MID-AMERICA RETAIL REVIEW

Winter 2017 Newsletter | Issue 08 The Rise of Private Label: A Grocery Study Mid-America | Winter 2017 | 3 product has long had a perception problem. Previously synonymous with “generic” or “inferior,” RETAIL REVIEW the success of stores like Trader Joe’s and Aldi has elevated expectations of in-house brands. Also, despite four in five people saying private-label product “met expectations,” only 23% of consumers say they completely trust the safety of the private labels they consume. WINTER 2017 It’s no secret that private-label sales yield higher margins for grocers, but what’s less known is that they also tend to taste better than their name-brand counterparts. Brand loyalty and trust are hard to come by these days, so maybe this private-label thing isn’t so simple. But to the grocers who can match quality product with a well-tailored marketing message, go the spoils. E-GROCERY: IS THERE HOPE FOR THEE? Since the advent of the internet, evangelists That doesn’t mean e-Grocery is going the way have heralded it as a panacea to the woes of of the dodo. The landscape is indeed shifting humanity. Some efforts have proved more fruitful toward the convenience of online ordering – it’s than others, however. Time being our most limited just a matter of infrastructure and quality control. resource, shopping for groceries online seems Instacart operates as a third-party same-day like a natural alternative for the busy professional, grocery delivery service whose CEO called the tired parent, or impatient millennial. As consumers Amazon-Whole Foods merger a “blessing in and competitors alike anxiously await the disguise.” Not sitting idly by, grocery chains across full ramifications of Amazon’s Whole Foods the US are clamoring for their share of what’s acquisition, it’s worth noting e-Grocery’s lackluster, expected to be a $100 billion online grocery THE RISE OF PRIVATE LABEL: A GROCERY STUDY twenty-plus year history. opportunity by 2025. While their focus has largely US grocery shoppers could save as much as $44 Couple that with 68% of all grocery carts leaving 96% of Americans have used their internet been on “click and collect” models, many are now billion each year, according to a study conducted stores with 10 items or less, and it’s clear the big- access to shop online, and according to a survey signing deals to support “last mile” strategies. by the National Bureau for Economic Research. box grocery model is due for reform. While these conducted by PWC 45% of all product searches This year, for example, Albertson’s (parent How, you might ask? Simple: Eschew the more giants traditionally benefit from greater volume in start on Amazon. Despite sending shockwaves company to ) began rolling out internal same- expensive national brands, and embrace the a particularly tight-margined category, shoppers throughout the industry with their most recent day delivery services, a drive-up grocery, and even private-label. are spending less time there. Less time in store merger, Amazon has been in the grocery delivery acquired meal kit company Plated. On November And why not? correlates to smaller baskets and thereby weaker game for a decade now and continues to 28, the company announced it had inked a deal flounder. The hype of meal kits and newfound with Instacart, promising 2-hour delivery services The internet age ONE IN FIVE US dollar spend. distribution potential notwithstanding, Amazon to the customers of 1,800 banner stores by mid- has ushered in a According to Mid-America’s 2017 Urban Grocery Fresh has retreated from all but the largest of year 2018. With this, Instacart now supports the new era of price Study, however, there is definitive evidence of SHOPPERS AVOID markets. Strained by low density populations and top 5 grocers in the country: Albertson’s, Kroger, consciousness, market correction vis-à-vis a trend toward down- unidentified sources citing USPS rate hikes as a Publix, Ahold, and H-E-B. increasingly driving sizing. lost a net total of nine grocery sites contributing factor to poor profitability, the online consumers to split SUPERMARKET over the past 24 months, with the average size of Forging partnerships and forgoing costly retailer is taking steps back just as traditional warehouse space is allowing Instacart to succeed their shopping outgoing grocers at 38,000 square feet, whereas grocers are making strides forward. amongst multiple CENTER AISLES new or proposed entrants averaged only 25,000 sf. where early dot-com delivery companies like sites. Once Amazon Fresh is currently rated at an average 3.3 Webvan spectacularly failed. Early in the new As grocery footprints shrink, this “right-sizing” out of 5 stars, “landing between ‘It’s okay’ and ‘I millennium, consumers weren’t quite ready for upon a time, the ALTOGETHER will necessitate inventory consolidation as well, supermarket was a like it’ [on its own] review system.” From damaged e-Grocery. Nowadays though, 30% of digital and herein lies an opportunity for the bewildered produce to missed delivery windows, Amazon’s shoppers spend a quarter of their food budget bastion of one-stop large-chain store. Although the Mid-America extended grocery experiment suggests it won’t online, with that figure expected to more than shopping, a place of convenience; today, these report notes a 3% drop in market share for “major” easily be the whirlwind it was for online book sales. double in the next 10 years. 40,000+ square foot behemoths are largely more industry players, smaller independent grocers’ The Amazon-Whole Foods deal was expected overwhelming than otherwise. In fact, a recent share declined more sharply at 7% with little to kill Instacart and platforms like it. Instead, report by behavioral analytics firm VideoMining anticipation for significant recovery. found that one in five US shoppers avoid grocers have found a beacon of light for the supermarket center aisles altogether—that’s an Scale still offers insulation, but competition at this digital future ahead. 8% uptick in “perimeter shoppers” since 2012. level is fierce. Enter: the private-label. While far from a recent innovation, privately branded grocery

Mid-America | Winter 2017 | 2 Mid-America | Winter 2017 | 5 HOLD YOUR HORSES, AMAZON Chicagoland retail vacancy rates for Q3 DELIVERY & EXCHANGE: More brick & mortar retail operations are expected to open reached a 7-year peak, with the gap between Q3 CHICAGOLAND VACANCY RATES than close this year, according to a report by a global retail urban and overall rates widening for the fourth NEEDING THE STORE FOR MORE research advisory. To be sure, Amazon’s meteoric growth is consecutive year. Landlords in the more popu- 14.00% nothing shy of impressive, and its acquisition of Whole Foods Technologists might be dreaming of lation-dense urban areas fared relatively better 12.00% no less than disruptive. Though retail’s grim-reaper it is not. drone delivery, but with at least 30% than their suburban peers, but neither were 10.00% of all products purchased online being completely insulated from the big-box closures 8.00% Online sales still only account for 10% of total retail, and when returned, retailers cannot forget there and down-sizing that have been thematic of 6.00% it comes to operating results, Moody’s Investor Services say are two sides to the omnichannel coin. the 2017 retail environment. 4.00% Amazon is the weakest of the big US retailers. The Prime Anticipating moves by Amazon and membership base is “wildly inflated,” with Costco total 2.00% Whole Foods, Costco has unveiled membership likely trumping Amazon by some 15 million users. Shopping center development has seen a 79% 0.00% two new delivery options for grocery decline since 2005, with expectations of only 2010 2011 2012 2013 2014 2015 2016 2017 The notion that Amazon will take over the grocery game is product and sundries: guaranteed free also a myth, the agency adds. Kroger sells around $130 billion 1,060,000 square feet of new space coming to Urban Overall 2-day delivery and a same-day option market—a 31% decrease from last year—ac- in food, and Walmart does north of $200B. Even including at an additional cost. Kohl’s unlikely cording to Mid-America’s 2017 Shopping Center Report. Grocery-anchored centers account for seven Whole Foods, food sales at Amazon amount to less than $20 partnership with Amazon deepens, of the eleven planned developments this year, as the category still benefits from residual growth largely billion annually. from first a store-within-a-store play the result of competition for the market share once held by Dominick’s. Despite the number of new Still, do not take this e-titan lightly. The lion’s share of the firm’s to now accepting returns on behalf of developments and expansions remaining relatively steady over the past three years, the data reflects profitability comes from its web services solutions platform— the online retailer. Walmart promises an era of decreased footprint demand and adaptive re-use of existing space. meaning they can afford to lose (a lot of) money elsewhere. a 30-second return window, with its “Amazon didn’t acquire an iconic grocery store just for “Mobile Express Returns” program Although year-end absorption should nominally deflate vacancy rates heading into Q4 results, we ex- the quinoa.” The future of grocery depends on being able launched this November. Picking pect continued box closures and tenant right-sizing to drive rates back up early next year. Look to see to respond to rapidly changing preferences. Amazon is up? The company has also rolled out an inflection point toward downward trending correction by Q3 2018, as new, more experiential retail, particularly well-equipped to make use of behavioral data gaint self-service towers that act like entertainment and dining experiences start to take hold. and artificial intelligence. With the acquisiton of Whole Foods vending machines for online orders at comes a littany of new data points, and a unique opportunity some sites. NATIONAL RETAIL FEDERATION: CONSUMER VIEW STUDY, FALL 2017 to study grocery shopping habits. Whole Foods is already advertising price cuts, hoping to entice the 38 million US Prime shoppers SOURCE: NRF CONSUMER VIEW STUDY, FALL 2017 who don’t already shop at Whole Foods. But the true value of this acquisiton, according to Credit Suisse, Swaying consumer behavior is the untapped potential for fulfilment and delivery: should Prime Now (with its 2-hour delivery window) is a challenge, but younger expand to 100% of zip codes with a Whole Foods, Amazon’s value could increase by 22%. consumers are increasingly embracing physical retail when it offers a new experience or is more convenient, per the NRF Report. As shoppers age they typically are more purpose- driven in their habits, but a propensity to browse among younger shoppers is a huge omnichannel opportunity for retailers, especially those mindful of how they curate their product mix.

Mid-America | Winter 2017 | 4 Mid-America | Winter 2017 | 7 OFF PRICE-ON MIND DOLLAR GENERAL SUCCEEDS 365: THE STORE AND THE PRODUCT WAL-MART, ALL-MART According to a report by Moody’s, off-price retailers are likely to remain among the top retail performers over the EVEN IN TOWNS WHERE Despite early uncertainities, and the closing of a As Amazon works to beef up its physical the next 12 to 18 months. Analysts expect operating income Seattle-based store, the cheaper, smaller-format presence, Walmart has been making massive in this segment to grow by 6.9% this year, citing success Whole Foods 365 concept will not be abandoned strategic investments online. E-commerce in flexible purchasing models, nimble reactivity to consumer WALMART HAS FAILED, by the Amazon overlords. Chicagoland expected platform Jet.com was once considered a preferences, and continued expansion, whereas apparel- its first location this November, but the project formidable competitor to Amazon; then it was at-large will see a figure closer to 4%. As conventional AND THEIR NEW PRODUCE- was marred by delays. Executives have now acquired by Walmart last year, and the super- department stores revamp, the “treasure hunt” model confirmed, however, that the Evergeen Park retailer subsumed its technology and gained of off-pricers like the (growing) TJ Maxx portfolio, Ross, development will move forward. In fact, the site an outlet for reaching directly to urban and Burlington will set the stage for several years of steady FOCUSED REMODELS SHOW will serve as the model for all future small-format millenials. Doubling down, the company growth. Dollar General succeeds even in towns where stores in the Whole Foods brand. recently announced a new high-end grocery Walmart has failed, and their new produce-focused remodels PROMISE, TOO. “We’re still going to do 365 stores. The reality private-label, Uniquely J, offering up select olive show promise, too. is they’re not a big deal. They represent a tiny oil, coffees, paper towels, and other essentials. portion of our business and are therefore a Where Jet.com fit with Walmart’s value image, flyspeck of Amazon’s business,” says Michael the more recent acquisitions of Bonobos and Bashaw, Whole Foods’ Midwest regional ModCloth are a departure into the premium and BLACK FRIDAY SHINES BRIGHT President. He adds, “it’s sort of like a new tailored world of fashion. Walmart even has a In a year where department stores were of six stores, marking a 50% increase over 2016 marriage,” that the merger needed to be finalized, solution to Amazon for its retailer-bretheren: join and that they are learning and adjusting based lambasted as bloated and irrelevant, Thanksgiving visits. 75% of all spending was captured by forces and leverage Walmart as an alternative on review of their existing locations. weekend sales proved a positive sign for brick-and-mortar retailers, defiantly challenging online mall. A deal to host a Lord & Taylor the 2017 holiday season. According to the the notion of physical retail’s demise. Of those Although Whole Foods 365 stores account section on walmart.com could validate an International Council of Shopping Centers, more who made a click-and-collect purchase, 69% for a miniscule amount of Amazon’s business, enduring proof of concept. than 145 million adults visited malls and shopping made additional in-store purchases. Moreover, the retailer would do well to cultivate its “365 centers over the holiday weekend – 105 million those who used the opportunity to buy holiday Everyday Value” private-label brand. Amazon on Black Friday alone – spending $377.50 in retail gifts spent an average of $102 on non-gift items. will likely bring its “Basics” private-label lineup to stores and $78.70 on food and entertainment, Boding well for year-end sales, only 12% of a Whole Foods near you, but they face alienating on average. A longer shopping season this year consumers anticipate worse deals in December, millennials if they are unable to deliver healthy, did not come at the expense of Black Friday with 28% expecting better deals and 60% high-quality product in grocery. performance. In fact, shoppers visited an average expecting deals to be just as good.

APPAREL PERIL? AS OF DECEMBER 5, 2017 (SOURCE: NASDAQ) Shares of JCPenney fell sharply this year relative to its department store peers. Following a disastrous move to elimate coupons in 2013 and amdist a current climate of dismal skepticism for these big- box apparel players, JCPenney has yet to win over confidence on Wall Street. But does this negative outlook actually reflect the state of the firm’s potential to disrupt Sears and the upcoming holiday season? With gross profit margin stabilized around 35-36%, appliance companies moving in (rather than out), and an expanding Lego partnership—perhaps not.

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ICSC HOLIDAY INSIGHTS MID-AMERICA NOTABLE TRANSACTIONS SOURCE: INTERNATIONAL COUNCIL OF SHOPPING CENTERS CHAMPS SPORTS 100 SOUTH CHICAGO, IL

Square Feet: 16,037 Mid-America Real Estate Corporation Andrew Becker and Paul Bryant represented the landlord, Mike Wexler represented Champs Sports in this transaction.

CAPITAL ONE 100 SOUTH STATE STREET CHICAGO, IL

Square Feet: 9,610 Mid-America Real Estate Corporation Andrew Becker and Paul Bryant represented the landlord in this transaction.

ROYAL PALMS SHUFFLEBOARD CLUB 1760 NORTH MILWAUKEE AVENUE CHICAGO, IL

Square Feet: 16,522 Mid-America Real Estate Corporation Andrew Becker and Mike Wexler represented the Royal Palms Shuffleboard Club in this transaction.

FIRST ASCENT CLIMBING & FITNESS “BLOCK 37” CHICAGO, IL

Square Feet: 17,632 Mid-America Real Estate Corporation Andrew Becker represented First Ascent Climbing & Fitness in this transaction.

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MID-AMERICA NOTABLE TRANSACTIONS MID-AMERICA NOTABLE TRANSACTIONS COOPERS HAWK NANDO’S PERI PERI ST. CHARLES, IL 2 DEALS COMPLETED

Square Feet: 12,000 Mid-America Real Estate Corporation Mid-America Real Estate Corporation Hyde Park - Chicago, IL - 4,000 SF Steve Frishman and Brian Adams represented Coopers Michigan Avenue - Chicago, IL - 4,000 SF Hawk. Steve Frishman and Brian Adams represented Nando’s.

PORTILLO’S BELLEMORE 4 DEALS COMPLETED 564 W. RANDOLPH ST, CHICAGO, IL Mid-America Real Estate Corporation Square Feet: 6,800 Mid-America Real Estate - Wisconsin Mid-America Real Estate Corporation Mishawaka, IN -9,000 SF Michael Wexler represented Bellemore (Boka Restaurant Peoria, IL - 9,000 SF Group). Champaign, IL - 9,000 SF Greenfield, WI - 9,000 SF Steve Frishman and Brian Adams represented Portillo’s in IL and IN. STEAK48 Dan Cohen and Adam Dreier represented Portillo’s in WI. 615 NORTH WABASH, CHICAGO, IL

Square Feet: 13,000 SWEET GREEN Mid-America Real Estate Corporation 4 DEALS COMPLETED Paul Bryant and Michael Wexler represented the landlord. Mid-America Real Estate Corporation 1 North Dearborn St., Chicago IL, - 2,450 SF 150 North. Michigan Ave, Chicago, IL - 2,700 SF 1000 West Randolph St., Chicago, IL - 2,100 SF 623 North State St, Chicago, IL - 2,400 SF BLUE MERCURY Michael Wexler represented Sweetgreen. 4 DEALS COMPLETED

Mid-America Real Estate Corporation ROTI MODERN MEDITERRANEAN 356 North Clark St, Chicago, IL - 2,400 SF 3 DEALS COMPLETED 1153 North State St, Chicago, IL - 2,058 SF 42 West Jefferson Ave - Naperville, IL - 2,000 SF Mid-America Real Estate - Minnesota Barrington Village, Barrington, IL - 2,708 SF 1620 Park Pl Blvd, St Louis Park, MN 2,095 SF Michael Wexler represented Blue Mercury. 3901 W 70th Street Edina, MN – 2,202 SF SEQ of Washington and Harvard, Minneapolis, MN – 2,375 SF Mike Sims and Michael Lund represented Roti.

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MID-AMERICA NOTABLE TRANSACTIONS MID-AMERICA NOTABLE TRANSACTIONS

ASPEN DENTAL FIRST WATCH 3 DEALS COMPLETED TROY, MI

Mid-America Real Estate - Minnesota Square Feet: 3,500 5800 Krueger Lane, Oak Park Heights, MN – 3,600 SF Mid-America Real Estate - Michigan 3088 White Bear Avenue North – Maplewood, MN – 3,570 SF Tony Schmitt and Brad Rosenberg represented First Watch. NEQ of West Central Entrance & West Myrtle Street, Duluth, This will be their first location in Michigan. MN – 3,500 SF Mike Sims and Michael Lund represented Aspen Dental. DULUTH TRADING COMPANY 3 DEALS COMPLETED

Mid-America Real Estate - Michigan Macomb Township, MI - 15,000 SF TOP GOLF Grandville, MI - 15,000 SF SF 6420 N. CAMDEN AVE Wixon, MI - 15,000 SF BROOKLYN CENTER, MN Susan Acciaioli represented Duluth Trading Company. Acres: 13.5 Mid-America Real Estate - Minnesota OLLIE’S BARGAIN BASEMENT Stefanie Meyer and Johnny Reimann represented Top Golf in 2 DEALS COMPLETED this transaction. Mid-America Real Estate - Michigan Muskegon, MI - 30,000 SF Bay City, MI - 30,000 SF CLUB CHAMPION Susan Acciaioli, Jack Uhazie and Tony Schmitt represented 29918 WOODWARD AVENUE Ollie’s. ROYAL OAK, MI CHIPOTLE Square Feet: 3,000 4 DEALS COMPLETED Mid-America Real Estate - Michigan Jack Uhaize represented Club Champion in this transaction. Mid-America Real Estate - Michigan Grand Rapids, MI (2) - 2,300 SF Kalamazoo, MI - 2,300 SF Mt. Pleasant, MI - 2,300 SF LA FITNESS Tony Schmitt represented Chipotle. SHELBY TOWNSHIP TIDE DRY CLEANERS Square Feet: 34,000 2 DEALS COMPLETED Mid-America Real Estate - Michigan Tony Schmitt represented LA Fitness. Mid-America Real Estate - Michigan Birmingham, MI - 3,200 SF Shelby Township, MI - 3,200 SF Adam Goodman and Tony Schmitt represented Tide Dry Cleaners.

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MID-AMERICA NOTABLE TRANSACTIONS MID-AMERICA NOTABLE TRANSACTIONS

ART VAN FURNITURE PETE’S FRESH MARKET DEERBROOK MALL RICE LAKE SQUARE DEERFIELD, IL WHEATON, IL Square Feet: 41,926 Square Feet: 69,586 Mid-America Asset Management, Inc. Mid-America Asset Management, Inc. Landlord was represented by Dick Spinell, Liz Krebs and Landlord was represented by Dick Spinell and Marget Sarah Norlander. Graham

JEWEL OSCO H&M DEERBROOK MALL DEERFIELD, IL CHICAGO, IL Square Feet: 61,867 Square Feet: 22,828 Mid-America Asset Management, Inc. Mid-America Asset Management, Inc. Landlord was represented by Dick Spinell, Liz Krebs and Landlord was represented by Marget Graham, Maria Sarah Norlander. Rossobillo and Sarah Norlander.

SIERRA TRADING POST | HOMEGOODS DICK’S SPORTING GOODS DELAFIELD, WI VILLAGE SQUARE OF NORTHBROOK NORTHBROOK, IL Square Feet: 40,625 Client: TJX Corporation Square Feet: 45,453 Mid-America Real Estate - Wisconsin Mid-America Asset Management, Inc. Dan Cohen and Tony Colvin represented TJX Corporation Landlord was represented by Dick Spinell and Liz Krebs. in their lease with Ramco Gershenson at The Shoppes of Nagawaukee II. This location was the first Sierra Trading Post in Wisconsin.

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MID-AMERICA NOTABLE TRANSACTIONS MID-AMERICA NOTABLE TRANSACTIONS In 2017 the Mid-America Real Estate Corporation Investment Sales team brokered the sale of 40 shop- ping centers with an aggregate value of over $1 billion. Some of their transaction highlights are below: LA FITNESS CHICAGO, IL RIVERPOINT SHOPPING CENTER Square Feet: 40,050 CHICAGO, IL Price: $16,000,000 Mid-America Real Estate Corporation Mid-America Real Estate Corporation Investment Sales Net Lease Sales Square Feet: 211,000

3030 NORTH BROADWAY CHICAGO, IL Mid-America Real Estate Corporation PORTILLO’S Investment Sales MERRILLVILLE, IN Square Feet: 130,569 Square Feet: 10,058 Price: $2,500,000 BELDEN PARK CROSSING Mid-America Real Estate Corporation NORTH CANTON, OH Net Lease Sales Mid-America Real Estate Corporation Investment Sales Square Feet: 130,569 KOHL’S VILLAGE CROSSING NEENAH, WI NILES, IL Square Feet: 86,854 Mid-America Real Estate Corporation Price: $10,328,000 Investment Sales Mid-America Real Estate Corporation Square Feet: 273,482 Net Lease Sales WILMETTE, IL Mid-America Real Estate Corporation Investment Sales JOLLIBEE Square Feet: 100,213 SKOKIE, IL Square Feet: 4,500 MILLENNIUM PARK Price: $5,260,000 LIVONIA, MI Mid-America Real Estate Corporation Mid-America Real Estate Corporation Net Lease Sales Investment Sales Square Feet: 273,029

FOUNTAIN SQUARE MARIANO’S BROOKFIELD, WI LOMBARD, IL Mid-America Real Estate Corporation Square Feet: 74,000 Investment Sales Mid-America Real Estate Corporation Square Feet: 166,346 Net Lease Sales

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MID-AMERICA NOTABLE PROJECTS MID-AMERICA NOTABLE PROJECTS WICKER PARK COMMONS CHICAGO, IL Before DEERBROOK MALL | ART VAN FURNITURE Square Feet: 183,337 DEERFIELD, IL Client: RREEF Mid-America Asset Management, Inc. Client: RREEF Management Wicker Park Commons is ideally located at the intersection Contractor: Osman Construction of Milwaukee, Ashland and Division. Anchored by Jewel Architect: OKW Architects Osco and Lowe’s Home Improvement, it is the only Project Team: Patricia Mahony traditional grocery anchored center west of I-94. The center Mid-America Asset Management, Inc. serves one of Chicago’s fastest growing neighborhoods, Construction Management Wicker Park, along with the immediate trade areas of Logan After The vacant Sports Authority at Deerbrook Mall has been Square, Bucktown, Ukrainian Village and West Town. revitalized into a new Art Van Furniture store that opened on The center is leased and managed by Mid-America Asset Dec. 13. The Landlord demolished the interior of the space, Management, Inc. installed new roof top units, exterior concrete and landscap- ing. The tenant brought in their own team to complete the 701 N. MICHIGAN AVENUE interior and exterior finishes to match the new building con- CHICAGO, IL struction taking place at Deerbrook. Square Feet: 22,900 Client: Grosvenor Americas Mid-America Asset Management, Inc. The Allerton Crowne Plaza was originally constructed in 1924 as the tallest building on North Michigan Avenue. Compris- DEERBROOK MALL | JEWEL OSCO ing two retail levels above grade, currently leased to Brooks Before Brothers and Stuart Weitzman, and twenty-three stories of DEERFIELD, IL hotel accommodation, the property has a rich history on the Magnificent Mile. The property is managed and leased by Client: RREEF Management Mid-America Asset Management, Inc. Deutsche Asset Management Civil Engineer: Spaceco Inc. FORD CITY MALL Before Contractor: Osman Construction CHICAGO, IL Project Team: Patricia Mahony Mid-America Asset Management, Inc. Owner: Istar Construction Management Contractor: Graycor A section of inline space, along with a portion of the existing Architect: OKW Architects After Jewel and two arcade buildings, was demolished to pave Project Team: Michelle Panovich, Patricia the way for a new prototype Jewel building. Jewel remained Mahony, John Zoerner and Frank Leon Mid-America Asset Management, Inc. open in a portion of their existing store while the site work Construction Management and new construction were completed. After Renovations at Ford City commenced in 2017 with all new Mid-America performed all demolition, site work, utilities and lighting, flooring and painting to the interior of the mall. paving. Jewel completed the construction of their building, New furniture and tech tables were placed throughout which opened in July. Upon opening, the remainder of the the mall and the five main entrances were upgraded with former Jewel was demolished to create a pad for a new new finishes, which included entry lighting systems with outlot building. programmable graphics and color changing capabilities. Further renovations are scheduled for 2018 including a new pylon and directory signage along with a food court refurbishment.

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MID-AMERICA NOTABLE PROJECTS MID-AMERICA NOTABLE PROJECTS

84SOUTH SILVERNAIL PLAZA GREENFIELD, WI PEWAUKEE, WI Before Square Feet: 350,000 Owner: United Properties Client: Cobalt Partners Contractor: KVG & Poblocki Paving Mid-America Real Estate - Wisconsin Architect: Logic Design Project Leasing Project Team: Jim Vaillancourt and Kevin Dexter 84South, a 50-acre mixed use development located in Mid-America Real Estate - Wisconsin Greenfield, WI, welcomed its initial tenant openings in the For years, ownership has been planning a full face lift to summer of 2017. Marshalls, Ross, Ulta, Fresh Thyme, Five Silvernail Plaza. The transformation of the new Metro Market Below, Kirkland’s, Carter’s/Oshkosh, and Wisconsin’s 2nd finally pushed them to take it on in 2017. Poblocki Paving re- Portillo’s are now open. Phase two, which includes Kohl’s After surfaced the Pick ‘n Save side of the parking lot and asphalt and Total Wine, is under construction and will open in 2018. in front of the inline building. They also replaced most of the Additional outlot users including Outback Steakhouse, Café curbs on the islands. The original red brick on the front of the Zupas, FedEx Office, MOD Pizza, and Grate Mac & Cheese building was falling apart, so KVG replaced it with a manu- will also open in 2018. 84South is being developed by Mil- factured stone product. The same stone was put along the waukee-based Cobalt Partners, represented by Scott Satula bottom of the columns to make the center look cohesive. In and Dan Rosenfeld. Dan Cohen, Tony Colvin, and Adam the next 18 months, repainting of the EFIS will be contracted Dreier represented many of the aforementioned tenants. as well as upgrading the parking lot and building lights to LED. The property is managed and leased by Mid-America Real Estate – WI, LLC. Dreier represented many of the afore- mentioned tenants. MILLS FLEET FARM WISCONSIN Before Acres: 18-25 MT. PLEASANT PLAZA Client: Mills Fleet Farm MT. PLEASANT, WI Mid-America Real Estate - Wisconsin Owner: John Kyrios Dan Cohen and Max Jacobson are representing Mills Fleet Contractor: Paving & Lawn Maintenance, Farm in their continued statewide and regional expansion. In CertaPro, Davis Seasonal Maintenance 2017, Mills broke ground on four stores in Wisconsin - Eau Project Team: Jim Vaillancourt and Tony Lee Claire, Oconomowoc, DeForest and Delavan - and one in Mid-America Real Estate - Wisconsin Iowa. These locations are scheduled to open in 2018. Mills Mt. Pleasant Plaza was taken over from a receivership and Fleet Farm will continue their regional expansion and growth After has been in need of an overhaul. The inline building was re- market identification in 2018. freshed to attract prospect tenants. The façade was repaired and painted to remove stains and grime from old tenant sign- age, multiple trees were removed and replaced with small bushes, and other landscaping was done to allow more visibil- ity to the center. Portions of the parking lot, asphalt and curbs were patched and repaired because of deterioration that had formed potholes and cracks. The property is managed and leased by Mid-America Real Estate – WI, LLC.

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MID-AMERICA NOTABLE PROJECTS MID-AMERICA NOTABLE PROJECTS

Before THE DAYTON’S PROJECT BAYSIDE MARKETPLACE MINNEAPOLIS, MN ASHWAUBENON, WI Square Feet: 240,000 Owner: The Ardent Companies Client: 601W Companies Contractor: Jones Signs, 1st Choice Landscaping Mid-America Real Estate - Minnesota Project Team: Jim Vaillancourt and Sammy Steed Project Leasing Mid-America Real Estate - Wisconsin Located along Nicollet Mall, between 7th & 8th Streets, and Bayside Marketplace obtained a large tenant and thus Own- just two blocks away from the busiest light rail stop in Down- ton’s CBD. The Dayton’s building was originally built in 1901 After ership took this opportunity to modernize the two pylon signs. The new signs were refurbished from the steel structure of and endured many expansions and remodels over the years. the old signs. The top cabinets were modified to fit the tenant Today it is the most sought after and talked about property Fresh Thyme’s sign. The lower cabinet received new LED on the twelve-block Nicollet Mall and marks a monumental lighting and reinstalled the existing tenant panels. New paint win for our MN Leasing team. Tricia Pitchford and Jesseka enhanced the signs and faux stone was added to cover the Doherty are the leasing agents for this project. bases of the poles to give an updated, modern look. Up- graded landscaping was installed throughout the center and around the pylon signs to improve sightlines and visibility. XPERIENCE FITNESS | CROSSROADS OF ROSEVILLE ROSEVILLE, MN

Square Feet: 54,069 THE SHOPPES AT KNOLLWOOD Mid-America Real Estate - Minnesota ST. LOUIS PARK, MN Project Leasing Xperience Fitness signed a new lease to take over the former Square Feet: 456,846 Gordmans space. Tricia Pitchford and Laura Castagna are Client: Heitman the leasing agents for this center. Mid-America Real Estate - Minnesota Property Management Shoppes at Knollwood is one of the premier communi- ty centers in the Twin Cities and substantially adds to our Institutional portfolio of properties. The property is anchored by Nordstrom Rack, TJMaxx, HomeGoods, Old Navy, DSW, SKY ZONE Kohl’s, Ulta and J Crew Mercantile. Leasing has been han- MAPLE GROVE, MN dled by Mid-America for three years but the addition of the management contract was a huge win and a great start to a Square Feet: 30,944 Minnesota relationship with an already established client of Mid-America Real Estate - Minnesota MAAMCO. Project Leasing Sky Zone Trampoline Park will take over this closing Big Lots location. Robert Wise and Charlie Hexum were the leasing agents for this deal.

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MID-AMERICA NOTABLE TRANSACTIONS ADDITIONAL LINKS OMNICHANNEL Walmart Using Unmatched Brick-and-Mortar Network To Compete with Amazon | Business Insider SOUTHCROSS SHOPPES e-Commerce Trends: 147 Stats Revealing How Modern Customers Shop | Big Commerce SAVAGE, MN How Millenials Are Different and How To Engage Them | TotalRetail Square Feet: 34,806 NRF Editor’s Pick: 2018 Retail Trends Report | Alliance Data Client: Southcross Shoppes, LLC Home Depot’s Online Push Continues With Purchase of “The Company Store” | The Mid-America Real Estate - Minnesota Investment Sales RETAIL CONCEPTS & EXPANSION Mid-America has managed and leased this property for Target Expands Store Makeovers | The Wall Street Journal many years, and recently sold it. Mark Robinson represented the seller, Southcross Shoppes, LLC. Nike To Open ‘Pant Studios’ For Women | CNBC With New Owner and Broad Reach, Mills Fleet Farm Steps on Accelerator | Star Tribune WeWork Gearing Up For Big Push Into Retail | The Real Deal Food & Beverage Dropping Anchor In Retail Developments | Retail Insider How Old Navy Keeps Gap Afloat | Glossy EAGLES 94 BAR (WALMART OUTLOT) Does Nordstrom’s Local Format Indicate A Way Forward For Department Stores? | RetailWire OAK PARK HEIGHTS, MN Soulcycle Betting on High Fashion | National Real Estate Investor Acres: 1.83 Nike: New Flagship Store Planned For NYC | Nike News Client: TOLD Development Corona Owner, Medical Marijuana Company To Introduce Cannabis-Infused Beverage | Chicago Tribune Mid-America Real Estate - Minnesota Uniqlo Founder: US Needs Fewer Malls and More of His Stores | The Wall Street Journal Investment Sales Barns & Noble Wants To Get Smaller, More Bookish | RetailWire Mark Robinson and Rob Wise represented TOLD in the Walmart developing personal shopper for rich moms – and store without cashiers | Recode purchase of this land, while the seller was represented by a local residential agent, Dave Middleton. The site will be developed into a single and possibly multi-tenant retail STICK TO YOUR NICHE property. Michael Kors, Other Luxury Brands Win Being Luxurious | Reuters Ralph Lauren’s Retreat From Discounting Helps Bolster Profit | Bloomberg Gap, Ross Surge As Discount Format Still Luring In Shoppers | National Real Estate Investor How Dollar General Became Rural America’s Store of Choice | The Wall Street Journal FORMER FAMOUS DAVES LOCATION STILLWATER, MN GROCERY Square Feet: 6,086 Amazon rivals turn to legal fine print to stem Whole Foods stratgey | Reuters Client: Eagles 94 Aldi Accelerates US Growth | Mass Market Retailers Mid-America Real Estate - Minnesota Lidl Stores Gain Little Traction So Far in US | The Wall Street Journal Investment Sales Kroger Proves There’s Life After Amazon/Whole Foods | The Motley Fool In conjunction with the above transaction, Mark and Rob A Closer Look at Walmart’s Online Grocery Ambitions | Forbes also represented Eagles 94 on the purchase of their replace- Amazon Is Raising Prices At Whole Foods After Its Highly-Publicized Cuts | Business Insider ment location, a former Famous Dave’s building

Mid-America | Winter 2017 | 24 ADDITIONAL LINKS

CRE TECH How Technology Has Shifted The CRE Landscape | Yahoo Finance The Beginner’s Guide to CRE Tech: PropTech | Forbes Blockchain in Commerical Real Estate: The Future is Here | Deloitte

MARKET FUNDEMENTALS & INVESTMENT The Future of CRE Analysis is in Data Analytics | Globe Street Addressing Built-In Biases in Real Estate Investment | Fiedlity Investment Has 1031 Been Saved? | Globe Street Strip Malls: Least Glamorous, Strongest Performers | Forbes Can Outlet Center Operators Avoid The Worst of The US Retail Fallout? | National Real Estate Investor Interest Grows For Net Lease Medical Properties | Globe Street Companies to Watch in Wake of CVS-Atena Deal | CNBC How High Can Consumer Confidence Go? | Forbes

‘TIS THE SEASON Reatil Landlords Don’t Get A Holiday Break | Seeking Alpha Report: Who Won Thanksgiving, Black Friday, and Cyber Monday | Hitwise Tax Plan Should Boost Consumer Confidence, Help Pay For Holiday Purchases | TotalRetail Walmart Aims To Turn Store Experience into Holiday Event | Smart Brief Sears, Kmart Set To Close Another 60-plus stores After Holidays | USA Today Let it snow! How Retailers Prep For The Weather | National Retail Federation

SWEET HOME CHICAGO Deloitte Chicago Market Holiday Study | Deloitte What Should Walgreens Do Now? | Crain’s Chicago Business Jewel-Osco To Offer Grocery Delivery Option | Chicago Tribune Food Businesses Fuel Chicago’s Retail Sector | Real Estate Journals Chicago’s 2017 Michelin Star Honorees, Mapped | Eater Chicago Despite Times, Mag Mile Retail Rents Remain Among North America’s Highest | Chicago Tribune

Mid-America | Winter 2017 | 26 Minnesota One Parkview Plaza, 9th Floor 5353 Wayzata Blvd, Suite 650 Oakbrook Terrace, Illinois 60181 Minneapolis, Minnesota 55416 630.954.7300 952.563.6600

Chicago Wisconsin 410 North Michigan Avenue, Suite 1100 600 N Plankinton Ave, Suite 301 Chicago, Illinois 60611 Milwaukee, Wisconsin 53203 630.954.7327 414.273.4600

Michigan 38500 Woodward Ave, Suite 100 MidAmericaGrp.com Bloomfield Hills, Michigan 48304 248.855.6800

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