Newmark, as an exclusive advisor to SMARTCAP Group (the “Sponsor” or “Sponsorship”), is pleased to present the opportunity to provide approximately $16,000,000 in joint venture equity for the development of Building 3 (the “Property” or “Project”) in the Arlington Air North Industrial Park (AAN), located in Arlington, Washington. The Project will be the first delivery in the master-planned development and will consist of a 203,922 square foot, Class-A, state-of-the art manufacturing/light industrial facility situated on 10.50 acres. After a nearly 24-month negotiation, the Sponsor has now completed a favorable, 75- year ground-lease with the City of Arlington that will allow for construction to commence in Q3 2025 with an expected delivery in Q2/Q3 2026. The Project will feature 24’ clear heights, 36 dock-high doors, 16 grade-level doors, and 232 automobile parking stalls. With most industrial projects in the market are pursuing larger tenants, SMARTCAP is taking a different approach, underwriting the Property to meet market demand and have flexibility to demise suites as small as 20,000 SF if needed. This unique strategy allows the Sponsor flexibility in leasing, allowing them to accommodate for a range of tenant sizes. As the first phase of a larger 1 million square foot industrial master plan, investors are provided the rare opportunity to further their investment on a larger scale with one of the Puget Sound’s most prolific industrial developers.

The Property, strategically situated within the Cascade Industrial Center of Arlington, also sits in what’s regarded as one of the best industrial opportunity zones in the Western US. Located within the broader North End market of Snohomish County, one of the Pacific North West’s fastest growing industrial submarkets, Arlington Air North is centrally located in the Puget Sound, with proximity to Arlington Municipal Airport (1.1 miles) and the I-5 (1.7 miles). The expansion of 172nd Ave and proximity to nearby multifamily developments further adds to the Building’s marketability, providing workforce housing next door and allowing users more accessible transportation routes. Additionally, access to 172nd and its corresponding on / off ramps to I-5 will be exclusive to Arlington projects, providing a competitive advantage to competing assets in Marysville. Due to lack of available land in the greater Seattle market, the Northend has grown into one of the most sought-after industrial markets in the Puget Sound, with positive net absorption of 49,518 in the last quarter. Despite the interest from developers, the submarket remains healthy in supply and demand dynamics, with under 2% of the Northend Industrial submarket inventory - encompassing Arlington, Marysville, and Everett - under construction in Q3 2024.

The Project offers investors the unique opportunity to join an experienced Sponsorship team on a fully permitted, shovel-ready industrial development. The Opportunity Zone investment will offer investors tax advantages and competitive returns with the opportunity to control and participate in up to another 721,280 square feet of industrial development in the Arlington Air North Industrial Park.