TOUHY Office Plaza

Holliday Fenoglio Fowler, L.P. (“HFF”) is an licensed real estate broker EXECUTIVE SUMMARY TOUHY Office Plaza

Holliday Fenoglio Fowler, L.P. (“HFF”) is pleased to present Touhy Office Plaza (the “Property”) KEY PROPERTY STATISITICS located at 5550 West in Skokie, IL, an opportunity to acquire a well maintained, Location 5550 West Touhy Avenue boutique office asset with a secure cash flow stream and significant tenant retention. Touhy Office City Skokie, IL Plaza is situated in a dense, amenity rich in-fill location and offers superb access to the Submarket North transit grid. Total Rentable Area 50,156 RSF Stories 4 Stories and Lower Level Touhy Office Plaza is a 4-story, 89.6% leased office building located on the heavily trafficked West Percent Leased 89.6% Touhy Avenue, sitting at the epicenter of a thriving retail corridor. The Property is in close proximity Weighted Average Lease Term 4.8 Years to multiple retail and entertainment centers, such as Village Crossing and Pointe Plaza, anchored Date Completed/Renovated 1986 by brands names such as Dick's Sporting Goods, Fresh Farms and AMC Theatres. Village Crossing, Average Floor Plates 12,500 RSF developed in 2002, and Pointe Plaza, developed in 1999, are 92% occupied retail centers that total Site Area 2.21 Acres over 640,000 square feet of retail space. Both of these popular retail centers were developed as part Finished Ceiling Height 8'5'' of the on-going conversion the west end of Skokie has experienced from light industrial to commercial Parking 180 Parking Spaces; 3.6 / 1,000 SF Ratio and retail use. The recent development of three retail structures adjacent to Touhy Office Plaza, home to Panera Bread, Goodwill and MOD Pizza, further speaks to this ongoing transformation. Being at UNIQUE OPPORTUNITY the epicenter of one of Skokie's main retail corridors allows the Property to establish a recognizable presence among tenants, visitors and residents.

Additionally, Touhy Office Plaza is just minutes west of Interstate-94, the main expressway from Strategic North Reliable Cash Flow Stream the City of Chicago to the Northern Chicago suburbs. The Northern Chicago suburbs or more Shore Location commonly referred to as the , includes Chicago's most affluent communities. The North Shore is home to executives and entrepreneurs, which drives the strength of the office demand in this submarket and more specifically, tenant demand at Touhy Office Plaza. The Property is situated just 7 minutes from the Oakton CTA Yellow Line stop, which provides convenient access to some of Notable Tenant Retention Long Term Residual Value Chicago's most sought after residential neighborhoods and to Chicago's Central Business District, the Loop. The 290, 410 and 411 bus stops are also located directly in front of the Property on Touhy Avenue. This public transit connectivity coupled with the convenient access to Interstate-94 positions Skokie, the first suburb outside the Chicago city limits, as a highly accessible office Strong Retail Corridor Minutes from market. The exceptional combination of a strategic location and built in tenant demand positions Executive Housing the Property as a stable office investment with significant long term residual value.

 2 TOUHY Office Plaza

SIGNIFICANT TENANT RETENTION Touhy Office Plaza includes 13 tenants from diverse industries, many of TENANT SIZE (RSF) TENANT SINCE EXPIRATION LEASE TERM which have called the Property home for over 10 years. Over the past 24 30 YEAR CLUB months, 50% of the tenancy at Touhy Office Plaza has either renewed or First Financial Credit Union 2,845 February-92 July-23 31.9 Yrs executed new leases, including significant tenants such as First Financial JPMorgan Chase Bank 4,535 November-96 November-26 30.4 Yrs Credit Union and Manny Gutterman & Associates. Nearly 35,000 RSF or 70% of the current tenancy has on average been leasing office space 20 YEAR CLUB Dunn Solutions Group 7,082 January-98 January-19 21.3 Yrs at the Property for an impressive 22 years, as indicated by the table Manny Gutterman & Associates 7,238 April-00 July-22 22.6 Yrs to the right. Of these notable tenants, First Financial Credit Union and

JPMorgan Chase Bank have lease terms for over 30 years. 15 YEAR CLUB Kipnis, Rosen & Bloom 5,067 August-02 July-21 19.2 Yrs Touhy Office Plaza boasts a 4.8 year weighted average lease term from Wayne Messmer & Associates 4,085 November-04 January-20 15.4 Yrs an extremely loyal tenant base allowing investor's to benefit from a stable Les Turner ALS Foundation 3,704 December-06 March-23 16.5 Yrs Total / Average 34,556 22.1 Yrs cash flow stream. Furthermore, a balanced rollover profile mitigates any near term concerns regarding income uncertainty and the need to RENEWING TENANTS invest in significant releasing costs. The in-place income stream from TENANT SIZE (RSF) RENEWAL DATE EXTENSION a diversified tenant roster establishes the Property as a secure office investment in a thriving market. 5 Year Extension from January Wayne Messer & Associates 4,085 Jan-15 2015 to January 2020

7 Year Extension from July First Financial Credit Union 2,845 Mar-16 2016 to July 2023

4.25 Year Extension from Manny Gutterman & Associates 7,238 Apr-16 March 2017 to July 2022

6 Year Extension from April Les Turner ALS Foundation 3,704 Oct-16 2017 to March 2023

3  TOUHY Office Plaza

UNRIVALED AMENITY BASE Touhy Office Plaza offers an in-fill location that provides tenants with unsurpassed amenities – convenient access to major highways, shopping hubs, entertainment and dining options in close proximity, and most importantly, accessibility to decision makers. The Property is an ideal corporate setting for all users due to its tremendous access to the surrounding amenities and affluent North Shore communities. The immediate area is flush with retail centers including Village Crossing and Pointe Plaza, which include brand name retail and dining options such as Bed, Bath & Beyond, Fresh Farms, Barnes & Noble, Outback Steakhouse and Noodles & Company, along with the AMC Village Showplace movie theater. As aforementioned, Touhy Avenue has experienced a tremendous transformation over the last 15 years from an industrial corridor to a robust commercial and retail corridor. The East-West Touhy Avenue corridor is home to over 450 business and generates over $325 million in retail sales annually. This transformation is further evidenced by the recent redevelopment of 5500-5520 West Touhy Avenue from a flex office and industrial park to a retail center, which now includes tenants such as a drive-thru Panera Bread Cafe and MOD Pizza. The Skokie Village Board has been supportive of this conversion and has granted developers the necessary zoning changes required. Being at the epicenter of this strong retail corridor allows the Property extreme visibility for visitors to these retail centers and creates a local presence amongst Skokie residents, while offering tenants with a superb retail amenity package. Touhy Office Plaza also benefits from natural synergies such as increased demand for office space from service providing firms and demand from new firms to the market seeking a vibrant, suburban location. Touhy Avenue 10 minutes north to Westfield Old Orchard Shopping Center I-94 on/o ramp 4-way 10 minutes east to Interchange 94

94 Niles Center Road

Skokie Police Department Saul Sibler Memorial Library Carpenter Road OUHY Touhy Avenue T Bike Office Plaza Route Village Crossing Central Avenue Developed: 2002 Size: 448,980 SF Occupancy: 90% 20 minutes Pointe Plaza Ownership: DDR Developed: 1999 south to Size: 193,011 SF Occupancy: 97% Downtown Chicago Ownership: Stockbridge Touhy Avenue

 4 Skokie Hwy LAKE FOREST

Deerpath Rd Sheridan Rd

Kennedy Rd

Westleigh Rd

Everett Rd S Waukegan Rd

Ridge Rd Skokie Valley Rd

Telegraph Rd

Half Day Rd TOUHY METRA NORTH HIGHLAND PARK Office Plaza 94

Green Bay Rd Not only does the Property offer immediate access to a rich amenityDEERFIELD base, but is also conveniently located within a few miles of many popular retail outlets found in the Northern suburbs, such as the Westfield Old Orchard Mall, the Downtown Evanston retailDeerfield corridor, Rd the41 Lincolnwood Town Center and the Golf Mill Shopping Center. The Westfield Old Orchard Mall, which is under 5 miles north of the Property, is one of the Midwest’s most celebrated shopping malls with over 140 stores, such as Bloomingdales, Lord and Taylor, Macy’s and .

Lake Cook Rd LAKE COUNTY COOK COUNTY NORTH SUBURBAN RETAIL OUTLETS

Sheridan Rd

Dundee Rd

Sanders Rd Skokie Blvd

NORTHBROOK Glencoe Rd EAST-WEST TOUHY GolfWalters Mill Ave Shopping Center Westfield Old Orchard WINNETKA Sunset Ridge Rd AVENUE ECONOMIC Pfingsten Rd Waukegan Rd Shermer Rd CORRIDOR Tower Rd 94 Hibbard Rd

Willow Rd METRA UNION PACIFIC NORTH Downtown Evanston # BUSINESSES: Willow Rd 294

Winnetka Rd 457 (RETAIL/RESTAURANT: 118) Lehign Ave

Lake Ave WILMETTE E Lake Ave Hunter Rd

# WORKERS: Harms Rd Green Bay Rd GLENVIEW

Central Rd Waukegan Rd 7,849 Central St Old Orchard Rd

SIMPLE FRESH AMERICAN DINING METRA NORTH CENTRAL SERVICE EVANSTON Golf Rd Golf Rd CTA PURPLE LINE Harlem Ave McCormick Blvd ANNUAL RETAIL POTENTIAL Miss Elley's Deli Blvd Skokie Emerson St

Rand Rd 294 (DEMAND): Greenwood Ave SKOKIE Lincolnwood Town Center N Shermer Rd W Dempster St Dempster St Ridge Ave Crawford Ave

Milwaukee Ave

$56.42 MILLION Oakton-Skokie METRA UNION PACIFIC NORTHWEST CTA Stop Oakton St Oakton St CTA YELLOOW LINE Northwest Hwy

Asbury Ave CTA RED LINE Mannheim Rd ANNUAL RETAIL SALES NILES 94

(SUPPLY): W Touhy Ave W Touhy Ave To Downtown Chicago $326.46 MILLION TOUHY OfficeW Plaza Devon Ave

Source: Village of Skokie, 2015

5  TOUHY Office Plaza

UPSIDE POTENTIAL THROUGH RETAIL REDEVELOPMENT Touhy Office Plaza presents a unique opportunity for a potential retail redevelopment on the existing site, which is 96,481 square feet. An investor can consider developing various single-story retail structures for uses such as food service, banking or consumer goods retail. Based on the site's zoning as a B-3 Business district and parking requirements of 3.33 per 1,000 square feet for standard retail uses, an investor can construct approximately 37,000 rentable square feet of retail, as laid out in the table below. This retail redevelopment aligns with the recent transformation of Touhy Avenue as a robust economic corridor and compliments the existing commercial activity in the surrounding area. The Village of Skokie is committed to the ongoing economic prosperity of Skokie, which has been demonstrated through various amendments to the zoning code and financial incentives offered by the Village. DOWNTOWN SKOKIE

POTENTIAL NEW RETAIL SITE

Current Site 96,481 SF

Current Zoning B-3

Proposed Retail Parking Ratio 3.33 per 1,000 SF

Maximum Retail Size per 3.33 Ratio 37,370 SF

Note: Parking based on the following dimensions: 9 feet width, 18 feet depth, 24 feet aisle length = 270 SF per stall. Analysis assumes an additional 275 SF per stall to allow for any additional requirements, and site improvements. POINTE PLAZA - SKOKIE

 6 Fox

River 83 32 Elizabeth SH A CO . KENOSH A CO . WA LW ORTH CO. WALWORTH CO. Lake KENO KENOSH A CO . MC HE NR Y CO . L A KE CO . 47 Fox Redwing Slough Lake State Natural Area Winthrop 173 Antioch Harbor 14 131 Keystone Road LA

Hebron 12 Solon Road 137

KE Illinois Beach 173 . 173 Chain O’Lakes State Park CO

O . Richmond State Park T r

C Delany Road O i-Stat Greenwood Road Spring Grove Lewis Avenue Kemman Road

C 45

Y Winn Road

. 59

R

E Hunt Club Road e

N N T

E ollway O Zion

H

O

C 31

B

M Grass Lake Old Mill Wadsworth Fox Creek Lake Wadsworth Road Illinois Beach Harvard Waukegan State Park Milburn Road 41 Regional Airport Beach Park 132 Fox Lake Lindenhurst 173 Lake 94 Galt Villa 83 Airport Barnar d Mill Dacy Road Fox Airport Greenwood Rollins Road Ringwood Pistakee Lake Round Gurnne Mills Wonder Lake Lake Mall Lake Johnsburg Heights Round Wonder Lake Beach Third Waukegan 23 Lake Lake McCullom 132 21 Lake 134 Gurnee Volo Bog State • 120 Sullivan Lake RoadNatural Area McHenry Fox River Park City Molidor Road Round Lake 120 137 120 Grayslake 12 Lakemoor 59 Hainesville 120 Waukegan North Volo 43 Miller Road Campbell 137 Chicago Bull Valley Road Moraine Hills Airport State Park 60 Great Lakes Bull Valley Naval Training Woodstock Country Round Center 137 Club Ro Lake Chardon Road ad Park Holiday Goss Winchester Ro Green Hills ell Road ad 131 83 Oaks Prairie 45 Grove 176 47 Island Lake Lake Wauconda Libertyville 14 Mundelein Bluff OUHY176 60 176 31 Marengo Oakwood Port T 20 176 Hills Barrington Office Plaza Hawthorn Mettawa Center Lake Forest Tower Mall 60 Crystal Lakes Vernon ESTABLISHED CORPORATE LOCATION Hills 21 Union Lake Indian Tri-State Tollway Lakewood Many of the tenants at Touhy Office Plaza have strategicallyCreek chosen the Property . Hawthorn i EXECUTIVE DECISION MAKERS CREATE TENANT DEMAND 59 North Woods Cary to best serve Barringtotheir businessn needs and this is supported by the significant tenant 414 45 HighwoodHig od Lake in the Fox Lake 12 Long Hills Airport Barringtoretentionn the Property has experienced. The Property offers immediate access to Half Day Road River Grove 22 Highland Park Lake in the Hills Trout Grove $153,040 Fen State Valley Lincolnshire BannockburnDeerfieldn affluent communities such as Evanston, Glenview, Winnetka and Wilmette, which areMilwaukee Avenu Natural Area Lake Avg. Household Income 22 Zurich 83 $196,159 90 Lake in the Hills home to a highly educated white collar labor force, often the decision makers of major Avg. Household Income Northwest

.

O

.

. C Skokie Hwy.Hw Highland

O corporations. The average household income of the surrounding communities ranges Fox River H Kildeer

C

Y ighway e

R Barrington Hills 53 Riverwoods Park

E

CO Buffalo

N

N

E Algonquin between $145,000 to $250,000 and there are 698,763 residents within a five mile radius Deerfield O Grove

H

KE

O 23 34

C

B

LA M 62 MC HENR Y CO . of the Property. The abundanceDeer of Park executiveDeer Park housing options and access to the transit Lake - Cook RoadNorthbrook LAL AKEKE DE K A LB CO . Town Center $166,090 NorthbrooNoNNoroor k COOK CO. Huntley grid thatBarrington leads to downtown LINDEN Avg. Household Income 94 47 NP EUI L RP EL Dundee Road 68 BarringtonChicago Hills results in demand from 68 Randall Road Randall Glencoe . Winnetka/Northfield . DEMPSTER

. Wheeling executive decision makers and SKOKIE 294 $250,850 25 Edens Expressway

CO Inverness 14 Northbrook MI Avg. Household Income NORTH CENTRAL SER Palatine L Crab Tree W Northwest OK establishes the submarket as an OAKTON 83 Carpentersville Forest Preserve Pal-Waukee AUKEE DISTRIC

KANE CO SKOKIE Airport Glenview

CO To KANE CO llwa 68 ideal corporate location. YELLOW LINE $148,444Willow Road Winnetka y Spring Hill Prospect Avg. Household Income Wilmette 59 62 Mall East Heights 45 43 Northfield $197,532 Hampshire T NORTH LINE Dundee VIC Avg. Household Income Genoa Spring Lake Kenilworth Arlington Heights E 72 Sleepy Hollow West Forest Preserve The Property is also ideally 72 RED LINE 72 Gilberts Dundee South Rolling River Road Glenview 90 Higgins Road Barrington Mount UNIONWilmet PACIFIC NORTH teLINE Pingree situated as the first suburb Algonguin Road Meadows Arlington Heights Road Prospect Lake Avenue Grove Hoffman 53 12 20 Estates located outside of the Chicago Rand Road Skokie Evanston KIMBALL BROWN LINE limits, providing for convenient $147Old Orchar,250d $110,900 GolfGolf RRoadoadd GolfG Avg. HouseholdMall Income Avg. Household Income 58 connectivity to the City. The 41 Hoffman Estates . Blvd Skokie Burlington Golf Road Woodfield Moorrtton GrovGrG ove 58 Mall OUHY Evanston Property is in close proximity 90 DempsterpssterT StreetSt t 58 62 Office 14Plaza Higgins Road Skokie to the the Oakton-Skokie . 19 21 Elgin 20 72 Lincolnwood UNIONNIN PA StreamwoodYellow Line CTA stop, which 290 Busse Lake IONO $129,500 20 Schaumburg Des Plaines PAC NilesNileN es Northwest Toll CCIFICIFI I NOR Avg. Household Income Irving Park Road C N provides public transportation wa ORT S y TTHWESTH LIN Lincolnwood access to the popular urban Park Ridge 83 94 Elk Grove Village E Hanover ’ residential neighborhoods such Elgin O’Hare Expy Chicago O’Hare 14 South Park DU International Peterson Avenue 14

COO COOK CO . Airport 72 Elgin Schaumburg C as Lakeview and Lincoln Park, PAG CO . Regional Airport PAG E K CO Sycamore DU

E CO. Tri-County along with access to the Loop,Roselle 53 Itasca Wood Dale 190 Rosemont 171 90 41

James “Pate” Phillip LOOP . State Park 294 Fox River 25 Bartlett Chicago's Central Business Harwood 20 Bensenville Kennedy Exp. 31 Norridge 19 Heights 64 District. . Irving Park Road

O 19 Army Trail Rd. Stratford

Cumberland Avenue C Schiller Wayne Square Virgil E Park Lily Lake N Mall Bloomingdale A 290 50 K 94 . . 355  Rd ith

m Manchester Road Lake Shore 7 S 90 DeKalb Campton Franklin Hills St. Charles Carol Glendale Addison Park River Cortland Charlestowne (est. 2007) Stream Heights Grove Driv

Mall 64 Elmwood

47 Park MILWAUKEE DISTRIC e T WEST 64 Du Page Northlake

Airport North South Tollway North Avenue 64 Stone Melrose Maple Park 20 Park Park River Forest 38 Elmhurst v UNION PACIFIC WEST LINE Berkeley Oak Park West Chicago Villa Park r Lombard Hillside Chicago Elburn Geneva Winfield Bellwood Forest Park Eisenhower E Maywood xpressway 290 38 59 56 . 290 Rona Glen 83 88 ld Re Ellyn agan Memorial 38 Broadview Tollway Batavia Oakbrook 45 171 Wheaton Terrace Oak Brook 12 Des Plaines Ave. 53 Mall North Berwyn Cicero Fermi National 20 Riverside Accelerator Yorktown Westchester 34 Laboratory Weisbrook Road La Grange Center 88 Kingery HighwOak Brook Mall Park Lake Shore Driv Butterfield Road Wolf Road Prairie Brookfield Riverside Kaneville 56 State Natural Area 55 (est. 2007) Warrenville

a 34 Randall Road y Morton Arboretum 43 Stickney e Western nson Exp. Lyons Steve Dan Ryan 56 Warrenville Road Springs La Grange Forest

34 LaGrange Road 41 North Tollway Clarendon View Ronald Reagan Memorial

Aurora Lisle Hills E Downers Grove McCook xpressw 88 Hinsdale BURLINGTON NORTHERN SANTA FE 294 Chicago

a Ogden Road Summit Midway y Countryside Cicero Avenue Westmont Airport Maple Ave. 56 Aurora Indian Hodgkins Hinckley Aurora IDOR Municipal Willowbrook Head Big Rock Airport Park Bedford Park 30 355 Ford City Sugar Grove Fox ValleValleyy North South Mall Mall JusticHERITAGE CORRe

. 75th Street Burr Ridge 90 Aurora Woodridge D Burbank 94

U U COOK C T Darien ollway Bridgeview

Springbrook Prairie P 171 Montgomery Naperville A Willow Forest Preserve G KANE CO Springs Hometown

E E O. 83 Hickory DU PAG E CO. K ANE CO . CO . Hills 12 20 KENDALL CO KENDALL O. 30 WILL C . . 12 20 Evergreen Park 7 Argonne ue 31 National Oak Lawn

.

. 34 Laboratory Archer Aven

CO

CO Briarcliff Rd. Palos Hills Chicago 1

Bolingbrook

Halsted Street 47 25 . Clow Ridge International Airport DU PAGE CO . Worth Lake

DEKALB

KENDALL Calumet 171 Merrionette 45 Park 41 Oswego Alsip 50 94 12 DuPage River 55 Palos Palos Wolf Plano 71 30 Park Heights 83 Blue Island Calumet Yorkville Lemont Park Lake 20

CO SOUTHSHORE LIN

Des Plaines River OK CO 34 Harlem Avenue Sandwich 53

Inde

. Robbins Somonauk Crestwood 57 Riverdale E SOUTHWEST SERVICE pendence Blvd. WILL CO. Burnham Fox River Plainfield Romeoville Posen Dolton Midlothian Dixmoor 90 LA SALLE CO. 83 Silver Springs T State Fish & LaGrange Road Wildlife Area 126 Homer Glen 355 Phoenix 126 Orland Park Oak Forest 294 Calumet Lewis Harvey 83 City Millbrook University C Airport 6 ROCK ISLAND DISTRIC 7 CTRI Orland Markham E South Hills Holland 6 Lockport METRA EL Stateville 294 80 Correctional Hazel Crest 94 80 6 Center 7 Tinley Park Oak Forest Ave. East 59 Hazel Thornton Bishop Lansing 30 Country Crest INDI

IN Millington Club Ford Crest Hill Hills Homewood Joliet 171 80 394 1 71 6 Lansing Flossmoor Glenwood Municipal D Airport 83 Lynwood Newark 7 Joliet Mokena 43 Plattville 30 New Lenox I Sheridan (est. 2006) AN 52 Olympia A Joliet Regional P Shorewood Airport Fields Chicago Ford Frankfort Matteson Heights

Lincoln Highway Heights N 30 Rockdale Lincoln 30 Mall Sauk A 6 Village A 47 WILL CO . Richton Park Park Forest 52 Lisbon Rd 52 South

LA SALLE CO. . Chicago CO LAKE

80 Channahan 45 Heights . Steger COOK CO .

53 Joliet COOK CO.

. WILL CO. WILL CO KE NDAL L CO . . KE NDAL L CO . GRUNDY CO . G RUNDY CO . Minooka Crete DuPage River University Park Manhattan

Channahon Joliet Army Channahon Training Area State Park 394 6 Monee Elwood

55

Des Plaines State Conservation Area Sanger Airport

Midewin National Tallgrass Prairie Goose Lake Prairie State Natural Area 50 Dresden Cooling Lake 52 Beecher 57

Symerton Peotone

1 Wilmington Marseilles 47 WILL CO. 129 K ANK AKE E CO. Seneca Coal City 113 Diamond Braidwood

102

Godley Kankakee Rive 113 53 r 129

45 Braidwood Lake GRUNDY CO WILL CO . K ANK AKEE CO . Kankakee River State Park

57

.

55

Ransom TOUHY Office Plaza FORTUNE 500 HEADQUARTERS IN CHICAGO MSA CHICAGO’S PREMIER OFFICE SUBMARKET CHICAGO FORTUNE 500 2015 REVENUES RANKING COMPANY RANKING INDUSTRY (IN MILLIONS) LOCATION Many of the Chicago area’s largest employers are concentrated in the North Suburban ■ 1 Walgreens Boots Alliance 19 Food and Drug Stores $103,444 Deerfield,IL submarket, several of which are Fortune 500 or Fortune 1000 corporations. The North 2 Boeing 24 Aerospace & Defense $96,114 Chicago, IL Suburban submarket is the preferred headquarters location for companies in the 3 Archer Daniels Midland 41 Food Production $67,702 Chicago, IL 4 United Continental 80 Airlines $37,864 Chicago, IL biotech, pharmaceutical, advanced manufacturing, financial services and professional ■ 5 Allstate 81 Insurance $35,653 Northbrook, IL service industries. The area’s proximity to decision markets in the North Shore, easy ■ 6 Mondelez International 94 Food Consumer Products $29,636 Deerfield, IL access to Chicago’s vast labor pool, along with Lake County’s lower real estate taxes 7 Exelon 95 Utilities: Gas and Electric $29,447 Chicago, IL all create the perfect environment for a corporate headquarters location. Touhy Office 8 McDonald's* 109 Food Services $25,413 Oak Brook, IL Hoffman 9 Sears 111 General Merchandisers $25,146 Plaza strategically sits at the border of the North Shore, providing immediate access Estates,IL 10 US Foods Holding 122 Wholesalers: Food & Grocery $23,128 Rosemont, IL to the northern boundaries of the City of Chicago. The Property's proximate location North Chicago, ■ 11 AbbVie 123 Pharmaceuticals $22,859 IL to both the North Shore communities and to downtown Chicago allow it to attract and ■ 12 Abbott Laboratories 138 Medical Products & Equip. $20,661 Abbott Park, IL retain top flight tenancy. ■ 13 Illinois Tool Works 211 Industry Machinery $13,405 Glenview, IL ■ 14 CDW 220 Information Tech. Services $12,989 Lincolnshire, IL 15 R.R. Donnelley & Sons 255 Publishing, Printing $11,257 Chicago, IL Of the 33 Fortune 500 companies headquartered in the Chicago area, 23 are 16 Navistar International 281 Motor Vehicles and Parts $10,140 Lisle,IL located in the suburbs and 15 are located in the North Suburban submarket. Notable ■ 17 Discover Financial Services 283 Commercial Banking $10,002 Riverwoods, IL corporations include, Abbott Laboratories, Abbvie, Allstate, Baxter, Caremark, CDW, ■ 18 W.W. Grainger 285 Diversified Wholesalers $9,973 Lake Forest, IL ■ 19 Baxter International 286 Medical Products & Equip. $9,968 Deerfield, IL Discover Card, Illinois Tool Works, Mondelez, Walgreens and W.W. Grainger. Tenants Downers Grove, 20 Univar 315 Miscellaneous $8,982 enjoy the excellent white collar labor force, high image office parks and highly IL ■ 21 Tenneco 334 Motor Vehicles and Parts $8,209 Lake Forest, IL educated employment base. Going forward, the lack of desirable land sites should 22 LKQ 369 Diversified Wholesalers $7,193 Chicago, IL reduce vacancy rates and foster significant rent growth in the submarket. Downers Grove, 23 Dover 377 Industrial Machinery $7,029 IL ■ 24 Anixter International 391 Diversified Wholesalers $6,596 Glenview, IL ■ 25 Baxalta 420 Pharmaceuticals $6,149 Bannockburn, IL 26 Jones Lang LaSalle 436 Real Estate $5,966 Chicago, IL 27 Old Republic International 442 Insurance $5,766 Chicago, IL ■ 28 Packaging Corp of America 446 Packaging, Containers $5,742 Lake Forest, IL 29 Motorola Solutions 451 Network & Commun. Equip. $5,695 Chicago, IL 30 Ingredion 456 Food Production $5,621 Westchester, IL 31 Arthur J Gallagher 471 Diversified Financials $5,392 Itasca, IL Wholesalers: Elect. & Off. ■ 32 Essendant 477 $5,363 Deerfield, IL Equip 33 Telephone & Data Systems 496 Telecommunications $5,176 Chicago, IL

Source: Fortune (2016) ■ Suburban-based Headquarters North Suburban-based Headquarters LOBBY *McDonald's will be moving to downtown Chicago in 2018  8 TOUHY Office Plaza

SUBURBAN CHICAGO INVESTMENT RESURGENCE Recent media reports have portrayed a central business district in Chicago that significantly out-paces suburban markets in both real estate fundamentals HISTORIC SUBURBAN V. CBD CUMULATIVE ABSORPTION 6.00% and investment potential. Contrary to such reports, suburban fundamentals 7,000,000 6,000,000 5.00% continue to improve and often outperform the CBD in key indicators including, 5,000,000 4.00% cumulative absorption, which has outpaced cumulative CBD absorption by 1.2 4,000,000 3.00% 3,000,000 million RSF since 2014. The continued strength of economic growth in the 2.00% 2,000,000 Chicago suburban markets provides well informed investors the opportunity to 1,000,000 1.00% - 0.00% enter a rising market at a highly competitive basis. 2010 2011 2012 2013 2014 2015 2016 Cumulative CBD Absorption (RSF) Absorption as % of Suburban Inventory Suburban Resurgence: 2.4 million RSF of net Suburban investment growth has far outpaced growth in the Chicago CBD. In the Cumulative Suburban Absorption (RSF) absorption in the suburbs since 2014, versus Absorption as % of CBD Inventory 1.6 million RSF of net aborption in the CBD last two years, over 70% of investments and jobs created have been attributed to Source: NAI 2106 Q4 the suburbs as opposed to the Chicago CBD. Much of this is due to fundamental characteristics of the suburbs including interstate access, proximity to acclaimed residential neighborhoods, a deep labor pool and lower real estate costs. In addition, suburban office space, specifically the North Suburban submarket, has traditionally been and continues to serve as the target for headquarter locations, co-locations and back office space due to more affordable rents for users. As laid out in the graphics below, companies are investing over $2.2 billion in the Chicago suburbs, which foreshadows the continued success this market is poised to experience.

# of Investments $ of Investments (million) # of Total Jobs Created

99 D $707 D 3,962 D B B B

C C C

S S S

B B B

R R R U U U B B B S U 244 S U $2,220 S U 9,487

Source: Conway New Plant & Expansion 2016 Report 9  TOUHY Office Plaza

UPSIDE POTENTIAL WITH COMPETITIVE BASIS AT SUBSTANTIAL DISCOUNT TO REPLACEMENT COST At 89.6% leased, Touhy Office Plaza offers upside potential through the lease up of the existing vacant spaces on the 1st, 2nd and 4th floors. Ownership has recently invested in renovating the 3rd and 4th floor corridors and restrooms, along with creating a new tenant lounge and conference center. These upgrades will support both new lease-up activity and tenant retention. In addition, the Property offers the opportunity to acquire a well maintained office building at a significant discount to replacement cost. Reproduction of an asset with quality infrastructure and efficient floorplates would cost in excess of $360 per RSF, which would require gross rental rates in excess of $48 per RSF, a 100% premium over Touhy Office Plaza’s current market rent. Market conditions simply do not warrant further speculative development on a comparable level of quality, which ensures investors a permanent, competitive basis for years to come. These soaring costs for replacement create an arbitrage opportunity between the escalated replacement costs and the Property’s projected residual LOWER LEVEL COMMON AREA value – even after accounting for any potential capital invested to further transform the asset.

REPLACEMENT COST/SF GROSS RENTAL RATE COMPARISON Land $35 Core & Shell $160 $50.00 $48.00

Tenant Improvements $75 100% premium for new construction Parking $50 $40.00 Total Hard Costs $320 s t Lease Commissions $26 n $30.00 R e

Financing Costs $10 s $24.00 s

Other Soft Costs $5 r o G $20.00 Total Soft Costs $41 Total Development Cost ($/GSF) $361 Yield on Cost 9.00% $10.00 Net Rents $33 Tax & Opex $15 $- New Construction Touhy Oce Plaza Gross Rents $48

 10 TOUHY Office Plaza

11  Contact Information Investment Contacts

HFF Chicago Bryan D. Rosenberg Patrick M. Shields Mark B. Katz 181 West Madison | Suite 3900 Associate Director Associate Director Senior Managing Director

Chicago, IL 60602 312.300.7282 312.528.3685 312.980.3604

Telephone: 312.528.3650 [email protected] [email protected] [email protected]

Fax: 312.528.3651

Jeffrey M. Bramson Jaime M. Fink Navi K. Sandhu Senior Managing Director/ Senior Managing Director Analyst

Managing Broker 312.528.3683 312.980.3617

312.528.3687 [email protected] [email protected]

[email protected]

Debt Contact

Jason A. Bond Director

312.980.3608

[email protected]

©2017 Holliday Fenoglio Fowler, L.P. (“HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information, please visit hfflp.com or follow HFF on Twitter @HFF

HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.