EXCLUSIVELY LISTED BY:

Mitchell Kiven Ryan Stuart James Ziegler Senior Associate Associate First Vice President 312- 624- 7006 312- 624- 7016 312- 624- 7020

OFFERING MEMORANDUM

BIOGRAPH THEATER RETAIL CONDO | LINCOLN PARK 2445 N Lincoln Ave • , IL 60614

1 NON- ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.

Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

BIOGRAPH THEATER RETAIL CONDO | LINCOLN PARK Chicago, IL ACT ID ZAC0370224

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01 Offering Summary Location Overview Aerial Photo

FINANCIAL ANALYSIS 02 Pricing / Model

MARKET OVERVIEW 03 Market Analysis Demographic Analysis

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INVESTMENT OVERVIEW

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OFFERING SUMMARY INVESTMENT OVERVIEW Marcus & Millichap is thrilled to present the opportunity to purchase two retail condominiums on the ground floor of the Biograph Theater on in Chicago’s Lincoln Park neighborhood. The property is 5,000 square feet, currently vacant, with a built-out kitchen consisting of black iron, an exhaust hood, 2 walk-in coolers, 2 kitchen prep areas, and 4 bathrooms. The other tenant/owner of the Biograph Theater is the , and the owner of this unit shares responsibilities in the homeowner's association that managers the property. With 65 Feet of prime frontage on Lincoln Avenue, this is irreplaceable real estate located in a historic building in one of Chicago’s most vibrant north side neighborhoods. Over 450,000 people live within a 3-mile radius and average household incomes exceed $140,000.

The storied location formed the backdrop of a particularly infamous chapter in Chicago’s gangster past when was gunned down by FBI agents as he was exiting the theater in 1934. Today, the building sits in the middle of one of the most stable neighborhoods in Chicago, home to DePaul University, as well as several generation defining mixed use developments, such as Lincoln Commons – featuring 538 new apartment units, 100,000 square feet of retail, and a 156-room senior living facility on the site of the former Children’s Memorial Hospital. Lincoln Commons is located within 1 block of the Biograph.

Priced at $1,100,000, with area rents comfortably in the +$25 per square foot range (NNN), the property is ideal for either a restaurant user, or a developer with designs to add value through an aggressive leasing campaign. We believe that even after a sizable tenant improvement allowance, a budget for soft costs, carrying costs, and leasing commissions, the returns should be highly attractive for real estate professionals with the wherewithal to reposition the asset.

Please contact Marcus & Millichap for additional information regarding the financial modeling used to price the property, or with any other questions.

INVESTMENT HIGHLIGHTS

. Rare opportunity to purchase the ground floor commercial component of the Biograph Theater . Irreplaceable location in Lincoln Park, less than one block from the corner of Lincoln, Fullerton and Halsted . One block from Lincoln Commons, the new 6.04-acre mixed-use development at the corner of Lincoln, Fullerton and Halsted . Adjacent to DePaul University . Property comes with a built-out kitchen, including black iron, exhaust hood, and two walk-in coolers . +450,000 people within a 3-mile radius, average household incomes exceed $140,000

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AERIAL PHOTO

SUBJECT PROPERTY

Fullerton Avenue

Lincoln Commons: 3.7M Passengers Per Year 534 New Apartment Units 100,000 SF of Retail 156 Room Senior Living 23,539 Students

84,699 People within 1 Mile Average HH Income of $161,971 Average HH Retail Expenditure of $85,163

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INTERIOR PROPERTY PHOTO

Marcus & Millichap closes more transactions than any other brokerage firm.

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PRICINGPRICING ANDANDLOCATIONLOCATION VALUATIONVALUATIONTENANT OVERVIEW OVERVIEWSUMMARY MATRIXMATRIX

2445 N Lincoln Ave, Chicago, IL 60614

CLOSE PROXIMITY TO:

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FINANCIAL ANALYSIS

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FINANCIAL ANALYSIS PRICING DETAIL

Development Model

Purchase Price $ 1,100,000.00

Gross Leasable Area (SF) 5,000 Tenant Improvement Allowance (per SF) $ 50.00 Soft Cost Percentage (Percentage of Budget Net Soft Costs) 30% Exit Cap Rate 6.75% Net Income (Assumes $25/sf Rents) $ 125,000.00

Exit Value $ 1,851,851.85

Budget: Hard Costs $ 250,000.00 Soft Costs (30% of Budget) $ 104,812.00 Carrying Costs $ 24,375.00 Leasing Commissions $ 75,000.00

Total Budget: $ 454,187.00

Purchase Price: $ 1,100,000.00

Total Costs: $ 1,554,187.00

Exit Value $ 1,851,851.85

Profit: $ 297,664.85

Disposition Strategy: Total Profit as a Percentage of Total Costs: 19.15%

Hold Strategy: Yield on Stabilized NOI to Total Costs: 8.04%

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MARCUS & MILLICHAP ADVANTAGE

MARCUS & MILLICHAP CAPITAL WHY MMCC? CORPORATION CAPABILITIES Optimum financing solutions to enhance value MMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and Enhanced control through terms. investor qualification support

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Enhanced control through Mae, Freddie Mac and HUD to provide our clients with the greatest range of MMCC’s ability to qualify financing options. investor finance contingencies

Our dedicated, knowledgeable experts understand the challenges of financing and work tirelessly to resolve all potential issues for the benefit of our clients. Enhanced control through quickly identifying potential debt/equity sources, processing, and closing buyer’s finance alternatives

Enhanced control through Closed 1,943 National platform $ 7.7 billion Access to more MMCC’s ability to monitor debt and equity operating total national capital sources investor/due diligence and financings within the firm’s volume in 2020 than any other underwriting to ensure timely, in 2020 brokerage offices firm in the predictable closings industry

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MARKET OVERVIEW

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MARKET OVERVIEW CHICAGO OVERVIEW

Chicago-Naperville-Elgin is one of the largest metros in the nation. Also known as the Greater Chicagoland area, it is bounded to the east by Lake Michigan, expands over a 5,000-square-mile region in northeastern , and extends into Wisconsin and Indiana. The metro houses 9.5 million people and comprises 14 counties. The city of Chicago contains 2.7 million residents. The greatest growth during the past 20 years occurred in the western portion of the region. In recent years, however, businesses are relocating back into the city to attract young workers, supporting the development of high-rise residential and office towers in downtown Chicago.

METRO HIGHLIGHTS

THIRD-LARGEST METROPOLITAN AREA The metro population trails only New York City and Los Angeles in size. Growth in the metro has slowed in recent years.

WEALTH OF INTELLECTUAL CAPITAL The number of corporate headquarters in Chicago is second only to New York City. There are 33 Fortune 500 companies based locally.

LARGE, DIVERSE EMPLOYMENT BASE The Chicago metro employs 4.4 million workers in an array of industries, including the growing tech and logistics sectors.

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CHICAGO METRO AREA

Capital Markets By TONY SOLOMON, Senior Vice President, Marcus & Millichap Capital Corporation

• The capital markets are thawing. Most lenders have adapted to the health crisis, and more information on the economic damage of the pandemic is affording buyers, sellers, and lenders price clarity for large swaths of commercial real estate. Both property performance and location can impact financing as some areas of the country outperform and the pace of recovery remains in doubt for others. Capital is available for assets that perform at pre-crisis levels, especially industrial assets, which buyers and lenders see as a safe part of their portfolios. Single-tenant retail with national credit tenants are also heavily favored by lenders, followed by grocery-anchored multi-tenant properties. Apartment rent collections are heavily examined, though financing remains available from the agencies. Loans are more readily accessible for suburban office, while core buildings require lower LTVs.

• Record-low interest rates to encourage investment activity. Freddie Mac and Fannie Mae are originating loans in the high-2 to low-3 percent range for gateway and secondary markets, while interest rates in smaller markets can reach the mid-3 percent band for well-capitalized buyers. Life insurance companies are offering rates in the 3 to 4 percent range with LTVs of 60 to 70 percent, though some premier properties have been able to achieve rates in the mid- to high-2 percent band. Most banks, credit unions and CMBS lenders are offering debt in the 3.25 to 4.25 percent range, and debt funds start slightly higher in the 3.5 to 4 percent territory. Stricter criteria for CMBS loans have limited options for many borrowers though. The Federal Reserve’s commitment to keep the overnight rate near zero through 2023 should support historical low interest rates over the coming quarters, providing investors with compelling risk-adjusted returns in contrast with other asset classes.

* Through September ** As of second quarter Sources: Federal Reserve, Mortgage Bankers Association, Trepp

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MARKETINGDEMOGRAPHICS TEAM Created on April 2021

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles Total Average Household Retail . 2025 Projection $85,163 $84,615 $78,900 Expenditure Total Population 84,224 456,966 978,069 . Consumer Expenditure Top 10 . 2020 Estimate Categories Total Population 84,699 454,188 978,174 Housing $23,917 $23,781 $21,977 . 2010 Census Shelter $14,580 $14,452 $13,270 Total Population 83,843 440,354 955,919 Transportation $14,026 $13,703 $12,801 . 2000 Census Food $9,913 $9,873 $9,146 Total Population 84,300 444,284 980,722 Personal Insurance and Pensions $9,598 $9,553 $8,562 . Current Daytime Population Health Care $5,224 $5,171 $4,950 2020 Estimate 77,938 618,140 1,433,774 Utilities $4,065 $4,061 $3,901 HOUSEHOLDS 1 Miles 3 Miles 5 Miles Entertainment $3,778 $3,730 $3,436 . 2025 Projection Apparel $2,579 $2,579 $2,349 Household Furnishings and $2,547 $2,547 $2,353 Total Households 45,502 244,509 460,663 Equipment . 2020 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 45,794 240,949 454,436 . Population By Age Average (Mean) Household Size 1.77 1.84 2.09 2020 Estimate Total Population 84,699 454,188 978,174 . 2010 Census Under 20 13.40% 14.30% 18.71% Total Households 45,916 234,543 442,723 20 to 34 Years 47.14% 39.85% 34.32% . 2000 Census 35 to 39 Years 9.37% 11.32% 10.25% Total Households 48,753 228,511 421,199 40 to 49 Years 10.28% 12.66% 12.96% . Occupied Units 50 to 64 Years 10.43% 12.15% 13.86% 2025 Projection 45,502 244,509 460,663 Age 65+ 9.38% 9.72% 9.91% 2020 Estimate 50,111 270,241 515,613 Median Age 31.43 33.59 33.79 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles . Population 25+ by Education Level . 2020 Estimate 2020 Estimate Population Age 25+ 64,705 357,934 723,732 $150,000 or More 32.86% 29.33% 22.81% Elementary (0-8) 0.92% 1.77% 4.24% $100,000 - $149,000 17.88% 18.24% 16.47% Some High School (9-11) 1.15% 2.35% 4.88% $75,000 - $99,999 11.97% 12.51% 12.34% High School Graduate (12) 4.52% 8.50% 14.05% $50,000 - $74,999 13.90% 13.92% 14.92% Some College (13-15) 7.33% 9.95% 12.56% $35,000 - $49,999 7.02% 7.24% 8.95% Associate Degree Only 2.40% 3.15% 4.04% Under $35,000 16.37% 18.76% 24.51% Bachelors Degree Only 45.93% 42.53% 34.33% Average Household Income $161,971 $145,146 $121,375 Graduate Degree 37.45% 31.05% 24.51% Median Household Income $101,619 $94,850 $77,978 Per Capita Income $88,179 $77,295 $56,750

Source: © 2020 Experian

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MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2020, the population in your selected geography is 84,699. The The current year racial makeup of your selected area is as follows: population has changed by 0.47% since 2000. It is estimated that the 84.07% White, 3.25% Black, 0.04% Native American and 7.87% population in your area will be 84,224.00 five years from now, which Asian/Pacific Islander. Compare these to US averages which are: represents a change of -0.56% from the current year. The current 69.84% White, 12.88% Black, 0.20% Native American and 5.75% population is 47.39% male and 52.61% female. The median age of the Asian/Pacific Islander. People of Hispanic origin are counted population in your area is 31.43, compare this to the US average independently of race. which is 38.21. The population density in your area is 26,908.46 people per square mile. People of Hispanic origin make up 6.55% of the current year population in your selected area. Compare this to the US average of 18.38%.

Households Housing There are currently 45,794 households in your selected geography. The median housing value in your area was $474,542 in 2020, The number of households has changed by -6.07% since 2000. It is compare this to the US average of $221,068. In 2000, there were estimated that the number of households in your area will be 45,502 17,177 owner occupied housing units in your area and there were five years from now, which represents a change of -0.64% from the 31,576 renter occupied housing units in your area. The median rent at current year. The average household size in your area is 1.77 the time was $858. persons.

Income Employment In 2020, the median household income for your selected geography is In 2020, there are 32,862 employees in your selected area, this is also $101,619, compare this to the US average which is currently $62,990. known as the daytime population. The 2000 Census revealed that The median household income for your area has changed by 64.09% 91.90% of employees are employed in white-collar occupations in this since 2000. It is estimated that the median household income in your geography, and 7.82% are employed in blue-collar occupations. In area will be $115,178 five years from now, which represents a change 2020, unemployment in this area is 2.16%. In 2000, the average time of 13.34% from the current year. traveled to work was 34.00 minutes.

The current year per capita income in your area is $88,179, compare this to the US average, which is $34,935. The current year average household income in your area is $161,971, compare this to the US average which is $90,941.

Source: © 2020 Experian

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8 DEMOGRAPHICS

17 EXCLUSIVELY LISTED BY:

Mitchell Kiven James Ziegler Ryan Stuart Senior Associate First Vice President Investments Associate Director - National Retail Group Chicago Downtown Office Chicago Downtown Office Chicago Downtown Office Tel: (312) 624-7020 Tel: (312) 624-7016 Tel: (312) 624-7006 Fax: (312) 327-5410 Fax: (312) 327-5410 Fax: (312) 327-5410 [email protected] [email protected] [email protected] License: IL 475.151507 License: IL 475.194898 License: IL 475.164486

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