Data Center Offering Confidential Offering Memorandum | Westmont, IL Located in Top 3 U.S. Data Center market Nearly 20 year NNN Lease

1 Table of Contents 01 Executive Summary 4

02 Property Overview 7

03 Tenant Overview 12

04 Location and Market Overview 14

06 Transaction Guidelines 23

Executive Summary

4 Executive Summary

The Offering Jones Lang LaSalle (JLL) has been retained as exclusive advisor to market 20,000 square feet of existing raised floor data center and 23,000 square for sale the data center located at 800 Pasquinelli Drive, Westmont, IL (the feet of office space. There is also potential to expand the existing data Property), more commonly known as the Eddie Bauer (the Offering). center on the five (5) acre site. There are approximately 176 parking spaces and a secured generator area. Below is a brief snapshot of the The Property is located in the city of Westmont, IL, approximately 20 Tenant: miles west of the CBD of , IL. It is located within a mature office • Established in 1920 in Seattle, Eddie Bauer is iconic, authentic and flex building market. Within a 1 mile radius there are 48 buildings, American outdoor lifestyle brand with unmatched heritage and totaling 1.8 million square feet of product. The vacancy rate is a very global reach. healthy 12.8%. The Chicago metro area is the 3rd largest data center market in the United States boasting more than 44 megawatts of • One of the most recognized brands: legendary outfitter for 1st Amer- absorption in 2017. The suburban Chicago area has seen the majority of ican Summit of Everest (May 1963). data center investment and development, including new developments • Scale business generating >$1B inglobal sales. by RagingWire (Itasca), Stream (Elk Grove, EdgeConnex (Elk Grove), • One of the most decorated outdoor brands with over 25 industry CyrusOne (Aurora) and multiple investment by Digital Realty Trust awards over the past five years. (Northlake, Franklin Park and Elk Grove). The Offering presents the In 2012, former The North Face unique opportunity to quickly acquire a purpose built data center with 20 • World Class Management Team: executives joined Eddie Bauer with strategy and focus on core “active year rental income, in an established data center market. enthusiast” customer. The Property can provide up to 2 MW’s of power, with the ability to • North American Coverage with 370 stores in the U.S. and Canada increase on that power through a separate agreement with the utility provider. This Project is a long term leased single story building. There is

Property Overview Data Center Highlights Address: 800 Pasquinelli Drive, Westmont, IL Raised Floor Height: 24” Total Square Feet: 53,186 Total Current Capacity: 2 megawatts Current Raised Floor Area: 20,000 SF Critical Load: 1.2 megawatts Site Size: 5 Acres Power Density: 72 watts / SF Floors: 1 Redundancy Level: N+1 Year Built: 1984 Parking: 176 spaces

5 Executive Summary

Offering Highlights

The Eddie Bauer data center offers investors the opportunity to Excellent Connectivity – The greater Chicago is ranked 3rd nationally acquire a mission critical data center that is part of a growing global in fiber capacity and has become a low latency hub, centrally located in network for retail and online retail sales. This data center is a critical the U.S. The immediate area is well-supplied by multiple fiber providers component in the overall growth of their business. including Windstream, AT&T, Zayo, CenturyLink and Level 3.

Desirable Data Center Location – The Chicago metropolitan area has Low Risk Tenant – Backed by Golden Gate Capital , Everest Holdings become a destination for best-in-class data center developments for (dba Eddie Bauer) has continued to reduce debt and is listed as Stable by some of the world’s premier corporates like Oracle, Nokia, Facebook, Moody’s. Google, Apple and IBM. The metro area has become a data center destination due its central U.S. location, low cost of power, isolated risk Single Tenant Occupied – Eddie Bauer has occupied the Building for of natural disaster and being the center of fiber connectivity. over 20 years. They have maintained and operated the facility as a single tenant Optimal Triple Net Lease Structure with Contractual Escalations With the investment, a buyer will enjoy an absolute triple net lease Debt-Free Offering – Upon transaction closing, any and all outstanding structure, whereby Eddie Bauer will be directly responsible for all debt obligations secured by the Property will be retired, allowing an operating expenses, real estate taxes, insurance and all maintenance and investor to secure the asset free and clear of debt and capitalize on improvements of the critical infrastructure. attractive financing options.

Full Sale Leaseback Leased Square Footage: 53,186 Lease Term: Through April 30, 2038 Lease Structure NNN Initial Year Rent: $616,000 Annual Rental Escalations: 1.75% Renewal Options: Four (4) - Sixty (60) month extension Cap Rate: 10.00% NOI: $616,000 Price: $6,160,000

6 Property Overview

7 Property Overview

Property Summary Property Highlights

The Eddie Bauer data center was built in 1984 and was renovated as a • Secured and enclosed generators data center in 1997. The site contains a 53,186 SF building, and has a • On site fuel storage mix of administrative space, network operations space and data center space. The total parcel is 5 acres. The building has the potential for ex- • Single Tenant mission critical use pansion and would need to work with appropriate municipality to get the • Secure freight area appropriate permit. The building has a solid list of fiber carriers through • Security cameras 2 diverse routes. The immediate area is well-supplied by multiple fiber • VESDA fire prevention system --> Halon System providers including Windstream, AT&T, Zayo, CenturyLink and Level 3. • 24” raised floor • 2 existing generators

8 Property Overview

Fiber Map 800 Pasquinelli Drive, Westmont, IL 60559

Metro Networks CenturyLink Metro Everstream G4S Gapenet Hudson Fiber Leased Level3 Metro SDN Leased US Signal VinaKom WOW! Business Windstream Zayo Metro

9 Building Specifications

Survey

RECORD DESCRIPTION LEGEND OF SYMBOLS & ABBREVIATIONS ZONING INFORMATION SIGNIFICANT OBSERVATIONS VICINITY MAP - NOT TO SCALE         

   THE LANDS SURVEYED, SHOWN AND DESCRIBED HEREON ARE THE SAME LANDS AS DESCRIBED IN THE TITLE COMMITMENT  PROVIDED BY FIDELITY NATIONAL TITLE INSURANCE COMPANY, COMMITMENT NO. 2010 999013472 NCF, DATED FEBRUARY 27, 2018.   SITE        

ITEMS CORRESPONDING TO SCHEDULE B-II MISCELLANEOUS NOTES

                

                                       

   

    

   ALTA/NSPS LAND TITLE SURVEY     Westmont Office    B&C Project No. 201800694, 001   800 Pasquinelli Drive, Westmont, IL     Based on Fidelity National Title Insurance Company   Commitment No. 2010 999013472 NCF   bearing an effective date of February 27, 2018.      Surveyor's Certification                 

        SURVEY PERFORMED BY:  JLH LAND SURVEYING INC.  James L. Harpole 910 GENEVA STREET  Illinois Professional Land Surveyor No. 3190 SHOREWOOD, IL 60404 In the State of Illinois, Expires 11-30-2018 PHONE: 815-729-4000   WWW.JLHSURVEY.COM   PROJECT REVISION RECORD    DATE DESCRIPTION DATE DESCRIPTION  03/23/2018 FIRST DRAFT 03/26/2018 REVISED CERTIFICATION

FIELD WORK: DB & MO DRAFTED: JAH CHECKED BY: JLH FB & PG: N/A SHEET 1 OF 1 SCALE : 1" = 40' National Coordinators 0' 20' 40' 80' 1-(800)-SURVEYS (787-8397)

THE USE OF THIS DOCUMENT'S FORMAT IS Bock & Clark Corporation STRICTLY PROHIBITED AND CONTINGENT 3550 W. Market Street, Suite 200, Akron, Ohio 44333 UPON THE WRITTEN CONSENT AND PERMISSION OF BOCK & CLARK CORP. [email protected] © 2018 BOCK AND CLARK CORP. www.bockandclark.com

T:\SDSK\CPROJ\18-200-145\dwg\18-200-145.dwg, 3/26/2018 1:14:40 PM,

10 Building Specifications

Budget

Eddie Bauer IT-Westmont

2017 Actual 2018 Budget CC Acct Vendor Description / Product Total 8182 8364 Accurate Tank Diesel tank inspection 775.00 8182 8364 American First Aid First aid kit refill 320.69 8182 8364 Anthony Roofing Tecta America Roof repair 2,298.54 8182 8364 Arco Plumbing & Heating Pipe install - mechanical room 3,140.00 8182 8364 Berthold Breaker Maintenance (every 3YRs) - 8182 8364 Chicago Filter Supply Air filter replacement 1,184.03 8182 8364 Commercial Coffee Svc Coffee service 2,648.56 8182 8364 Door Systems Inc Repair steel rolling door 380.75 8182 8364 Eddie Bauer Amex Misc repairs/maint** 15,839.85 8182 8364 Elevator Inspection Elevator service & maint 150.00 8182 8364 Facility IT Group Inc Break/Fix 5,300.00 8182 8364 Fitness Equipment RX Safety and Exercise Equipm Maint 395.00 8182 8364 Fox Valley Fire & Safety Fire Testing / Compliance 6,544.29 8182 8364 Grainger Maint supplies 539.82 8182 8364 Grasshopper Lawn Care 5,196.50 8182 8364 J&H COMMERCIAL & RES Office Cleaning 22,800.00 8182 8364 JC Licht LLC 155.27 8182 8364 Lionheart Power Preventative Maint for UPS & Generator - WM 4,868.73 8182 8364 McMahon Landscaping Landscape maint 540.00 8182 8364 McMaster Carr 28.69 8182 8364 Norcomm Fire alarm monitoring 780.00 8182 8364 Pest Control Chicago Pest control 1,200.00 8182 8364 Salinas & Sons 175.00 8182 8364 Securitas 409.85 8182 8364 Solutions Mechanical HVAC Maint 32,486.65 8182 9364 Sysco Chicago Break Room Supplies 1,187.76 8182 8364 Thyson/Krup Elevator service & maint 1,082.32 8182 8364 Tovar (snow removal) Snow Plowing 3,322.54 8182 8364 Uline Filters, supplies 3,087.82 8182 8364 Unified Power UPS, SSC, RDU & Battery - maint contract 5,890.00 8182 8364 Vanguard Archives 45.00 8182 8364 Wesco 2,338.24 8182 8364 Westmont Village of 150.00 8182 8364 WGN Flag & Decoration 333.68 125,594.58 132,701.62 Incremental in '18 Parking lot resurface 5,000.00 Breaker Maintenance (every 3YRs) 10,000.00 HVAC maintenance 10,000.00 Generator maintenance (every 2 yrs) 3,000.00 Snow removal (normalized) 12,000.00 Inspections (switch gear, electrical) 15,000.00 Diesel tank valve replacement 15,000.00 BUILDING EXPENSE 125,594.58 202,701.62

8182 8635 Conedison Solutions Electricity 111,847.81 8182 8635 Com Ed Electricity 60,484.04 8182 8635 Constellation NewEnergy Electricity 13,170.79 8182 8635 Flagg Creek Water Sewer Service 2,116.44 8182 8635 Village of Westmont Water Service 5,826.10 8182 8635 Waste Harmonics Recycle / Trash 4,834.76 8182 8635 Waste Management Garbage and Recycling 1,191.24 UTILITIES 199,471.18 205,480.22

8182 8645 Dupage County Collector (accr) Real Estate Tax 126,951.67 137,760.00 REAL ESTATE TAX 134,576.00 137,760.00

Total Facilities Total FACILITIES 459,641.76 545,941.84

Historical upgrades: HVAC replacement phasae 1 & 2 (2011, 2013) 97,195 Fire panel replacement (2012) 69,375 UPS battery replacement & upgrades (2011, 2014) 56,389 CRAC unit reloc/replacement (2011) 45,693

11 Tenant Overview Tenant Overview

Business Highlights

The company was established in 1920 in Seattle by Pacific Northwest outdoors man, Eddie Bauer. In 1940 Bauer patented the first quilted down jack- et. He later patented numerous other designs. The company was the first independent company which the United States Army hired and allowed to use a logo on the Army-issued uniform.

Bauer retired and sold the company in 1968. General Mills bought the company in 1971; in 1988, Spiegel bought it from General Mills. In 2003, Spiegel, Inc., entered bankruptcy. The Spiegel catalog and all other assets were sold, except for Eddie Bauer. On June 17th, 2009, Eddie Bauer filed for Chapter 11 bankruptcy protection in Delaware and was purchased by Golden Gate Capital.

In addition to the three sales channels the company operates a distribution and fulfillment center in Groveport, Ohio; an IT facility in Westmont, Illi- nois; and a distribution center in Vaughan, Ontario. Eddie Bauer is also a minority participant in joint venture operations in Japan and Germany that include retail stores, catalogs, and websites.[5] The company also selectively licenses the Eddie Bauer brand name and logo for various products sold through other companies including eye wear, furniture, bicycles, and, up until the 2010 model year, upper level versions of Ford Motor Company’s Bronco, Explorer, Expedition and Excursion SUVs.

Eddie Bauer’s flagship store is in Bellevue’s Bellevue Square mall. A Midwest Flagship opened in August 2010 at Easton Town Center in Columbus, Ohio.

13 Location and Market Overview

14 Location and Market Overview

Suburban Chicago Data Center Significance

15 Location and Data Center Market Overview

Westmont, IL The property is located in the city of Westmont, IL, approximately 20 miles west of the CBD of Chicago, IL. It is located within a mature office and flex building market. Within a 1 mile radius there are a total of 48 buildings, totaling 1.8 million square feet of product. The vacancy rate is very health 12.8%.

Chicago, IL Data Center Destination The Chicago metro area is the 3rd largest data center market in the United States boasting more than 44 megawatts of absorption in 2017. The suburban Chicago area has seen the majority of data center investment and development, including new developments by RagingWire (Itasca), Stream (Elk Grove, EdgeConnex (Elk Grove), CyrusOne (Aurora) and multiple investment by Digital Realty Trust (Northlake, Franklin Park and Elk Grove). The Offering presents the unique opportunity to quickly acquire a purpose built data center with 20 year rental income, in an established data center market.

Split Operations In Chicago In order to appeal to the cross-generational workforce, many companies continue to utilize office space both downtown and in suburban Chicago. As of Q1 2018, there were 36 known split operations in the Chicagoland area, 25.0% for banking & financial services firms and 22.0% for technology firms. As firms cross-pollinate and generate demand for downtown and suburban locations alike, the Chicago office market continues to offer tenants the best of both worlds.

A Concentration In The Outer Suburban Submarkets Infill, amenity rich locations like O’Hare, North Cook, and Eastern East-West are the strongest performing submarkets historically and to-date. These submarkets tend to attract and retain whole business operations. Meanwhile, outer suburban submarkets like North Lake and Northwest exhibit higher vacancy rates and lower rents.

16 Location and Market Overview

Notable West Suburban Chicago Headquarters

17 Location and Market Overview

Chicago is... Attracting Foreign Direct Investment A diverse and economic Popowershouse FOR FOREIGN DIRECT INVESTMENT PROJECTS, FOR THREE CONSECUTIVE YEARS MOST DIVERSIFIED MOST ECONOMICALLY — IBM’s Global Location Trends Report POWERFUL CITY IN #1 ECONOMY IN THE U.S. CITY THE WORLD #1 U.S. BY INDUSTRY #7 — Richard Florida/Martin Prosperity Institute — World Business Chicago As of 2017, the Chicago area is home to: Global Economic Power Index 1,800+ Foreign-based companies $670.5 Billion GMP (Gross metropolitan Product) 4,000+ Foreign-owned companies $100+ Billion in foreign direct investments 400+ Corporate Headquarters (Gross metropolitan Product) LARGEST MSA IN THE WORLD ND Its air, land and water infrastructure and access are a part of that 22 sustained scale and continued economic growth Chicago is home to 11 Fortune 500 companies, while the rest of the metropolitan area hosts an additional 22 fortune 500 companies Air Land O’Hare International Airport Chicago has the largest com- 29 $8.5 Billion expansion project muter rail system in the U.S., S&P 500 companies underway adding $18 billion within 11 commuter rail lines annual to the Illinois economy serving 200+ stations across 79.8 million passengers in six counties. The Metropolitan 2017. Ranked third in the U.S. area also has seven major CME 191 gates interstate highways. CME Group, A Global Financial Exchange GROUP 3,000 daily flights to 200+ cities headquartered in Chicago, Accounts for Water WORLDWIDE Midway International Airport Two major ports make Chica- DERIVATIVES 21.0 million passengers in OF THE WORLDWIDE TRADING go a center for freight / barge 2017 activity: St. Lawrence Seaway 20% DERIVATIVES TRADING 43 gates connecting to the Atlantic Hubs and Southwest and Ocean and the Mississippi Delta River connecting to the Gulf of Mexico

18 Location and Market Overview

Suburban Chicago Fortune 500 presence Chicago’s 2017 Fortune 500 Companies Revenue $ Ranking Company Industry As of 2017, the Chicago metropolitan area contained 33 Fortune Millions 500 headquarters, with an additional three Fortune 500 headquar- 17 Boots Alliance Food and Drug Stores 117,351 ters located in Illinois, outside of the Chicago metropolitan area. Of 24 Aerospace and Defense 94,571 the 33 headquartered in Chicago, approximately 70.0% are in the 45 Archer Daniels Midland Food Production 62,346 suburbs, with the remaining 30.0% headquartered downtown. 83 United Continental Holdings Airlines 36,556 Many Fortune 500 companies in the Chicago suburbs choose to 84 Insurance: Property and Casualty (Stock) 36,534 locate in DuPage County, including (337), 89 Utilities: Gas and Electric 31,360 Univar (338), and Dover (392). In fact, just added to the Fortune 500 109 Food Consumer Products 25,923 in 2017 was Oak Brook based company TreeHouse Foods (427). 111 AbbVie Pharmaceuticals 25,638 Fortune 500 companies maintain and grow headquarters in the 112 McDonald’s Food Services 24,622 suburbs because of the excellent quality of life, large suburban 124 US Foods Holding Wholesalers: Food and Grocery 22,919 office park settings, abundant free parking, and convenient trans- 127 General Merchandisers 22,138 portation access to surrounding suburbs, downtown, and O’Hare 135 Medical Products and Equipment 20,853 197 Food Consumer Products 14,134 and Midway airports. The Chicago suburbs form the majority share 199 CDW Information Technology Services 13,982 of Fortune 500 and Fortune 1000 company revenue for the Chicago 202 Industrial Machinery 13,599 metropolitan area. Ambitious suburban Chicago firms will con- 277 Services Commercial Banks 10,497 tinue to be a critical driver of economic activity and growth in the 281 Medical Products and Equipment 10,163 metro area and Midwest at large. 282 W.W. Grainger Wholesalers: Diversified 10,137 304 LKQ Wholesalers: Diversified 9,082 Chicago MSA fortune 500 company locations 322 Motor Vehicles and Parts 8,599 337 Navistar International Construction and Farm Machinery 8,111 338 Univar Wholesalers: Diversified 8,074 10 359 International Wholesalers: Electronics and Office Equipment 7,625 388 R.R. Donnelley & Sons Publishing, Printing 6,896 391 Jones Lang LaSalle Real Estate 6,804 392 Dover Industrial Machinery 6,794 427 TreeHouse Foods Food Consumer Products 6,175 23 433 Solutions Network and Other Communications Equipment 6,038 439 Old Republic International Insurance: Property and Casualty (Stock) 5,901 450 Packaging Corp. of America Packaging, Containers 5,779 456 Food Production 5,704 462 Arthur J. Gallagher Diversified Financials 5,595

19 Location and Market Overview

et

a Significant corporate presence in immediatetre area

S

Saint Charles East Saint Charles Road East Geneva Road We Road st Saint Charles Ro

North Main Bloomingdale Road Bloomingdale South York Street South York ad Cr ad escent Boulevar Glenbard Ro d

y a w h giH yre g niK North Wolf Road

South Main Street Madison Street

Pennsylvania Avenue South Finley Road East Madison Street Jackson Boul ad evard South Butterfield Ro South Westmore Meyers Road South Westmore

Frontage R

Harrison Street

South Columbine Avenue ad

Ro

South East Wilson Avenue o

West Wilson Road ad

Buck

Columbine Avenue South York Ro

Roosevelt Road West Brush Hill Road ad

Drury Lane West Roosevelt Road

South Main Street

d a o R tse w di M

Finley Road

Lowell Lane ad

Spring Road rger Ro Ha http://www.kirkland.com/

e u n e v A d n alh giH htu o S IL 83

d a o R flo W htu o S Administered by: 22nd Street East 22nd Street

York Road

tterfield Raod Bu South Meyers Road

Downers Drive IL 56 31st Street Oak Brook Road

e Highland Avenue c Woodcreek Drive Woodcreek

daoR floW

M

eyers Opus Pla

Road daoR yecaL 35th Street Cass Avenue IL 53

Gilbert Avenue

F

airvie

w Avenue

oln Avenue c

Lin West Ogden Avenue East Ogden Avenue Ogden Avenue South Gilbert Avenue Warrenville Road

troN

Belmont

C h te ert S nia M 47th Street East Chicago Avenue West Chicago Avenue CONFIDENTIAL OFFERING MEMORANDUM | 41

R

o ad

ad

eunevA ssa

West Naperville Ro

20

West 55th Street East 55th Street 55th Street

Maple Avenue South Cass Avenue Willow Springs Road

ad Ro

st Plainfield We Location and JLLMarket Demogra phicOverview Summary Eastern East-West Prepared by Esri Eastern East-West CorridorArea: 116.63 square miles

Population Summary 2000 Total Population 377,870 2010 Total Population 376,676 2018 Total Population 383,239 2023 Total Population 386,990 2017-2022 Annual Rate 0.19% Total Households 146,988 Data for all businesses in area Total Businesses: 18,026 Total Employees: 259,310 Total Residential Population: 383,239 Employee/Residential Population Ratio: 0.68:1 Labor Force By Occupation - White Collar 74.3% Labor Force By Occupation - Blue Collar 13.4% Median Age 2018 Median Age 42.8 Median Household Income 2018 Median Household Income $86,268 2023 Median Household Income $92,921 2017-2022 Annual Rate 1.50% Average Household Income 2018 Average Household Income $121,661 2023 Average Household Income $132,931 2017-2022 Annual Rate 1.79% Per Capita Income 2018 Per Capita Income $47,100 2023 Per Capita Income $51,468 2017-2022 Annual Rate 1.79% 2018 Population 25+ by Educational Attainment Total 270,210 Less than 9th Grade 2.2% 9th - 12th Grade, No Diploma 3.1% High School Graduate 15.5% GED/Alternative Credential 1.6% Some College, No Degree 18.9% Associate Degree 6.7% Bachelor's Degree 30.3% Graduate/Professional Degree 21.8% 2018 Population by Sex Males 185,224 Females 198,015 2018 Population by Race/Ethnicity Total 383,239 White Alone 78.1% Black Alone 6.2% American Indian Alone 0.2% Asian Alone 9.2% Pacific Islander Alone 0.0% Some Other Race Alone 4.0% Two or More Races 2.3% Hispanic Origin 11.4% Diversity Index 50.3

21 Source: October 16, 2018

Page 1 of 1 Location and Market Overview

Split operations in Chicago Direct vacancy and rent by geography In order to appeal to the cross-generational workforce, many companies Direct Vacancy and Rent by Geography Large Blocks By Geography $35 .0 0 25.0% 14,000,000 100 continue to utilize office space both downtown and in suburban Chi- 93 cago. As of Q1 2018, there were 36 known split operations in the Chi- 90 $30.00 12,000,000 cagoland area, 25.0% for banking & financial services firms and 22.0% 20.0% 80 for technology firms. As firms cross-pollinate and generate demand for $25 .0 0 10,000,000 70 15.0% 60 downtown and suburban locations alike, the Chicago office market con- $20.00 8,000,000 tinues to offer tenants the best of both worlds. 46 50 $15 .0 0 6,000,000 10.0% 40 A concentration in the outer suburban submarkets $10.00 4,000,000 30 5 .0 % 20 13 Infill, amenity rich locations like O’Hare, North Cook, and Eastern East- $5.00 2,000,000 4 10 West are the strongest performing submarkets historically and to-date. 0 $- 0.0% 0 0 These submarkets tend to attract and retain whole business operations. Suburban Suburban Ea st ern Ea st ern Oak Brook Suburban Suburban Ea st ern Ea st ern Oak Brook Class A East-West East-West On- the-Mall Class A East-West East-West On- the-Mall Meanwhile, outer suburban submarkets like North Lake and Northwest Class A Class A exhibit higher vacancy rates and lower rents. Average Gross Asking Rent Direct Vacancy Contiguous Large Block SF Count of Large Blocks Source: JLL Research, Q1 2018 Companies with split operations in the Eastern East-West submarket include: Large blocks by geography

Direct Vacancy and Rent by Geography Large Blocks By Geography $35 .0 0 25.0% 14,000,000 100 93 90 $30.00 12,000,000 20.0% 80

$25 .0 0 10,000,000 70

15.0% 60 $20.00 8,000,000 46 50 $15 .0 0 6,000,000 10.0% 40

$10.00 4,000,000 30

5 .0 % 20 13 $5.00 2,000,000 4 10 0 $- 0.0% 0 0 Suburban Suburban Ea st ern Ea st ern Oak Brook Suburban Suburban Ea st ern Ea st ern Oak Brook Class A East-West East-West On- the-Mall Class A East-West East-West On- the-Mall Class A Class A

Average Gross Asking Rent Direct Vacancy Contiguous Large Block SF Count of Large Blocks

Source: JLL Research, Q1 2018 Source: JLL Research, with large blocks >= 50,000 SF as of June 2018

22 4 Data Center Outlook | Global | Year-End 2017 State of the industry

Location and Data Center Market Overview

Data Center Global Outlook Finishing up the year, data center markets in the United States and Finishing up the year, data center markets in the United Global net absorption, year-end 2017 (Units=MW) abroad closed out another strongStates 12 and months abroad with closed 583.5 out MW another of absorption strong 12 months Atlanta 12.5 across top U.S., Canadian, Europeanwith 583.5 MW (EMEA) of absorption and Asia across Pacific top regionsU.S., Canadian, Austin & San Antonio 21.0 (APAC)through 2017. The UnitedEuropean States (EMEA and )Canada and Asia boasted Pacific regions 363.5 (APAC)MW Boston 4.2 through 2017. The United States and Canada boasted 363.5 of positive net absorption, while EMEA hit 135.0 MW and APAC closed out Chicago 44.0 MW of positive net absorption, while EMEA hit 135.0 MW and 85.0 MW of absorption in the calendar year. U.S. and Canadian absorption Dallas / Fort Worth 43.0 APAC closed out 85.0 MW of absorption in the calendar Denver & Colorado Springs 6.0 was down 8.6 percent over ayear. record-shattering U.S. and Canadian 2016 absorption (compared was downto +2.4 8.6 percent Houston 2.5 percent globally). This all paintsover an a recordimportant-shattering picture 2016 for (compared the industry, to +2.4 as percent Las Vegas & Reno 22.0 absorption stayed steady amidglobally key shifts). This alland paints industry an important shakeups picture playing for the Los Angeles 6.0 industry, as absorption stayed steady amid key shifts and New Jersey 4.5 out through 2017. industry shakeups playing out through 2017. 1.1 Northern California 10.0 Key year-end 2017 leasing takeaways: Northern Virginia 115.0 Key year-end 2017 Leasing Takeaways Pacific Northwest 15.5 • Cloud leasing continued to• reignCloud supreme leasing continued in the majority to reign ofsupreme in the Phoenix 29.9 majority of markets—with many cities reporting upward Amsterdam 43.0 markets—with many cities reportingof 25 percent upward leasing of driven25 percent by cloud leasing operators. Dublin 12.0 driven by cloud operators. 20.0 • “Edge” markets began to see sizeable upticks in London 50.0 absorption in the second half of 2017 as key players Paris 10.0 • “Edge” markets began to see sizeable upticks in absorption in the Montréal 12.3 second half of 2017 as key playerslooked looked to fill out to their fill geographicout their geographic network—as seen in Atlanta, LA, Phoenix and other “edge” cities. Toronto 5.0 network—as seen in Atlanta, LA, Phoenix and other “edge” cities. Western Canada 5.3 Hong Kong 25.0 • Overall 2017 absorption continued on the path of Singapore 20.0 • Overall 2017 absorption continuednormalization on the post path-2016 of normalization cloud leasing frenzy, yet pent- Sydney 30.0 post-2016 cloud leasing frenzy,up demandyet pent-up still remains demand in stillmany remains key markets. in Tokyo 10.0 many key markets.

23 Location and Data Center Market Overview Data Center Sector

Under-construction inventory in the data center sector saw a steady uptick over the last 12 months, with many markets reporting larger pipelines than year-end 2016. This proves to be a promising signal from developers as the reserved absorption in 2017 hasn’t slowed down the much needed uptick in inventory. Today, nearly 400 MW is under construction across North America, EMEA and APAC, with North American markets accounting for over 60 percent. The markets with the largest under-construction pipelines in the world aren’t surprising, with Chicago (34 MW), Dallas (22 MW) and Northern Virginia (22 MW) paving the way for future and current demand. 5 5 Data Center OutlookData Center | Global Outlook | Year | Global-End 2017 | Year-End 2017 Keep an eye out for JLL’s upcoming Data Center REIT Analysis. In March, JLL will be releasing our take on the 2017 year-end performance and expectations of key Data Center REITs.

Cloud service providers continued to drive demand in Current under-construction inventory Cloud service providers2017 continued to drive demand in Current under(Units=MW)-construction inventory 2017 (Cloud as percentage of absorption in markets) (Units=MW) (Cloud as percentage of absorption in markets) Atlanta 35% Atlanta 7.0 AtlantaAustin & San Antonio35% 70% AtlantaAustin & San Antonio7.0 0.0 Austin & San Antonio Boston 5%70% Austin & San Antonio 0.0Boston 6.0 Boston 5% Chicago 70% Boston Chicago6.0 34.0 Chicago Dallas / Fort Worth 70% 35% ChicagoDallas / Fort Worth 34.022.0 Dallas / Fort DenverWorth & Colorado Springs35% 6% Dallas / DenverFort Worth & Colorado Springs 0.0 22.0 Houston 0% Denver & Colorado Springs 6% Denver & Colorado Springs 0.0Houston 2.0 Las Vegas & Reno 25% Houston 0% HoustonLas Vegas2.0 & Reno 40.0 Las Vegas & Reno Los Angeles25% 30% Los Angeles 9.0 New Jersey 40% Las Vegas & Reno 40.0 Los Angeles 30% New Jersey 4.0 New York City 30% Los Angeles 9.0 New Jersey 40% New York City 4.0 Northern California 50% New Jersey 4.0 New York City Northern California 21.0 Northern Virginia30% 40% New York City Northern Virginia4.0 22.0 Northern California Pacific Northwest 50% 65% Northern CaliforniaPacific Northwest 21.0 14.5 Northern Virginia Phoenix40% 13% Northern Virginia Phoenix 22.012.0 Pacific Northwest Amsterdam 65% 66% Pacific Northwest Amsterdam 14.5 Phoenix 13%Dublin 67% 14.0 Phoenix Dublin 12.0 Amsterdam Frankfurt 66% 44% 3.0 Amsterdam Frankfurt Dublin London 67% 58% 14.0 25.0 Dublin London 30.0 Frankfurt Paris44% 5% 3.0 Paris 5.0 London Montréal 58% 75% Frankfurt 25.0 Montréal 24.0 Paris 5% Toronto 20% London 30.0 Toronto 39.0 Montréal Western Canada 55% Paris 5.0 75% Western Canada 0.5 Toronto Montréal 24.0 20% Hong Kong 25.0 Under-construction inventory in the data center sector saw Toronto 39.0 Western Canada 55% Singapore 30.0 a steady uptick over the last 12 months, with many marketsWestern Canada 0.5 Sydney 0.0 Hong Kong Under-constructionreporting inventory larger in pipelinesthe data thancenter year sector-end 2016.saw This proves Tokyo 0.0 25.0 Singapore a steady uptick overto be the a promisinglast 12 months, signal fromwith manydevelopers markets as the reserved 30.0 absorption in 2017 hasn’t slowed down the much needed Sydney 0.0 reporting larger pipelines than year-end 2016. This proves uptick in inventory. Today, nearly 400 MW is under Tokyo 0.0 to be a promising signal from developers as the reserved 24 construction across North America, EMEA and APAC, with absorption in 2017North hasn’t American slowed markets down the accounting much needed for over 60 percent. uptick in inventory.The Today, markets nearly with the 400 largest MW is under under-construction pipelines construction acrossin the North world America, aren’t surprising, EMEA and with APAC, Chicago with (34 MW), North American marketsDallas ( 22accounting MW) and Northernfor over 60 Virginia percent. (22 MW) paving The markets withthe the waylargest for underfuture- andconstruction current demand. pipelines in the world aren’t surprising, with Chicago (34 MW), Dallas (22 MW) and Northern Virginia (22 MW) paving the way for future and current demand.

Keep an eye out for JLL’s upcoming Data Center REIT Analysis. In March, Keep anJLL eye will out be for releasing JLL’s upcoming our take on the Data Center2017 REITyear- endAnalysis. performance In March, and JLL will expectationsbe releasing ofour key take Data on Center the REITs. 2017 year-end performance and expectations of key Data Center REITs. 10 Data Center Outlook | Global | Year-End 2017 Location and Data Center Market Overview United States Local Market United States Atlantalocal marketsAustin & San Antonio 12.5 MW 2017 year-end absorption 21.0 MW 2017 year-end absorption 2017 Happenings 2018 Expectations 2017 Happenings 2018 Expectations • Atlanta has attracted several • New operators will continue • Demand in the Austin • Rental rates remain colocation operators to scout the Atlanta market remains moderate, attractive in the market throughout 2017, who marketplace for entry as it continues to be an heading into 2018, to entered the market via opportunities. attractive disaster recovery compete with other Texas enterprise data center • Large-enterprise data center market to support other and national markets. acquisitions. owners further consider Texas locations and West • Austin and San Antonio will • Existing operators options to monetize assets. Coast tech companies. continue to offer an easy continued expansion in • Several new colocation • San Antonio saw in H1 cloud exchange platform for 2H17 fueling the downtown options will come to market incredible demand from customers as access to market. over the next 24 months. continued expansion by cloud service providers in • Demand in the Atlanta Microsoft, both self- the area becomes easier market remained active performed and in take- with Microsoft’s increased throughout 2H17, down of wholesale footprint. continuing to be driven by colocation space. large users, financial tech • Supply in Austin is relatively and other technology firms. stable and being steadily absorbed.

Boston Chicago 4.2 MW 2017 year-end absorption 44.0 MW 2017 year-end absorption 2017 Happenings 2018 Expectations 2017 Happenings 2018 Expectations • “Edge” services kept Boston • In 2018, local companies • Robust leasing activity • Chicago will see a surge of market stable through 2017, and connectivity will drive continues in Chicago with inventory in the market to while the market continues growth of colocation while new colocation fill gaps of availability over to see steady growth from demanding increased cloud developments expected. the next 24 months at major content and service access. • 2017 saw massive cloud existing providers. providers. • Continuation of “edge” demand due to large Apple Forecasted demand • Demand in the Boston services growth will drive and Google deployments continues to be strong. market remained relatively demand for Boston for next across the market. Leasing • Cloud, enterprise and flat due to high power and several quarters. has seen the strongest technology continue to be space costs, although the • Second-generation space activity to date—overall deal driving forces, as lower market did see a substantial coming back on market counts nearly doubling. power rates continue to power cost reduction over from Digital Realty and • Supply in Chicago has provide attractive options. the last 24 months. Cyxtera will likely drive become increasingly tight, down pricing. with readily available capacity for 1 MW+ deployments being limited.

25 Transaction Guidelines

26 Transaction Guidelines

Key Offer Considerations

This offering of the Eddie Bauer Data Center is being distributed exclusively by JLL to select group of pre-qualified investors. The prospective investor will be selected by the Owner in its absolute discretion on the basis of variety of factors, including, but not limited to:

• Capitalization rate • Ability to close in an efficient manner • Acceptance of lease and contract terms • Financial Strength • Experience in closing similar transactions • Level of due diligence completed • Level of discretion to invest funds • Absence of contingencies • Thoroughness of underwriting

Key Offer Submission Guidelines

The JLL contacts listed on the back cover of this Offering Memorandum will be available to assist prospective investors to arrange on-site inspections and to answer any questions related to the information contained in this Offering Memorandum. JLL reserves the right to accept a preemptive offer at any point in the marketing process at the direction of the Owner. All Offers must be presented in writing, net of all seller closing costs, and include the following:

• The Capitalization rate and purchase price • An outline of the proposed schedule for due • A list of any contingencies, including com- diligence and closing mittee approvals, required to close the • The source of purchaser’s capital (including transaction debt and equity) • A detailed description and the amount of capital allocations (if any) • The property is being offered without an • The amount of earnest money deposit and asking price. Registered investors will be timing of deposit • A description of any physical or environ- invited to submit offers by a bid deadline mental assumptions which affect the offer which will be communicated to qualified price investors.

• The property will be conveyed free and clear of any existing debt financing. Owner and JLL reserve the right to alter the Transaction Guidelines at their sole discretion.

27 Primary Sales Contacts

Sean Reynolds Andy Cvengros Regional Director Senior Vice President Data Center Services Data Center Services +1 312 228 3091 +1 312 228 3202 [email protected] [email protected]