WOODIE'S FLAT A TROPHY NNN ASSET FOR SALE IN 'S HISTORIC OLD TOWN NEIGHBORHOOD 1535 NORTH CHICAGO, 60610

Capital Markets | Net Lease Property Group – Midwest AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

AFFILIATED BUSINESS DISCLOSURE inclusive or to contain all or part of the information have been fully executed, delivered and approved by the which prospective investors may require to evaluate Owner and any conditions to the Owner’s obligations CBRE, Inc. operates within a global family of companies a purchase of real property. All financial projections therein have been satisfied or waived. with many subsidiaries and/or related entities (each an and information are provided for general reference “Affiliate”) engaging in a broad range of commercial real purposes only and are based on assumptions relating to By receipt of this Memorandum, you agree that this estate businesses including, but not limited to, brokerage the general economy, market conditions, competition Memorandum and its contents are of a confidential nature, services, property and facilities management, valuation, and other factors beyond the control of the Owner and that you will hold and treat it in the strictest confidence investment fund management and development. At CBRE, Inc. Therefore, all projections, assumptions and and that you will not disclose this Memorandum or any of times different Affiliates may represent various clients other information provided and made herein are subject its contents to any other entity without the prior written with competing interests in the same transaction. For to material variation. All references to acreages, square authorization of the Owner or CBRE, Inc. You also agree example, this Memorandum may be received by our footages, and other measurements are approximations. that you will not use this Memorandum or any of its Affiliates, including CBRE Investors, Inc. or Trammell Additional information and an opportunity to inspect the contents in any manner detrimental to the interest of the Crow Company. Those, or other, Affiliates may express an Property will be made available to interested and qualified Owner or CBRE, Inc. interest in the property described in this Memorandum prospective purchasers. In this Memorandum, certain If after reviewing this Memorandum, you have no further (the “Property”) may submit an offer to purchase the documents, including leases and other materials, are interest in purchasing the Property, kindly return this Property and may be the successful bidder for the described in summary form. These summaries do not purport Memorandum to CBRE, Inc. Property. You hereby acknowledge that possibility and to be complete nor necessarily accurate descriptions of the agree that neither CBRE, Inc. nor any involved Affiliate will full agreements referenced. Interested parties are expected DISCLAIMER have any obligation to disclose to you the involvement to review all such summaries and other documents of of any Affiliate in the sale or purchase of the Property. whatever nature independently and not rely on the contents © 2017 CBRE, Inc. The information contained in this In all instances, however, CBRE, Inc. will act in the best of this Memorandum in any manner. document has been obtained from sources believed interest of the client(s) it represents in the transaction reliable. While CBRE, Inc. does not doubt its accuracy, described in this Memorandum and will not act in concert Neither the Owner or CBRE, Inc, nor any of their respective CBRE, Inc. has not verified it and makes no guarantee, with or otherwise conduct its business in a way that directors, officers, Affiliates or representatives make any warranty or representation about it. It is your benefits any Affiliate to the detriment of any other offeror representation or warranty, expressed or implied, as to responsibility to independently confirm its accuracy and or prospective offeror, but rather will conduct its business the accuracy or completeness of this Memorandum or completeness. Any projections, opinions, assumptions in a manner consistent with the law and any fiduciary any of its contents, and no legal commitment or obligation or estimates used are for example only and do not duties owed to the client(s) it represents in the transaction shall arise by reason of your receipt of this Memorandum represent the current or future performance of the described in this Memorandum. or use of its contents; and you are to rely solely on property. The value of this transaction to you depends your investigations and inspections of the Property in on tax and other factors which should be evaluated CONFIDENTIALITY AGREEMENT evaluating a possible purchase of the real property. by your tax, financial and legal advisors. You and This is a confidential Memorandum intended solely for your advisors should conduct a careful, independent The Owner expressly reserved the right, at its sole your limited use and benefit in determining whether you investigation of the property to determine to your discretion, to reject any or all expressions of interest desire to express further interest in the acquisition of the satisfaction the suitability of the property for your needs. or offers to purchase the Property, and/or to terminate Property. discussions with any entity at any time with or without ALL PARCEL LINES ON SITE PLAN AND AERIALS ARE notice which may arise as a result of review of this This Memorandum contains selected information APPROXIMATE. pertaining to the Property and does not purport to be Memorandum. The Owner shall have no legal commitment a representation of the state of affairs of the Property or obligation to any entity reviewing this Memorandum or or the owner of the Property (the “Owner”), to be all- making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property

2 WOODIE'S FLAT – CHICAGO, IL TABLE OF CONTENTS 04 Executive Summary FOR MORE INFORMATION PLEASE CONTACT: The Offering Financial Overview PRIMARY CONTACTS Aerial Investment Highlights MICHAEL KAIDER CBRE Trade Area Demographics +1 630 573 7015 700 Commerce Drive, Suite 450 [email protected] Oak Brook, IL 60523 09 Property Description JENNIFER SAMPSON Tenant Overview +1 630 573 1276 Property Highlights [email protected] Survey

DEBT & STRUCTURED FINANCE 12 Market Overview Trade Area Overview GEOFFREY HARRIS CBRE Chicago MSA +1 602 735 5615 2415 East Camelback Road Aerials [email protected] Phoenix, AZ 85016 Demographic Maps EXECUTIVE SUMMARY THE OFFERING

CBRE is pleased to exclusively present an outstanding opportunity to acquire 100% fee interest in Woodie’s Flat, a trophy asset located in Chicago’s historic Old Town neighborhood. Woodie’s Flat has been at this location since 2014 and currently has 18 years and 4 months of term remaining. The lease includes annual rental increases during the base term and renewal options and zero landlord responsibilities. Woodie’s Flat is ideally located less than three miles from downtown Chicago and within walking distance to Lake Michigan and some of the city’s most popular attractions. Old Town is easily accessible by several primary thoroughfares in the city including (13,200 VPD). The asset is highly visible and well po- sitioned on Wells Street (7,600 VPD), just south of North Avenue. Public transportation within the area is also exceptional with numerous Chicago Transit Authority (CTA) train and bus stops within a short walking distance to the Property. Woodie’s Flat is located in a dense, affluent area with over 210,944 residents living within a two-mile radius. The median age within this two-mile radius is 33.9 and approximately 43% are between the age of 20 and 34. According to Forbes, Chicago has the third highest number of educated Millennials in the nation after New York and Los Angeles. Despite the city representing about one-quarter of the metro area's population, about half of educated Millennials in the metro area are choosing to live in the city and that number is rapidly rising with Old Town being one of a handful of primary neighborhoods. FINANCIAL OVERVIEW Asking Price: $6,564,000 Cap Rate: 5.75% Tenant: Big Onion Tavern Group, LLC dba Woodie's Flat Demised Premises: 6,402 Square Feet* Annual Base Rent: $377,429.21 (as of 1/1/2018) Lease Type: Absolute NNN Lease Term Remaining: 18 Years, 4 Months Commencement Date: November 26, 2014 Lease Expiration: June 30, 2036 Next Rental Increase: January 1, 2018 Renewal Options: Two, 5-Year Options Increase Structure: Annually, lessor of 2% or 1.25x CPI Landlord Responsibilities: None ACTUAL LOCATION * This opportunity includes a small detached two-story “coach house” and a two car garage. The ground floor of the house is being used as an office for Woodie's and the top floor is a 900 SF apartment. Any income from the apartment is realized by Woodie's Flat and is not part of the income stream. Please see the survey on page 11.

EXECUTIVE SUMMARY 5 AERIAL VIEW LOOKING SOUTHEAST

6 WOODIE'S FLAT – CHICAGO, IL INVESTMENT HIGHLIGHTS

TREMENDOUS OPPORTUNITY: EXCEPTIONAL, URBAN, INFILL LOCATION: The opportunity to acquire a trophy asset located in Old Town, The asset is well located just south of the Wells Street (7,600 VPD) and North Avenue one of Chicago’s most robust neighborhoods. The asset is locat- (13,200 VPD) intersection, two heavily trafficked thoroughfares in Chicago. The Property ed approximately three miles north of downtown Chicago and benefits from incredible traffic on both weekdays and weekends as a function of (i) its less than one mile west of Lake Michigan. proximity to dominant retail corridors, (ii) the high density Old Town residential popula- tion, and (iii) its proximity to Lake Michigan and numerous Chicago attractions. LONG TERM COMMITMENT: Woodie’s Flat has been at this location since 2014 and has over 18 HUGE DAYTIME POPULATION: years of term remaining on its lease, demonstrating their strong Woodie’s Flat is located just north of downtown Chicago which creates a surge in its commitment to the site and desirability of the location. The daytime population with over 458,738 workers and 23,400 businesses within a two-mile lease includes two, 5-year renewal options and rental increases radius of the Property. Chicago has a highly diversified economic base and is home to throughout the base term and option periods. numerous corporate headquarters, including 10 Fortune 500 headquarters.

AFFLUENT DEMOGRAPHICS: The Old Town neighborhood offers some of the most affluent de- mographics in Chicago. Within a two-mile radius, there is a grow- ing population of 210,944 which is projected to increase 3% over the next five years. Residents are well educated with 80% having earned a bachelor’s degree or higher and the average household income is above $134,194. The average home value within the two-mile trade area exceeds $572,933.

TRANSIT ORIENTED SITE: Woodie’s Flat is exceptionally located near public transportation. The CTA elevated train stops just west (five-minute walk) of the Property at the Purple/Brown Line’s Sedgwick station. This sta- tion has nearly 4,000 passengers on average during the week and approximately 2,000 passengers on average during the weekend. There are also numerous bus routes within in minutes of Wood- ACTUAL LOCATION ie’s Flat.

EXECUTIVE SUMMARY 7 DEMOGRAPHICS

DEMOGRAPHIC HIGHLIGHTS WITHIN A TWO MILE RADIUS

210,944 $132,657 44.9% 124,229 total population avg. HH income income $100K & Over households

458,738 82.8% 33.9 $572,933 daytime employees college degrees average age avg. home value

MARKET DEMOGRAPHICS POPULATION 1 MILES 3 MILES CHICAGO MSA 2017 Population 69,716 381,062 9,680,659 2022 Projection 71,377 392,470 9,828,394 DAYTIME EMPLOYEES 56,871 774,660 4,903,827 INCOME 2017 Avg. HH Income $132,657 $130,890 $92,004 2017 Median HH Income $86,212 $87,496 $64,719 Households with Income >$100K 44.6% 44.5% 31.6% 2022 Projected Avg. HH Income $154,258 $152,852 $103$650 AVERAGE AGE 36.3 33.2 38.2 EDUCATIONAL ATTAINMENT Associate’s Degree 2.7% 3.2% 7.5% Bachelor’s Degree 42.5% 44.3% 22.3% Master’s Degree 35.2% 33.9% 14.2% Total Degrees 80.4% 81.4% 44.0% HOUSEHOLDS 41,803 211,915 3,559,253 AVG. HOME VALUE $616,492 $537,890 $306,799

8 WOODIE'S FLAT – CHICAGO, IL PROPERTY DESCRIPTION TENANT PROFILE

Woodie’s Flat, named after its wood smoking grill, is a popular restaurant located in Chicago’s Old Town neighborhood. Woodie’s Flat is part of the Big Onion Tavern Group, a Chicago-based hospitality group. Big Onion Tavern Group owns and operates a collection of popular neighborhood sports bars and restau- rants ranging from a wine bar and Irish pub to a brunch-centric eatery. The company’s restaurants thrive on their creative menus which are complemented by superior hospitality. The company’s nine locations have quickly become some of Chicago most popular destinations. The Big Onion Tavern Group’s loca- tions include Derby Bar & Grill, Diag Bar & Grill, 404 Wine Bar, The Irish Oak, Brunch, Loft 644, Fatpour Tap Works, Woodie’s Flat, and Hopsmith Tavern. The company was founded in 2008 and is privately held.

10 WOODIE'S FLAT – CHICAGO, IL PROPERTY DESCRIPTION/SURVEY

SITE DESCRIPTION Property Name Woodie's Flat Location 1535 North Wells Street Chicago (Cook County), Illinois 60610 GLA 6,402 Square Feet Site Size ±0.09 Acres Year Built/Renovated 1892/2013 Zoning B3-2, Community Shopping District - City of Chicago Construction Brick and masonry exterior ALTA / ACSM LAND TITLE SURVEY Remaining Useful Life 40 Years PART OF LOT 111 BRONSON'S ADDITION TO CHICAGO NORTH AVENUE Condition Good SECTION 4 T39N, R14E COOK COUNTY, ILLINOIS

Parking None, however street parking is available in the immediate neighborhood. LaSALLE DRIVE

SUBJECT WELLS STREET Flood Zone According to the flood hazard maps published by the FEMA, the site is within Zone X as indicated on Community Map Panel No. 17031C0417J PROPERTY dated August 19, 2008. Zone X, an area that is determined to be outside the 100-and 500-yearflood plains.

LOCATION MAP LEGEND: NOT TO SCALE YARD LIGHT XX FENCE FD AXLE GUARDRAIL FD BRASS DISK LIGHT POLE STRUCTURAL ENTERPRISES OHW OVERHEAD WIRES FD COT GIN SPDLE MANAGEMENT, LLC SIGNAL POLE UGE UNDER ELEC. FD CHISELED X GAS GAS LINE SET CHISELED X UTILITY POLE #1211118039 SAN SAN SEWER LINE SET DRILL HOLE ST 4 STORY BRICK BLDG. GUY WIRE STORM SEWER LINE FD HARRISON MON. C UT

BLD. 0.1'S. UNDER TELEPHONE SET HARRISON MON.

WOOD BLD. 0.1'S.

BLD. 0.2'N. B BLD. 0.2'N. B CATCH BASIN BLD. 0.2'N. 0.5'N. FE. 6'WOOD BLD. 1.4'S. H2O

BLD. 0.2'N. 0.2'N. FE. 6'WOOD EXISTING WATER LINE SET HUB/TACK 45.0' SET CUT "X" DECK C BRICK GARAGE X X X X X 3.7' CURB INLET CH.WAT. CHILLED WATER LINE FD REBAR 3.0' 1.0' WALLS SET MAG NAIL SIGN SET REBAR 2.4' 2.4' ELECTRIC MH 3.1' 21.3' R.O.W. MON. FD MAG NAIL WALL 0.1'W. 39.0' BLD. 0.2'E. 0.8' 60.2' MANHOLE MONITORING WELL SET MAG NAIL D 1.4' 16.0' A BOLLARD FD NAIL 0.8' BLD. 0.4'S. PHONE MH WOOD BORE HOLE SET NAIL DECK SANITARY MH DOWNSPOUT FD PIPE 18.2' 18.2' 18.2' BLD. 1.1'S. GATE POST FD RR SPIKE 39.6' CONC. 2 STORY BRICK/WOOD 1 STORY VINYL SIGNAL MH 9.5' 2 STORY WOOD POLE SET RR SPIKE HT=21.8' HT=25.5' GARAGE 16.3' STEAM MH PARKING METER FD STONE 16.3' 712 S.F. HT=15.5' 21.8' 2 STORY BRICK 261 S.F. SPIGOT (R) RECORDED B&D CONC. 0.8' 460 S.F. STORM MH 22.1' STEEL STEPS (M) HT=27.1' COOLER T-POST MEASURED B&D 1.4' 1332 S.F. WELLS CAPITAL LLC WATER MH WOOD POST (C) CALCULATED B&D 0.8' R/W PARKING SPACES (PROP) PROPORTIONAL DIST. 9.3' 16.0' #1317835026 39.0' ELEC. METER ASPH. TRANSFORMER A.G. ABOVE GROUND 4033 S.F. 3.0' PARKING PARKING R/W 0.8' CLEANOUT ELEC. VAULT B.G. BELOW GROUND BIKE LANE BIKE LANE BLD. 0.1'E. 8.8' SHED 0.093 AC. 21.9' PHONE VAULT

ASPH. D 4.7' A GAS METER CONIF. TREE

X X

BLD. 0.2'N. X X X X STEAM VAULT 5.1' X CONC.

BLD. 0.2'N. X 60.1' X C FD MAG NAIL WALL 0.1'W. X 8.0' C

2.5' GAS VALVE VALVE VAULT DECID. TREE FD CUT "X" 2.5' 3.6' AC UNIT 3.0' WATER VALVE SHRUB BLD. 0.1'S. BLD. 4 STORY BRICK BLDG. PHONE BOOTH FIRE HYDRANT FIRE MAIN POST PHONE RISER-BOX MAILBOX SPR. HOOKUP TV RISER-BOX 1533 NORTH WELLS, LLC 2 STORY BRICK/WOOD BLDG. BLOCK GARAGE PROP. TANK #0720133182 SPRINKLER PARKING BLOCK ELEC. RISER-BOX GAS RISER-BOX POST

BLD. ON LINE NON-SCALABLE LINE

10' WOOD FE. 1.0'N. NOTES: 1. PROPERTY IS LOCATED IN FLOOD ZONE "X" PER MAP NUMBER 17031C0417J, DATED AUGUST 19, 2008.

10' WOOD FE. 0.8'N. 2. PROPERTY IS ZONED B-3-5 (COMMUNITY SHOPPING, WELLS STREET IS CLASSIFIED AS A "PEDESTRIAN STREET"), CURRENT USE AS A TAVERN IS ALLOWED WITH SPECIAL USE APPROVAL.

3. SETBACKS: PER CITY OF CHICAGO ZONING OFFICE FRONT = NONE SIDE = NONE REAR = NONE MAX BUILDING HEIGHT = 50' PARKING: NO PARKING REQUIRED FOR COMMERCIAL USES UNDER 10,000 S.F. ABUTTING "PEDESTRIAN STREETS"; NO PARKING ON SITE.

4. FIELD WORK PERFORMED OCT. 8, 2014.

5. ALL 5/8"REBAR SET ARE FLUSH WITH GROUND UNLESS NOTED OTHERWISE.

6. THERE IS NO OBSERVABLE EVIDENCE OF EARTH MOVING WORK, BUILDING CONSTRUCTION OR BUILDING ADDITIONS WITHIN RECENT MONTHS.

7. THERE IS NO VISIBLE EVIDENCE OF PROPOSED STREET RIGHT OF WAY CHANGES. R.O.W. IS SHOWN PER CURRENT DEED AND TITLE INFORMATION. PROPERTY DESCRIPTION 11 8. THERE IS NO OBSERVABLE EVIDENCE OF RECENT STREET OR SIDEWALK CONSTRUCTION OR REPAIRS. 9. THERE IS NO OBSERVABLE EVIDENCE OF SITE USE AS A SOLID WASTE DUMP, SUMP OR SANITARY LANDFILL.

10. ACCESS IS PROVIDED DIRECTLY BY WELLS STREET, A PUBLIC STREET.

11. THIS SURVEY MAP CORRECTLY REPRESENTS THE FACTS FOUND AT THE TIME OF SURVEY.

12. THERE ARE NO DISCREPANCIES BETWEEN THE BOUNDARY LINES OF THE PROPERTY AS SHOWN ON THIS SURVEY MAP AND AS DESCRIBED IN THE LEGAL DESCRIPTION PRESENTED IN THE TITLE COMMITMENT.

13. THE BOUNDARY LINE DIMENSIONS AS SHOWN ON THIS SURVEY MAP FORM A MATHEMATICALLY CLOSED FIGURE WITHIN +/_0.1 FOOT.

14. THE BOUNDARY LINES OF THE PROPERTY ARE CONTIGUOUS WITH THE BOUNDARY LINES OF ALL ADJOINING STREETS, HIGHWAYS, RIGHTS OF WAY AND EASEMENTS, PUBLIC OR PRIVATE, AS DESCRIBED IN THE MOST RECENT RESPECTIVE LEGAL DESCRIPTIONS OF RECORD.

15. EXCEPT AS OTHERWISE NOTED BELOW, IF THE PROPERTY CONSISTS OF TWO OR MORE PARCELS, THERE ARE NO GAPS OR GORES BETWEEN SAID PARCELS.

16. NO EVIDENCE OF POTENTIAL WETLANDS WERE OBSERVED ON THE SUBJECT PROPERTY AT THE TIME THE SURVEY WAS CONDUCTED, NOR HAVE WE RECEIVED ANY DOCUMENTATION OF ANY WETLANDS BEING LOCATED ON THE SUBJECT PROPERTY.

DESCRIPTION EASEMENT NOTES Per Chicago Title Insurance Company Title Commitment No. C46793-WSA398463-1 dated September 12, 2014. PARCEL 2:

No easements listed. THE NORTH 1/ 2 OF THE SOUTH 1/ 2 OF THE WEST 1/ 2 (EXCEPT THE PART DEDICATED FOR THE ALLEY BY A PLAT RECORDED JULY 16 , 1887 IN BLOCK 26 OF PLATS PAGE 44) OF THAT PART LYING BETWEEN THE EAST LINE OF WELLS STREET AND THE WEST LINE OF LA SALLE AVENUE OF LOT 111 ENCROACHMENT NOTES IN BRONSON 'S ADDITION TO CHICAGO IN SECTION 4, TOWNSHIP 39 NORTH , RANGE 14 , EAST OF A. GARAGE OVER EAST LINE. THE THIRD PRINCIPAL MERIDIAN , IN COOK COUNTY , ILLINOIS . B. GARAGE OVER NORTH LINE. C. FENCES ALONG NORTH AND SOUTH LINES. CERTIFICATION D. WALL OVER WEST LINE. To: STORE MASTER FUNDING VII, LLC, a Delaware limited liability company, STORE CAPITAL CORPORATION, a Maryland corporation, and their respective successors and assigns, Chicago Title Insurance Company and The Matthews Company, Inc.

This is to certify that this map or plat and the survey on which it is based were made in accordance with the 2011 Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys, jointly established and adopted by ALTA and NSPS, and includes Items 1, 2, 3, 4, 6(b), 7(a), 7(b)(1), 7(c), 8, 9, 10(a), 11(a), 13, 14, 16, 17, 18 and 21 of Table A thereof. The field work was completed on Oct. 7, 2014.

Date of Plat or Map: Oct. 9, 2014

10-15-14 REVISED PER COMMENTS GSK BEB By: MARK DATE REVISION BY AP'V'D Name: Ben E. Bledsoe Professional Surveyor No. 035003846 State of Illinois Expires 11-30-14 STORE CAPITAL 7210/02-274.3 The property described and shown hereon is the same property described in Chicago Title Insurance Company This Survey has been prepared solely for the benefit of the parties set forth in this Surveyor's Certification and Title Commitment No. C46793-WSA398463-1 dated September 12, 2014. may not be quoted or relied upon by, nor may copies be delivered to, any other party or used for any other purpose including, without limitation, the preparation of zoning reports or any other third party reports, without This professional service conforms to the current Illinois standards for a boundary survey. The Matthews Company, Inc. and Bledsoe, Riggert Guerrettaz, Inc.'s prior written consent. The Matthews 1535 N. Wells Company, Inc. and Bledsoe, Riggert Guerrettaz, Inc. expressly disclaims any duty or obligation towards any Chicago, IL party that is not identified in this Surveyor's Certification. (Woodie's Flat) Please be advised that The Matthews Company, Inc. and Bledsoe, Riggert Guerrettaz, Inc. will not include the providers of any third party reports in the Surveyor's Certification. SCALE: 1"=10' CHKD./AP'V'D: DATE: OCT. 9, 2014 APPROVED: DWN. BY: G.S.K. CHKD.BY: B.E.B.

J.N.: 14-09-04-23002 MARKET OVERVIEW OLD TOWN OVERVIEW

Woodie’s Flat is located in Chicago’s historic Old Town neighborhood, less than are just south of the site. is an upscale shopping three miles north from downtown Chicago. Old Town is an affluent and desir- destination with internationally recognized stores, high-end boutiques, and de- able neighborhood, popular due to its proximity to the lake and downtown. The signer fashions. The Magnificent Mile is anchored by Water Tower Place, an neighborhood is home to a diverse community and filled with Victorian-era eight-level mall which features more than 100 stores and dining options. North/ buildings, brick alleyways, and tree-lined streets. Old Town is bounded by Ar- Clybourn Avenue is located less than one mile west of the Property and is one mitage Avenue to the north, to the south, to the of the most dominant retail corridors in the city. east, and Larabee Street to the west. RECREATION TRANSPORTATION Recreation is plentiful in Old Town with numerous options in a short walking The neighborhood can be easily accessed by several primary thoroughfares distance. Zoo, located less than a half mile north of the Property, that run through Chicago including North Avenue and Division street, travers- welcomes 20 million visitors a year and is considered one of the most visited ing east/west and Halsted, Street, Wells Street, and Lasalle Drive, traversing parks in the United States. This very popular destination is a staple to local north/south. Both North Avenue and Division Street have full interchanges with residents in the surrounding cities and neighborhoods, as well as tourists from Interstate 90/94, less than two miles east of the Property. , lo- out of town. Old Town residents can also enjoy North Avenue and Oak Street cated less than one mile east of the Property, is conveniently situated between Beach as well as the Lakefront Trail which extends 20 miles along Lake Michigan the open lakefront parks, beaches, and harbors as well as the residential and and features boat harbors, nature sanctuaries, and boardwalks as well as parks, commercial developments, and allows residents and visitors to easily navigate beaches and gardens to enjoy. throughout the city. Public transportation in the area is exceptional. The Prop- erty is within close proximity (less than a 10-minute walk) to several CTA elevat- ed train stops, the closest being the Purple Line’s Sedgwick just west of the site. In addition to CTA train stops, there are many bus routes within a short walking distance that provide excellent access to the city. RESTAURANTS, SHOPPING, AND ENTERTAINMENT Woodie’s Flat is conveniently located along the busy Wells Street retail strip between North Avenue and Division Street. Wells Street is home to numerous boutiques, entertainment, dining, and cultural activities. One of the most well- known entertainment destinations is The Second City, a world premier come- dy club, theater, and school of improvisation. Woodie’s Flat is surrounded by several prominent retail corridors which are filled with shops, restaurants, and entertainment and create a significant draw to the area. Oak Street and the

MARKET OVERVIEW 13 AERIAL VIEW LOOKING EAST

210,944 RESIDENTS WITHIN A TWO-MILE RADIUS OF WOODIE'S FLAT EARN AN AVERAGE HOUSEHOLD INCOME OF $134,194 - 66% ABOVE THE NATIONAL AVERAGE

14 WOODIE'S FLAT – CHICAGO, IL NEIGHBORHOOD MAP

MARKET OVERVIEW 15 CHICAGO MSA OVERVIEW

CHICAGO MSA ECONOMY Chicago is one of the most attractive and dynamic markets in the business sector or industry, Chicago’s economy is like a well-balanced nation. Chicago boasts an attractive retail market, with the third largest portfolio and is better equipped than most cities to weather a slowdown economy in the nation and over $121.9 billion in annual retail sales in any particular industry. The Chicago MSA has a highly diversified (2016 metro Chicago sales; Melaniphy). The market’s vibrant business economic base and is home to more than 400 major corporate climate, central geographic location, diversified economy and available headquarters, including 33 Fortune 500 headquarters. human resources have helped Chicago achieve a prominent position as a world-class city in finance, international trade, manufacturing, The Windy City, as it has been nicknamed, welcomes in nearly 40 million transportation, culture and the arts. international and domestic visitors each year who come to see attractions including Chicago’s numerous parks, art galleries, architectural wonders, One of Chicago’s biggest commercial advantages is its diversified professional sports teams, universities, and more. economy and deep labor pool. With no single emphasis on any one

16 WOODIE'S FLAT – CHICAGO, IL CHICAGO MSA OVERVIEW

TRANSPORTATION Chicago is one of the primary transportation hubs in the United States. Chicago WHY CHICAGO? is home to O’Hare International Airport, the 3rd busiest airport in the nation. • Chicago has a strong, globally diverse economy larger than that According to the Chicago Department of Aviation, in 2016 the airport serviced of many countries. nearly 78 million passengers to and from 208 destinations around the world via more than 48 passenger carriers. Chicago is also home to Midway International • Chicago’s industry mix most closely matches that of the nation, Airport, which serviced more than 22 million passengers via five passenger car- with no single industry employing more than 20% of the work- riers to 75 destinations in the US, Mexico, Jamaica, the Dominican Republic and force. Canada. • Chicago is one of the most cost-effective cities in the world for Several major interconnected expressways and interstate highways pass though doing business, ahead of New York and Los Angeles, according to KPMG. the Chicago area. Interstates 80, 88 and 290 are the main east/west routes. In- terstates 55 and 57 provide access to the south and southwestern suburban ar- • Chicago’s affordable cost of living and world-class cultural and eas. Communities to the north and northwest are accessed via Interstates 90 recreational opportunities make it an excellent value for the and 94. North/south travel between the western suburbs is facilitated by Inter- city’s vibrant and diverse workforce. states 294 and 355. • Chicago is a central transportation hub with direct flights be- tween more than 200 cities worldwide, and direct connections to six major U.S. Interstates.

• Chicago is hub of international business activity, with more than 1,800 foreign-based companies and more than $100 billion in foreign direct investment.

DEMOGRAPHICS The Chicago metropolitan statistical area is home to over 9.65 mil- lion residents, making it the third most populous MSA in the nation. The population is projected to grow 0.31% over the next five years to 9.80 million. Residents earn an average household income of $87,508; more than 8% higher than the state average of $80,916 and nearly 14% higher than the national average of $77,008.

MARKET OVERVIEW 17 CHICAGO MSA OVERVIEW

CHICAGO ACCOLADES Top 10 Most Competitive City for Business in the World The Economist Intelligence Unit

Top 10 Best City for Building Wealth Bankrate.com, October 2015

#1 Top Metro in the U.S. for Corporate Investment Site Selection, March 2016

#1 North American city for foreign direct investment IBM, Global Location Trends

#2 Top Metro in the United States for the Number of Fast Growing Small Businesses Inc. 5000 List, 2015

18 WOODIE'S FLAT – CHICAGO, IL CHICAGO MSA OVERVIEW

TOP EMPLOYERS COMPANY TOTAL EMPLOYEES

Advocate Health Care System...... 18,308 University of Chicago...... 16,197 Northwestern Memorial Healthcare...... 15,317 JPMorgan Chase & Co...... 14,158 United Continental Holdings Inc...... 14,000 Walgreen Co...... 13,006 Health Care Service Corp...... 13,006 Presence Health...... 10,500 Abbott Laboratories...... 10,000 Northwestern University...... 9,708 Jewel-Osco Stores...... 9,660 Chicago Transit Authority...... 9,510 University of Illinois...... 9,212 American Airlines...... 8,900 Rush University Medical Center...... 8,273 AT&T...... 8,000 Allstate Insurance Co...... 7,800 Wal-Mart Stores Inc...... 7,700 Emloyco USA Inc...... 7,409 Archdiocese of Chicago...... 7,376 Source: Moody’s Analytics, Precis U.S. Metro, Chicago MSA, June 2017

MARKET OVERVIEW 19 CHICAGO MSA OVERVIEW

FORTUNE 500 COMPANIES IN THE CHICAGO MSA

RANK COMPANY SECTOR REVENUES ($M) 19 Walgreens Boots Alliance Food and Drug Stores $103,444 24 Boeing Aerospace & Defense $96,114 41 Archer Daniels Midland Food Production $67,702 80 United Continental Holdings Airlines $37,864 81 Allstate Insurance: Property and Casualty (Stock) $35,653 94 Mondelez International Food Consumer Products $29,636 95 Exelon Utilities: Gas & Electric $29,447 109 McDonald’s Food Services $25,413 111 Sears Holdings General Merchandisers $25,146 122 US Foods Holding Wholesalers: Food and Grocery $23,128 123 AbbVie Pharmaceuticals $22,859 138 Abbott Laboratories Medical Products and Equipment $20,661 211 Illinois Tool Works Industrial Machinery $13,405 220 CDW Information Technology $12,989 255 R.R. Donnelley & Sons Publishing, Printing $11,257 JUNE 2017 ESTIMATED EMPLOYED POPULATION 281 Navistar International Motor Vehicles & Parts $10,140 BY OCCUPATION 283 Discover Financial Services Commercial Banks $10,002 285 W.W. Grainger Wholesalers: Diversified $9,973 286 Baxter International Medical Products and Equipment $9,968

3% 2% 315 Univar Wholesalers $8,982 4% Professional & Business Services 18% 334 Tenneco Motor Vehicles & Parts $8,209 Education & Health Services 5% 369 LKQ Wholesalers: Diversified $7,193 Retail & Wholesale Trade 377 Dover Industrial Machinery $7,029 7% Government 391 Anixter International Wholesalers: Diversified $6,596 Leisure & Hospitality 420 Baxalta Pharmaceuticals $6,149 Manufacturing 436 Jones Lang LaSalle Real Estate $5,966 8% 16% Finance, Insurance & Real Estate 442 Old Republic International Insurance: Property and Casualty (Stock) $5,766 446 Packaging Corp. of America Packaging, Containers $5,742 Transportation & Utilities 451 Motorola Solutions Network & Other Communications Equipment $5,695 10% Other Services 456 Ingredion Food Production $5,621 Construction & Mining 471 Arthur J. Gallagher Diversified Financials $5,392 15% 12% Information 477 Essendant Wholesalers: Electronics and Office Equipment $5,363 496 Telephone & Data Systems Telecommunications $5,176

20 WOODIE'S FLAT – CHICAGO, IL POPULATION CONCENTRATION MAP

2017 POPULATION

1 Mile 2 Mile 3 Mile 69,716 210,944 381,062

DAYTIME POPULATION

1 Mile 2 Mile 3 Mile 56,871 458,738 774,660

POPULATION PER SQUARE MILE—2017 Over 15,000 10,000 to 15,000 5,000 to 10,000 2,500 to 5,000 Less than 2,500

MARKET OVERVIEW 21 POPULATION GROWTH MAP

PROJECTED POPULATION GROWTH 2010-2017

1 Mile 2 Mile 3 Mile 3,121 12,588 22,225 PROJECTED POPULATION GROWTH 2017-2022 (%)

1 Mile 2 Mile 3 Mile 2.38% 2.95% 2.99% HISTORICAL POPULATION GROWTH 2010-2017 (%)

1 Mile 2 Mile 3 Mile 4.69% 6.35% 6.19% POPULATION GROWTH — 2010-2017 Over 20% 10% to 20% 5% to 10% Up to 5% Loss or No Growth

22 WOODIE'S FLAT – CHICAGO, IL HOUSEHOLD INCOME MAP

AVERAGE HOUSEHOLD INCOME

1 Mile 2 Mile 3 Mile $132,657 $134,194 $130,890

HOUSEHOLDS EARNING OVER $100,000 ANNUALLY

1 Mile 2 Mile 3 Mile 18,648 55,767 94,359

AVERAGE HOUSEHOLD INCOME—2017 Over $100,000 $80,000 to $100,000 $60,000 to $80,000 $40,000 to $60,000 Less than $40,000

MARKET OVERVIEW 23 1535 NORTH WELLS STREET | CHICAGO, ILLINOIS 60610

PRIMARY CONTACTS

MICHAEL KAIDER JENNIFER SAMPSON CBRE +1 630 573 7015 +1 630 573 1276 700 Commerce Drive, Suite 450 [email protected] [email protected] Oak Brook, IL 60523

DEBT & STRUCTURED FINANCE GEOFFREY HARRIS CBRE +1 602 735 5615 2415 East Camelback Road [email protected] Phoenix, AZ 85016

© 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.