HomeMy WebLinkAbout26-066 - Contract - Highline School Distric No. 401 - Crest View Park Appraisal & Reinbursement Agreement26-066
Council Approval N/A
JOINT APPRAISAL AND REIMBURSEMENT AGREEMENT
This Joint Appraisal and Reimbursement Agreement ("Agreement") is hereby made and entered into
effective March 5, 2026, by and between the City of Tukwila, Washington, a municipal corporation
("City"), and Highline School District No. 401, a Washington municipal corporation and first-class
public school district ("Owner").
Recitals
WHEREAS, the Owner is the record owner- of that certain real estate commonly known as
Crestview Park located at 16200 42n' Ave. S in Tukwila, Washington and further identified as King County
Tax Parcel Number 537980-0008 and legally described in Exhibit A attached hereto and incorporated
herein by this reference ("Property"); and
WHEREAS, the City desires to explore the potential acquisition of the Property; and
WHEREAS, the City has requested, and Owner has agreed to reimburse the City for 50% of the
cost of a market value appraisal ("Appraisal") of the Property; and
WHEREAS, the City and the Owner- (collectively, "Parties") mutually desire to enter into this
Agreement for the purpose of defining their respective rights and obligations regarding the Appraisal; and
NOW, THEREFORE, in consideration of the mutual benefits and conditions set forth below, and
other consideration the receipt and sufficient of which is mutually acknowledged, the Parties hereto agree
as follows:
Terms
1. Appraisal of Crestview Park. The City proposes, and Owner agrees, that the City contract with
S. Murray Bracket, MAI, at CBRE Group, Inc. ("Appraiser") to perform the Appraisal of the Property,
subject to the provisions set forth herein, and consistent with the Appraiser's February 23, 2026 proposal
attached hereto as Exhibit B (the "Appraiser's Proposal").
a. The City shall contract directly with, manage and pay for, at its sole cost and expense, all
aspects of the drafting, execution, and implementation of the contract with Appraiser for
appraisal services.
b. The Parties shall agree with the Appraiser on the parameters the Appraiser will use prior to
commencement of the Appraisal, including the methodology for valuation conclusions.
c. The Parties shall communicate jointly with the Appraiser at all times throughout the appraisal
process. To the extent the Appraiser has a request for information for one of the Parties, the
receiving Party shall make sure that any Appraiser message is copied to or shared with the
other Party, and any communications from a Party to the Appraiser shall be copied to the
other Party.
d. Owner shall provide the Appraiser with reasonable access to the Property upon advance
notice.
e. The Parties shall both be end users of the final Appraisal rendered and shall be so identified in
the Appraisal.
{J BS4918-93 S 7-0942;1/13175.000001/1
4918-9357-0942, v. 1
2. Reimbursement. The Parties agree to split the costs of the Appraisal, which is identified in the
Appraiser's Proposal to be $8,500.00 (or, $4,250 per Party) and is inclusive of any applicable taxes, fees,
charges and incidental expenses directly related thereto (the "Appraisal Fee"). Upon receipt of an invoice
from the Appraiser, the City shall submit a written invoice to Owner for one half (50 percent) of the
Appraisal Fee. The Owner shall, within 30 days of receiving such invoice, remit full payment to the City
for the invoiced amount. Notwithstanding the foregoing, in no event shall Owner be required to reimburse
the City for appraisal -related costs beyond the Appraisal Fee.
3. Applicable Law; Venue; Attorneys' Fees. This Agreement shall be governed by and construed
in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other
proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree
that venue shall be exclusively in King County Superior Court in King County, Washington. The
prevailing party in any such action shall be entitled to its attorneys' fees and costs of suit.
4. No Obligation to Enter into Purchase and Sale Agreement. The Parties acknowledge and
agree that the execution of this Agreement is solely for the purpose of conducting an appraisal and does
not, in any way, create a binding obligation on either party to enter into or execute a Purchase and Sale
Agreement for the Property or to engage in any other joint venture or contractual arrangement related to the
Property or otherwise.
5. Complete Agreement. V"hr,.rr, arc no oral agrr,innent:s bctwr,cri th.r„ Parrdi;s allr,cdnl this Agn,r;aneniit:,
and this Agreement may not bl; modrl'ied except by written instrrrrnent by the Parties, There are no
representations between the Parties, other than those contained in this AgreernerlL, and all rcliancewith respectio
this Agreement is Bully upon sur:;h representations,
CITY OF TUKWILA, WASHINGTON
By:
Date: March 5, 2026
Attest/Authenticated:
Signed by:
B F
City er
{J BS4918-93 S 7-0942;1/13175.000001/1
4918-9357-0942, v. 1
HTGHLTNE SCHOOL DISTRICT NO. 401
By: Digitally signed by Ell in Daneshnla
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Ellie DaneShnia M=17 cut- D o Capital
Planning K C nstruct-, CN=EIIIe
Date: Da—hila i
Date: 2025.01&_4_18Q0:23-08'00'
Approved as to Form:
Signed by:
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Exhibit A
LEGAL DESCRIPTION OF PROPERTY
MC MICKEN HEIGHTS DIV # 2 UNREC VAL OF UNDEEDED STS & ALLEYS
INCL IN ADJ LOT VAL S 30 FT OF 1 & S 305.4 FT OF 2-3-4-5-6 & 33 LESS W 90
FT OF S 290.4 FT & N 290.4 FT OF 34-35-36-37 & N 30 FT OF 38
Plat Block: 5
Plat Lot: IT06 & 33TO38
{J BS4918-93 S 7-0942;1/13175.000001/1
4918-9357-0942, v. 1
Exhibit B
APPRAISER'S PROPOSAL
{J BS4918-93 S 7-0942;1/13175.000001/}
4918-9357-0942, v. 1
CBRE, Inc.
1420 Fifth Avenue, Suite 1700
Seattle, Wa. 98101
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February 23, 2026
S. Murray Brackett, MAI
Director
Brandon J. Miles
CITY OF TUKWILA
6300 Southcenter Blvd
Tukwila, Wa.
Phone: 425.431.3684
Email: brandon.miles@tukwilawa.gov
RE: Assignment Agreement
Parcel Number: 537980-0008
Crestview Park Property
16200 42nd Av S.
Tukwila, Wa. 98168
Dear Mr. Miles:
We are pleased to submit this proposal and our Terms and Conditions for this assignment. It is
our understanding that the appraisal is intended to be used for the potential acquisition of
real estate in conjunction with a public project.
Client: City of Tukwila - Mr. Brandon Miles
Purpose: To provide an opinion of the Fair Market Value of the
referenced real estate to assist with a proposed property
acquisition.
Premise: As -is value of the subject.
Rights Appraised: Market Value of the Fee Simple interest.
Intended Use: To assist with potential acquisition of real estate.
Intended User: The intended users include the CITY OF TUKWILA ("Client"),
the Highline School District, and such other parties and
entities (if any) expressly recognized by CBRE as "Intended
Users" (as further defined herein).
Reliance: Reliance on any reports produced by CBRE under this
Agreement is extended solely to parties and entities
expressly acknowledged in a signed writing by CBRE as
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Intended Users of the respective reports, provided that any
conditions to such acknowledgement required by CBRE or
hereunder have been satisfied. Parties or entities other
than Intended Users who obtain a copy of the report or any
portion thereof (including Client if it is not named as an
Intended User), whether as a result of its direct
dissemination or by any other means, may not rely upon
any opinions or conclusions contained in the report or such
portions thereof, and CBRE will not be responsible for any
unpermitted use of the report, its conclusions or contents or
have any liability in connection therewith.
Inspection: The appraisers will attempt to make contact with the
property owner, if owner contact is provided. If a complete
inspection is not permitted, the inspection will be done from
the closest public areas.
Valuation Approaches: All applicable approaches will be considered. Rationale
for the exclusion of any approaches will be included, as
necessary.
Report Type: Appraisal Report
Appraisal Standards: USPAP
Appraisal Fee: Total fee: $8,500
Expenses: N/A
Retainer: None
Payment Terms: Final payment is due upon delivery of the final report or
within thirty (30) days of your receipt of the draft report,
whichever is sooner. The fee is considered earned upon
delivery of the draft report.
Delivery Instructions: CBRE encourages our clients to join in our environmental
sustainability efforts by accepting an electronic copy of the
report.
An Adobe PDF file via email will be delivered to
brandon.miles@tukwilawa.gov.
Delivery Schedule:
Final Report: 45 days from authorization.
The client is on notice that delay of inspections or failure to
provide the requested documentation can substantially
delay delivery.
Start Date: Upon acceptance
Acceptance Date: These specifications are subject to modification if this
proposal is not accepted within 5 business days from the
date of this letter.
Required Documents: In order to complete this assignment under the terms
outlined, CBRE, Inc., Valuation & Advisory Services, will
require the following specific information for the property:
1. Title reports or legal descriptions, if available.
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2. Copies of property studies, if any.
3. Contact for inspection purposes.
4. Signed engagement letter or equivalent, with Notice
to Proceed.
When executed and delivered by all parties, this letter, together with the Terms and
Conditions and the Specific Property Data Request attached hereto and incorporated
herein, will serve as the Agreement for appraisal services by and between CBRE and Client.
Each person signing below represents that it is authorized to enter into this Agreement and to
bind the respective parties hereto.
We appreciate this opportunity to be of service to you on this assignment. If you have
additional questions, please contact us.
Sincerely,
CBRE, Inc.
Valuation & Advisory Services
S. Murray Brackett, MAI
Director
As Agent for CBRE, Inc.
T 206.595.1068
murray.brackett@cbre.com
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FOR CITY OF TUKWILA ("CLIENT"):
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Signature
Brandon J. Miles
Name
425.431.3684
Phone Number
3/24/2026
Date
Business Relations Manager
Title
brandon.miles@tukwilawa.gov
E -Mail Address
Assessment & Consulting Services: CBRE's Assessment & Consulting Services group has
the capability of providing a wide array of solution -oriented due diligence services in
the form of property condition and environmental site assessment reports and other
necessary due diligence services (seismic risk analysis, zoning compliance services,
construction risk management, annual inspections, etc.). CBRE provides our clients the
full complement of due diligence services with over 260 employees in the U.S. that are
local subject matter experts.
Initial below if you desire CBRE to contact you to discuss a proposal for any part or the
full complement of consulting services, or you may reach out to us at
W 1ih<<� :1I<<::ai1rh:11, , c"rcie: irIo We will route your request to the appropriate
manager. For more information, please visit ISS1 "I .r.,1.L
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1. The Terms and Conditions herein are part of an agreement for appraisal services (the "Agreement" )
between CBRE, Inc. (the "Appraiser") and the client signing this Agreement, and for whom the
appraisal services will be performed (the "Client"), and shall be deemed a part of such Agreement as
though set forth in full therein. The Agreement shall be governed by the laws of the state where the
appraisal office is located for the Appraiser executing this Agreement.
2. Client shall be responsible for the payment of all fees stipulated in the Agreement. Payment of the
appraisal fee and preparation of an appraisal report (the "Appraisal Report, or the "report") are not
contingent upon any predetermined value or on an action or event resulting from the analyses,
opinions, conclusions, or use of the Appraisal Report. Final payment is due as provided in the Proposal
Specifications Section of this Agreement. If a draft report is requested, the fee is considered earned
upon delivery of the draft report. It is understood that the Client may cancel this assignment in writing
at any time prior to delivery of the completed report. In such event, the Client is obligated only for the
prorated share of the fee based upon the work completed and expenses incurred (including travel
expenses to and from the job site), with a minimum charge of $0. Additional copies of the Appraisal
Reports are available at a cost of $250 per original color copy and $100 per photocopy (black and
white), plus shipping fees of $30 per report.
3. If Appraiser is subpoenaed or ordered to give testimony, produce documents or information, or
otherwise required or requested by Client or a third party to participate in meetings, phone calls,
conferences, litigation or other legal proceedings (including preparation for such proceedings)
because of, connected with or in any way pertaining to this engagement, the Appraisal Report, the
Appraiser's expertise, or the Property, Client shall pay Appraiser's additional costs and expenses,
including but not limited to Appraiser's attorneys' fees, and additional time incurred by Appraiser
based on Appraiser's then -prevailing hourly rates and related fees. Such charges include and pertain
to, but are not limited to, time spent in preparing for and providing court room testimony, depositions,
travel time, mileage and related travel expenses, waiting time, document review and production, and
preparation time (excluding preparation of the Appraisal Report), meeting participation, and
Appraiser's other related commitment of time and expertise. Hourly charges and other fees for such
participation will be provided upon request. In the event Client requests additional appraisal services
beyond the scope and purpose stated in the Agreement, Client agrees to pay additional fees for such
services and to reimburse related expenses, whether or not the completed report has been delivered
to Client at the time of such request.
4. Appraiser shall have the right to terminate this Agreement at any time for cause effective immediately
upon written notice to Client on the occurrence of fraud or the willful misconduct of Client, its
employees or agents, or without cause upon 5 days written notice.
5. In the event Client fails to make payments when due then, from the date due until paid, the amount
due and payable shall bear interest at the maximum rate permitted in the state where the office is
located for the Appraiser executing the Agreement. In the event either party institutes legal action
against the other to enforce its rights under this Agreement, the prevailing party shall be entitled to
recover its reasonable attorney's fees and expenses. Each party waives the right to a trial by jury in
any action arising under this Agreement.
6. Appraiser assumes there are no major or significant items or issues affecting the Property that would
require the expertise of a professional building contractor, engineer, or environmental consultant for
Appraiser to prepare a valid report. Client acknowledges that such additional expertise is not covered
in the Appraisal fee and agrees that, if such additional expertise is required, it shall be provided by
others at the discretion and direction of the Client, and solely at Client's additional cost and expense.
7. In the event of any dispute between Client and Appraiser relating to this Agreement, or Appraiser's or
Client's performance hereunder, Appraiser and Client agree that such dispute shall be resolved by
means of binding arbitration in accordance with the commercial arbitration rules of the American
Arbitration Association, and judgment upon the award rendered by an arbitrator may be entered in
any court of competent jurisdiction. Depositions may be taken and other discovery obtained during
such arbitration proceedings to the same extent as authorized in civil judicial proceedings in the state
where the office of the Appraiser executing this Agreement is located. The arbitrator shall be limited to
awarding compensatory damages and shall have no authority to award punitive, exemplary or similar
damages. The prevailing party in the arbitration proceeding shall be entitled to recover its expenses
from the losing party, including costs of the arbitration proceeding, and reasonable attorney's fees.
Client acknowledges that Appraiser is being retained hereunder as an independent contractor to
perform the services described herein and nothing in this Agreement shall be deemed to create any
other relationship between Client and Appraiser. This engagement shall be deemed concluded and
the services hereunder completed upon delivery to Client of the Appraisal Report discussed herein.
B. All statements of fact in the report which are used as the basis of the Appraiser's analyses, opinions,
and conclusions will be true and correct to Appraiser's actual knowledge and belief. Appraiser does
not make any representation or warranty, express or implied, as to the accuracy or completeness of
the information or the condition of the Property furnished to Appraiser by Client or others. TO THE
FULLEST EXTENT PERMITTED BY LAW, APPRAISER DISCLAIMS ANY GUARANTEE OR WARRANTY AS TO THE
OPINIONS AND CONCLUSIONS PRESENTED ORALLY OR IN ANY APPRAISAL REPORT, INCLUDING WITHOUT
LIMITATION ANY WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE EVEN IF KNOWN TO APPRAISER.
Furthermore, the conclusions and any permitted reliance on and use of the Appraisal Report shall be
subject to the assumptions, limitations, and qualifying statements contained in the report.
9. Appraiser shall have no responsibility for legal matters, including zoning, or questions of survey or title,
soil or subsoil conditions, engineering, or other similar technical matters. The report will not constitute a
survey of the Property analyzed.
10. Client shall provide Appraiser with such materials with respect to the assignment as are requested by
Appraiser and in the possession or under the control of Client. Client shall provide Appraiser with
sufficient access to the Property to be analyzed, and hereby grants permission for entry unless
discussed in advance to the contrary.
11. The data gathered in the course of the assignment (except data furnished by Client) and the report
prepared pursuant to the Agreement are, and will remain, the property of Appraiser. With respect to
data provided by Client, Appraiser shall not violate the confidential nature of the Appraiser -Client
relationship by improperly disclosing any proprietary information furnished to Appraiser.
Notwithstanding the foregoing, Appraiser is authorized by Client to disclose all or any portion of the
report and related data as may be required by statute, government regulation, legal process, or
judicial decree, including to appropriate representatives of the Appraisal Institute if such disclosure is
required to enable Appraiser to comply with the Bylaws and Regulations of such Institute as now or
hereafter in effect.
12. Unless specifically noted, in preparing the Appraisal Report the Appraiser will not be considering the
possible existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated
substances and/or underground storage tanks (collectively, "Hazardous Material) on or affecting the
Property, or the cost of encapsulation or removal thereof. Further, Client represents that there is no
major or significant deferred maintenance of the Property that would require the expertise of a
professional cost estimator or contractor. If such repairs are needed, the estimates are to be prepared
by others, at Client's discretion and direction, and are not covered as part of the Appraisal fee.
13. In the event Client intends to use the Appraisal Report in connection with a tax matter, Client
acknowledges that Appraiser provides no warranty, representation or prediction as to the outcome of
such tax matter. Client understands and acknowledges that any relevant taxing authority (whether the
Internal Revenue Service or any other federal, state or local taxing authority) may disagree with or
reject the Appraisal Report or otherwise disagree with Client's tax position, and further understands and
acknowledges that the taxing authority may seek to collect additional taxes, interest, penalties or fees
from Client beyond what may be suggested by the Appraisal Report. Client agrees that Appraiser shall
have no responsibility or liability to Client or any other party for any such taxes, interest, penalties or fees
and that Client will not seek damages or other compensation from Appraiser relating to any such
taxes, interest, penalties or fees imposed on Client, or for any attorneys' fees, costs or other expenses
relating to Client's tax matters.
14. Appraiser shall have no liability with respect to any loss, damage, claim or expense incurred by or
asserted against Client arising out of, based upon or resulting from Client's failure to provide accurate
or complete information or documentation pertaining to an assignment ordered under or in
connection with this Agreement, including Client's failure, or the failure of any of Client's agents, to
provide a complete copy of the Appraisal Report to any third party.
15. LIMITATION OF LIABILITY. EXCEPT TO THE EXTENT ARISING FROM SECTION 16 BELOW, OR SECTION 17 IF
APPLICABLE, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATE, OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS, OR CONTRACTORS BE LIABLE TO THE OTHER, WHETHER BASED IN CONTRACT,
WARRANTY, INDEMNITY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT OR OTHERWISE, FOR ANY
SPECIAL, CONSEQUENTIAL, PUNITIVE, INCIDENTAL OR INDIRECT DAMAGES, AND AGGREGATE DAMAGES
IN CONNECTION WITH THIS AGREEMENT FOR EITHER PARTY (EXCLUDING THE OBLIGATION TO PAY THE
FEES REQUIRED HEREUNDER) SHALL NOT EXCEED THE GREATER OF THE TOTAL FEES PAYABLE TO APPRAISER
UNDER THIS AGREEMENT OR TEN THOUSAND DOLLARS ($10,000). THIS LIABILITY LIMITATION SHALL NOT
APPLY IN THE EVENT OF A FINAL FINDING BY AN ARBITRATOR OR A COURT OF COMPETENT JURISDICTION
THAT SUCH LIABILITY IS THE RESULT OF A PARTY'S FRAUD OR WILLFUL MISCONDUCT.
16. Client shall not disseminate, distribute, make available or otherwise provide any Appraisal Report
prepared hereunder to any third party (including without limitation, incorporating or referencing the
Appraisal Report , in whole or in part, in any offering or other material intended for review by other
parties) except to (i) any third party expressly acknowledged in a signed writing by Appraiser as an
"Intended User" of the Appraisal Report provided that either Appraiser has received an acceptable
release from such third party with respect to such Appraisal Report or Client provides acceptable
indemnity protections to Appraiser against any claims resulting from the distribution of the Appraisal
Report to such third party, (ii) any third party service provider (including rating agencies and auditors)
using the Appraisal Report in the course of providing services for the sole benefit of an Intended User, or
(iii) as required by statute, government regulation, legal process, or judicial decree. In the event
Appraiser consents, in writing, to Client incorporating or referencing the Appraisal Report in any offering
or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make
such materials available to any such parties unless and until Client has provided Appraiser with
complete copies of such materials and Appraiser has approved all such materials in writing. Client
shall not modify any such materials once approved by Appraiser. In the absence of satisfying the
conditions of this paragraph with respect to a party who is not designated as an Intended User, in no
event shall the receipt of an Appraisal Report by such party extend any right to the party to use and
rely on such report, and Appraiser shall have no liability for such unauthorized use and reliance on any
Appraisal Report. In the event Client breaches the provisions of this paragraph, Client shall indemnify,
defend and hold Appraiser, and its affiliates and their officers, directors, employees, contractors,
agents and other representatives (Appraiser and each of the foregoing an "Indemnified Party" and
collectively the "Indemnified Parties"), fully harmless from and against all losses, liabilities, damages and
expenses (collectively, "Damages") claimed against, sustained or incurred by any Indemnified Party
arising out of or in connection with such breach, regardless of any negligence on the part of any
Indemnified Party in preparing the Appraisal Report.
17. Furthermore, Client shall indemnify, defend and hold each of the Indemnified Parties harmless from
and against any Damages in connection with (i) any transaction contemplated by this Agreement or
in connection with the appraisal or the engagement of or performance of services by any Indemnified
Party hereunder, (ii) any Damages claimed by any user or recipient of the Appraisal Report, whether or
not an Intended User, (iii) any actual or alleged untrue statement of a material fact, or the actual or
alleged failure to state a material fact necessary to make a statement not misleading in light of the
circumstances under which it was made with respect to all information furnished to any Indemnified
Party or made available to a prospective party to a transaction, or (iv) an actual or alleged violation of
applicable law by an Intended User (including, without limitation, securities laws) or the negligent or
intentional acts or omissions of an Intended User (including the failure to perform any duty imposed by
law); and will reimburse each Indemnified Party for all reasonable fees and expenses (including fees
and expenses of counsel) (collectively, "Expenses") as incurred in connection with investigating,
preparing, pursuing or defending any threatened or pending claim, action, proceeding or
investigation (collectively, "Proceedings") arising therefrom, and regardless of whether such
Indemnified Party is a formal party to such Proceeding. Client agrees not to enter into any waiver,
release or settlement of any Proceeding (whether or not any Indemnified Party is a formal party to such
Proceeding) without the prior written consent of Appraiser (which consent will not be unreasonably
Withheld or delayed) unless such waiver, release or settlement includes an unconditional release of
each Indemnified Party from all liability arising out of such Proceeding.
18. Time Period for Legal Action. Unless the time period is shorter under applicable law, except in
connection with paragraphs 16 and 17 above, Appraiser and Client agree that any legal action or
lawsuit by one party against the other party or its affiliates, officers, directors, employees, contractors,
agents, or other representatives, whether based in contract, warranty, indemnity, negligence, strict
liability or other tort or otherwise, relating to (a) this Agreement or the Appraisal Report, (b) any services
or appraisals under this Agreement or (c) any acts or conduct relating to such services or appraisals,
shall be filed within two (2) years from the date of delivery to Client of the Appraisal Report to which
the claims or causes of action in the legal action or lawsuit relate. The time period stated in this section
shall not be extended by any incapacity of a party or any delay in the discovery or accrual of the
underlying claims, causes of action or damages.
If any of the requested data and information is not available, CBRE, Inc., reserves the right
to extend the delivery date by the amount of time it takes to receive the requested
information or make other arrangements. Please have the requested information
delivered to the following:
S. Murray Brackett, MAI
Director
murray.brackett@cbre.com
CBRE, Inc.
Valuation & Advisory Services
1420 Fifth Avenue, Suite 1700
Seattle, Wa. 98101
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