EXECUTIVE SUMMARY Exceptional proven value-add opportunity in highly-desirable Naperville

Holliday Fenoglio Fowler, L.P. (“HFF”) an licensed real estate broker. hfflp.com 2 RIVER RUN AT NAPERVILLE INVESTMENT RATIONALE

olliday Fenoglio Fowler, L.P. (“HFF”) is pleased to present River Run at Naperville, a 206-home garden- H style community, with the majority of the homes featuring townhome floor plans and direct-access garages, located in prestigious Naperville, IL. The property offers an investor immediate access to a premier suburban sub market and a proven value-add investment opportunity.

INVESTMENT HIGHLIGHTS INCLUDE: OPPORTUNITY PROPERTY MARKET »» Proven value-add road-map for an investor to »» Unique, market-leading apartment features— »» Naperville voted a “Best Place to Live” by Money seamlessly execute largest floor plans in the submarket,47% of Magazine »» $2 million deployed on interior home upgrades, homes are townhomes and 53% of homes have »» Naperville-Aurora is the highest ranked submarket community amenity updates, and exterior direct-access garages in Chicago for it’s 7.5% projected rent growth over improvements »» High-end community with best-in-class amenities the next two years—double-digit rent increase in »» One-of-a-kind asset given garden-style design, recently upgraded by current ownership submarket last three years serene yet convenient location, and layout »» Excellent neighborhood demographics—$600-850k »» Served by top-ranked Indian Prairie school system home values and $150k+ average household income with access to Naperville’s #1 ranked Neuqua Valley High School 3 RIVER RUN AT NAPERVILLE INVESTMENT RATIONALE

OFFERING SUMMARY

Property River Run at Naperville

Address 1015 Preserve Avenue Naperville, IL 60564

Number of 11, two- and three-story apartment Buildings buildings 1 leasing office / clubhouse building

Number of 206 Homes

Rentable 271,094 SF Square Feet

Average 1,316 SF Home Size

Occupancy 94% (as of 7/31/16)

Year Built 2003

Site Area 18.04 acres UNIT MIX HOMETYPE # OF HOMES SQ. FT AVERAGE ASKING RENT RENT PSF Parking 304 surface spaces 110 attached garage spaces 1x1 8 753 $1,369 $1.82 12 handicap-accessible spaces 2x1 14 1,034 $1,682 $1.63 426 total spaces 2x2 46 1,280 $1,802 $1.41 2x2.5 66 1,351 $1,883 $1.39 Parking Ratio 2.05 spaces per home 3x2 50 1,409 $2,119 $1.50 3x3 22 1,462 $2,207 $1.51 Financing Available "All-Cash" Total/Average 206 1,316 $1,923 $1.46 4 RIVER RUN AT NAPERVILLE INVESTMENT RATIONALE

POOL AND LOUNGE AREA

UPGRADED MEDIA LOUNGE COMMUNITY AMENITIES »» Beautiful resort-style outdoor swimming pool »» Resident business center and executive »» 24-hour, fully-equipped fitness center conference room »» Yoga studio »» Outdoor entertainment area with barbeque grills »» Newly renovated leasing center and clubhouse and firepit »» Billards and rec room »» Children’s playground »» Kitchen and coffee bar »» Nature trails »» Bar and media lounge

YOGA STUDIO OUTDOOR ENTERTAINING SPACE AND FIREPIT 5 RIVER RUN AT NAPERVILLE INVESTMENT RATIONALE

APARTMENT FEATURES »» Spacious floorplans LARGEST AVERAGE »» Gas log fireplaces, with decorative mantle and hearth »» Full-size washers/dryers FLOOR PLANS IN »» Whirlpool black appliances and built-in microwave ovens »» Beautifully-crafted cherry and maple cabinets THE MARKET »» Oversized garden soaking tubs* »» Double vanity with dual sinks in master bathrooms* »» Linen closets and walk-in closets »» Spacious patios/balconies* »» Direct-access garages* »» Fenced-in yard* *in select homes TOWNHOME LIVING Three Bedroom Three Bath/Garage 47% of homes are townhome layouts 2ND FLOOR Living Area...... 1,462 SF Balcony...... 34 SF Garage...... 280 SF

* All floor plans are available in the document center 3RD FLOOR

DIRECT ENTRYWAYS

ATTACHED GARAGES in 53% of all homes 6 RIVER RUN AT NAPERVILLE INVESTMENT RATIONALE

ORIGINAL CONSIDERABLE AND PROVEN VALUE-ADD UPSIDE

Ownership has started both a full and partial value-add renovation program to home interiors. 77 homes have been been fully upgraded (37%) and 51 homes partially upgraded (25%), leaving considerable and proven upside. CURRENT VALUE-ADD PROGRAMS Full Partial Original Renovation Renovation PARTIAL RENOVATION Homes Renovated 77 51 78 Average Cost $8,600 $2,100 Rent Premium $133 $75 Return on Cost 18.6% 42.4% Two-tone Paint • USB Outlets • Plumbing Fixtures • 2" Faux Wood Blinds • Tile Backsplash* • Cabinet Fronts • Cabinet Pulls • Dark Cherry/ Dark Cherry/ Cabinet Color Dark Cherry FULL RENOVATION Honey Oak Honey Oak Upgraded Lighting Throughout Kitchen Only Gooseneck Faucet • • Faux Hardwood Flooring • • * select homes Note: Full renovations were completed by a third-party contractor. Partial renovations were completed in-house. 7 RIVER RUN AT NAPERVILLE INVESTMENT RATIONALE

NEUQUA VALLEY HIGH SCHOOL PREMIER EDUCATION SYSTEM »» Neuqua Valley High School is top high school in Naperville and ranks in top 4% nationally. »» Neuqua Valley High School is ranked the #1 #3 high school in Naperville and boasts a Best Mid-Sized Cities for Education in America 99% graduation rate. Source: Movoto – 2014

TELLABS PROXIMITY TO TOP NAPERVILLE EMPLOYERS

NAME EMPLOYEES Edward Hospital & 4,680 Health Services #14 Alcatel-Lucent / Nokia 3,400 Top Earning Towns Nicor Gas 2,140 BP 1,800 Source: Money Magazine, 2014 BMO Harris 1,200 Nalco 1,000 Tellabs 850 *Source: Naperville Development Partnership (2016)

EXCEPTIONAL APARTMENT MARKET »» 11.2% rent increase over last three years and a 4.6% rent increase year- over-year #1 »» 96.4% Occupancy in 1Q16 For 2-yr rent growth Chicago »» 7.5% projected effective rent growth Source: Movoto – 2014 over next two years 8 RIVER RUN AT NAPERVILLE INVESTMENT RATIONALE

DOWNTOWN NAPERVILLE A visit to downtown Naperville is fun for the family with over 100 shops, restaurants, attractions, and regular community events.

»» VERY WALKABLE: The city has a walk score of 87. »» SHOPPERS DELIGHT: Casually stroll over 100 shops including both national retailers and local favorites like Naper Nuts & Sweets and Little Luxuries. »» ENJOYABLE EVENTS: Partake in regular concerts, book signings, charity events, and free tours. »» UNIQUE ATTRACTIONS: Nearby draws include the Riverwalk, Centennial Beach, and the Millenium DOWNTOWN NAPERVILLE Carillon.

RIVERWALK NAPERVILLE

EXCEPTIONALLY LIVABLE

amenities crime education employment housing A A A+ A A

Source: Areavibes.com #2 #4 #7 Best Places to Live The Safest Cities in Best Cities for for Families Source: America Money Magazine - Source: Source: 2004-2006, 2008, Livability.com – 2015 2012, 2014 24/7 Wall Street

9 RIVER RUN AT NAPERVILLE INVESTMENT RATIONALE

D

U P A G AREA AMENITIES AND EMPLOYERS E

R I V E R

56 Herrick Lake Ginger Woods Warrenville Road Forest Preserve 7

College of DuPage Oakbrookb Center

Naperville Road

DeVry Aurora Corporate Center

Butterfield Road University McDonald’s Headquarters

Butterfield East DePaul University

West Ridge Corporate Center Alcatel-Lucent Blistex Headquarters

Naperville Campus

Ace Hardware Headquarters Farnsworth Navistar Unilever Cantera BP

Redbox Headquarters

International Warrenville Road Food Solutions

Nicor Gas Commons

Calamos Investments

Eola Road Sun Coke Energy, Inc.

Ronald Reagan Memorial Tollway

Tellabs 88

Chicago Premium Outlets

Northern Illinois University

Nalco Diehl Road Naperville Campus Ronald Reagan Memorial Tollway National-Louis 88

Diehl Road McDowell Grove University

White Oak Country County Forest Preserve Molex Mill Street AT&T 34

Business Park Lakes Lisle Country Club ► ago Vision Center hic C wn 53 to n ow Orchard 88 D o t Business Park

Ogden Avenue

Prime Aurora Yackley Avenue

Washington Street Drive time to Business Park Naperville Eola Road Eola D Lincoln Avenue Landmark U Business Parks P Benedictine River Run at Naperville Business Park Metra BNSF CommuterA Railway G University E DOWNTOWN Route 59 59 R Chicago Aveune Downtown Naperville 11 min I

V NAPERVILLE Farnsworth Avenue E

Meridian Business Park R 355 North Central Chicago 35 min

Metra BNSF Commuter Railway 34

Yorkshire Plaza College

Meijer Aurora Avenue Seven Brides

Neuqua High School 7 min Waubonsee College Road Golf Club Naper Boulevard

Liberty Street Community College Westridge Court Edward Hospital Business Park Westfield Recreation Aurora & Health Services Mall 29 min Mariano’s University Washington Street

Fox River Commons

Sam’s Club Fox Valley Mall 14 min Shetland Oakhurst Trader Joe’s D Hobson Road U 53 Business Park County P Forest A G Edward Hospital & 15 min Preserve • Home Depot E Bell-Gale • Whole Foods R 75th Street I (IndustrialOhio Street Condos) 33 Health Services • Costco 75th Street V E Sport’s Authority • Lowe’s R Ogden Avenue O’Hare International Airport 39 min Waubonsie 34 Boulevard Naper Valley High School Eola Road Meadow Lakes 59 Caterpillar, Inc Corporate Park Springbrook Prairie Forest Preserve Green Valley Rush-Copley 83rd Street Forest Preserve Medical Center Springbrook • JC Penney Y Sports Golf Course • Menards Castle Complex YMCA • Sam’s Club Orthopaedics White Eagle 55 Golf Course Wheatland Sports Zone Park Industrial Park Prommade Naperville • Kohl’s Bolingbrook Public Library Dupage River • Marshalls 355 LA Fitness Neuqua Valley Sports Complex • Pier 1 Imports • AMC High School • Best Buy • Target LEGEND • Chipotle 95th Street • Hobby Lobby • Five Guys Walgreens Business Parks • Jewel-Osco LabCorp Governors State • New Balance Dunkin’ Donuts University Naperville Sports Top Employers Authority • Oberweis Meijer • Panera • Potbelly Dunkin’ Donuts Education • Starbucks Papa John’s Home Depot 248th Avenue 103rd Street Book Road West Suburban Bank Retail

Recreation 59 55 • Chase Bank • Discount Tire • The Melting Pot Walgreens Naperbrook • Petsmart Golf Course • Red Mango 111th Street Hassert Blvd • US Bank RIVER RUN AT NAPERVILLE 10 CONTACTS INVESTMENT SALES

MARTY F. O’CONNELL AMANDA B. FRIANT Managing Director Real Estate Analyst [email protected] [email protected] 312.528.3653 312.300.7298

SEAN P. FOGARTY FINANCING Managing Director [email protected] MATTHEW SCHOENFELDT 312.528.3675 Managing Director [email protected] WICK B. KIRBY 312.528.3686 Associate Director [email protected] HFF CHICAGO 312.980.3611 181 West Madison Street KEVIN M. GIRARD Suite 3900 Real Estate Analyst Chicago, IL 60602 [email protected] P: (312) 528-3650 312.528.3689 F: (312) 528-3651

HFF has been engaged by the owner of the property [properties] to market it [them] for sale. Information concerning the property [properties] described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.