East Illinois Street Chicago, Illinois Valuation and Marketing Proposal

Valuation and Marketing Proposal River East Plaza 401 East Illinois Street Chicago, Illinois

PREPARED FOR: CLMG Corp Michael Wyant Vice President - Commercial REO Marketing Julie Butticarlo Commercial REO Marketing Manager TERMS OF ENGAGEMENT

TERMS OF ENGAGEMENT

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY ...... 1

II. PROJECT TEAM ...... 5

III. GENERAL AREA AND PROPERTY OBSERVATIONS ...... 8

IV. BROKER OPINION OF VALUE ...... 10

V. MARKETING PROGRAM ...... 25

VI. TERMS OF ENGAGEMENT ...... 33

VII. APPENDIX ...... 34 COMPANY OVERVIEW PROJECT TEAM BIOGRAPHIES

EXECUTIVE SUMMARY

CLMG Corp. I. EXECUTIVE SUMMARY

OVERVIEW

Colliers International | Chicago is pleased to present this valuation (“BOV”) and marketing proposal to CLMG Corporation (“CLMG” or “Ownership”) for the River East Plaza, 401 East Illinois Street, Chicago, Illinois (“Property”). For this important assignment we are presenting a marketing team with a wealth of expertise in office, multi-family, and redevelopment projects.

THE TEAM

David A. Bercu, SIOR, principal; Vernon F. Schultz, SIOR; executive vice president; Michael L. Senner, SIOR, senior vice president; Brian T. Pohl, executive vice president; and Brian P. Nagle, executive vice president will be the core team that is exclusively responsible for the marketing of the Property.

Supporting the marketing team will be Aimee Course, vice president of marketing and communications; Michelle Tenuta, vice president of research and analytics, and Jerrod Wigal, senior associate in the investment services group.

Additionally, the core team has already spoken about the project with Ted Novak of DLA Piper, one of the city’s most respected zoning attorneys, and as a result of that discussion, the team has numerous insights to share with CLMG concerning the zoning of the property.

Core Team Qualifications

This experienced team of industry veterans has wide expertise in the following disciplines:

 Retail lease and sales

 Multi-use development, residential and retail land sales

 Property re-use and redevelopment

David A. Bercu will serve as CLMG’s single point of contact and strategic advisor for the project. David has spent his entire 25-year career with Colliers International and his consummated transactions in excess of $3 billion in all product types. Having spent the past year working with the CLMG team on its Dundee / Skokie land sale project, David has already forged a positive relationship with the CLMG team and brings to this project a valuable understanding of the team’s goals and the way it prefers to collaborate.

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projects, including the $54 million sale of an 8.2-acre land site owned by YMCA of CLMG Corp. Metropolitan Chicago.

Brian T. Pohl leads Colliers International | Chicago’s multi-family investment services group. With more than 16 years of experience, Brian has sold more than $1.1 billion of real estate assets for a variety of owner types. He successfully sold the 1,056-unit McClurg Court Apartment complex which is nearly adjacent to the River East Plaza.

Brian P. Nagle leads Colliers International | Chicago’s office investment services group. He focuses on the sale of properties throughout the Chicago metropolitan area and the other Midwest markets. Brian has over 30 years of capital markets expertise and has sold assets valued at more than $20 billion. Brian is supported by partner Jerrod Wigal, senior associate. Brian and Jerrod have sold 37 Chicago CBD offices properties including the Santa Fe Building at 224 South Michigan Avenue and 564 West Randolph, which was a 100% vacant loft office sale.

Supporting Team

Additional in-house support will be provided by Aimee Course, vice president of marketing and communications. Aimee has 16 years of real estate marketing experience, a master’s degree in Integrated Marketing Communications, and holds an Illinois real estate license. Aimee’s five-person team of design and communications professionals will ensure that professional quality materials are designed and appropriately distributed. CLMG is familiar with the Offering Memorandum that Aimee’s team prepared for the Dundee/Skokie property and would be producing another document of that caliber for the River East project.

Also supporting the team will be Michelle Tenuta, Vice President of Research and Analytics. Michelle brings 13 years of real estate experience primarily related to comprehensive financial modeling and in-depth market research.

Re-Use Redevelopment Experience

The Colliers team has the most current knowledge of mixed-use, retail and multi-family activity in the area. The team also sold the following in-city redevelopment properties:

 Michael Reese Hospital – 30 acres Michael Reese Hospital Site  New City YMCA – 8 acres 2929 S. Ellis Avenue, Chicago, IL  Kendall College – 165,000-square-foot building

 564 Randolph Street – 100,000-square-foot building

 319 East Illinois Street – .8 acres

 1300 N. Dearborn Parkway – 65,000-square-foot, 100-unit building

Solo Cup 3333 East 87th Street, Chicago, IL

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The team has a municipal/public service background and a unique relationship with the City CLMG Corp. of Chicago. The numerous transactions team members have completed in Chicago, and more importantly in this ward, enables us to have insight into the way the city works.

HIGHEST AND BEST USE

After careful review of market dynamics, zoning, and redevelopment costs, it is the opinion of the team that the River East Plaza would be best served with a conversion of floors 2-6 to multi-family use. With the rental market at its strongest in years, now may be the time to capitalize on this opportunity. The property has outstanding proximity to residential density and daytime population. Any marketing efforts would be focused on embracing the asset’s position in the niche marketplace while building upon the success of Fox & Obel at the SEC of Illinois and McClurg Court.

The office market is much less vibrant, particularly in this submarket. With nearly 300,000 square feet to fill and no synergy from nearby office buildings, we are much less confident that the highest and best use of this property is office development.

OPINION OF VALUE

Based on the comparable transactions, developer proformas and the current market conditions we believe appropriate market values for the respective uses could be in the range of $25 to $30 million. Please see the Broker Opinion of Value section in this proposal for detailed information on our assumptions, comparable data, and how we arrived at the property value conclusion below.

ASKING PRICE

We recommend not setting an asking price, but rather giving prospects a $35 million reference point.

MARKETING PLAN

Our intensive marketing plan will be focused on creating high-end marketing materials and reaching a highly qualified national investor list through third-party sources such as Real Capital Markets and our own proprietary databases. Our primary targets include mixed-use, multi-family, and retailer developers in addition to lifestyle retail users. There are a large number of qualified developers currently in the market for loft rental conversions.

Marketing to the brokerage community is also critical, most specifically to retail and multi- family brokers. We currently have an up-to-date list ready to go that targets approximately 75 retail and multi-family professionals.

Our call for offers would occur 60 days following the completion of our offering materials. A short list would be created for best and final negotiations, and hard earnest money would be requested at the completion of due diligence.

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MARKETING TIMELINE CLMG Corp. We anticipate a comprehensive marketing timeline of approximately 90 days from engagement to closing.

AGENCY AGREEMENT

Colliers recommends a six month term for the agency agreement. The commission would be 2% of the first $20 million sale proceeds, and 3.5% of amounts above $20 million. Outside brokers would be compensated by their client.

CONCLUSION

We sincerely appreciate the opportunity to work with CLMG Corp. once again on another exciting project. The River East Plaza is a unique building in a highly visible and recognized area. We are confident that we have presented the most qualified and capable team available in the industry and look forward to the opportunity to maximize the return on this asset on your behalf.

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PROJECT TEAM

CLMG Corp. II. PROJECT TEAM

For the River East Plaza disposition project, our multi-disciplined marketing team is composed of specialists in multi-family, office, and redevelopment/re-use. Our core team of professionals will lead the disposition and sale negotiation efforts for the property. We will supplement the core team with professional services such as marketing, research, and financial analysis that are available at no charge to CLMG.

CORE TEAM

David Bercu will serve as CLMG’s single point of contact and strategic advisor for the project. David has spent his entire 25-year career with Colliers International and his consummated transactions in excess of $3 billion in all product types. David also serves on the Board of Directors of Colliers USA which provides greater assurance that all of Colliers’ global resources are available to CLMG. Having spent the past year working with the CLMG team on its Dundee / Skokie land sale project, David has already forged a positive relationship with the CLMG team and brings to this project a valuable understanding of the team’s goals and the way it prefers to collaborate.

Vernon F. Schultz has been involved in commercial real estate in the Chicago area for more than 30 years. Since joining Colliers International in 1997 he has completed more than 1,000 transactions with a total value exceeding $2 billion. Vern and partner Michael L. Senner have unmatched expertise with in-City and redevelopment / reuse projects, including the $54 Michael Reese Hospital Site 2929 S. Ellis Avenue, Chicago million sale of an 8.2-acre land site owned by YMCA of Metropolitan Chicago. Vern and Mike also played a critical role in the Kendall College redevelopment project and the sale of the Michael Reese Hospital site on Chicago’s lake front. Vern and Mike are currently working on the sale of the nine- story retail/parking facility at Washington and Franklin Avenue in Chicago, IL. The Colliers team expects six purchase offers and serious candidates include Interpark, Green Court, Next Realty, Artemis Capital and WP Carey Co. The property is expected to be under contract to an investor group the first week in May. McClurg Court Apartments Brian T. Pohl leads Colliers International | Chicago’s multi-family Chicago, IL investment services group. With more than 16 years of experience, Brian has sold more than $1.1 billion of real estate assets for a variety of owner types. He successfully sold the 1,056-unit McClurg Court Apartment complex which is nearly adjacent to the River East Plaza. Brian also completed the $65 million sale of a 400-unit vintage high-rise property at 1400 N. Lake Shore Drive in Chicago.

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Brian P. Nagle leads Colliers International | Chicago’s office investment CLMG Corp. services group. He focuses on the sale of properties throughout the Chicago metropolitan area and the other Midwest markets. Brian has over 30 years of capital markets expertise and has sold assets valued at more than $20 billion. Brian is supported by partner Jerrod Wigal, senior associate. Brian and Jerrod have sold 37 Chicago CBD offices properties Santa Fe Building including the Santa Fe Building at 224 South Michigan Avenue and 564 224 S. Michigan Ave. West Randolph, which was a 100% vacant loft office sale.

Legal / Zoning

Additionally, the core team has already spoken about the project with Ted Novak of DLA Piper, one of the city’s most respected zoning attorneys, and as a result of that discussion the team has numerous insights to share with CLMG concerning the zoning of the property.

SUPPORTING TEAM

Marketing

Research and Analytics

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PROJECT TEAM RELEVANT EXPERIENCE | CLMG Corp. COMPLETED MIXED-USE REDEVELOPMENT TRANSACTIONS

ADDRESS TYPE FORMER CURRENT ZONING

700 N. Kingsbury Street 300,000 SF Building Headquarters Residential

Clinton & Halsted Street 5 acre land site Railroad yard Residential

900 N. North Branch Street 164,000 SF Res. and Dev. Educational

1224 W. Van Buren Street 200,000 SF Building Office Residential

1101-1137 W. Jackson 282,000 SF Building Headquarters Retail / Residential Boulevard

KENDALL COLLEGE 1224 W. VAN BUREN STREET 900 N. Northbranch Street Chicago, IL Chicago, IL

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Colliers International achieved a record sale price for 8.2-acre land site owned by the YMCA of Metropolitan Chicago.

SUCCESS STORY YMCA OF METROPOLITAN CHICAGO

CHALLENGE STRATEGY

The YMCA of Metropolitan Chicago engaged The project team utilized their existing ADDRESS the Colliers project team to market the largest relationship with the City of Chicago’s 1515 N. Halsted Street remaining residential/retail landsite on the Planning and Development committee to Chicago, IL Near North side of Chicago. 1515 N. Halsted deliver a plan that addressed their concerns Street consisted of a 50,000-square-foot while working concurrently with potential TEAM building on an 8.2-acre landsite. The YMCA developers. Vernon F. Schultz, SIOR site is located in the heart of one of the most Michael Senner, SIOR desirable retail and residential communities SERVICES which currently attracts consumers from The Colliers team launched a detailed STATISTICS Lincoln Park and Gold Coast neighborhoods. marketing campaign for YMCA. 8.2 Acres It includes more than 1,800 feet of frontage SERVICES PROVIDED on Halsted Street and Clybourn Avenue. The RESULTS Seller Representation site housed baseball diamonds (Cubs Care The project team secured 12 offers from residential and retail developers while Park) and 50,000-square-foot building which successfully campaigning for a zoning www.colliers.com/chicago was utilized as a recreation and daycare center. The YMCA would have to relocate change. The team was able to address all of Cubs Care Park and the existing day care the concerns of the city and move the project operation. In addition, the City of Chicago forward. A joint venture between Chicago, IL- wanted to re-open the vacated Ogden based Structured Development, LLC and Avenue and provide affordable and CHA Wilton, CT-based Commonfund Realty, Inc. replacement housing. purchased the property for $54 million, $18 million above its appraised value. The zoning (PD-182) permitted only the existing recreational use of the property with no residential and retail applications.

The appraised value of the site was just under $36 million.

SUCCESS STORy McCLURG COURT CENTER

333 East Ontario Street CHALLENGE RESULTS Chicago, Illinois McClurg Court Center is a 1,058-unit, The marketing campaign yielded fi fteen 1.1 million square foot, twin-tower, high-rise qualifi ed off ers from reputable, institutional STATISTICS apartment tower located in Chicago’s East investors. Side/Streeterville submarket. In 2004, the 1,058 units Bid process, ‘auction environment’, and asset was off ered subject to a ground lease, 525 days on the market best-and-fi nal bidding round strategies were $125,000,000 sale price with 62 years remaining on its term. successful in extending off ers and adjusting Obsolete retail space, approximately 130,000 terms beyond their original marks. www.colliers.com/chicago square feet, is located on street level and McClurg Court was awarded to a ‘cash’ below-grade, including a shuttered movie buyer, who was able to use a large capital theater. Current positioning of this asset, expenditure – installation of a sprinkler along with a lack of capital improvements system – to add value to this acquisition; the and signifi cant deferred maintenance in buyer was the investment advisor to the recent years, led to ownership’s inability to Chicagoland Pipefi tters Union. realize material rent growth experienced in other nearby apartment communities of a similar vintage, in the same submarket.

STRATEGy National, institutional investors were the primary targets in the onset of marketing this asset. In addition to a capital improvement/upgrade program designed to capture the upside in increased rents in this submarket, a ‘value- add’ component identifi ed by the disposition team was a capital retrofi t and alternative use of the existing, obsolete retail space. Success Story 1400 Lake Shore Drive

1400 Lake Shore Drive challenge results Chicago, IL Built in 1928, this 400-unit, vintage high-rise Obtained 15 qualified bidders which included apartment property is located in Chicago’s apartment investors/operators, hotel STATISTICS affluent Gold Coast neighborhood on Lake operators, and condominium converters. Michigan. 400 units Secured significant, non-refundable, earnest 631 days on the market Previously sold in 1992, the current owners, money within a 30-day due-diligence. $62,500,000 sale price a group of private investors, maintained the Provided counseling to the client and buyer property with minimal capital improvements. pool on existing financing and securing new www.colliers.com/chicago There was significant deferred maintenance debt sources. at the time of sale. Final sale closed in January 2006 with a final selling price of $65 million. strategy Marketing Property contained a historical facade designation and a historical lobby preservation requirement. Scouted investors with interests in these historical designations and with a willingness to take the risk associated with a capital intensive retrofit. Built marketing and due-diligence materials around outlining the historical façade and retrofit requirements. Success Story Three Arts Club of Chicago

challenge results Built in 1914, the Three Arts Club is a Worked closely and coordinated with the 1300 North Dearborn Parkway four-story, 65,000 square foot building, Alderman and several neighborhood Chicago, Illinois located at the northwest corner of Division organizations, due to sensitivities related to Parkway and Goethe Street, in Chicago’s this property’s end use. STATISTICS affluent Gold Coast submarket. Fielded several qualified offers from a 100 units The building is historically significant and is diverse group of investors and users, as well 117 days on the market on the National Register of Historic Places as from area preservation boards, due to $13,000,000 sale price and a City of Chicago Landmark. Three Arts’ status as a significantly historic asset. www.colliers.com/chicago The asset was sold by the current disposition team, to current ownership, in 2007. In 2009, Upon our recommendation to PNC Bank, the we were once again engaged to sell this existing lender, to accept an offer from a asset, on behalf of current ownership, in local investor to redevelop Three Arts into a conjunction with their lender, PNC Bank. supportive living community, the original borrower, armed with fresh equity, matched that offer, and closed the deal in fourteen strategy days, exceeding all expectations. Initially valued and positioned for sale as a boutique hotel, a conversion to condominiums, or a senior/assisted living use, proposals called for an adaptive re-use geared toward a user opportunity, specifically for a school. The wide-range of this asset’s potential end-uses necessitated taking this property to market on an un-priced basis. The marketing campaign focused on the key investment highlights of Federal, State, and Local (County) tax credits and property tax abatements, due to this asset’s historical significance.

The Colliers team represented HBE Corporation and Fordham Co. in the $29 million sale of 319 East Illinois Street to Hanover Companies.

SUCCESS STORY 319 EAST ILLINOIS STREET, CHICAGO, IL

CHALLENGE RESULTS ADDRESS The Project Team was selected to represent This sale comprised the northern 319 East Illinois Street HBE Corporate and Fordham Co. in the sale (approximate one-third) portion of a larger Chicago, IL of 319 East Illinois Street. The subject 102,800-square-foot site, which was sold (currently known as 465 property has 34,412 SF of land area with simultaneously and part of the same North Park Drive) 500,000 SF of negotiable allowable building transaction. The negotiable allowable area. building area at the time of sale was 500,000 TEAM SF (excluding any allowable bonus FAR). Brian T. Pohl SERVICES The PUD was in place at the time of sale, but STATISTICS The Project Team represented the sellers, encompassed the larger 102,800 square foot 34,412 SF of land area HBE Corporation and Fordham Co. in the site (a total of 2,000,000 SF of FAR), 500,000 SF of FAR $29 million investment sale. inclusive of all bonus FAR. This included a maximum of 800 hotel rooms, 400 dwelling

SERVICES PROVIDED units and 75,000 SF of retail and parking. Owner Representation However, the Hanover Companies sale only Marketing Services included 500,000 SF of allowable FAR.

The site was purchased to construct a 48- www.colliers.com/chicago story building, consisting of 300 apartment units with average unit sizes of 1,400 SF and included decked parking. As of December 2009, the site is still vacant, and no development plans are expected in the near term

The Colliers team represented Catellus Development in the $53 million sale of The Santa Fe Building to Hamilton Partners / University of Notre Dame.

SUCCESS STORY THE SANTA FE BUILDING

CHALLENGE SERVICES ADDRESS Colliers International was selected to The Colliers team represented the seller, 224 South Michigan Ave. represent Catellus Development in the sale Catellus Development in the $53 million sale. Chicago, IL of The Santa Fe Building, a 385,904 SF office building located at 224 South Michigan RESULTS STATISTICS Avenue in Chicago, IL. The building was The building was sold in January 2006 to a 385,904 SF 74% leased and listed on the National joint venture of a local developer and the SERVICES PROVIDED Register of Historical Places. The asset is a University of Notre Dame for $53 million Owner Representation well-known Chicago landmark located along ($137.00/SF). The intention was to Michigan Avenue adjacent to Millennium eventually house university offices and Marketing Services Park, the building, which houses the executive MBA facilities.

Chicago Architecture Foundation, is the www.colliers.com/chicago initial stop on most of Chicago’s architectural tours.

STRATEGY The sale was positioned as the finest vintage property along Michigan Avenue, offering premium views, historical significance, and abundant natural light.

GENERAL AREA AND PROPERTY OBSERVATIONS

CLMG Corp. III. GENERAL AREA AND PROPERTY OBSERVATIONS

River East Plaza is surrounded by a diverse mix of property types and space usage. Residential space dominates the immediate neighborhood yet the property feeds to/from the edges of the North Michigan Avenue Office Submarket and the River North / Gold Coast Old Town Retail Submarkets. The Northwestern Hospital campus is located several blocks directly north of River East Plaza.

STREETERVILLE RETAIL TRADE AREA OVERVIEW

Streeterville is considered one of Chicago’s most successful residential neighborhoods. The trade area is drawn from the Chicago River northbound to Oak Street, east to Lake Michigan and west to Michigan Avenue. There is a high quality of life given the balanced mix of high end residential condominiums, luxury hotels, fine dining, art galleries, and shopping. According to CoStar data, the Streeterville area consists of 43 buildings totaling 2,369,670 square feet of retail.

The trade area is healthy with a net absorption rate of 97% and quoted lease rates averaging $52.93. The average base rental rate is disproportionately skewed upward due to proximity to the highly desirable North Michigan Avenue. However, the subject property is located below Michigan Avenue without connectivity and considered a separate audience commanding a substantially lower metric relative to gross occupancy.

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NORTH MICHIGAN AVENUE OFFICE SUBMARKET OVER VIEW CLMG Corp. River East Plaza is located in southeast corner of the North Michigan Avenue Submarket of the Chicago central business district (“CBD”). This submarket’s borders include Division Street (North), State Street (West), Lake Michigan (East), and the Chicago River (South).

The submarket is home to predominately smaller tenants, which are the first to feel the effects of a down market and the first to be forced out of

business. On the flip side, most of the activity in Northwestern Memorial Hospital this submarket is generated by the medical industry which has seen growth with the expansion of the Northwestern Medical campus, and the relocation of the neighborhood by Children’s Memorial. In additional to Northwestern Hospital, Children’s Memorial, and related entities, these two institutions attract many smaller medical tenants. Interestingly enough, there are a substantial amount of landlords in this submarket that do not want medical space users, creating a much tighter pool of viable options for these tenants. In addition, the North Michigan Avenue submarket is home to retailers, hotels, restaurants, entertainment venues, advertising and marketing agencies.

Vacancy

The overall vacancy rate for North Michigan Avenue increased slightly during the first quarter to 17.0 percent, up from 16.4 percent in the prior quarter.

The current vacancy rate in the North Michigan Avenue submarket resides well above the 14.9 percent rate posted one year ago in the first quarter of 2011. Class A vacancy increased to 19.5 percent, up from 18.3 percent in the prior quarter while Class B vacancy fell slightly to 13.8 percent, down from 14.0 percent.

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BROKER OPINION OF VALUE

CLMG Corp. IV. BROKER OPINION OF VALUE

OBJECTIVE

This broker opinion of value (“BOV”) is an assessment of the market value and the most probable price, which the Property should bring in a competitive and open market under all conditions requisite to a fair sale given:

 The economic characteristics of the Property

 The prevailing trends in the marketplace at the time the BOV is performed

 The buyer and seller are acting prudently and knowledgeably

 The price is not affected by undue stimulus

This BOV is based on the following:

 The sale of the Property to end user(s), investor(s) and speculator(s)

 Allowing contract purchaser(s) sale contingency for plan approval by the City of Chicago.

METHODOGY

The BOV reflects consideration of the following factors:

 Qualitative assessment of the location and site

 Market area demographic profile

 Current, relevant comparable transactions

 General local and global economic market conditions

 Developer proforma analysis

ASSUMPTIONS

 The purchaser will acquire an unencumbered fee simple interest in the Property, free of any liens, easements, or encroachments that would otherwise impede or impair the value of the Property.

 There are no additional economic impacts, environmental impacts, adverse soil conditions nor above standard development costs, fees, hazards, or any other conditions, which would otherwise impede development or impair the value of the Property.

 These assumptions are deemed to be a critical part of this assessment, and as such may warrant additional investigation to confirm their accuracy.

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QUALIFICATIONS AND LIMITATIONS CLMG Corp. The Colliers International | Chicago team prepared this BOV, which is based on information sources deemed to be reliable. However, Colliers International does not warrant the accuracy of such information. In addition, this assessment is subject to change based upon market conditions.

This BOV is not provided in connection with any other related transaction and is not a MAI appraisal of the Property. Further, this BOV is based upon information provided to us by CLMG Corp., CoStar comparable information (as well as public sources) in addition to our “on site” inspection of the Property.

SUBJECT PROPERTY

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PROPERTY ASSESSMENT CLMG Corp. Overview The Property is a highly desirable loft office /retail development opportunity located adjacent to Chicago’s exclusive Streeterville at the southwest corner of Illinois and Lake Shore Drive, bounded on the south by the Odgen Slip. The property features approximately 470,000 square feet of office/retail space. The building is currently 30% leased with excellent renovated spaces in both retail and office areas.

Overall, the site has many redeeming qualities. Based on easy access to quality employment, transportation, shopping and recreational opportunities and a superior marketing window, we view the site location to be excellent in quality. The immediate area is rich with numerous regional shopping, recreational and educational opportunities.

In general, the predominant uses in the area are a mix of multi-story office, retail and restaurants, which are surrounded by entertainment and residential with Lake Michigan access.

Location Access and visibility to the site are two of the most positive features of the Property given its frontage on The Odgen Slip and its immediate proximity to Lake Shore Drive. The Property’s proximity to major office buildings and transportation is excellent. Access to the interstate system via Lake Shore Drive is less than miles minutes to the south. Navy Pier, Illinois’ most attended attraction, is immediately east.

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CLMG Corp. Zoning The Property is currently zoned PD368. The building has been designated “orange” by the City, meaning any use changes allow the City of Chicago 90 days to determine if the building should receive landmark status.

In advance of preparing this BOV, the marketing team met with DLA Piper, one of the City’s more respected zoning attorneys and learned the following:

 Office, retail/commercial and apartments are an acceptable use.

 Senior housing is probably not acceptable, but the financing climate for this type of project is not viable at this time.

 Based on visual review of the property, it appears that the building can be easily converted to loft rental.

Adjoining Land Uses The property is surrounded by a variety of uses. A summary of the land adjacencies and their possible impact on value is summarized below:

PARCEL ADJACENCY CURRENT USE POTENTIAL IMPACT North Office/Residential Neutral East Navy Pier Positive South Ogden Slip – Hotel Positive West Retail, Multi-story residential Neutral

Schools Although families with children are not the primary target market for a residential use on the Property, the potential future residential product types can and do serve as a lower cost substitute for some families. Elementary and public schools are accessible via public transportation and private school areas are a short drive.

Market Area Demographic Profile The demographics profile for the Property within 1, 3, and 5 mile radii are above standard and indicate better retail and residential market sales performance.

1 MILE 3 MILES 5 MILES Residential Population 56,316 257,060 637,848 Households 36,448 143,631 317,368 Average Household Income $112,390 $99,700 $84,177 Household Income above $100,000 8.65% 8.11% 7.50%

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CLMG Corp. MULTI-FAMILY USE There has been a recent resurgence of Chicago multi-family investment sales volume to pre-recession levels. Minimal apartment deliveries over the past few years coupled with strong demographics-based tenant demand for conveniently located efficient apartment units led to decreasing vacancies and soaring rents. As financing options from government-sponsored entities to banks and insurers began to reappear, all the other pieces of the puzzle fell into place and the perfect environment for apartment investors emerged. Investors sidelined over the past few years took advantage of available debt at rock bottom rates, driving capitalization rates down and per-door prices to record breaking heights. EnV Tower sold early in 2012 for a $482,73 per unit. Towers with larger retail spaces like the Grand Plaza in River North sold for $546,000 per unit in 2007, but when removing the EnV Tower

value of the retail, EnV may materialize as Chicago’s most expensive apartment sale ever.

Multi-family investment is arguably the least volatile of the investment types. Technology is constantly changing how people shop, ship, and work, but it has little effect on apartment demand. Short-term leases allow apartment investors to quickly adjust to changes in the market unlike any other asset type creating higher income-oriented returns while decreasing volatility. These factors have allowed the Chicago-area apartment market to rebound as quickly as it has.

Apartments will continue to be in high demand in the near future. Owners of Class A assets can hold and ride the rent growth up or sell and take advantage of the frothy sales market. Class B and C owners can hold and enjoy the rent growth, implement an in-house value add program in an attempt to bring their assets into the A-, B+ range, or sell now to any of the growing number of value-add buyers looking to get into the mix. Regardless of the apartment investor’s strategy, one constant remains - apartments are a very safe real estate investment and will be through 2012.

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CLMG Corp. Recent Multi-Family Investment Sale Comparables | Downtown Chicago TOTAL PRICE PER DATE PROPERTY UNITS PRICE ($) UNIT ($) BUYER / SELLER May One Superior 809 320,000,000 395,550 Hartz Mountain Industries / 2011 Place Brookfield Asset Management JV BLDG Managements; Robert K Futterman & Associates Oct 2011 Regents Park 1,031 159,000,000 154,219 Antheus Capital LLC / Crescent Heights Jan 2012 EnV Tower 249 120,200,000 482,731 MetLife / Lynd Corporate

Jan 2011 Sono East 324 115,000,000 354,938 Prudential / Smithfield Properties Ltd JV Gordon Segal JV Stanley Nitzberg Dec 2011 Cityfront Place 480 107,000,000 222,917 RREEF Funds / Crescent Heights Apartments October Oakwood 304 90,000,000 296,053 L&B Realty Advisors / 2011 Chicago Tishman Speyer JV Lehman Brothers Holdings Inc JV Bank of America Dec 2011 Flair Tower 198 85,000,000 439,394 General Investment & Development / CalPERS JV McCaffery Interests March Roosevelt 342 76,383,753 223,344 McCaffery Interests JV Canyon 2011 Collection Capital Realty Advisors / (Apartment) Centrum Properties JV Angelo Gordon Dec 2011 1212 On South 344 64,950,000 188,808 Crescent Heights from Urban Michigan Realty Partners JV Davis Group Jun 2011 River North 145 61,300,000 422,759 LaSalle Investment Mgmt / John Buck Co JV Royal Properties Kimpton Hotels & Restaurants July 2011 Parkway 694 38,800,000 55,908 Related Companies JV Wells Gardens Fargo / Chicago Title Land Trust Company June Reside on 162 33,250,000 205,247 Newcastle Ltd. / Revere 2011 Barry Corporation

April Mondial River 124 31,600,000 254,839 Waterton Residential / Citta 2011 West (Bulk Development Group by Melvin Condo) M Kaplan Realty Inc Dec 2011 Flamingo on 167 20,100,000 120,359 TLC Management Co from the Lake IRMCO Properties & Management January Southgate 424 20,000,000 47,170 Citibank FSB / GLC 2011 Development Partners LLC

June Belmont Harbor 99 10,550,000 106,566 Newcastle Ltd / PNC Bank AKA 2011 National City Bank

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TOTAL PRICE PER CLMG Corp. DATE PROPERTY UNITS PRICE ($) UNIT ($) BUYER / SELLER May Lakeview 170 10,500,000 61,765 Horizon Realty Group / 2011 Sheridan Chandler Property Management Dec 2011 Versailles 196 9,000,000 45,918 TLC Management Co from Apartments IRMCO Properties & Management Dec 2011 fmr Pullman 210 8,200,000 39,048 Mercy Housing National Wheelworks Housing Trust from Security Properties Inc Aug 2011 Rogers Park 101 6,700,000 66,337 Rockwell Group by Essex Realty Group from PNC Bank Apr 2011 6610 N 124 6,000,000 48,387 Loyola University at Chicago Sheridan Rd from PNC Bank January Lakeview 170 Chandler Property 2011 Sheridan Management / Fremont Sheridan Properties June Silver Tower 76 Davis Companies / 2011 (Bulk Condo) Metropolitan Real Estate Co. March The 145 North Community Bank / 2011 Commodore Robert Kroupa Mar 2011 Beacon 252 North Community Bank / Robert Kroupa Feb 2011 Belmont Harbor 99 PNC Bank AKA National City Bank / Trust #1104646 Pending Sovereign 283 Loyola University Chicago / IRMCO Properties & Management Sept Wilson Tower 153 Estate Properties from Wilthrop 2011 Equity LLC

Flair Tower

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STREETERVILLE RENT ANALYSIS

CLMG Corp.

McClurg Onterie N Harbor Lake Shore Cityfront Streeter The Streeter 420 E Ohio Court Center Tower Plaza Place Place 333 E 446 E 480 N 175 N Harbor 445 E Ohio 345 E Ohio 355 E Ohio Ontario Ontario McClurg # of Units 1058 615 600 499 481 480 480 263 Year Built / Renovated 1972 1983 1999 1983 2006 1991 2009 1990 Studio Effective Rent $1,314 $1,360 $1,330 $1,177 $1,600 $1,513 $1,640 $1,440 Sq Ft 541 477 475 590 585 526 616 580 Rent PSF $2.43 $2.85 $2.80 $1.99 $2.73 $2.88 $2.66 $2.48 Convertible Effective Rent $1,493 $1,498 $1,443 $1,303 $1,956 $2,317 $1,525

Sq Ft 497 546 520 650 712 708 656

Rent PSF $3.00 $2.74 $2.77 $2.00 $2.75 $3.27 $2.32 One Bedroom Effective Rent $1,640 $2,049 $1,698 $1,436 $2,190 $1,838 $2,307 $1,853 Sq Ft 805 976 793 720 799 803 898 815 Rent PSF $2.04 $2.10 $2.14 $1.99 $2.74 $2.29 $2.57 $2.27 Two Bedroom Effective Rent $2,580 $2,750 $2,579 $2,060 $3,203 $2,626 $3,865 $2,511 Sq Ft 1243 1369 1325 950 1316 1127 1229 1261 Rent PSF $2.08 $2.01 $1.95 $2.17 $2.43 $2.33 $3.15 $1.99 Three Bedroom Effective Rent $4,368 $3,395 $4,725 $5,615 $3,458

Sq Ft 1980 1785 1813 1802 1592

Rent PSF $2.21 $1.90 $2.61 $3.12 $2.17

Community Amenities Fitness Center yes yes yes yes yes yes yes yes Swimming Pool yes yes yes yes yes yes yes yes Business Center yes yes yes yes yes yes yes yes Parking yes yes yes yes yes yes yes yes Lounge yes yes yes yes yes yes yes yes Apartment Features Ceilings 8' 8' 8' 8' 8'6" 8' 8'6" 8' Storage yes yes yes yes yes yes yes yes Washer/Dryer in Apartment no select select no yes no yes select Patio/Balcony no no no no select select select no

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CLMG Corp. Streeterville Rent Analysis cont’d Class A apartment rents ranged between $2.27 and $2.70 per square foot, which represents about an 8.0 percent increase from levels witnessed in 2010.

AVERAGES Studio Avg Effective Rent $1,422 Avg Square Footage 549 Avg Rent PSF $2.60 Convertible

Avg Effective Rent $1,648

Avg Square Footage 613 Avg Rent PSF $2.70 One Bedroom

Avg Effective Rent $1,876

Avg Square Footage 826 Avg Rent PSF $2.27 Two Bedroom

Avg Effective Rent $2,772 Avg Square Footage 1227 Avg Rent PSF $2.26

Three Bedroom Avg Effective Rent $4,312 Avg Square Footage 1794

Avg Rent PSF $2.40

Multi-Family Use Valuation

 The analysis anticipates between 100,000 SF – 150,000 SF retail use.

 The analysis assumes that a grocery store anchor will remain to attract other users.

 The redevelopment hard costs for the residential building will be approximately $100/SF while the development hard costs for the retail will be $75.00/SF toward shell and core, build-out and fees.

 This is a market assumption that is developer specific. Developers with lower cost of capital and lower return requirements with may potentially push the value higher.

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CLMG Corp. Multi-Family Use Valuation APARTMENT REDEVELOPMENT ASSUMPTIONS Floor Area: 70,000 Residential Loss Factor: 14% Net Floor Area: 60,000 Average Unit Size: 900 Number of Residential Floors: 5 Total Apartment Units: 333 Stabilized Net Operating Income: $3,655,937

Total Building Area and Costs Total Building Area: 450,000 Retail Area: 150,000 Residential Area: 300,000 Renovation Cost PSF: $100.00 Estimated Total Renovation Cost: $30,000,000

BUDGET SUMMARY Income | Apartment Rental Income Total Residential SF: 300,000 Average Rental Rate PSF: $2.40 Annual Gross Income: $8,640,000 Expense Cost Ratio: 45% NOI: $3,888,000 Income | Retail Rental Income Total Retail Area: 150,000 Estimated Net Rent PSF: $7.00 NOI: $1,050,000 Costs Acquisition: $32,891,400 Renovation Cost: $30,000,000 Developer Profit: $12,441,600 Projected Cost: $75,333,000 Valuation Summary Stabilized Residential Value: $62,208,000 Cap Rate: 6.25% Stabilized Retail Value: $13,125,000 Cap Rate: 8% PROJECTED INCOME: $75,333,000

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CLMG Corp. Multi-Family Use Five-Year Cash Flow

MULTI-FAMILY Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 NOI: $3,888,000 $4,004,640 $4,124,779 $4,248,523 $4,375,978 $4,507,258

6.00% $64,800,000 $66,744,000 $68,746,320 $70,808,710 $72,932,971 $75,120,960

6.25% $62,208,000 $64,074,240 $65,996,467 $67,976,361 $70,015,652 $72,116,122 Cap Rates Cap 6.50% $59,815,385 $61,609,846 $63,458,142 $65,361,886 $67,322,742 $69,342,425

RETAIL Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 NOI: $1,050,000 $1,081,500 $1,113,945 $1,147,363 $1,181,784 $1,217,238

7.75% $50,167,742 $51,672,774 $53,222,957 $54,819,646 $56,464,236 $58,158,163

8.00% $48,600,000 $50,058,000 $51,559,740 $53,106,532 $54,699,728 $56,340,720 Cap Rates Cap 8.25% $47,127,273 $48,541,091 $49,997,324 $51,497,243 $53,042,161 $54,633,425

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CLMG Corp. ADAPTIVE RE-USE Sale Comparables

ADDRESS SIZE (SF) DESCRIPTION SALE PRICE COMMENTS

700 N. Kingsbury 300,000 SF 5 building $12,600,000 Former manufacturing site for connected Stiffel Lamp. Now loft condos complex, 2 off building sites

Clinton / Halsted 5 acre landsite Vacant land. Zoned $32,000,000 Owned by Chicago- for 1700 units Milwaukee Rail Road. Wide range of marketing produced several offers from national companies. Sold to a conglomerate of Chicago developers who parceled out at closing.

900 N. North 165,000 SF Multistory building $8,500,000 Former Sara Lee Test Labs Branch and administrative offices. Sold to Kendall College. Required pay off of TIF to Sara Lee and defeasance charge to landlord totaling $1,900,000.

1224 Van Buren 200,000 SF Multistory loft office $13,000,000 Sold for 1st Bank of Illinois. Uncompleted loft office, worked through liens. Sold for residential condos.

1101 W. Jackson 282,000 SF Multistory building $12,200,000 Former Fannie May Candy manufacturing plant and corporate office. Sold to developer who sold to Target through foreclosure by Blackstone Equities.

2828 S. Ellis 37 Acres Multistory, multi- $92,000,000 Former Michael Reese building Hospital site. Developed several offers from residential developers, city forced to buy it at a premium to demonstrate ability to house athletics for Olympics

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OFFICE USE CLMG Corp. Office Sales Comparables

AGE DATE SALE CAP BUYER BUILDING CLASS SF LEASED FLOORS SOLD PRICE/SF RATE SELLER Zeller Realty / Lefkofsky / Wrigley Building 1920 $33,000,000 N/A B 9/30/2011 454,000 60% Byron Trott 400-410 N. Michigan 27 $72.00 (Vacancy) William Wrigley & Co COMMENTS: Historic, landmark asset located in A+ location (Michigan Ave. and Chicago River). Wrigley plans to vacate the obsolete office building and consolidate to Goose Island location. Zeller, in concert with Groupon founders Lefkofsky and Keywell, plan a monumental renovation of the office portion and expansion of retail space along Michigan Avenue. The sale also included a 1.5-acre development site at 443 N. Wabash/422 N. Rush.

Wrigley Building Becker Ventures 1926 $7,500,000 / TJBC 200 N. Michigan C 7/30/11 132,500 N/A 79% 7 $57.00 Lutz RE Investments COMMENTS: New joint venture between Becker Ventures and The John Buck Company to redevelop the site into retail, residential and parking as well as a boutique hotel. Farbman Group 1915 $13,000,000 205 W. Randolph C 6/15/11 198,698 10.2% 79% Joseph Messer / 23 $65.00 Thomas Stilp

COMMENTS: Vintage Loop asset. The property’s largest tenant, Kaplan Education, leases 23,197 RSF through June 2017. The balance of the tenancy averages ~2,000-3,000 RSF per tenant under short-term leases. The previous owners purchased the building in 2005 for $20.6 million ($104/SF). Wilton U.S. 1928 $13,700,000 Commercial 65 E. Wacker Place B 12/30/10 220,256 9.3% 88% 25 $62.00 PrivateBank & Trust

COMMENTS: Lender sale of a vintage, East Loop Art Deco building. Privatebank foreclosed in Oct. 2010 on a $21.8 million note. The building caters primarily to smaller tenants, however there is strong retail income from Morton’s Steakhouse on the ground floor.

1903 $10,000,000 N/A Farbman Group 79 W. Monroe C 12/22/10 199,824 28% 15 $50.00 (Vacancy) Bank of America

COMMENTS: Vintage Central Loop asset which is former headquarters of Bell Federal Savings & Loan. Ground lease in place. Urban Street 1927 $5,500,000 Properties 203 N. Wabash C 4/15/10 185,895 N/A 86% 27 $30.00 John Hancock Life Ins.

COMMENTS: Bought to eventually convert into multi-family, however short-term plans were to continue operating for office use.

203 N. Wabash Street

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CLMG Corp. Office Use Valuation As discussed previously, we are of the opinion an adaptive reuse of River East Plaza generates the highest “as is” proceeds for Ownership. We have depicted below, a pro-forma sketch of an office use valuation based on in-place tenancy and lease-up of vacant space. A three-year hold is assumed with a sale at stabilization at capitalization rates of 8.0 – 9.0%. Lease-up costs and developer profit are deducted from the stabilized values to derive “as-is” values. The “as-is” values range from $15.6 - $20.7 million or $33 – 44 per square foot.

RIVER EAST OFFICE DEVELOPMENT VALUATION Total Building Area (RSF): 474,797 Stabilized Occupancy (%): 85% Stabilized Occupancy (RSF): 403,577 Office Rent ($/SF gross): $22.00 Stabilized Rental Income: $8,878,704

Less: Stabilized Operating Expenses: $5,222,767 (est. @ $11.00/SF)

Stabilized Net Operating Income: $3,655,937

Stabilized Occupancy (RSF): 403,577 Less: Current Occupancy (RSF): -144,157 Total Lease-Up: 259,420 Leasing Costs ($/SF): $67.50 Leasing Costs (total): $17,510,880

RIVER EAST OFFICE DEVELOPMENT VALUATION LESS: OWNER PROFIT - RESIDUAL STABILIZED LESS: LEASING "AS-IS" (PSF) $10 MILLION EQUITY 25% (PSF) CAP RATE VALUE (TOTAL) COSTS VALUE ANNUAL RETURN 8.00% $45,699,212 $96 $17,510,880 $7,500,000 $20,688,332 $44 8.50% $43,011,023 $91 $17,510,880 $7,500,000 $18,000,143 $38 9.00% $40,621,522 $86 $17,510,880 $7,500,000 $15,610,642 $33

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PROPERTY HIGHEST AND BEST USE / VALUE CONCLUSION CLMG Corp. Based on the comparable transactions, developer proformas and the current market conditions we believe appropriate market values for the respective uses could be in the range of $25 to $30 million. We will suggest guidance at $35 million.

Based on the information gleaned from our Broker Opinion of Value, a review of market dynamics, and analysis of the property’s viability and zoning, we recommend that the property be positioned as a multi-family conversion opportunity and that floors 2 to 6 are re-developed accordingly.

The following observations support this conclusion:

 Very strong rental market with high rents

 Many multi-family investors in the market following active 2011

 Loft residential rental pricing can hit a niche market

 Office market conditions are much less vibrant than residential market conditions

 300,000 square feet of empty office space is daunting with virtually no synergy from nearby office buildings

 Location is much more suited for multi-family use than office use; parking is less of a concern

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MARKETING PROGRAMMARKETING

MARKETING PROGRAM

CLMG Corp. V. MARKETING PROGRAM

THE MARKETING PROGRAM OVERVIEW

Colliers International will implement the optimal disposition strategy for the Property with the goal of attracting a variety of qualified buyers to maximize value. The marketing strategy will be consistent, with an aggressive local and national but also an international marketing campaign. Our process allows us to reach all interested potential buyers thus ensuring a diverse and competitive bidding community.

We will build a customized and aggressive marketing campaign that will include a combination of printed material, online exposure, and personal outreach via phone and in- person presentations. This work plan would be managed by the Colliers team in concert with Ownership. Upon award of this assignment, we will finalize this marketing system with additional research and property collateral as well Ownership’s input.

GOALS

The essential goals toward successful disposition of the Property are to:

 Provide maximum exposure to the marketplace

 Produce qualified prospective buyers

 Deliver credible offers

 Close at the high achievable price acceptable to Ownership

PROPERTY INFORMATION

We will collect, inventory, organize and disseminate key property information and documents during each stage of the process: research, marketing and disposition. Complete organization of available, applicable information and documents for efficient distribution includes but is not limited to:

 Current zoning

 Roof report

 Mechanical systems report

 Attorneys letters of opinion

 Elevator report

 All government notices

 Commitment for Title Insurance

 Draft Purchase and Sale Agreement

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 CLMG Corp. Environmental Report  Floodplain Report

 Municipal Fee Schedule

 Public Improvements Agreement

 Real Estate Tax Bills

 Survey

 Title Report

 Zoning Ordinance

 Attorney Letter of Opinion for residential use

Providing this information in advance of offer submittals allows for the most efficient due diligence process possible, mitigating transaction risks and accelerating transaction timelines.

SALES METHODOLOGY

Target Markets

The primary target markets will include mixed use, residential and retail developers toward generating the highest value, however, speculators and investors will also be included. We will market to not only well-capitalized and well-known investors, but will also seek to identify partially leveraged investors with capital sources, both nationally and internationally. The following potential funding sources will also be targeted:

 Real Estate Funds

 Equity Joint Venture Partners

 Insurance Companies

 Pension Fund Advisors

 REITs (Public and Private)

 1031 Exchange Prospective purchasers

Marketing to the brokerage community is also critical, most specifically to retail and multi-family brokers. We currently have an up-to-date list ready to go that targets approximately 75 retail and multi-family professionals.

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Qualified Developer Prospects CLMG Corp.  Fifield Companies

 Centrum Realty

 Magellan Companies

 Mesirow/Stein

 Enterprise Companies

 A&R Development

 John Buck Company

 Hines Interests

 MCL

Retail Prospects (at $15-$18/psf gross as part of Residential Project)

 Starbucks

 Cocktail Lounge

 Spa/Hair Salon

 Art Gallery

 Panera Bread

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CLMG Corp. Reaching our Targets Internal Databases

We maintain an extensive internal database of such potential purchasers which allows us to quickly and efficiently market the property. This dynamic approach introduces capable non- local investors and developers into the pool of bidders for this unique opportunity. Their presence, in turn, will contribute to higher pricing and a higher degree of aggressiveness among all bidders.

Third-Party Resources

We will also supplement our extensive internal database with a third-party online marketing and transaction management services tool called Real Capital Markets (RCM1). Since its founding in 1999, RCM1 has been the recognized leader in providing online marketing and transaction management services to the institutional real estate community with over 15,000 successful transactions and $500 billion sold. With over 300,000 market participants utilizing the framework, RCM1 has become synonymous with successful online real estate marketing institutional properties (assets with a value over $10 million) brought to market in the last year.

RCM1 is the most reliable way to present professional offering materials and the most secure way to distribute and track your offering and underwriting materials online. Every day, thousands of people worldwide post, manage and retrieve documents in the secure, SAS 70 Type II Audited Virtual Deal Rooms. The RCM1 platform has the proven technology, security and reporting that deliver the solutions and results we know you require.

Sealed Bids

It is important that prospects be given a controlled sense of urgency in their review of the Property. We have found that sealed bid sales are effective in driving towards a date-certain sale. The competitive environment created by bidding allows us to maximize the value of this asset. To meet our suggested timeline, while not sacrificing transaction value, we recommend a hard call-for-offers program. We have used a call-for-offers strategy very successfully and investors around the United States are comfortable with the process.

This strategy combines the targeted marketing and personal presentation aspects of a traditional private placement sale with the date-certain aspect of a sealed bid sale. Upon completion of the initial marketing campaign, Colliers will provide all qualified investors with an offering memorandum, and we will make a personal call and e-mail outreach requesting that bids will be due on a specific date. At that time, all interested investors will submit their offers specific to price, due diligence and timing of close. This technique is extremely flexible and gives you the ability to manage the market in a way that ensures a timely closing.

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MARKETING TIMELINE CLMG Corp. It is our goal to fully understand the opportunity, maintain your trust through this project from beginning to closing. The key to efficient management of this scope of services is both a comprehensive work plan and a communications plan. We will present Ownership with a detailed work plan to complete the scope of services. The communications plan will include regularly scheduled conference calls or meetings and standardized marketing updates from the Colliers team to Ownership. To implement these services, we propose the following draft work plan and timeline:

PRE-MARKETING: WEEKS 1 – 2 Multi-disciplined team approach resulting in a seamless, efficient message

 Begin courtesy phone calls to a pre-selected list of top prospects

 Establish marketing and solicitation work plans

 Prepare first-class, stylized executive summary and offering package

 Prepare marketing materials

MARKETING: WEEKS 2 – 3 Preliminary Investor Review / Maximize Market Exposure

 Continue courtesy phone calls and presentations to a pre-selected list of top prospects

 Coordinate with the Ownership and Colliers’ in house marketing team to manage public awareness

 Broadcast the E-card with offering memorandum to developers and investors on our client lists and proprietary databases through Real Capital Markets

 Manage consistent marketing message to prospects

MARKETING: WEEKS 4 – 7 Create Competitive Bidding Environment

 Rebroadcast the E-card with offering memorandum. Qualify developers and investors

 Provide confidential property information through RCM1’s virtual data room to qualified developers and investors to mitigate/eliminate potential for pricing adjustments during final due diligence

 Schedule property inspections (as appropriate); and manage prospects in “pushing the envelope” on pricing of this unique asset

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CLMG Corp. CALL FOR OFFERS AND NEGOTIATION: WEEKS 8 – 10 Evaluate Offers

 Issue call for offers and solicit bids

 Risk-assess all bids and bidders

 Conduct best and final offer round

 Contract negotiation

 Coordinate the drafting and execution of the sale agreement

DUE DILIGENCE AND CLOSING: COMMENCING WEEK 11 Achieving Premium Result  Carefully supervise all due diligence activities of the purchaser

 Practically resolve any potential contingencies

 Work with Ownership to answer any purchaser questions

 Constructively engage runner-up finalists in order to maintain a sense of urgency, diminish the Property’s closing risk and ensure an on-time close

 Ascertain additional requests from purchaser and seller

 Due Diligence/Entitlement contingencies 6 – 9 months (however the process could take as long as 12 months)

 Coordinate closing activities in conjunction with Ownership

The schedule contemplates:

 Sufficient property information is available for prospective buyers to complete review and analysis of Property for preparations of offers

 Closing is not subject to any purchaser financing contingencies

 Ownership has all documents available necessary to close

GETTING FROM CONTRACT TO CLOSING

The team knows what it takes to complete a redevelopment transaction in today’s environment.

1. Choose a qualified buyer who will be a cooperative partner with CLMG Corp.

2. The buyer will need to have retained zoning counsel to work with city planning and zoning.

3. Entitlements must be reviewed for alternative benefits.

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4. CLMG will need their broker to monitor this process. We suggest bi-weekly CLMG Corp. conference calls with CLMG, even though we are under contract.

Apartment developers can close on speculation since bank financing is available and the sector is favored by consumers, lenders and institutional investors.

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CLMG Corp. VI. TERMS OF ENGAGEMENT

FEE

The commission is 2% of the first $20 million sale proceeds, and 3.5% of amounts exceeding $20 million. Any outside brokers would be compensated by their client.

TERM OF AGENCY

6 Months

MARKETING BUDGET

It is anticipated that the team will spend approximately $10,000 including creation of the E- card/website, RCM1 and signage. Colliers will pay 100% of the marketing costs.

BROKERAGE AGREEMENT

It is our understanding that a brokerage agreement will be provided by CLMG Corp.

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APPENDIX

CLMG Corp. VII. APPENDIX

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CLMG Corp. A. COMPANY OVERVIEW Colliers International is a global leader in real estate services with more than 12,300 professionals operating out of more than 520 offices in 62 countries. As a subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), Colliers offers the stability of a strong financial partner and significant local ownership providing clients with accountability and enterprising real estate solutions.

Colliers provides a full range of services to real estate owners and occupiers worldwide, including corporate solutions, sales and lease brokerage, property and asset management, project management, investment sales and consulting, property valuation and appraisal, mortgage banking and market research. The Lipsey Company ranked Colliers International as the world’s second-most recognized commercial real estate brand.

2011 COMPANY STATISTICS  Revenue: $1.8 billion*

 Locations: 522 offices in 62 countries

 Employees: 12,300

 SF Under Management: 1.25 billion**

 Transaction Volume: 68 billion

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COLLIERS INTERNATIONAL | CHICAGO CLMG Corp. Colliers International’s rich Chicago history extends back to 1947 when Bennett & Kahnweiler was founded by Marshall Bennett and Louis Kahnweiler. In its early beginnings it was best known for the development of the 2,300-acre Centex Industrial Park in Elk Grove Village, IL, resulting in the firm’s reputation as an industrial powerhouse that endured for the next several decades. To provide its clients with a more diverse set of global real estate services, the firm joined the Colliers International family in 1983 and became known as Colliers Bennett & Kahnweiler. Colliers B&K operated as a highly successful, independently owned and operated affiliate.

In early-2010, Colliers International merged with FSREA, a subsidiary of publicly traded FirstService Corporation, creating the third largest global commercial real estate services brand. Later, Colliers International completed a partial acquisition of Colliers Bennett & Kahnweiler. We are now accelerating the success of our clients under one name, one brand, and one operating philosophy.

Colliers Chicago is owned by 23 principals and employs more than 275 people in its two Chicago offices, including a staff of 125 property management professionals and 90 brokers. In terms of leasing volume, the firm was named the largest commercial real estate brokerage company in the Chicago area by Crain’s Chicago Business in December 2007. In 2008, 2009 and 2010 the firm was named “Biggest Seller” in terms of square feet sold.

2011 HIGHLIGHTS  Completed 920 transactions with a total value of $2.0 billion

 Completed five of the eight largest suburban office transactions of the year, including each of the top three

 Added retail and multi-family investment brokerage as core service offerings

 Winner of the NAIOP Industrial Investment Transaction of the Year award and Industrial Transaction of the Year award

 Winner of the Industrial Broker of The Year award at the 23rd Annual Commercial Real Estate Awards Dinner  Increased property management portfolio to more than 46 million square feet

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Brian T. Pohl

EXECUTIVE VICE PRESIDENT Colliers Chicago

[email protected]

AREA OF EXPERTISE PROFESSIONAL ACCOMPLISHMENTS Brian Pohl is an executive vice president Notable transactions include: a $31.5 million CONTACT DETAILS and joined Colliers International to lead and sale of Eagle Ridge Apartments, a 370-unit DIR +1 312 612 5931 develop the firm’s multi-family investment complex in Waukegan; the $33.9 million sale FAX +1 312 612 5981 services practice, comprised of three of Town and Country Apartments in Urbana, [email protected] professionals. His primary focus is the IL; the sale of the 1,056-unit McClurg Court Colliers International acquisition, disposition and placement of Apartments; and the $65 million sale of a 200 S. Wacker Drive real estate investments primarily in the 400-unit vintage high-rise property at 1400 Suite 700 greater Midwest region. N. Lake Shore Drive in Chicago. Chicago, IL 60606

BUSINESS AND EDUCATIONAL www.colliers.com BACKGROUND Prior to joining Colliers, Brian led the national multi-housing practice at Grubb & Ellis in Chicago. Additionally, Brian was a director in the Chicago office of Cushman & Wakefield. Brian holds more than 16 years of real estate investment experience boasting real estate asset sales for a variety of owners totaling $1.1 billion.

Vernon F. Schultz SIOR

EXECUTIVE VICE PRESIDENT Colliers Chicago

[1.5"x1.5", in line with text] [email protected]

AREA OF EXPERTISE BUSINESS AND EDUCATIONAL EDUCATION AND Vern Schultz, SIOR has been involved in BACKGROUND QUALIFICATIONS commercial real estate in the Chicago area Vern enjoyed previous employment with Lake Forest College for over 30 years. Since joining Colliers Grubb & Ellis where he was awarded the International in 1997 he has completed more firm’s distinguished Senior Marketing AFFILIATIONS AND Consultant designation within his first year MEMBERSHIPS than 1,000 transactions with a total value exceeding $2 billion. Vern and partner and was a top 20 producer in his third year. SIOR Michael L. Senner have unmatched Prior to Grubb & Ellis, Vern had been a

expertise with in-City and redevelopment / senior vice president of Baird & Warner Company’s Corporate Group, forming the CONTACT DETAILS reuse projects, including the $54 million sale of an 8.2-acre land site owned by YMCA of division in 1984. Additionally, he served as MOB +1 312 613 1877 vice president and manager of the suburban DIR +1 847 698 8233 Metropolitan Chicago. Vern works with FAX +1 847 698 8433 tenants and owners in the Chicago area. office of Cushman and Wakefield of Illinois from 1980-1984, and he was head of his [email protected] PROFESSIONAL ACCOMPLISHMENTS own firm, Hartford Realty Group, for four Colliers International  Finalist, Chicago Salesman of the Year years from 1977-1980. 6250 N. River Rd. (1975)

Suite 11-100  Winner, Chicago Salesman of the Year Rosemont, IL 60018 (1976) www.colliers.com  Winner, Greater Chicago Food Depository Industrial Broker of the Year (2001)  Winner, Commercial Forum Industrial Broker of the Year (2004)  Nominee, Industrial Broker of the Year (2007)  Top Producer, Colliers Industrial Group (2000, 2001, 2003, 2007, 2008)  Winner, Colliers Highest Value Transaction ($68 million sale of Certified Foods facility) (2008)  3-time CoStar Power Broker Award Winner  Named one of the Top 50 brokers in the United States by Real Estate Forum magazine (2008)  Winner, NAIOP Industrial Transaction of the Year award (2009)  Top 10% Producer, Colliers USA (2011)

Vernon F. Schultz SIOR

EXECUTIVE VICE PRESIDENT

[email protected]

MIXED-USE REDEVELOPMENT/RE-USE PROJECTS

ADDRESS TYPE FORMER CURRENT ZONING

700 N. Kingsbury Street 300,000 SF Building Headquarters Residential

Clinton & Halsted Street 5 acre land site Railroad yard Residential

900 N. North Branch Street 164,000 SF Res. & Dev. Educational

1224 W. Van Buren Street 200,000 SF Building Office Residential

1101-1137 W. Jackson 282,000 SF Building Headquarters Retail / Residential Boulevard

Michael L. Senner SIOR SENIOR VICE PRESIDENT Colliers Chicago

[1.5"x1.5", in line with text] [email protected]

AREA OF EXPERTISE BUSINESS AND EDUCATIONAL EDUCATION AND Michael Senner, SIOR, is a senior vice BACKGROUND QUALIFICATIONS president with Colliers International’s Mike was previously employed at Grubb & BA, Miami University, Industrial Advisory Group. His concentration Ellis where he was named the 1995 Rookie Oxford, Ohio is on the City of Chicago as well as of the Year in recognition of his commitment representing the interests of corporations, to clients and his transaction volume during AFFILIATIONS AND MEMBERSHIPS institutions and entrepreneurial clients in the his first full year of employment. Mike has been involved in commercial real estate SIOR acquisition, disposition and development of industrial and commercial real estate around since 1994. In the last five years, he has AIRE the world. completed transactions totaling in excess of $300,000,000. In addition, Mike has extensive experience CONTACT DETAILS with the “adaptive reuse” of properties. His COMMUNITY INVOLVEMENT MOB +1 312 315 4228 responsibilities have included conducting Mike is involved with The Greater Chicago DIR +1 847 698 8234 controlled auctions, qualifying developers FAX +1 847 698 8434 Food Depository and the Lynn Sage and users and auditing the physical, political Foundation. [email protected] and financial components of a project.

Colliers International PROFESSIONAL ACCOMPLISHMENTS 6250 N. River Rd. Suite 11-100 Colliers recognized Mike as one of the

Rosemont, IL, 60018 overall top production brokers in 2001, 2003, 2004, 2005, 2006, 2007, 2008 and 2009 by www.colliers.com being named a member of the firm’s Everest Club. Other accomplishments include the NAIOP 2009 Industrial Transaction of the Year for Kronos Products and Colliers award for most exclusive rights to present in 2001.

Michael L. Senner SIOR SENIOR VICE PRESIDENT

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REPRESENTATIVE CLIENTS AND PROJECTS

William Wrigley Jr. Company

Medline Industries

Sara Lee Corporation

Ametek, Inc.

SRAM

The Chicago Public Schools

ComEd

Lawson Products

The Salvation Army

Surgical Car Affiliates

Kraft Foods

The YMCA of Metropolitan Chicago

Premier Farnell Corporation

Stuart Dean Company

The Tribune Company

Brian P. Nagle

EXECUTIVE VICE PRESIDENT Colliers Chicago

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AREA OF EXPERTISE BUSINESS AND EDUCATIONAL EDUCATION AND Brian Nagle serves as an Executive Vice BACKGROUND QUALIFICATIONS President in Colliers International’s Prior to joining Colliers, Brian spent twenty BS, Western Illinois Investment Services Group. He focuses on years with Cushman & Wakefield, most University the sale of office investment properties recently as executive director of the Capital throughout the Chicago metropolitan area Markets Group. He spent the previous ten AFFILIATIONS AND MEMBERSHIPS and the other major Midwest markets. Brian years with The Balcor Company, rising to managing director responsible for investing NAIOP has over 30 years of capital markets experience involving all forms of investment equity capital in real estate transactions ULI real estate and has successfully completed nationwide.

transactions with a total value of more than CONTACT DETAILS $20 billion.

MOB +1 312 406 1756 PROFESSIONAL ACCOMPLISHMENTS DIR +1 312 612 5935  FAX +1 312 612 5985 Greater Chicago Food Depository [email protected] Investment Broker of the Year (1997, 1998) Colliers International  NAIOP Award for Financial Intermediary of 6250 N. River Rd. the Year (1999, 2001 and 2005) Suite 11-100 Rosemont, IL 60018 www.colliers.com

Brian P. Nagle

EXECUTIVE VICE PRESIDENT

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REPRESENTATIVE CLIENTS AND PROJECTS

Hines/General Motors Pension

Walton Street Capital

Hines/National Office Partners

Equity Office Properties

John Buck Co./McMorgan & Co.

USAA Real Estate

Aimee Course

VICE PRESIDENT OF MARKETING AND COMMUNICATIONS Colliers Chicago

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AREA OF EXPERTISE BUSINESS AND EDUCATIONAL EDUCATION AND Aimee has 14 years of experience in real BACKGROUND QUALIFICATIONS estate marketing. Since joining Colliers Prior to joining Colliers, Aimee spent two MA, Roosevelt University International in 2004, she has been years as Director of Marketing and BA, Northern Illinois responsible for developing unique strategies Communications for CB Richard Ellis’ University to increase the firm’s market share, Chicago region. There she directed an implementing property-specific marketing eight-member team of public relations and campaigns, and communicating the firm’s design professionals. She held the same CONTACT DETAILS overall message to the marketplace. At position with Insignia/ESG prior to its merger MOB +1 847 942 1458 Colliers Aimee led a successful new brand with CBRE. Prior to Insignia/ESG, Aimee DIR +1 847 698 8243 development campaign that resulted in a spent six years with Cushman & Wakefield, FAX +1 847 698 8443 wide array of more professional marketing most recently as Senior Writer on the firm’s [email protected] materials. national marketing team where she was focused on securing large international Colliers International Aimee is an accomplished writer and editor. business. 6250 N. River Rd. She has provided copy for a multitude of Suite 11-100 marketing pieces including display Rosemont, IL 60018 advertisements, press releases, speeches, www.colliers.com award nominations, new business proposals, newsletters, market reports, brochures, and websites.

PROFESSIONAL ACCOMPLISHMENTS • CB Richard Ellis’ Shared Services Employee of the Year (2004) • CB Richard Ellis’ “Teamwork” award (2004) • Cushman & Wakefield’s New Business Development Professional of the Year (2000)

Michelle A. Tenuta VICE PRESIDENT | RESEARCH & ANALYTICS Colliers Chicago

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AREA OF EXPERTISE BUSINESS AND EDUCATIONAL EDUCATION AND Michelle Tenuta joined Colliers International BACKGROUND QUALIFICATIONS in 2005 as Senior Financial Analyst with the Michelle’s previous experience includes BS, University of Illinois Corporate Office Advisors. Since she started working as a Financial Analyst at The John at Colliers, Michelle has played an integral Buck Company commencing in 1999 with AFFILIATIONS AND the firm’s Strategic Advisory Group. At The MEMBERSHIPS role in developing the analytical team for the Office Advisory Group. She currently serves John Buck Company she analyzed Young Real Estate occupancy alternatives. Professionals (YREP) as Vice President of the Analytics and Research Group at Colliers Chicago. University of Illinois Real Estate Alumni Forum – Michelle brings 13 years of real estate Board Member experience primarily related to comprehensive financial modeling and in-depth market research. CONTACT DETAILS Michelle specializes in coordinating with DIR +1 312 612 5911 team members and clients to develop FAX +1 312 612 5961 comprehensive financial analysis portfolios

that are highly project-specific. She consults Colliers International and strategizes with clients to develop the 200 S. Wacker Dr. Suite 700 most appropriate analytical approach to take Chicago, IL 60606 relative to their needs. Her work often includes developing proformas to project www.colliers.com estimated costs, utilizing a blend and extend analysis to leverage negotiations with landlords for reduced rental rates, and producing other financial models that ensure tenants achieve the lowest real estate cost structure possible.

Her key achievements also include the development of a best-in-class quarterly CBD market report. Michelle has developed numerous proprietary databases containing comparable transaction data and market knowledge. She utilizes these metrics to analyze and benchmark a client’s position and create maximum leverage.

Michelle A. Tenuta VICE PRESIDENT | RESEARCH & ANALYTICS

[email protected]

REPRESENTATIVE CLIENTS AND PROJECTS

Academy of General Dentistry

Cooney & Conway

DE Trading

First Midwest

Invesco/Van Kampen Funds

Jenner & Block

Marshall Gerstein & Borun

McGuire Woods LLP

McDermott Will & Emery

Nuveen Investments

PCTel

Sara Lee

Schawk Graphics

Schiff Hardin LLP

Williams Montgomery & John

CONTACT DETAILS

DIR +1 847 698 8444 FAX +1 847 698 8445

Colliers International 6250 North River Road Suite 11-100 Rosemont, IL 60018 www.colliers.com/chicago