the Jenkins Estate.

The property consists of 15.62 acres, zoned AF10 (Agriculture Farmland - 10 acres minimum).

It is surrounded by farmland. The individual dog runs are 4 feet by 16 feet (with 4’ x 4’ interiors). The cattery consists of 18 kitty condos separate from any of the dog runs. Upstairs is space for dog training or an additional 22 kennels to handle overflow business. Grooming services provided are all-dog grooming, bathing, clipping and de-matting. The purchase price includes the land (fee simple). FINANCIAL SUMMARY

PRICE (Fee Simple): $ 3,100,000

GROSS REVENUE (12 months ending 12/31/15): $ 707,886

EXPENSES

(12 months ending 12/31/15): $ 383,201

NET OPERATING INCOME (12 months ending 12/31/15): $ 324,685

` CAPITALIZATION RATE: 10.47 %

Purchase includes Kennel business and improvements, 15.62 acres of land and

three-bedroom manufactured home. Rental income of $1,600 to $1,800 per month is not included in gross revenues for 2015.

The information included in this summary is intended for the use of potential buyers only. This information is considered reliable as it was received from the present owner of the property. However, no guarantee of this information from Goode Realty Group is meant or implied as it relates to the correctness of these figures. It shall remain the responsibility of the purchaser to complete sufficient due diligence to minimize the inherent risks of this or any real estate purchase.

Location and Property Description Cooper Mountain Kennel is located on Farmington Road, two blocks west of 209th Street in

Beaverton, Oregon. Surrounded by large farmland tracks to the north and west, The Jenkins Estate to the east and a quarry to the south, the property’s location is central to the large residential base of Washington County. The property is comprised of a main building, which houses the office, lobby, grooming facilities, cattery, 68 radiantly heated dog runs, and 12 outdoor runs. Extra upstairs space in the main building is for additional kennel rentals. Adjacent to the main building is a large maintenance and storage building which houses all of the property’s equipment and offers additional storage space. Behind the main building (300 feet to the south) is a three-bedroom manufactured home with a two car carport and storage shed. This can be used as a residence for the owner or can be rented out for additional income ($1600-1800/month).

State of the art security and accounting systems add to the value of this property. The Kennel

currently employs 17 people. The business and improvements are being sold on a fee simple basis. Annual property taxes for 2015 were $7,591. The property is zoned AF-10 and operates under a special use permit which has been renewed twice. The next renewal is in 7 years by Washington County Department of Land Use & Transportation. Owner has inquired at the County and has received assurances that, absent any evidence that would rescind permit, continued approval of conditional use is expected. Owner knows of no condition that would cause a revocation of the conditional use permit.

Future Land Value

Land development in the Portland metropolitan area is limited by an artificial “Urban Growth Boundary” (“UGB”) that restricts the future growth of residential home building in the region. METRO, an agency that controls the designation of this UGB, have set limits on future growth by arbitrarily restricting the expansion of this UGB into areas adjacent to existing residential housing (i.e. farmland which should be rezoned to accommodate demand for new housing). In fact, the demand for new housing is so great that over the last 24 months, land that is currently zoned residential and which is inside the UGB has sold for $250,000 to $340,000 per acre.

Current speculation on land, which lays directly adjacent to the UGB, has pushed farmland

prices up to over $50,000 per acre. Obviously, as land prices continue to escalate there is tremendous pressure on METRO to bring in additional farmland to accommodate not only the huge demand, but also to reduce the land component of new development. Poised to take advantage of this is the Kennel site which has a total of 15.62 acres. This land is bordered on one entire side (Eastside) by the Jenkins Estate, which sits within the UGB and by Farmington road, one of two major surface streets, which move traffic from Western Washington County to Eastern Washington County. The future potential value of the 15.62 acres could exceed the entire cost of the kennel. The property is being offered for sale on a fee simple basis (land, business and improvements).

Financial Summary

Cooper Mountain Kennel is a relatively new facility. Since inception, beginning in 1995, revenues have increased substantially. In addition, the owners have upgraded the facility with an ongoing renovation plan which has made the business and property the most appealing in the County.

Revenues over the last five years have increased dramatically. From calendar year 1995

($202,805) through the end of 2015 ($707,886), evidencing an increase of 350%. Gross Revenues, Expenses and Net Operating Income figures for the 12 months ending

December 31, 2015 and 2014 are as follows: Gross Revenues - $707,886 (2015) and $648,546 (2014); Expenses - $383,201 (2015 at 54.1% of revenues) and $394,483 (2014 at 60.8% of revenues); and Adjusted Net Operating Income - $324,685 (2015) and $254,063 (2014). Using a Capitalization Rate of 10.47%, the fee simple market value of the land, business and improvements is $3,100,000-based on the actual adjusted NOI of $324,685 through December 31, 2015.

With a down payment of $620,000 (20% of purchase price) plus closing costs, and an SBA loan

of $2,480,000 (80% of purchase) at 4.75%, amortized over an average of 17 years, the new owner would be looking at cash flow after debt service of about $112,000 in the first year (assuming revenues and expenses do not change from calendar year 2015), or about a 16% cash-on- cash return.

Cooper Mountain Kennel The Exercise Yard

Back Office Front Office

Kennel Run (68 Runs) Interior (Heated) Dog Kennel

Exterior Dog Runs (12) Cattery

Cattery Entrance Cattery Interior

Grooming Room Grooming Room

Kitchen Upstairs

Mobile Home

View from Mobile Home

Rates are subject to change