SOUTHWEST CORNER 87TH STREET & DAN RYAN EXPRESSWAY (I-94) CHICAGO, ILLINOIS INVESTMENT HIGHLIGHTS SUBJECT OFFERING id-America Real Estate Corporation has been retained by the Mowner to sell the 100% fee simple interest in 87th Street Center. The shopping center caters to a dense, infill urban population in the Chatham neighborhood of Chicago, and provides a unique redevelopment opportunity for potential investors. Location: Southwest Corner of 87th Street & Dan Ryan Expressway (Interstate 94) Chicago, Illinois GLA: 132,427 SF Occupancy Rate: 34% upon Burlington’s impending vacancy Tenants: Burlington (vacating June 2020), Chipotle, Rainbow, GNC, Sprint, Wendy’s (Ground Lease) Shadow Anchor: Jewel-Osco Traffic Counts: Dan Ryan Expressway (Interstate 94) – 233,900 VPD 87th Street – 25,000 VPD Year Built: 1974 (inline shopping center) and 2017 (outlots) (Shadow Anchor / Not A Part of Subject Offering) KEY FEATURES INFILL DEMOGRAPHIC PROFILE – The area surrounding 87th Street Center features extremely dense residential demographics. Within a three-mile radius of the center there are 256,000 residents with average household incomes of $53,400. Additionally, the area boasts strong daytime demographics with 213,500 employees within the same three-mile radius. UNIQUE URBAN REDEVELOPMENT OPPORTUNITY – 87th Street Center offers the substantial opportunity to improve an existing shopping center located in a dense, infill urban neighborhood where there are significant barriers to entry and limited opportunities for new construction. Burlington recently advised ownership of its intention to exit the center upon expiration of its lease (June 28, 2020). This provides a purchaser the opportunity to capture national credit tenants looking to gain entry within this dense market, along with other potential nontraditional users in order to reposition the inline portion of the shopping center. NEW CONSTRUCTION OUTLOT BUILDINGS – The offering features two newly constructed outlots with long-term credit tenants. Wendy’s is operating under a long-term ground lease in a single-tenant outlot, and Chipotle, GNC, and Sprint occupy the 5,928-square-foot multi-tenant outlot. This provides an exceptional opportunity for a purchaser to spin-off these outlots, significantly enhancing a buyer’s yield throughout their hold. There is also a 0.68-acre pad fronting 87th Street and adjacent to Jewel-Osco available for future development. GROCERY SHADOW-ANCHOR – Shadow-anchored by Jewel-Osco, which provides significant daily drawing power to the property. Jewel-Osco, the leading grocer in the Chicago metropolitan area (30% market share), with over 190 stores throughout Illinois, owns their own store at 87th Street Center. IRREPLACEABLE LOCATION – The subject offering is located less than 10 miles from downtown Chicago in the neighborhood of Chatham adjacent to the highly trafficked Dan Ryan Expressway (Interstate 94) which sees nearly 234,000 vehicles passing by the center daily and across the street from a busy CTA “L” station (1.3 million annual riders), providing the center outstanding access to both pedestrian and vehicular traffic. DEMOGRAPHIC PROFILE WITHIN 3-MILE RADIUS: POPULATION AVERAGE HH INCOME HOUSING UNITS MEDIAN HOME VALUE DAYTIME POPULATION MEDIAN AGE 255,955 $53,412 96,890 $158,481 213,476 39.9 LEASING PLAN Outparcel Development Opportunity .68 acres (vacating June 2020) (NAP) 21 22 23 3 2 1 20 Sistar Beauty (NAP) 18 19 87th Street (25,000) VPD) Lafayette Avenue 11 10 Tenant Name Unit Square Feet Dan Ryan Expressway (233,900 VPD) Beauty One 1 12,618 Burlington (vacating June 2020) 2 75,623 Rainbow 3 13,770 Freeman Jewelers 20 2,112 Vacant (Payless ShoeSource) 21 5,570 Vacant 22 6,562 87th Street Red Line Station Home Furniture Outlet 23 6,944 1.3 million annual riders Chipotle 10 2,200 GNC 11 1,200 Sprint 19 2,528 Wendy's 18 3,300 Total 132,427 ST19 ¦¨§90 ST43 LOCATION & MARKET Lincoln Park • The subject offering is located within the Chatham neighborhood, one of ST64 the 77 community areas of the City of Chicago. Chatham is a south side neighborhood that straddles the highly trafficked Dan Ryan Expressway. ST50 As Chicago, and in particular the south side, has evolved and changed Oak Park throughout the past half century, Chatham has remained one of the ¦¨§290 safest and most family-friendly neighborhoods in the area. Cicero Berwyn • 87th Street Center is ideally positioned adjacent to the Dan Ryan Lake Michigan ¤£41 Expressway (Interstate 94) which provides significant visibility from 233,900 vehicles passing by each day. The Dan Ryan travels north-south £34 providing convenient access for commuters to the City of Chicago. The ¤ expressway continues north to downtown Milwaukee at which point it ¦¨§55 heads west to Madison, and south to Hammond, Indiana at which point ¦¨§90 it heads east to Detroit. • The subject offering also benefits from pedestrian traffic provided by the South Shore CTA “L” Red Line station at 87th Street, which reported more than 1.3 Burbank million annual riders. Evergreen Chatham Beverly • Chatham’s surrounding retail trade area features prominent retailers Oak Lawn Park ¤£12 Washington Heights including Home Depot, Walmart, Lowe’s, Marshalls, Food 4 Less, dd’s DISCOUNTS, ALDI, and Walgreens. The trade area’s anchors and dominant category retailers provide a strong draw of customers from the Morgan Park surrounding communities. ¦¨§90 Alsip ¦¨§294 ¦¨§94 DEMOGRAPHICS Blue Island ST43 Distance from Subject: 1 mile 3 miles 5 miles Dolton 2018 Population 22,746 255,955 647,345 East Chicago ST50 2018 Households 8,924 96,890 238,256 Calumet City Oak Forest Harvey 2018 Median Home Value $164,429 $158,481 $167,419 Hammond 2018 Daytime Demographics 18,897 213,476 559,418 Tinley Park South Holland ST83 ST1 2018 Average Household Income $59,108 $53,412 $56,772 £6 ¦¨§57 ¤ 2018 Median Age 43.1 39.9 36.7 ST394 ¦¨§80 PROPERTY DESCRIPTION • Originally constructed in 1974 and recently improved by the addition of two new outlots in 2017, 87th Street Center features 132,427 square feet of retail space and is located on 10.72 acres of land. The property features the inline shopping center currently anchored by Burlington (vacating 2020), a multi-tenant outlot, a single-tenant outlot, and an undeveloped outlot. 87th Street Center is also shadow-anchored by Jewel-Osco, which owns its own store. Jewel-Osco is not a part of the subject offering, however the owner of 87th Street Center has a purchase option at market if Jewel ceases to operate the store. • The subject offering benefits from unparalleled vehicular traffic with combined traffic counts of nearly 260,000 VPD at the corner of the Dan Ryan Expressway (I-94) and 87th Street. The site provides four points of access: two along 87th Street and two along Lafayette Avenue (frontage road to I-94). • 87th Street Center benefits from ample parking given a healthy parking ratio of 4.4 spaces per 1,000 square feet. TENANCY • At 34% occupied upon Burlington’s impending vacancy, 87th Street Center offers a purchaser a unique redevelopment opportunity to reposition this asset, while benefiting from the in-place income stream provided by Burlington through June 2020. Upon expiration of the lease, a purchaser will gain full control over the subject site, thus providing a solid leasing opportunity to capture unrepresented national credit tenants along with other potential non-retail users looking to gain entry into this dense, infill urban market. • The in-place tenancy at the subject offering is characterized as primarily service and restaurant-oriented, making the center virtually “internet proof”. o Chipotle Mexican Grill (NYSE: CMG) is an American chain of fast casual restaurants, specializing in tacos and burritos assembled right in front of the customer. Considered one of the fastest growing fast casual restaurants in the country, Chipotle has approximately 2,250 locations. This is a corporate lease. o Wendy’s (NASDAQ: WEN) is an American international quick-service hamburger restaurant chain. As the third largest burger chain in the U.S. based on revenue, Wendy’s and its franchisees employ hundreds of thousands of people across more than 6,700 restaurants worldwide. This is a corporate location. o GNC Holdings, Inc. (NYSE: GNC) is a leading global specialty retailer of nutritional products, including vitamin, mineral, herbal, and other specialty supplements and sports nutrition, diet, and energy products. GNC has more than 9,000 locations, of which more than 7,000 retail locations are in the United States and franchise operations are in more than 50 countries. This is a corporate lease. o Sprint Corporation (NYSE: S) is a communications company that provides a comprehensive range of wireless and wireline communications products and services under the Sprint, Boost Mobile, Virgin Mobile, and Assurance Wireless brands to more than 55 million customers throughout the U.S. This is a corporate lease. SITE AERIAL FINANCIAL 87th Street Center offers a purchaser the unique prospect to acquire a prime redevelopment opportunity located within the dense, infill City of Chicago neighborhood of Chatham. Given the impending vacancy of Burlington, we expect buyers to value the property on a repositioning and/or redevelopment basis. The property is being offered “free and clear” of any existing debt, and can be sold in combination or as separate components. In-Place Net Operating Income: $1,203,356 In-Place Net Operating Income Excluding Burlington: $318,715 Stabilized Year 3 Net Operating Income: $2,016,353 The Wrigley Building Ben Wineman Emily Dutson 410 North Michigan Avenue, Suite 1100 Principal Investment Associate Chicago, Illinois 60611 Direct: 630.954.7336 Direct: 630.261.6962 Direct: 630.954.7300 [email protected] [email protected] This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information.