Opportunity Zone Building in Chicago's Motor

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O F F M A R K E T O F F I C E B U I L D I N G F O R S A L E

MIKUS KINS BE COMMERCIAL 312.925.8013 3352 N Shefeld Ave. | Chicago, IL [email protected] 60657 773.234.3363 | berealtygroup.com O F F M A R K E T O P P O R T U N I T Y Z O N E I N C H I C A G O ' S M O T O R R O W

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OFFERING SUMMARY PROPERTY OVERVIEW Sale Price: $2,490,000 OFF MARKET – CONFIDENTIAL: Rare opportunity to purchase this historic Holabird & Roche designed three story building. Originally built in 1909 for the Quality Car Building Size: 15,240 SF Company, this building served as a showroom for the Premier and Moline car brands in Available SF: Chicago’s booming Motor Row. This 15,240 SF building is located in a designated opportunity zone and a Chicago TIF district. The building was partally renovated in 2008 Lot Size: 5,577 SF with a new front and rear stairwell and a new passenger elevator. The frst foor is built out Price / SF: $163.39 as a physician’s ofce with a 5-car heated garage located in the rear. The second and third foors have 15-foot ceilings and are wide open raw spaces with bright and expansive foor Year Built: 1909 to ceiling windows overlooking Michigan Avenue. The rear of the building stll has the old Renovated: 2007 automotve elevator that brought cars down to the glamorous showroom from the second Zoning: DS-5 and third foors. The building also had a new roof installed in 2019. Located in the heart of the Motor Row and McCormick Place Entertainment District, the building is zoned DS-5 Market: South Chicago “Downtown Service District” and the permited business uses are extensive. The zoning Submarket: Motor Row also allows for a F.A.R. of 5 which translates into a permissible building size of almost 28,000 SF. Potental opton to build up and add an impressive roof deck with stunning Trafc Count: 18,000+ views overlooking Downtown, the Lake and McCormick Place. This is a perfect investment for an opportunity zone fund and needs “substantal improvement” and upgrades to make it a remarkable fxture in this hot and rapidly evolving neighborhood. Do not miss this opportunity to purchase arguably one of the best opportunity zone propertes available in the country.

MIKUS KINS BE COMMERCIAL 312.925.8013 3352 N Shefeld Ave. | Chicago, IL [email protected] 60657 773.234.3363 | berealtygroup.com C H I CA G O' S N E W E N T E R TA I N M E N T D I S T R I C T 2 3 2 9 S M I C H I G A N A V E , C H I C A G O , I L 6 0 6 1 6

LOCATION DESCRIPTION - MOTOR ROW

The Motor Row District is a historic district in Chicago's South Loop. Motor Row includes historic buildings on Michigan Avenue just South of Cermak, directly west of McCormick Place conventon center and the new 10,000+ seat Wintrust Arena home of the DePaul Blue Demons and the WNBA. The district was built between 1905 and 1936 by a number of notable architects. At Chicago Motor Row's peak, as many as 116 diferent makes of automobiles were sold and repaired on the street.

Recently the City of Chicago designated the strip for redevelopment as a new entertainment and dining district in McCormick Place area. The former Motor Row showrooms of Ford, Buick, Fiat, Cadillac, Hudson, Locomobile, Premiere and Marmon are being redeveloped into theater, restaurant, bar, nightclub, hotel and retail storefronts. The area also boasts several new major hotels including The Chicago Marriot Marquis, The McCormick Hiltons (3 hotels), Hyat Regency McCormick Center. Several more boutque hotel projects are in the planning stage including FBRK (Fabric) which is being developed by former Chicago Bears stars Israel Idonije and Julius Peppers at the former Hudson Motor Building at 2222 S. Michigan Ave. They plan to turn that fve-story building into a co-working and technology incubator with a gym, barbershop, four residental units, a member only club, roof top pool and a 109-room boutque hotel all slated to open in 2021.

MIKUS KINS BE COMMERCIAL 312.925.8013 3352 N Shefeld Ave. | Chicago, IL [email protected] 60657 773.234.3363 | berealtygroup.com A P P R OVE D S T R E E T R E D E VE LO P M E N T P L A N S 2 3 2 9 S M I C H I G A N A V E , C H I C A G O , I L 6 0 6 1 6

CHICAGO DEPARTMENT OF TRANSPORTATION MICHIGAN AVENUE STREETSCAPE PLANS – CERMAK ROAD TO 24TH PLACE

PROJECT GOALS

•Widen sidewalks to improve walk-ability and increase opportunites for outdoor dining •Add site furniture and landscaping to create a welcoming streetscape •Add identfers to create a sense of place and enhance the historic Motor Row District •Increase safety in the area by reducing crossing distances and encouraging lower driving speeds

PROJECT DESCRIPTION The proposed streetscape design is intended to enhance the identty of the Motor Row Historic District and improve the pedestrian experience in the area. • Road Diet Design narrowing Michigan Ave to 3 lanes • Streetscape Improvements (Michigan Ave): – New widened sidewalks – Upgraded lightng with light pole identfers – Gateway identfers – Paver parkways – New curb, guter and street repaving – Catch basin upgrades/replacement – Trees and tree grates – Hanging baskets on light poles – ADA ramps – Site furniture – New crosswalks • Decoratve parkway pavers on 23rd St (State to Wabash)

IDOT approved road diet with the following requirements: – 53’ road width minimum to handle future trafc and potental detour needs – Trees and light poles located 4’ clear from curb – 5 lanes at Cermak Road and 24th Place maintained

for intersecton capacity • Road diet provides: – 13.5’ wide sidewalks (increase of 5.5’) – 2 travel lanes, center turn lane, and parking on both sides

MIKUS KINS BE COMMERCIAL 312.925.8013 3352 N Shefeld Ave. | Chicago, IL [email protected] 60657 773.234.3363 | berealtygroup.com PR E M I E R AUTO M OT IVE A N D M OTO R R OW 2 3 2 9 S M I C H I G A N A V E , C H I C A G O , I L 6 0 6 1 6

PREMIER AND QUALITY CAR COMPANY 2329 S Michigan Ave was built in 1909 for the Quality Car Company. The building served as a showroom for Quality Car Co. to display the Premier and Moline car brands in Chicago’s booming Motor Row. The Premier Motor Manufacturing Company was founded in 1903 by George A. Weidely and Harold O. Smith in Indianapolis, Indiana. The company was known for building automobiles with air-cooled engines.

Quality Car Company selected 2329 S Michigan Ave for their showroom as the area had become the perfect zone for dealerships. Afer the Chicago Fire in 1871, the street was re- zoned as a Boulevard which caused a building boom of large homes and wide paved streets and alleys. In fact, the Boulevard was coined one of the best paved streets in Chicago in 1891 and was known as the best automobile course in any city in the country. Soon, automobile dealers from all over the City used the Boulevard as the best place to test cars.

The Motor Row Boulevard remained Chicago's largest concentraton of automobile and specialty showrooms untl afer World War II. A 1933 city guidebook stll referred to Michigan Avenue south of 18th Street as “Automobile Row,” notng that lining either side of the street “are the salesrooms of virtually all American and many foreign motor cars.”

CHICAGO EXAMINER, SUNDAY, FEBRUARY 6, 1910

“Passing Twenty-third street one comes to a big bunch of important agencies and branch concerns. The frst of these is the store and building of the Quality Car Co., which handles the Premier and Moline in Chicago. This company has the whole building at 2329 Michigan avenue. It is a beautful building, although the showroom is small, afording only space enough to display four cars. It has a big garage and storeroom in the rear and above stairs and does a lively business.”

MIKUS KINS BE COMMERCIAL 312.925.8013 3352 N Shefeld Ave. | Chicago, IL [email protected] 60657 773.234.3363 | berealtygroup.com HOLABIRD & ROCHE 2 3 2 9 S M I C H I G A N A V E , C H I C A G O , I L 6 0 6 1 6

CHICAGO SCHOOL OF ARCHITECTURE

The frm was founded in 1881 by William Holabird and Martn Roche who met while working under William LeBaron Jenny, the “father of the modern skyscraper.” Holabird and Roche were instrumental in the development of the Chicago School of Architecture. Their buildings featured large pane windows, ofen fanked by smaller movable sash windows, utlizing a steel frame structure clad in terracota.

Notable Holabird & Roche Chicago Buildings: Tacoma Building, Pontac Building, Old Colony Building, Marquete Building, Republic Building, Chicago Building, Chicago City Hall- County Building, Brooks Building, Cadillac Building, Monadnock Building, University Club and Chicago Temple

MOTOR ROW ARCHITECTURE

The Premier Building is a strong example of a commercial Chicago School of Architecture building. In the end, Holabird & Roche designed six buildings on Motor Row.

The architecture of motor row embodies the evoluton of the auto industry and the way that dealers sold. Beginning with a stable or garage like building moving towards mult story showrooms with vast windows for gazing in; the row illustrates the evoluton of auto industry transformed from a niche luxury purchase to a standard consumer item. As tme went on, the showrooms became more lavish. The buildings create a cohesive theme of the district. They were designed with similar size, scale and used like materials and detailing. This can be partly accredited to the fact that they all needed to be used in the same way, and the majority of the buildings were built before 1920.

Typical building features include: large windows, steel reinforced concrete with a curtain façade clad in brick and terra cota creatng a “picture frame” around windows

OPPORTUNITY ZONES TRACT: 17031841000

The Tax Cuts and Jobs Act included a new federal incentive—Opportunity Zones— meant to spur investment in undercapitalized communities. Any corporation or individual with capital gains can qualify. The program provides three tax benefits for investing unrealized capital gains in Opportunity Zones:

• Temporary deferral of taxes on previously earned capital gains. Investors can place existing assets with accumulated capital gains into Opportunity Funds. Those existing capital gains are not taxed until the end of 2026 or when the asset is disposed of.

• Basis step-up of previously earned capital gains invested. For capital gains placed in Opportunity Funds for at least 5 years, investors’ basis on the original investment increases by 10 percent. If invested for at least 7 years, investors’ basis on the original investment increases by 15 percent.

• Permanent exclusion of taxable income on new gains. For investments held for at least 10 years, investors pay no taxes on any capital gains produced through their investment in Opportunity Funds (the investment vehicle that invests in Opportunity Zones).

Apart from a few “sin” businesses, Opportunity Funds can finance a broad variety of activities and projects. Funds can finance commercial and industrial real estate, housing, infrastructure, and existing or start-up businesses. For real estate projects to qualify for Opportunity Fund financing, the investment must result in the properties being “substantially improved.”

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MIKUS KINS BE COMMERCIAL 312.925.8013 3352 N Shefeld Ave. | Chicago, IL [email protected] 60657 773.234.3363 | berealtygroup.com FLOOR PLAN - FIRST FLOOR 2 3 2 9 S M I C H I G A N A V E , C H I C A G O , I L 6 0 6 1 6

MIKUS KINS BE COMMERCIAL 312.925.8013 3352 N Shefeld Ave. | Chicago, IL [email protected] 60657 773.234.3363 | berealtygroup.com FLOOR PLAN - SECOND FLOOR 2 3 2 9 S M I C H I G A N A V E , C H I C A G O , I L 6 0 6 1 6

MIKUS KINS BE COMMERCIAL 312.925.8013 3352 N Shefeld Ave. | Chicago, IL [email protected] 60657 773.234.3363 | berealtygroup.com FLOOR PLAN - THIRD FLOOR 2 3 2 9 S M I C H I G A N A V E , C H I C A G O , I L 6 0 6 1 6

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POPULATION 1 MILE 3 MILES 5 MILES Total Populaton 29,289 221,125 612,203 Average age 36.6 34.8 33.7 Average age (Male) 35.6 33.8 33.1 Average age (Female) 37.3 35.8 34.3

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 13,558 101,250 270,039 # of persons per HH 2.2 2.2 2.3 Average HH income $76,278 $78,019 $83,551 Average house value $409,695 $375,573 $422,353

* Demographic data derived from 2010 US Census

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PROPERTY INFORMATION Sale Price $2,490,000 Property Type Ofce

LOCATION INFORMATION Property Subtype Ofce Warehouse APN # 17-27-110-008-0000, 17-27- OFF MARKET Opportunity Building Name 110-009-0000 Zone in Chicago's Motor Row Lot Frontage 35 f Street Address 2329 S Michigan Ave Lot Depth 160 f City, State, Zip Chicago, IL 60616 Trafc Count 18000 County Cook Trafc Count Street Michigan Avenue Market South Chicago Trafc Count Frontage 35 Sub-market Motor Row Michigan Avenue and 23rd Cross-Streets Street PARKING & TRANSPORTATION Parking Type Structure BUILDING INFORMATION Parking Rato 0.33 Building Class C Number of Parking Spaces 5 Occupancy % 20.0% Tenancy Multple UTILITIES & AMENITIES Ceiling Height 14.75 f Handicap Access Yes Number of Floors 3 Elevators 2 Average Floor Size 5,100 SF Freight Elevator Yes Year Built 1909 Year Last Renovated 2007 Gross Leasable Area 15,240 SF Roof New in 2019 Free Standing Yes

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MIKUS KINS BE COMMERCIAL 312.925.8013 3352 N Shefeld Ave. | Chicago, IL [email protected] 60657 773.234.3363 | berealtygroup.com