INVESTMENT OPPORTUNITY PETCO ACROSS FROM REGIONAL MALL WEST DUNDEE, IL ( MSA)

OFFERED AT: $3,294,000| 7.50% CAP OFFERED AT $2,027,000 | 6% CAP

Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

TABLE OF CONTENTS

EXECUTIVE SUMMARY 4 Executive Summary 5 Investment Highlights 6 Lease Summary & Rent Overview 7 Lease Abstract

PROPERTY INFORMATION 9 Location Maps 10 Site Plan 11 Neighboring Tenants 13 Aerials

TENANT OVERVIEW 19 About Petco

AREA OVERVIEW 21 West Dundee Overview 22 Spring Hill Mall 23 Chicago Overview 24 Demographics

Confidentiality Agreement & Disclosures

EXCLUSIVELY LISTED BY RYAN BARR RYAN BENNETT Principal Principal 760.448.2446 760.448.2449 [email protected] [email protected]

Color Scheme

RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47

RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65

Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT

BROKER OF RECORD: Lee & Associates of , LLC IL Brokers Lic# 481000317 Representative Photo

PETCO | West Dundee, IL (Chicago) | 2 EXECUTIVE SUMMARY

PETCO | West Dundee, IL (Chicago)

PETCO | West Dundee, IL (Chicago) | 3 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Offering Summary • Investment Highlights Lease Summary & Rent Schedule Lease Abstract

-- OFFERING SUMMARY --

INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW Offering Price: $3,294,000 Address: 403 North 8th Street West Dundee, IL Net Operating Income: $247,000 Property Size: Approx 19,000 Sq. Ft. Cap Rate: 7.50% Land Size: Approx 1.73 Acres Price/SF: $185.73 Ownership: Fee Simple (Land, Building) Lease Type: Double Net (NN) Year Built: 1987 / Renovated 1997; New Roof in 2016 Lee & Associates is pleased to exclusively offer for sale, the fee simple interest (land & building) in a Petco located in West Dundee, IL (the “Property”). Built in 1987 and renovated in 1997, the Property consists of a 19,000-square-foot retail building that sits on an approximately 75,359-square-foot parcel. The subject property is leased to Petco Animal Supplies, Inc. (corporate). Founded in 1965, Petco is a leading pet specialty retailer operating more than 1,500 Petco locations across the U.S., Mexico and Puerto Rico, including more than 80 Unleashed by Petco locations (a smaller format neighborhood shop). Currently Petco employs more than 25,000 people and reported $4.2B in revenue for 2017 and was #100 on Forbes largest private companies list in 2018. Petco’s original lease commenced in 1997, reflecting a 20+ year operating history at this location. The tenant has shown their commitment to the site by investing $75,000 in building improvements back in 2013, as well as extending their original lease twice for an additional 11 years, with the most recent 5-year extension commencing in February 2019. The LL replaced the roof in June of 2016. The subject property is located across from the Spring Hill Mall, a 1.37 million square foot mall anchored by Kohl’s, Cinemark Theater, and Macys, with other national tenants such as H&M, Barnes & Noble, Payless ShoeSource, Aeropostale, Hibbett Sports, and Rue21. In 2015, with the support of both The City of Carpentersville and The City of West Dundee, Mall owners Rouse Properties began redevelopment efforts to revive Spring Hill Mall, with construction under way on a$40million renovation project that will continue for the next two years (Read the full details on page 23 of the OM). Ideally located on N. 8th Street, Petco offers outstanding visibility to traffic counts over 29,000 cars per day. North 8th Street is West Dundee’s main retail corridor, providing strong retail synergy with tenants such as Walgreens, KFC, Dollar Tree, Red Wing Shoes, LA Fitness, Jiffy Lube, Big Lots, Aldi, AutoZone, Fifth Third Bank, and more. The property’s dense infill location offers excellent demographics. There are nearly 160,000 residents with an average household income of over $94,000 living within a 5-mile radius of the subject property. The Petco benefits from limited pet supply store competitors. The closest national pet supply store is a PetSmart, located roughly 6 miles away in Algonquin, IL. The Petco investment property is located within the Village of West Dundee, Illinois, which lies approximately 42 miles northwest of Chicago. As part of the upper Fox River Valley in northern Illinois, West Dundee enjoys one of the region’s most unique and treasured assets, the Fox River greenway. The Fox River serves as the Village’s eastern border and is quickly becoming one of the community’s finest recreational areas. Today, West Dundee is in the midst of an economic revival. The Village has seen the job market increase by 1.6% over the last year and future job growth over the next ten years is predicted to be 38.0%. West Dundee also is in the first phase of renovating its downtown, which will be largely completed by 2020. By updating downtown West Dundee, the community leaders hope to bring business to restaurants and new entertainment centers in the area.

PETCO | West Dundee, IL (Chicago) | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary • Investment Highlights • Lease Summary & Rent Schedule Lease Abstract

-- INVESTMENT HIGHLIGHTS --

STRONG CORPORATE BACKED LEASE • PETCO: #100 ON FORBES LARGEST PRIVATE COMPANIES LIST DENSE INFILL LOCATION • STRONG DEMOGRAPHICS • LIMITED NATIONAL PET SUPPLIER COMPETITION (2018) • $4.2B IN REVENUE REPORTED IN 2017 The property’s dense infill location offers excellent demographics. There are nearly 160,000 residents with an The subject property is leased to Petco Animal Supplies, Inc. (corporate). Founded in 1965, Petco is a leading pet average household income of over $94,000 living within a 5-mile radius of the subject property. The Petco benefits specialty retailer operating more than 1,500 Petco locations across the U.S., Mexico and Puerto Rico, including from limited pet supply store competitors. The closest national pet supply store is a PetSmart, located roughly 6 more than 80 Unleashed by Petco locations (a smaller format neighborhood shop). Currently Petco employs more miles away in Algonquin, IL. than 25,000 people and reported $4.2B in revenue for 2017 and was #100 on Forbes largest private companies list RD in 2018. LOCATED IN WEST DUNDEE • NORTHWEST SUBURB OF CHICAGO: 3 MOST POPULOUS CITY IN THE U.S. The Petco investment property is located within the Village of West Dundee, Illinois, which lies approximately 42 SUCCESFUL 20+ YEAR OPERATING HISTORY • MULTIPLE LEASE EXTENSIONS REFLECT COMMITMENT TO miles northwest of Chicago. As part of the upper Fox River Valley in northern Illinois, West Dundee enjoys one of SITE & PERCEIVED PROFITABILITY AT THIS LOCATION • ROOF REPLACED IN 2016 the region’s most unique and treasured assets, the Fox River greenway. The Fox River serves as the Village’s eastern Petco’s original lease commenced in 1997, reflecting a 20+ year operating history at this location. The tenant border and is quickly becoming one of the community’s finest recreational areas. has shown their commitment to the site by investing $75,000 in building improvements back in 2013, as well as Today, West Dundee is in the midst of an economic revival. The Village has seen the job market increase by 1.6% extending their original lease twice for an additional 11 years, with the most recent 5-year extension commencing over the last year and future job growth over the next ten years is predicted to be 38.0%. West Dundee also is in in February 2019. The LL replaced the roof in June of 2016. the first phase of renovating its downtown, which will be largely completed by 2020. By updating downtown West LOCATED ACROSS FROM SPRING HILL MALL • UNDERGOING $40 MILLION RENOVATIONS FOR MIXED Dundee, the community leaders hope to bring business to restaurants and new entertainment centers in the area. USE PROJECT (see Page 23 for full details) West Dundee is a northwest suburb of Chicago. Chicago is the third most populous city in the . As of the 2017 census-estimate, Chicago has a population of 2,716,450, which makes it the most populous city in both The subject property is located across from the Spring Hill Mall, a 1.37 million square foot mall anchored by Kohl’s, the state of Illinois and the . The Chicago metropolitan area has nearly 10 million people, Cinemark Theater, and Macys, with other national tenants such as H&M, Barnes & Noble, Payless ShoeSource, is the third-largest in the United States, the fourth largest in North America, and the third largest metropolitan area Aeropostale, Hibbett Sports, and Rue21. In 2015, with the support of both The City of Carpentersville and The in the world by land area. City of West Dundee, Mall owners Rouse Properties began redevelopment efforts to revive Spring Hill Mall, with construction under way on a $40 million renovation project that will continue for the next two years (Read the full Positioned along Lake , the city is an international hub for finance, commerce, industry, technology, details on page 23 of the OM). telecommunications, and transportation. It is the home of the Chicago Board of Trade, which today is the largest and most diverse derivatives market in the world, generating 20% of all volume in commodities and financial STRATEGIC LOCATION ALONG WEST DUNDEE’S MAIN RETAIL CORRIDOR • EXCELLENT RETAIL SYNERGY futures. Chicago’s O’Hare International Airport is one of the busiest airports in the world, and the region also has The subject property is ideally located on N. 8th Street, offering outstanding visibility to traffic counts over 29,000 the largest number of U.S. highways and railroad freight cars per day. North 8th Street is West Dundee’s main retail corridor, providing strong retail synergy with tenants such as Walgreens, KFC, Dollar Tree, Red Wing Shoes, LA Fitness, Jiffy Lube, Big Lots, Aldi, AutoZone, Fifth Third Bank, and more.

PETCO | West Dundee, IL (Chicago) | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary Investment Highlights • Lease Summary & Rent Schedule • Lease Abstract

-- LEASE SUMMARY --

LEASE INFORMATION

TENANT: Petco

GUARANTY: Petco Animal Supplies Store, Inc. (Corporate)

STORE #: 647

BUILDING SIZE: 19,000 Sq. Ft.

LOT SIZE: 1.73 Acres

RENT COMMENCEMENT: February 1, 1998

LEASE EXPIRATION: January 31, 2024

BASE TERM: 20 Years

REMAINING LEASE TERM: 5 Years (Recent 5-Year Extension)

OPTIONS TO RENEW: (1) 5-Year Option

RENT INCREASES: Increases Every 5 Years in Primary & Options

LEASE TYPE: NN

LANDLORD RESPONSIBILITIES: Roof, Structure, Foundation

ANNUAL RENT: $247,000 (Effective 2/1/2019)

-- RENT SCHEDULE --

LEASE TERM

TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR

Current Term 2/1/2013 1/31/2019 $199,500.00 $16,625.00 $10.50

Extension 2/1/2019 1/31/2024 $247,000.00 $20,583.33 $13.00

OPTION PERIODS - (1) 5-YEAR OPTION

Year 5 2/1/2024 1/31/2029 $332,500.00 $27,708.33 $17.50

PETCO | West Dundee, IL (Chicago) | 6 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary Investment Highlights Lease Summary & Rent Schedule • Lease Abstract •

-- LEASE ABSTRACT --

Tenant shall pay all real estate taxes and assessments on all furniture, fixtures, equipment and other property being used by Tenant. Tenant shall pay all real estate taxes and assessments on all Property Taxes: improvements on the Premises and the pro rata portion of the land containing Premises..

Tenant shall pay for, keep and maintain, a policy of public liability and property damage insurance on the Premises and business with a limit of $2,000,000 per occurrence during the term. Tenant Insurance: shall carry all-risk, replacement cost insurance policy, including loss of rents, on the Building.

Utilities: Tenant shall pay for all utilities consumed on the Premises.

Common Area Maintenance: N/A

Landlord shall be responsible for maintenance and replace, as necessary, the foundations, plumbing system, , and structural systems including the roof/interior ceiling, plumbing, floor slabs, and Landlord Repairs/Maintenance: exterior walls

Tenant Repairs/Maintenance: Tenant shall be responsible for the HVAC, landscaping, maintaining interior of the building including the utility services and systems exclusively serving the Premises.

Tenant shall have the right to sublet, assign or otherwise transfer its interest in the Lease to a licensee, franchisee or any parent or operating subsidiary of Tenant, or subsidiary of Tenant’s parent Sublease/Assignment: company, or to a corporation with which it may merge or consolidate, providing that Tenant remain responsible for full performance of the Lease terms, without Landlord’s approval consent.

Upon the full execution of the Lease, at any time and from time to time, during the Term of this Lease, within twenty (20) days after Landlord shall request the same in writing, Tenant will Estoppel Certificate: executie, acknowledge and deliver to Landlord, and to such mortgagee or other party as may be designated by Landlord, a statement in writing certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating the modifications).

PETCO | West Dundee, IL (Chicago) | 7 EXECUTIVE SUMMARY

PETCO | West Dundee, IL (Chicago)

PETCO | West Dundee, IL (Chicago) | 8 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Location Maps • Site Plan Neighboring Tenants Aerials

-- LOCATION MAPS --

Meadowlake Raceway Madison Williams St Milwaukee

Racine Carpentersville Janesville Waste Water

E. Main St Parkview Carpentersville Elementary School Middle School

SPRINGHILL MARKETPLACE Rockford Fox River

SPRINGHILL MALL West Dundee 42 M il es

W. Main St Chicago Lifezone 360 Sports Complex Naperville

PETCO | West Dundee, IL (Chicago) | 9 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps • Site Plan • Neighboring Tenants Aerials

-- SITE PLAN -- LOADING AREA LOADING

8TH STREET

KANE STREET

PETCO | West Dundee, IL (Chicago) | 10 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Neighboring Tenants • Aerials

-- SPRING HILL MALL --

PETCO | West Dundee, IL (Chicago) | 11 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Neighboring Tenants • Aerials

-- TENANTS IN SPRING HILL MALL --

PETCO | West Dundee, IL (Chicago) | 12 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Neighboring Tenants • Aerials •

-- OVERHEAD VIEW --

N. 8 ACCESS TH ST (29,000 CPD)

ACCESS KANE ST

PETCO | West Dundee, IL (Chicago) | 13 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Neighboring Tenants • Aerials •

• REIS ROBOTICS USA • OXYTECH SYSTEMS • IFE PRODUCTS • KDM ENTERPRISE BARRINGTON -- LOOKING NORTHEAST -- • COATING METHODS • DANA MOLDED PRODUCTS • RGUNS • TRIM RITE FOOD CORP • AVON ENGINEERING RUBBER • TRUGREEN • FERRO CORPORATION • ACME INDUSTRIAL • ADVANCED POLYMER ALLOY • GRAYHILL • CROSS CONTAINER CORP • GRAPHIC PRODUCTS CORP I PULLOMA • STANLEY MACHINING • BULK LIFT INTERNATIONAL PAINTS PERFORMANCE SAMPLING • AUTONETICS • CASTER WAREHOUSE POLYNT HEXION COMPOSITES USA Fox River SPECIALTY CHEMICALS CARPENTERSVILLE SPRING POINT WASTE DUNDEE LANDSCAPE WATER TOWNHOMES NURSERY

OTTO HUNTLEY RD ENGINEERING W MAIN ST MAIN STREET PARKVIEW DELACEY FAMILY BICYCLES CARPENTERSVILLE ELEMENTARY EDUCATION SCHOOL CENTER FIRE DEPT REVCOR

Fox River

SPRING HILL MALL

N 8TH ST (29,000 CPD)

Representative Photo

W MAIN ST

W MAIN ST

ST. CATHERINE CATHOLIC CHURCH HAMILTON ACADEMY

PETCO | West Dundee, IL (Chicago) | 14 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Neighboring Tenants • Aerials •

• APET • JNL CLIMATE CONTROL • SHARP EXPRESS • PUMA LOGISTICS • ANCHOR CONTAINER CORP • FOX VALLEY CONTAINERS • ENTERPRISE HOLDINGS • POWER ELECTRONICS CHICAGO -- LOOKING SOUTHEAST -- • HORIZON DIE COMPANY • TLK INDUSTRIES • TRIDENT DEFENSE • BECKER & ASSOCIATES • CUTLERY & MORE • PRYMETECH • DYNEGY • GREAT NORTHERN KITCHEN • CUSTOM FLOORING INSETS • HYDROSIL INTERNATIONAL • CMC EXHIBIT MANAGERS • UPLAND CONCRETE

GOLF VIEW ELEMENTARY SCHOOL EAST DUNDEE BONNIE DUNDEE GARDNER SANTA’S LAKEWOOD FIRE DEPT GOLF CLUB DOLPHIN COVE FAMILY PLACE AZOOSEMENT PARK SCHOOL AQUATIC CENTER HIGGINS RD PENNY AVE OAK RIDGE DUNRIDGE LUCIDA SCHOOL HOMES INTERNATIONAL CARPENTERSVILLE CARPENTERSVILLE WASTE WATER MIDDLE SCHOOL E MAIN ST DELACEY FAMILY DUNDEE HIGHLANDS EDUCATION Fox River ELEMENTARYSCHOOL W MAINPARKVIEW ST CENTER ELEMENTARY SCHOOL REVCOR

Representative Photo CARPENTERSVILLE FIRE DEPT HAMILTON ACADEMY RIVERPARK Fox River APARTMENTS ST. CATHERINE W MAIN ST CATHOLIC CHURCH

N 8TH ST (29,000 CPD)

SPRING HILL MALL

PETCO | West Dundee, IL (Chicago) | 15 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Neighboring Tenants • Aerials •

• JW TURF • LIFE TRANSPORT • CENTRAL FURNACE SUPPLY • ZIMMER BIOEMET • DYNACAST ELGIN • BYSTRONIC • COMPONENT PLASTICS • HUMBOLDT MFG CO -- LOOKING SOUTH -- • PRINTPACK ELGIN • WANXIANG AMERICA • MOTION INDUSTRIES • TANKNOLOGY • HITACHI TRANSPORT • ACE MOVING & STORAGE • DAXAM • BDG INTERNATIONAL Fox • FABRIC IMAGES, INC. • CENTRAL SALT THE VILLAGES AT • HYDROX LABORATORIES • NORTHGATE TECHNOLOGIES River CANTERFIELD JELKE CREEK BIRD SANCTUARY WEST DUNDEE SPRING HILL SLEEPY HOLLOW PUBLIC WORKS APARTMENTS ELEMENTARY SCHOOL WEST DUNDEE DUNDEE HIGHLANDS POLICE DEPT S 8TH ST ELEMENTARY SCHOOL HAMILTON ACADEMY ST. CATHERINE W MAIN ST CATHOLIC CHURCH W MAIN ST

W MAIN ST

N 8TH ST (29,000 CPD)

SPRING HILL MALL

HUNTLEY RD W MAIN ST

Representative Photo

PETCO | West Dundee, IL (Chicago) | 16 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Neighboring Tenants • Aerials •

LIBERTY -- LOOKING NORTHWEST -- CARRINGTON GRAND POINT ELEMENTARY RESERVES MEADOWS SCHOOL WEST DUNDEE FIREE DEPT

SPRING POINT TOWNHOMES HUNTLEY RD

DUNDEE LANDSCAPE NURSERY

DOOMIS CUSTOM BUILDERS SPRING HILL MALL

W MAIN ST WESTERN AVE

THE GRANITE FACTORY

ST. CATHERINE CATHOLIC CHURCH RIVERPARK APARTMENTS

N 8TH ST (29,000 CPD)

Fox River

Representative Photo W MAIN ST

PETCO | West Dundee, IL (Chicago) | 17 TENANT OVERVIEW

PETCO | West Dundee, IL (Chicago)

PETCO | West Dundee, IL (Chicago) | 18 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• About Petco •

-- About Petco --

Petco has been part of pets and pet parents’ lives since 1965 when founder Walter Evans opened a mail-order veterinary supplies HIGHLIGHTS • PETCO business in La Mesa, CA in San Diego County. Over the last 50 years, Petco has become the trusted source for high quality, premium pet products and services in local neighborhoods across the U.S. Founded: 1965 We provide the products, services, advice and experiences that keep pets physically fit, mentally alert, socially engaged and emotionally happy. Everything Industry: Retail - Pet Products we do is guided by our vision for Healthier Pets. Happier People. Better World. We operate more than 1,500 stores across the U.S., Mexico and Puerto Rico, including more than 80 Unleashed by Petco locations, a smaller format neighborhood shop; prescription services and pet supplies from the leading Annual Revenues (2018) $4.2 Billion veterinary-operated pet product supplier, Drs. Foster & Smith; digitally delivered pet health advice through PetCoach; and petco.com. Locations: 1,500+ The Petco Foundation, an independent nonprofit organization, has served as a voice for companion animals across the country since 1999. Each year, the Areas Served: All 50 U.S. States, Mexico, Puerto Rico Petco Foundation helps animal-welfare organizations find lifelong, loving homes for millions of orphaned pets, as well as fund spay and neuter efforts, Headquarters: San Diego, CA animal-assisted therapy programs and human education. Today, the Foundation has invested more than $200million since inception to improve the welfare Website: www.petco.com of companion animals across the nation.

UNLEASHED BY PETCO Petco introduced Unleashed by Petco in 2009 with the opening of its first location in San Diego’s Hillcrest neighborhood. Focusing on exceptional customer service in a fun, pet-friendly environment, Unleashed by Petco combines the personal commitment, intimacy and expertise of a neighborhood pet store with the price/value and rewards of a national retailer. # Designed specifically for the most discerning dog and cat lovers who believe their pet is an extension of themselves,their values and beliefs, Unleashed by Petco offers pet parents the best in sustainable, organic and natural products as well as exclusive fashions and accessories. Unleashed by Petco also offers a variety of community and fundraising events, including pet adoptions, as well as services like dog training, vaccination clinics, self-serve dog wash, pet 100 parties and meet-ups. Today, there are more than 80 Unleashed by Petco stores across nine states, including nearly 30 locations in , plus stores in District of Columbia, , , , , , , and .

PETCO | West Dundee, IL (Chicago) | 19 AREA OVERVIEW

PETCO | West Dundee, IL (Chicago)

PETCO | West Dundee, IL (Chicago) | 20 Representative Photo EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• West Dundee Overview • Spring Hill Mall Chicago Overview Demographics Overview

-- WEST DUNDEE OVERVIEW --

West Dundee is a village in Kane County, Illinois, United States. It is considered a far west Chicago suburb, located just 42 miles northwest of the city. Named in honor of a Scottish town, it was incorporated in 1887. As part of the upper Fox River Valley in northern Illinois, West Dundee enjoys one of the region’s most unique and treasured assets, the Fox River greenway. The Fox River serves as the Village’s eastern border and is quickly becoming one of the community’s finest recreational areas. Dundee was hemmed in from development for years, with the Fox River forming a natural eastern barrier. To the north and west, the D. Hill Nursery, founded in 1855 by William Hill, specialized in fruit trees. The business grew to include evergreens, some of which were sent to Chicago for the World’s Columbian Exposition in 1893. Expanding to 900 acres, the nursery survived the Great Depression by running a cattle feed operation that continued through World War II. In the 1950s a segment of the Hill property was sold and turned into the Highlands subdivision, which was annexed into West Dundee in 1956. With completion of the 1.1-million- square-foot Spring Hill Mall on Hill’s land in 1980, West Dundee’s economy got a huge boost, creating an estimated 1,600 jobs by 1982 and promoting the building of new subdivisions to the west. West Dundee has managed to keep its quaintness and small-town feeling intact. Designated historical sites fill the downtown and surrounding residential neighborhood. Restored buildings include structures reported to have provided refuge for slaves on the Underground Railroad. The friendliness of West Dundee residents and the positive attitude of its business leaders are two reasons the village was able to survive the economic pressures of 2008, the move to Internet retail, and growth in surrounding towns such as Algonquin and Crystal Lake.

Today, Dundee is in the midst of an economic revival of sorts. The Village has seen the job market increase by 1.6% over the last year and future job growth over the next ten years is predicted to be 38.0%. There are economic development efforts to revive Spring Hill Mall, with construction under way on a $40 million renovation project that will continue for the next two years (see pg 23). West Dundee also is in the first phase of renovating its downtown, which will be largely completed by 2020. By updating downtown West Dundee, the community leaders hope to bring business to restaurants and new entertainment centers in the area.

PETCO | West Dundee, IL (Chicago) | 21 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

West Dundee Overview • Spring Hill Mall • Chicago Overview Demographics Overview

-- SPRING HILL MALL -- Carpentersville, West Dundee join forces on plan to build up area around Spring Hill Mall

By Erin Sauder The Courier-News

As the revitalization of Spring Hill Mall continues, Carpentersville and West Dundee are partnering to help to guide the shopping center’s future and that of the surrounding areas. The villages announced Thursday they are embarking on a joint effort to plan and carry out redevelopment and recruitment efforts that could bring in new businesses as well as explore mutually beneficial economic development opportunities. “We’ve already started that process. This just formalizes in a public way our intention to work together as two communities on one single geographic area,” West Dundee Mayor Chris Nelson said. Both villages’ community development departments and administrators plan to meet regularly to combine efforts and resources. “We’ll be looking at the whole area holistically and making sure we’re harmonizing on our respective plan,” Nelson said. In 2015, the two villages partnered with Rouse Properties to bring the mall’s $40 million renovation to fruition. Mall officials sought $8.6 million total in financial assistance from the villages, which both are providing via incremental tax revenue. West Dundee’s portion will be larger since more of the complex falls within its boundaries. Brookfield Property Partners acquired Rouse Properties after the financial package was approved. “The villages’ plans to leverage the recent $40 million investment made in Spring Hill Mall under the ownership of Rouse that brought the additions of Cinemark, H&M, Panera Bread, American Mattress, Jersey Mike’s and Pablo’s Tex-Mex Cantina, with a joint effort to improve the economic viability of Spring Hill Mall and work cooperatively toward redevelopment and economic development between the two communities in this area of mutual jurisdiction,” the announcement said. Earlier this year, West Dundee hired the Atlanta-based Sizemore Group to create a long-term plan to serve as a framework for SPRING HILL MALL IN MIDST OF $40 MILLION RENOVATION • NEW TENANTS, MIXED-USE PLANS the entire Spring Hill Mall area, including those properties that extend outside of the mall footprint. CONTINUE TO EXPAND THE VISION OF THE MALL’S FUTURE One element of the plan includes developing a new mixed-use “Main Street,” anchored by a civic building such as a library, that Spring Hill Mall, which is located in both West Dundee and Carpentersville, is currently in the midst of a would have some visibility from West Dundee’s actual Main Street. $40 million renovation. Rouse Properties, owner of the shopping center, partnered with both villages in “We know there will be changes coming at Spring Hill Mall,” Nelson said. “We’re grateful both Macy’s and , despite closing 2015 to bring the project to fruition. Mall officials sought $8.6 million total in financial assistance from anchors in other malls, have kept theirs open at Spring Hill.” the villages and both agreed to provide it via incremental tax revenue. West Dundee’s portion will be larger since more of the complex falls within its boundaries .Brookfield Property Partners acquired Rouse Where the area falls short, he said, is residential and office activity. Properties after the financial package was approved. “We need to add both around the mall because where I think there is a weakness is density,” Nelson said. “We need people The 1.3 million-square-foot Mall has seen the additions of a 37,000 SF Cinemark Theater and there and active during the day and on the weekends and that takes time to implement. We also need it to be more walkable, 21,000-square-foot H&M in 2017, as well as Panera Bread, American Mattress, Jersey Mike’s and Pablo’s with less asphalt dedicated to parking. I believe Carpentersville is thinking the same thing that we are and that is a Spring Hill Tex-Mex Cantina, bringing a new energy and excitement to the center. Mall area of the future that is more mixed-use than it is presently.” West Dundee and Carpentersville continue to work on a joint effort to plan and carry out redevelopment Carpentersville Village President John Skillman is happy the villages will be working together on the future of the area. and recruitment efforts that could bring in new businesses as well as explore mutually beneficial economic “We want to make the mall sustainable and with the new businesses growing around it … we want to be able to support those development opportunities. businesses,” he said. “More people coming into those restaurants and bars bring more people to the mall.” One element of the plan includes developing a new mixed-use “Main Street,” anchored by a civic Nelson calls the revitalization project “a long-term process.” building such as a library, that would have some visibility from West Dundee’s actual Main Street. Two “Brookfield is a solid operator with hundreds of properties across the nation. We’re fortunate they own the mallinour decades from now, the Spring Hill Mall campus could be bustling with pedestrian pathways, residential community,” he said. “We are going to give every effort to help the company as it improves its property and the property developments, new entertainment options and mixed-use buildings. Restaurants, offices and lodging surrounding it.” could complement the area’s core retail concept. View Press Release Here

PETCO | West Dundee, IL (Chicago) | 22 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

West Dundee Overview Spring Hill Mall • Chicago Overview • Demographics Overview

-- CHICAGO OVERVIEW --

Chicago is located on the shores of freshwater Lake Michigan, and is the third most populous city in the United States. As of the 2017 census-estimate, Chicago has a population of 2,716,450, which makes it the most populous city in both the state of Illinois and the Midwestern United States. It is the county seat of Cook County, the second most populous county in the U.S. Chicago is the principal city of the Chicago metropolitan area, which is often referred to as “Chicagoland.” The Chicago metropolitan area has nearly 10 million people, is the third-largest in the United States, the fourth largest in North America, and the third largest metropolitan area in the world by land area.

Positioned along Lake Michigan, the city is an international hub for finance, commerce, industry, technology, telecommunications, and transportation. The city saw the creation of the first standardized futures contracts atthe Chicago Board of Trade; which today is the largest and most diverse derivatives market in the world, generating 20% of all volume in commodities and financial futures. O’Hare International Airport is the one of the busiest airports in the world, and the region also has the largest number of U.S. highways and railroad freight.

BALANCED ECONOMY • MAJOR WORLD FINANCIAL CENTER Chicago has the third-largest gross metropolitan product in the United States - about $670.5 billion according to September 2017 estimates - ranking it after the metropolitan areas of Tokyo, New York City, and Los Angeles, and ranking ahead of MAJOR TOURISM HUB • 2ND MOST VISITED CITY IN THE UNITED STATES • CENTER OF CULTURE, ARTS, FOOD number five London and number six Paris.. Chicago was the second most visited city in the United States in 2017, with 55 million domestic and international Chicago has one of the world’s largest and most diversified and balanced economies, not being dependent on any one visitors, not far behind the 62 million visitors to New York City. The city ranked first place in the 2018 Time Out City industry, with no single industry employing more than 14% of the workforce. The city and its surrounding metropolitan Life Index, a global quality of life survey of 15,000 people in 32 cities. area contain the third-largest labor pool in the United States with about 4.63 million workers. Major tourist landmarks in the city include Millennium Park, , the Magnificent Mile, the Art Institute of Chicago is a major world financial center, with the second-largest central business district in the United States. The city Chicago, Museum Campus, the Willis (Sears) Tower, the Museum of Science and Industry, and Lincoln Park Zoo. is the seat of the Federal Reserve Bank of Chicago, the Bank’s Seventh District. The city has major financial and futures Chicago’s culture includes the visual arts, literature, film, theater, comedy (especially improvisational comedy), exchanges, including the Chicago Stock Exchange, the Chicago Board Options Exchange (CBOE), and the Chicago Mercantile food, and music, particularly jazz, blues, soul, hip-hop, gospel, and electronic dance music including house music. Exchange (the “Merc”), which is owned, along with the Chicago Board of Trade (CBOT) by Chicago’s CME Group. In 2017, Chicago exchanges traded 4.7 billion derivatives with a face value of over one quadrillion dollars. Chase Bank has its commercial and retail banking headquarters in Chicago’s Chase Tower. Academically, Chicago has been influential through the Chicago school of economics, which fielded some 12 Nobel Prize winners.

HOME TO FORTUNE 1000, FORTUNE GLOBAL 500• 3RD LARGEST LABOR POOL IN THE UNITED STATES Illinois is home to 66 Fortune 1000 companies, including those in Chicago. The city of Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims two Dow 30 companies: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001, and Kraft Heinz. According to Site Selection magazine, the Chicago area has seen the most corporate headquarters relocation or expansion projects in the US for each of four consecutive years form 2013 to 2016. Caterpillar Inc. will be moving its global headquarters, with about 300 executives and staff and support personnel, to the Chicago suburb of Deerfield, Illinois, while its high-technology center is in Chicago, by the end of 2018. The headquarters of United Continental Holdings, its subsidiary United Airlines, and its operations center are in the Willis Tower in Chicago. In June 2016, McDonald’s confirmed plans to move its global headquarters to Chicago’s West Loop neighborhood by mid 2018; Chicago was the company’s headquarters between 1955 and 1971.

PETCO | West Dundee, IL (Chicago) | 23 SUMMARY PROFILE 2000-2010 Census, 2018 Estimates with 2023 Projections Calculated using Weighted Block Centroid from Block Groups

Lat/Lon: 42.1017/-88.2876 RS1 403 N 8th St 1 mi radius 3 mi radius 5 mi radius SWUesMt DMunAdEXECUTIVEReeY, IPL R60O11F8ILE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW 2000-20120180 Ce Estimatednsus, 2018 Population Estimates with 2023 Projections 7,692 53,015 159,866 Calculated using WeightedWest DundeeBlock Centroid Overview from Block Groups Spring Hill Mall Chicago Overview • Demographic Overview • 2023 Projected Population 7,769 54,039 161,731 N O

I 2010 Census Population 7,641 51,879 154,232 T

-- DEMOGRAPHICSLat/LA on: 200042.10 Census1 --7/-88.2 Population876 7,414 47,322 132,868 L RS1 U

P Projected Annual Growth 2018 to 2023 0.2% 0.4% 0.2% 403O N 8th St P Historical Annual Growth 2000 to 2018 1 mi rad0.2%ius 3 mi rad 0.7%ius 5 mi rad1.1%ius West Dundee, IL 60118 1 Mile 3 Miles 5 Miles 2018 Median Age 41.5 35 35.6 160,000 POPULATION - 5 MILE RADIUS 2018 Estimated Population 7,692 53,015 159,866 EXCELLENT SURROUNDING DEMOGRAPHICS 2018 Estimated Households 3,119 17,139 53,804 2023 Projected Population 7,769 54,039 161,731 Nearly 160,000 people live within a 5-mile S N

D 2023 Projected Households 3,219 17,842 55,828 radius of the subject property. O L

I 2010 Census Population 7,641 51,879 154,232 O T 2010 Census Households 3,017 16,336 50,553 A H 2000 Census Population 7,414 47,322 132,868 L E U

S 2000 Census Households 2,856 15,078 43,827 HOUSEHOLDS - 5 MILE RADIUS P 54,000 U Projected Annual Growth 2018 to 2023 0.2% 0.4% 0.2% O O

P Projected Annual Growth 2018 to 2023 0.6% 0.8% 0.8% H DENSE RESIDENTIAL IN-FILL LOCATION

POPULATION Historical Annual Growth 2000 to 2018 0.2% 0.7% 1.1% Historical Annual Growth 2000 to 2018 0.5% 0.8% 1.3% There are over 463,000 households within a 50- 2018 Median Age 41.5 35 35.6 mile radius of the subject property. 2018 Estimated White 85.7% 69.9% 69.8% 2018 Estimated Households 3,119 17,139 53,804 2018 Estimated Black or African American 2.7% 6.0% 5.7% D S Y N

T AVG HH INCOME - 5 MILE RADIUS D 2023 Projected Households 3,219 17,842 55,828 $95,000 I

L 2018 Estimated Asian or Pacific Islander 4.2% 5.4% 7.4% A C I O E 2010 Census Households 3,017 16,336 50,553 AFFLUENT DEMOGRAPHICS N H C 2018 Estimated American Indian or Native Alaskan 0.3% 0.4% 0.7% H E A The Average HH Income is nearly $95,000 within T

S 2000 Census Households 2,856 15,078 43,827 R

E 2018 Estimated Other Races 7.0% 18.3% 16.4% U a 5-mile radius of the subject property. O Projected Annual Growth 2018 to 2023 0.6% 0.8% 0.8% H 2018 Estimated Hispanic 15.6% 38.9% 34.8% HOUSEHOLDS Historical Annual Growth 2000 to 2018 0.5% 0.8% 1.3%

E 2018 Estimated Average Household Income $99,519 $93,964 $94,843 M 2018 Estimated White 85.7% 69.9% 69.8% O 2018 Estimated Median Household Income $71,181 $74,249 $80,177 C

N 2018 Estimated Black or African American 2.7% 6.0% 5.7% D I Y 2018 Estimated Per Capita Income $40,356 $30,423 $31,965 N T I 2018 Estimated Asian or Pacific Islander 4.2% 5.4% 7.4% A C I E

N 2018 Estimated Elementary (Grade Level 0 to 8) 3.7% 11.2% 8.9% C 2018 Estimated American Indian or Native Alaskan 0.3% 0.4% 0.7% H A

T 2018 Estimated Some High School (Grade Level 9 to 11) 3.1% 8.5% 7.5% R

E 2018 Estimated Other Races 7.0% 18.3% 16.4% N ) This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. representation herein is provided without information The be reliable. sources deemed to and government private from was produced using data report This + O

I 2018 Estimated High School Graduate 26.5% 26.1% 24.3% 5 T

RACE & ETHNICITYRACE 2018 Estimated Hispanic 15.6% 38.9% 34.8% 2 A

E 2018 Estimated Some College 23.8% 20.6% 21.2% C G U E

A 2018 Estimated Average Household Income $99,519 $93,964 $94,843

D 2018 Estimated Associates Degree Only 7.5% 7.2% 7.6% ( M E O 2018 Estimated BachelorsMedian Household Degree Only Income $71,18124.5% $74,249 18.6% $80,17720.3% C N I 2018 Estimated GraduatePer Capita Degree Income $40,35610.9% $30,423 7.7% $31,96510.3% INCOME

S 2018 Estimated TotalElementary Businesses (Grade Level 0 to 8) 3.7%757 11.2% 2,162 6,3548.9% S

E 2018 Estimated TotalSome Employees High School (Grade Level 9 to 11) 8,4123.1% 26,378 8.5% 89,1047.5% N N ) I This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. representation herein is provided without information The be reliable. sources deemed to and government private from was produced using data report This + O S I 2018 Estimated High School Graduate 26.5% 26.1% 24.3% 5 2018 Estimated Employee Population per Business 11.1 12.2 14.0 U T 2 B A BUSINESS E 2018 Estimated Some College 23.8% 20.6% 21.2%

C 2018 Estimated Residential Population per Business 10.2 24.5 25.2 G U A

D 2018 Estimated Associates Degree Only 7.5% 7.2% 7.6% ( E 2018 Estimated Bachelors Degree Only 24.5% 18.6% 20.3% ©2018, Sites USA, Chandler, , 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 04/2018, TIGER Geography 2018 Estimated Graduate Degree 10.9% 7.7% 10.3%

S 2018 Estimated Total Businesses 757 2,162 6,354 PETCO | West Dundee, IL (Chicago) | 24 S

E 2018 Estimated Total Employees 8,412 26,378 89,104 N I

S 2018 Estimated Employee Population per Business 11.1 12.2 14.0 U B 2018 Estimated Residential Population per Business 10.2 24.5 25.2

©2018, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 04/2018, TIGER Geography EXCLUSIVELY LISTED BY

RYAN BARR RYAN BENNETT Principal Principal BARR&BENNETT NETLEASEDINVESTMENTS 760.448.2446 760.448.2449 A Lee & Associates Team [email protected] [email protected]

Lee & Associates hereby advises all prospective purchasers of Net-Leased Invesment property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of an investment property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase.This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Lee & Associates expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of an investment property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any investment property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Lee & Associates and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this investment property.

BROKER OF RECORD: Lee & Associates of Illinois, LLC IL Brokers Lic# 481000317

No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice.

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