Offering Memorandum PRESENTED BY: PETER BLOCK MIKE SULLIVAN For Sale — Investment Opportunity Executive Vice President Associate +1 847 384 2840 +1 847 384 2843 [email protected] [email protected]

JARED PRINCE JASON YALE Associate Associate SUPREME COURTS +1 847 384 2852 +1 847 384 2844 888 S. Frontenac Street | Aurora, IL [email protected] [email protected] TABLE OF CONTENTS

> EXECUTIVE SUMMARY Executive Summary Investment Highlights

> PROPERTY INFORMATION Property Description Property Aerial Retail Map Property Photographs Tenant Overview

> LOCATION OVERVIEW Location Overview Area Map Demographics

> DISCLAIMER > EXECUTIVE SUMMARY

Offering Memorandum EXECUTIVE SUMMARY

Colliers international is pleased to present for sale a single tenant, net leased, sale leaseback of Supreme Courts - a 32,000 SF high-end, special purpose youth sports facility - located at 888 S. Frontenac Street, Aurora, IL. Established in 2012, Supreme Courts is dedicated to the development of youth basketball players, is the #1 provider of youth basketball tournaments in the Midwest and has over 75 teams utilizing the gym for OFFERING SUMMARY team practice and competitive games. ASKING PRICE: $5,333,333 The proceeds from this sale will be used to retire debt and expand the brand by acquiring and opening other facilities. Upon close of escrow Supreme Courts will execute a fifteen NOI: $400,000 year lease with four (4), five (5) year options with 10% increases every 5 years. This investment opportunity is being offered for sale at $5,333,333 (7.50% cap rate). LEASE TERM: 15 Years CAP RATE: 7.50% SIZE: ± 32,000 SF OPTIONS: Four (4), five (5) years ESCALATIONS: 10% every five years

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 4 INVESTMENT HIGHLIGHTS

STRONG INVESTMENT FUNDAMENTALS

>> Absolute NNN Lease with no landlord responsibilities

>> Experienced, well rounded management team

>> Strong financial backing

>> 15 year lease term

STRATEGIC LOCATION – ESTABLISHED TRADE AREA

>> Strategically serving ’s largest suburban high school district

>> Huge Feeder school programs

>> Facility is fully DIN certified and meets and exceeds all DIN 18032-2 criteria

>> New construction

>> Abundance of parking

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 5 > PROPERTY INFORMATION

Offering Memorandum PROPERTY DESCRIPTION

PROPERTY ADDRESS RENEWAL OPTIONS 888 S. Frontenac Street, Aurora, IL 60504 Four (4), five (5) years

OFFERING PRICE ESCALATIONS $5,333,333 10% every 5 years

NOI YEAR BUILT $400,000 2013

CAP RATE BUILDING SIZE 7.50% ± 32,000 SF

LEASE TYPE PARCEL SIZE NNN 4.50 Acres

LEASE TERM REMAINING 15 Years

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 7 PROPERTY AERIAL

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 8 RETAIL MAP

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 9 PROPERTY PHOTOGRAPHS

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 10 TENANT OVERVIEW

OVERVIEW OF SUPREME COURTS & CHICAGOLAND YOUTH BASKETBALL NETWORK (CYBN)

Supreme Courts is a community youth sports facility dedicated to the development of youth basketball players. Supreme Courts houses four-regulation wood high school basketball courts in a 32,000 sq. ft. gym designed to offer full customer service for league and tournament games. The business was established in 2012 and is the home of both Attack, Illinois Shock, Dupage Express and Naperville Rocket travel basketball teams. Supreme Courts prides itself on offering programs to all age groups and skill levels. Supreme Courts has three separate business income streams. The first, travel basketball teams, which account for over 75 teams utilizing the gym October – June for team practice and competitive games. The second is player development programs designed to both develop travel players and introduce basketball to younger and less competitive players; these programs run year round. Last is the Chicago Youth Basketball Network (CYBN), which is the competitive league and tournament portion of the business. The CYBN is unique as it utilizes strong partnerships with other local gyms, allowing those facilities to share in profits while maintaining the lowest cost tournament registration fees for youth teams. The CYBN acts as the administrator for all tournament and leagues providing, marketing, scheduling, referee assignments and accounting services for all participating gyms and organizations. Additionally, the CYBN creates value add components which aren’t provided by competitors, these include visibility of team registrations sign ups, evaluated referees, league games for less talented teams, league MVP tags, league all-star game, power rankings for tournament teams and a scheduling model which allows teams to play 3 games in under 4 hours. Ownership is currently in the process of filing for federal trademark protection for Supreme Courts and the CYBN.

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 11 > LOCATION OVERVIEW

Offering Memorandum LOCATION OVERVIEW

AURORA, IL

Aurora, a suburb of Chicago, is located in the outer region of Greater Chicago. EDUCATION It is the second most populated city in the State of Illinois with over 200,000 There are six school districts and seven townships within city limits. Due to the residents. The City is accessible through five interchanges on the East/West size of Aurora, students attend public schools in Oswego & Batavia. The city is Tollway Corridor. Aurora extends into four counties including: DuPage, Kane, home to which is a private, nonprofit liberal arts college in Kendall and Will. Corporate offices and commercial growth on the City’s east Aurora with approximately 5,000 students enrolled in over 40 undergraduate and west sides continue to expand the City’s boundaries, now stretching from majors, numerous minors, a wide variety of master’s degrees and several Route 59 on the east to portions beyond Orchard Road on the west. graduate certificates. The university has three locations including Aurora BUSINESS University (Aurora, IL), Woodstock Center (Woodstock, IL) and George Williams College (Williams Bay, WI). Aurora is ideally located for business. It has five exits on Interstate 88 in addition to easy access to I-55, I-355 and I-295. The city has 17 first-class business parks. Aurora embraces the entrepreneurial spirit and offers assistance for those with great business ideas that bring jobs, innovation and character to the vibrant community. The Illinois Small Business Development Center at Waubonsee Community College and network of experts at SCORE are great resources for those looking to start a business in Aurora. RETAIL Aurora is one of the largest suburban retail markets in Illinois. The Far East side of the city includes residential areas that are projected to house 60,000 people within the next twenty years and the regional Westfield Shopping town at Fox Valley (formerly known as Fox Valley Mall). The Mall anchors the most productive retail sales corridor in the Chicago metro area on IL-59 just south of Interstate 88 in the growing western suburbs. This active, three-story mall is focused on local families with its diverse offering of 160 retail shops and restaurants plus four department stores (Macy’s, JCPenney, & Carson’s). The tenant mix features H&M, Forever 21, Express and Victoria’s Secret along with several first-to-market concepts. The Near East side includes the internationally known Chicago Premium Outlets. It is an outdoor center located 40 minutes from downtown Chicago, has over 140 stores such as Armani Outlet, Coach Saks Fifth Avenue Off 5th, Under Armour, Michael Kors, and more. Conveniently located off I-88 at the Farnsworth Avenue North exit, it is easily accessible for local shoppers and tourists coming from downtown or O’Hare and Midway International Airports.

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 13 41

WONDER LAKE JOHNSBURG ROUND LAKE BEACH WAUKEGAN 23 14 120 GRAYSLAKE 94 MCHENRY NORTH CHICAGO WOODSTOCK 31 1 12 LIBERTYVILLE LAKE BLUFF AREA MAP WAUCONDA MUNDELEIN LAKE FOREST MARENGO CRYSTAL LAKE VERNON HILLS 45

47 90 20 LAKE ZURICH LINCOLNSHIRE HIGHLAND PARK 14 HUNTLEY ALGONQUIN BUFFALO GROVE 43 BARRINGTON WHEELING NORTHBROOK CARPENTERSVILLE 90 WINNETKA HAMPSHIRE ARLINGTON HOFFMAN HEIGHTS 294 ESTATES GLENVIEW

14 EVANSTON ELGIN SCHAUMBURG DES PLAINES

19 53 ELK GROVE PARK RIDGE VILLAGE LINCOLNWOOD BARTLETT 41 ROSELLE ITASCA ROSEMONT

BLOOMINGDALE BENSENVILLE 19 94 59 ADDISON 90 ST CHARLES CAROL STREAM 355 38 ELMHURST ELBURN GENEVA LOMBARD OAK PARK 290 CHICAGO WHEATON 88 BATAVIA WESTCHESTER 24 CICERO WARRENVILLE 31 41 83 DOWNERS GROVE LAGRANGE LISLE 34 888 S FRONTENAC ST COUNTRYSIDE 355 94 30 AURORA 55 DARIEN BURBANK NAPERVILLE WOODRIDGE 90

OAK LAWN

BOLINGBROOK OSWEGO 294 57 LEMONT PALOS HEIGHTS PLANO 34 30 BLUE ISLAND 94 ROMEOVILLE ORLAND PARK PLAINFIELD HARVEY

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 14 POP FACTS: DEMOGRAPHIC REPORT 2016 POP FACTS: DEMOGRAPHIC REPORT 2016 888 S FRONTENAC ST, AURORA, IL, 60504-3170, AGGREGATE 888 S FRONTENAC ST, AURORA, IL, 60504-3170, AGGREGATE RADIUS 1 RADIUS 2 RADIUS 3 RADIUS 1 RADIUS 2 RADIUS 3 (10 min. drive) (20 min. drive) (30 min. drive) (10 min. drive) (20 min. drive) (30 min. drive) POPULATION 2016 EST. POPULATION HISPANIC OR LATINO 2021 Projection 129,111 546,177 1,326,734 Total 122,812 532,016 1,301,196 2016 Estimate 122,812 532,016 1,301,196 Hispanic or Latino 17,840 14.53% 126,982 23.87% 246,770 18.96% 2010 Census 113,394 511,352 1,264,048 Not Hispanic or Latino 104,972 85.47% 405,034 76.13% 1,054,426 81.04% 2000 Census 74,190 396,319 1,060,511 2016 TENURE OF OCCUPIED HOUSING UNITS Growth 2016 - 2021 5.13% 2.66% 1.96% Total 41,987 177,944 455,151 Growth 2010 - 2016 8.31% 4.04% 2.94% Owner Occupied 31,035 73.92% 132,837 74.65% 350,916 77.10% Growth 2000 - 2010 52.84% 29.03% 19.19% Renter Occupied 10,952 26.08% 45,108 25.35% 104,235 22.90% HOUSEHOLDS AVERAGE HOUSEHOLD SIZE 2021 Projection 43,952 182,510 464,581 Total 2.92 2.96 2.83 2016 Estimate 41,987 177,944 455,151 2010 Census 39,594 172,233 442,837 2000 Census 26,332 135,138 373,261 Growth 2016 - 2021 4.68% 2.57% 2.07% Growth 2010 - 2016 6.04% 3.32% 2.78% Growth 2000 - 2010 50.36% 27.45% 18.64%

2016 EST. POPULATION BY SINGLE CLASSIFICATION RACE Total 122,812 532,016 1,301,196 White Alone 76,215 62.06% 361,651 67.98% 945,777 72.69% Black or African 12,278 10.00% 40,504 7.61% 107,868 8.29% American Alone American Indian and 307 0.25% 1,757 0.33% 3,754 0.29% Alaska Native Alone Asian Alone 23,077 18.79% 57,523 10.81% 110,098 8.46% Native Hawaiian and 41 0.03% 207 0.04% 425 0.03% Other Pacific Islander Alone Some Other Race Alone 6,521 5.31% 54,114 10.17% 97,963 7.53% Two or More Races 4,371 3.56% 16,260 3.06% 35,311 2.71%

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 15 POP FACTS: DEMOGRAPHIC REPORT 2016 888 S FRONTENAC ST, AURORA, IL, 60504-3170, AGGREGATE RADIUS 1 (10 min. drive) RADIUS 2 (20 min. drive) RADIUS 3 (30 min. drive) 2016 EST. HOUSEHOLDS BY HOUSEHOLD INCOME Total 1,722 4.10% 10,201 5.73% 27,750 6.10% CY HHs, Inc < $15,000 1,890 4.50% 10,520 5.91% 28,271 6.21% CY HHs, Inc $15,000 - $24,999 1,800 4.29% 11,601 6.52% 31,808 6.99% CY HHs, Inc $25,000 - $34,999 4,202 10.01% 19,351 10.87% 48,915 10.75% CY HHs, Inc $35,000 - $49,999 7,020 16.72% 29,892 16.80% 77,617 17.05% CY HHs, Inc $50,000 - $74,999 5,972 14.22% 24,319 13.67% 63,799 14.02% CY HHs, Inc $75,000 - $99,999 5,037 12.00% 19,383 10.89% 50,359 11.06% CY HHs, Inc $100,000 - $124,999 3,972 9.46% 15,154 8.52% 37,595 8.26% CY HHs, Inc $125,000 - $149,999 4,683 11.15% 17,361 9.76% 41,219 9.06% CY HHs, Inc $150,000 - $199,999 1,978 4.71% 7,114 4.00% 17,038 3.74% CY HHs, Inc $200,000 - $249,999 2,599 6.19% 9,295 5.22% 21,625 4.75% CY HHs, Inc $250,000 - $499,999 1,113 2.65% 3,754 2.11% 9,155 2.01% CY HHs, Inc $500,000+ 2 0.25% 3 0.19% 5 0.17%

2016 EST. AVERAGE HOUSEHOLD INCOME Total $120,342 $108,727 $105,396

2016 EST. MEDIAN HOUSEHOLD INCOME Total $93,253 $82,615 $82,615

2016 MEDIAN HH INC. BY SINGLE RACE, CLASS, OR ETHNICITY White Alone $94,561 $87,038 $84,266 Black or African American Alone $68,460 $61,930 $60,029 American Indian and Alaska Native $59,659 $49,832 $49,334 Alone Asian Alone $116,971 $111,844 $102,339 Native Hawaiian and Other Pacific $75,248 $58,399 $75,856 Islander Alone Some Other Race Alone $56,945 $47,184 $49,704 Two or More Races $74,355 $67,850 $69,802 Hispanic or Latino $65,291 $54,351 $58,217 Not Hispanic or Latino $98,031 $91,065 $84,905

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 16 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the property at 888 S Frontenac Street, Aurora, IL. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospec- tive purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Peter Block from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the property at 888 S Frontenac Street, Aurora, IL or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

Supreme Courts Offering Memorandum | Aurora, IL COLLIERS INTERNATIONAL 17