333 E. Touhy Avenue Des Plaines // Illinois

211,740 SF ON 12.68 ACRES O’HARE SUBMARKET

OFFERING MEMORANDUM 333 E. TOUHY AVENUE DES PLAINES // ILLINOIS

PREPARED BY: Jonathan Kohn David Bercu, SIOR PRINCIPAL PRINCIPAL +1 847 698 8279 +1 847 698 8207 [email protected] [email protected] Table of Contents

> EXECUTIVE SUMMARY Tenant Overview...... 3 Capital Markets Overview...... 4 Investment Highlights...... 6 Terms of Sale...... 7 > PROPERTY ASSESSMENT Building Specs...... 8 Site Plan...... 9 Property Survey...... 10 Location Overview...... 11 Aerial...... 12 Location Aerials...... 13 Location Map...... 14 Access Routes...... 15 Highway Infrastructure...... 16 > FINANCIAL OVERVIEW Pricing & Financial Summary...... 17 Lease Summary...... 18 Rent Schedule...... 19 > EXHIBITS Chicago Industrial Market Overview...... 22 O’Hare Submarket Overview...... 26 EXECUTIVE SUMMARY PROPERTY OVERVIEW

The 333 E. Touhy Avenue facility in Des Plaines is located on the northern border of O’Hare International Airport in a highly accessible pocket of one of the largest concentrations of industrial buildings in the United States. This 211,740 SF facility is a unique corporate headquarters facility that is centrally located, with high end office, heavy power, and very good curb appeal. The immediate area is densely developed with over 140 million SF of industrial buildings that service the 8.5 million people in the area as well as the population of the surrounding Midwestern states. The Property is located in the city of Des Plaines and is located within two minutes of O’Hare International Airport northern cargo entrance. In this quintessential infill marketplace, 200,000+ square foot functional buildings and 10+ acre developable land sites are rarely available.

BUILDING SIZE LEASE EXP. PSF RENT ANNUAL ESC.

333 E. TOUHY 211,740 SF 9/30/2025 $4.50 2.070%

PROPERTY AND AREA HIGHLIGHTS

»» 211,000 square foot, well maintained warehouse/manufacturing facility »» The last speculative development project in Des Plaines was pre-leased to CH Robinson. »» The Property provides a rare 12+ acre site for redevelopment or adaptive re-use. »» The project presents a unique investment opportunity that is rarely available in the »» The Property is located in the O’Hare submarket of Chicago. Chicago is the second O’Hare submarket. largest warehouse and distribution market in the country with O’Hare at the center. The O’Hare submarket currently has vacancy rates around 3% for the first time ever. The »» Covered land play. vacancy rate has fallen nearly 4% since 2014. »» Infrastructure improvements from the Illinois Tollway’s western bypass project will »» The property is located on the northern border of O’Hare International Airport and just allow for shorter transit times for transportation companies in this area. minutes from the north entrance to the airport. »» As of 2016, the building was the second largest non-utility in the state. 40-45% of the utilized electric is powered by Solar Panels. »» Rents have escalated due to the demand for large blocks of space. »» The I-294 Western Bypass Project will increase access and value to Property.

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 3 EXECUTIVE SUMMARY TENANT OVERVIEW

INDUSTRIAL ANYONE? Great Northern Corportation is a leading developer and manufacturer of creative solutions for packaging, shipping, merchandising and distributing products for industrial, commercial, retail malls, etc. Great Northern Corporation business units provide turnkey point of sale displays, packaging solutions, web-based manufacturers, technology, innovative protection solutions for the packaging industry and packaging products for roll and cylindrical products. 2018 revenues are projected to be approximately $600 million with consistent year-over- year profitibility and very little debt.

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 4 EXECUTIVE SUMMARY CAPITAL MARKETS OVERVIEW

INDUSTRIAL ANYONE? • Acceleration of capital market has out paced the underlying user market in Chicago • Industrial hotter than ever - Nationally industrial continues its star turn as the only major property sector to register sales gains in 2017 • Nationwide, industrial was the lone major sector to register year-to-year gains. These trends were generally more pro- nounced when focused on larger deals of at least $25 million • Severe shortage of well-located product nationally • National cap rate compression, particularly in the coastal markets, gives additional room for Chicago cap rates to compress. Buy now, or it will get more expensive • Land positions with cash flow (covered land) very attractive to long-term investors • New cheaper capital moving to the Class B space in Chicago

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 5 EXECUTIVE SUMMARY

INVESTMENT HIGHLIGHTS

HIGHLY DESIRABLE INFILL LOCATION AT THE HEART OF CHICAGO’S LARGEST INDUSTRIAL MARKET This market is comprised of over 140 million square feet of industrial product surrounding O’Hare International Airport, the largest transportation depot in the Central U.S. This area has historically been the strongest Chicago submarket, having the second lowest vacancy rate among the 22 submarkets tracked in Chicago’s industrial market. The 3.03% vacancy rate, an all-time low, represents a decline of nearly 250 basis points since the end of 2015. A densely developed landscape with an aging industrial base, the O’Hare industrial submarket is poised for tremendous growth as the federally funded $6.6 billion O’Hare Modernization Project (OMP) continues to come to fruition. Significant infrastructure improvements are under way to PSF RENTAL RATE expedite access within the highway network and expand the capacity of this critical transportation center.

$4.00 PSF $4.25 PSF $4.50 PSF DEMAND SIGNIFICANTLY OUTPACING SUPPLY OF NEW PRODUCT IN THIS SUBMARKET In response to companies need for modern space in this land constrained area, there have been more than 30 buildings built in the O’Hare area totaling more than 8.0 million square feet since 1995. Demand for Class A warehouse space has been particularly strong on the north and west sides of O’Hare where land is more difficult to acquire as compared the south side of the airport. Land prices have jumped as developers are scrambling for any reasonable site that may be redeveloped to respond to the tremendous demand for efficient, clean modern 8.0% $8,600,000 $9,137,500 $9,675,000 space.

7.75% $8,877,419 $9,432,258 $9,989,096 CAP RATE »» 333 E. TOUHY AVE 7.5% $9,173,333 $9,746,666 $10,320,000 »» 333 E. TOUHY

JANE ADDAMS MEMORIAL TOLLWAY

TOUHY AVE

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 6 EXECUTIVE SUMMARY

TERMS OF SALE OFFERING PRICE CONTACT INFORMATION Market to establish price The sale of 333 E. TOUHY AVENUE is being exclusively handled by the Chicago office of the Colliers International LEASE RATE $4.50 PSF Net Industrial Services Group. Please contact the individuals below ANNUAL ESC. 2% to answer any questions

DUE DILIGENCE PER. 30 days DAVID BERCU, SIOR CLOSING PERIOD 15 days Principal Direct: 847-698-8207 EARNEST MONEY $200,000 at contract execution [email protected] REAL ESTATE TAX Cash basis PRORATION JONATHAN KOHN Principal Direct: 847-698-8279 [email protected] TERMS 333 E. Touhy Avenue, Des Plaines, Illinois is being sold on an “as is, where is” basis with a lease back through Sept 30, 2025. Additional $200,000 in earnest money at waiving of Due Diligence.

OFFER DUE DATE OFFERS WILL BE ACCEPTED UNTIL FRIDAY, OCTOBER 12, 2018, by 5:00 PM CST. OFFERS MAY BE SUBMITTED VIA EMAIL TO JONATHAN KOHN or DAVID BERCU

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 7 PROPERTY ASSESSMENT

BUILDING SPECS

SITE SIZE PARKING REAL ESTATE TAXES TOTAL BUILDING AREA 12.67 acres 140 Stalls (expandable) $399,467.75 (payable 2017) 211,740 SF

OFFICE CEILING HEIGHT CONSTRUCTION TYPE ROOF 12,000 SF 16’-24’ ± Masonry/ Brick EPDM (Ballasted)

ZONING YEAR BUILT LIFE SAFETY ELECTRICAL M2 (General Manufacturing) 1963/1995 Sprinklered 3,000 amps / 480 volts

SOLAR IMPROVEMENTS LOADING Roof Mounted solar panels 13 docks 368 KW 3 drive-in doors

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 8 PROPERTY ASSESSMENT

SITE PLAN (EXISTING FACILITY)

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 9 PROPERTY ASSESSMENT

PROPERTY SURVEY

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* Enclosed Plan has not been approved by the City of Des Plaines

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 10 PROPERTY ASSESSMENT

LOCATION OVERVIEW

The Property is located less than a quarter mile from the north cargo entrance to O’Hare International Airport, minutes from I-90 in Des Plaines.

LOCATION DATA DISTANCE & TIMES

STREET ADDRESS 333 E. Touhy Avenue TO MILES TRAVEL TIME CITY, STATE, ZIP Des Plaines, IL 60018 O’Hare Int’l 1 miles 12 minutes Airport COUNTY Cook County Chicago CBD 21 miles 40 minutes NEAREST INTERSECTION Touhy Avenue and Wolf Road Midway Int’l AREA DESCRIPTION Highly developed, suburban, industrial 27 miles 40 minutes Airport Milwaukee 82 miles 1 hr 20 mins

BOUNDARIES/ ADJACENCIES Madison 137 miles 2 hrs 16 mins Quad Cities 150 miles 2 hrs 30 mins NORTH Oakton Street Fort Wayne 183 miles 3 hrs 24 mins SOUTH O’Hare International Airport Indianapolis 199 miles 3 hrs 08 mins EAST Wolf Road WEST Mt. Prospect Road Toledo 266 miles 4 hrs 10 mins St. Louis 292 miles 4 hrs 22 mins Detroit 300 miles 4 hrs 34 mins Cincinnati 311 miles 4 hrs 45 mins Louisville 313 miles 4 hrs 48 mins Cleveland 366 miles 5 hrs 36 mins Columbus 372 miles 5 hrs 29 mins Minneapolis 399 miles 6 hrs 01 mins Pittsburgh 481 miles 7 hrs 16 mins

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 11 PROPERTY ASSESSMENT AERIAL

»» 333 E. TOUHY AVE

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 12 PROPERTY ASSESSMENT

LOCATION AERIAL

SUBJECT SITE

JANE ADDAMS MEMORIAL TOLLWAY

TOUHY AVE

S WOLF ROAD

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 13 SOUTHEAST WISCONSIN

PROPERTY ASSESSMENT LAKE COUNTY LOCATION MAP McHENRY COUNTY

SOUTHEAST WISCONSIN

12 45

83 60

83 94 22

LAKE COUNTY Lake Michigan 45 McHENRY COUNTY NORTH

12 45 SUBURBS/COOK 83 60 ELGIN I-90 Lake Cook Rd. 83 94 68 22 Lake Michigan 45 NORTHWEST NORTH 12 SUBURBS/COOK 14 21 41 ELGIN I-90 Lake Cook Rd. SUBURBS 68 72 NORTHWEST 12 62 SUBURBS 14 21 41 72 94 62 94 59 53 59 90 53 O'HARE 294

58 90

'Hare 20 -O Expy. 294 in 41 O'HARE g El 31 190 90 20 290 CHICAGO NORTH CENTRAL 290 94 58 64 DuPAGE 53 I-290 NORTH 90 DeKALB 355 COUNTY 64 I-88 / FOX VALLEY 83 I-290 SOUTH 'Har 59 20 O e 290 - E in xpy. 41 43 CHICAGO lg 88 45 SOUTH E 31 190 90 ay 90 East-West Tollw 34 20 88 290 CHICAGO 294 94

55 NORTH

50 34 43 94 53 355 55 90 CENTRAL 12 20 290 I-55 CORRIDOR 94 64 SOUTH SUBURBS DuPAGE 53 I-290 NORTH 90 DeKALB 355 57 94 53 NORTH- 64 171 COUNTY WEST 50 7 45 I-88INDIANA / FOX VALLEY 83 I-290 SOUTH I-80 / JOLIET CORRIDOR 294 59 290

80 43 CHICAGO

80 88 45 SOUTH FAR SOUTH SUBURBS NORTH y 90 lwa 34 0 1 5 10 miles East-West Tol 55 88 294 94

50 34 43 94 53 355 55 90 12 20 333 E. TOUHY AVENUE OFFERING MEMORANDUMI- 55 | COLLIERS CORRIDOR INTERNATIONAL // 14

SOUTH SUBURBS

57 94 53 NORTH- 171 WEST 50 7 45 INDIANA

I-80 / JOLIET CORRIDOR 294

FAR SOUTH SUBURBS NORTH

0 1 5 10 miles 55 PROPERTY ASSESSMENT

ACCESS ROUTES

4 2.2 Miles

3 0.5 Miles

5 22 Miles ELGIN-O’HARE EXPRESSWAY

1 O’Hare 6.3 Miles International Airport WOOD DALE RD DALE WOOD

2 6.0 Miles

g Distance from Site (miles) 1. I-290/I355 2. South Cargo 3. North Cargo 4. I-90 5. To Chicago CBD

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 15 PROPERTY ASSESSMENT HIGHWAY INFRASTRUCTURE IMPROVEMENTS

The O’Hare industrial submarket is poised for tremendous growth as the federally funded $6.6 billion O’Hare Modernization Project (OMP) continues to come to fruition. Significant infrastructure improvements are underway, which will ultimately improve the overall efficiency of one of the nation’s largest transportation hubs.

››West Bypass Corridor from I-294 to IL-19/Irving Park (2015-2022) • County Line Ingress / Egress • Irving Park Ingress / Egress

››Elgin O’Hare (2013 - 2015)

››Elgin O’Hare from IL-83 to IL-19 / Irving Park (2017 - 2019)

››I-90 at Elmhurst Road and Touhy Avenue (2013 - 2019)

››I-294 at IL-64 / North Avenue (2020-2022)

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 16 FINANCIAL OVERVIEW GREAT NORTHERN // PRICING AND FINANCIAL SUMMARY

Tenant:...... Great Northern

Property Address: ...... 333 E. Touhy Avenue, Des Plaines, IL

Property Size: ...... 211,740 SF

Offering Price:...... Subject to Offer

Operating Income Year One:...... $952,000

Annual Escalation:...... 2% annually

Lease Expiration:...... Sept 30, 2025

Options to Extend:...... Two 5-year options to renew

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 17 FINANCIAL OVERVIEW GREAT NORTHERN // LEASE SUMMARY Great Northern Summary of Analysis of Remaining Lease Obligation and Renewal Options 335 E Touhy, Des Plaines, IL New Lease First Renewal Option (60 Months) Second Renewal Option (60 Months) ▪ Rental Terms 84 Months Renewal Option 1 Renewal Option 2 Square Footage 211,740 SF 211,740 SF 55,160 SF Start Date 10/1/2018 10/1/2025 10/1/2030 Expiration 9/30/2025 9/30/2030 9/30/2035 Lease Term 7.0 Yrs. 5.0 Yrs. 5.0 Yrs.

▪ Base Rent Schedule Year 1 $4.50/SF Net $5.17/SF Net $5.71/SF Net Year 2 $4.59/SF Net $5.27/SF Net $5.82/SF Net Year 3 $4.68/SF Net $5.38/SF Net $5.94/SF Net Year 4 $4.78/SF Net $5.49/SF Net $6.06/SF Net Year 5 $4.87/SF Net $5.60/SF Net $6.18/SF Net Year 6 $4.97/SF Net Year 7 $5.07/SF Net

*Rental Rate is assumed at 2% escalation from prior year *Rental Rate is assumed at 2% escalation from prior year

$1,200,000 $6.50/SF

$5.94/SF $6.00/SF $1,000,000 $5.38/SF $5.50/SF

$800,000 $4.74/SF $5.00/SF

$600,000 $1,257,732 $4.50/SF $1,139,167 $1,004,639 $4.00/SF $400,000

$3.50/SF

$200,000 $3.00/SF

$0 $2.50/SF Current Lease Term Renewal Option 1 Renewal Option 2 84 Months 60 month Term 60 month Term Average Annual Net Rent Average Annual Net Rent

Analysis ▪ September 17, 2018

No warranty or representation, expressed or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 18 FINANCIAL OVERVIEW GREAT NORTHERN //

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 19 PROPERTY ASSESSMENT GREAT NORTHERN //

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 20 PROPERTY ASSESSMENT GREAT NORTHERN //

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 21 EXHIBITS

CHICAGO INDUSTRIAL MARKET OVERVIEW

Chicago is widely considered to be one of the most important financial, industrial and • Chicago is also a leader in a number of emerging industries including: cultural centers in the United States. Chicago’s mid-continent location, accessibility via both land and water, paired with its deep labor pool have made it one of the most • Biotech - Global leader in biomed tech transfer, the conversion of biomedical economically strong cities in the world. As a central location for all forms of travel, knowledge and research to marketable products Chicago has 14 freight rail lines, 11 trunk rail lines, and 10 interstate freeways all • Information Technology - Most advanced communications exchange facility in the converging in the metropolitan area. Intermodal traffic (originating in, terminating in, or world providing cooperative interconnection point among numerous international passing through Metropolitan Chicago) equivalent to approximately 50% of the nationwide advanced networks intermodal volume. The major highways traversing the area include: I-55, I-57, I-65, I-80, I-88, I-90, I-94, I-290, I-294, and I-355. In addition, Chicago transports over 1.7 • Green Energy - Expanding home of 18 wind power companies and more buildings million tons of cargo through O’Hare International Airport annually. These factors have registered and certified by the US Green Building Council than any other city. contributed to Chicago being named “The Best U.S. Community for Manufacturing” by Industry Week magazine, and the “Top Location for New Manufacturing Sites” by Site Currently, Chicago houses the corporate headquarters of 93 publicly traded companies, Selection magazine. including 30 Fortune 500 Companies, and more than 1,500 foreign-owned companies have major operations and offices in the Chicago area. As the center point of the Midwest and the connection point for all the major rail lines, The strength of the industrial market is due in large part to the following factors: Chicago is the primary distribution hub in the central United States.

The Chicago Industrial market has long been one of the most diverse and active in the country. With a product base in excess of 1.3 billion square feet, and a talented labor pool, the Chicago market is recognized as one of the largest and most desirable in the United States. Economic conditions in the Chicago market continued to be resilient ›› Largest convergence of rail lines in the world including 14 freight rail lines and 11 through the scope of the US economic slowdown. Chicago’s economy thrives on a combination of mature (manufacturing and finance) and emerging (info-tech, research & truck rail lines development and green energy) industries. ›› More than 200 truck terminals, establishing the market as one of the largest Chicago consistently ranks in the Top 5 for GRP among 374 U.S. metro areas in the trucking centers in the nation following traditional industries: ›› 29% of North American industry is within one-day truck delivery • Business & Financial Services - Top 10 Global Financial Center (GCFI report, March ›› 42% of North America’s consumers are less than two days away 2010) and home to nearly 20% of the global future, options & derivatives trading activity ›› Deep and diverse labor force in excess of 4.2 million employees

• Manufacturing - Output (GRP) leader in electrical appliance, metal, plastics and ›› Strategic location between two major watershed systems - the Mississippi River rubber, food, machinery and paper product manufacturing and Lake Michigan • Transportation & Distribution - Major center of transportation and warehousing, with the third highest GRP in the U.S.

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 22 EXHIBITS

CHICAGO INDUSTRIAL MARKET OVERVIEW

Chicago’s industrial market recorded 8.6 million square feet of new leasing activity (new leases and lease expansions) during the second quarter of 2018, the greatest quarterly total since 2015. Following a period of weaker leasing activity and few big- box leases over 300,000 square feet in 2017, activity has ramped up again. Six leases greater than 300,000 square feet were signed during the second quarter of 2018 alone.

As a result, the industrial vacancy rate decreased by an impressive 23 basis points between April and June to 6.44 percent, the lowest rate recorded since 2001. Net absorption during the second quarter of 2018 totaled 6.1 million square feet, bringing the tally for the fi rst half of the year to 10.6 million square feet. While this is above the 9.9 million square feet of net absorption recorded during the fi rst half of 2017, it remains below the 14.3 million square feet measured during the fi rst half of 2016.

VACANCY & ABSORPTION »» The vacancy rate decreased by 36 basis points over the past two quarters to 6.44 percent. »» The current rate represents the lowest recorded since 2001 and is below the 6.59 percent recent low from early 2017. »» Infi ll submarkets continue to lead the way, with the O’Hare submarket vacancy rate setting a new record low at 3.03 percent. »» Net absorption totaled 6.1 million square feet during the second quarter of 2018, the strongest quarterly tally since the second quarter of 2017.

NEW CONSTRUCTION »» A new development surge is now underway, following 5.9 million square feet of construction starts during the second quarter of 2018. »» 35 buildings totaling 9.2 million square feet are under construction, a 27.4 percent increase over last quarter. »» Infill development, or the re-development of already largelydeveloped sites, ac- counts for 20 of the 35 projects under construction. »» 15 projects totaling 3.9 million square feet were delivered during the second quarter, 72 percent of which was developed on a speculative basis.

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 23 EXHIBITS

CHICAGO INDUSTRIAL MARKET OVERVIEW

LEASING & SALE ACTIVITY »» New leasing activity, which includes new leases and lease expansions, totaled 8.6 million square feet among 128 leases between April and June, the greatest quarterly new leasing volume since 2015. »» The largest new lease of the quarter involved The Home Depot leasing a 588,233-square-foot building that was developed in 2016 on the old Dominick’s distribution center site in Northlake. »» The largest user sale of the second quarter of 2018 involved Frain Industries purchasing a two-building campus in West Chicago totaling 865,000 square feet from General Mills.

FORECAST »» Significant leasing activity is expected to continue through theend of 2018, with several transactions pending, including leasesfor big box spaces in modern facilities. »» Capital outlay for new development is outpacing demand in the I-55 Corridor and I-80 Joliet Corridor submarkets, where vacancy rates are rising. Overall, the amount of speculative development under construction is well below where it was 18 months ago, which bodes well for the market’s vacancy rate. »» The growth of e-commerce will continue to force companies to review their supply chain strategies resulting in additional demand and closed transactions. »» Attractive lending opportunities will drive additional demand for users to purchase buildings, with very little available supply.

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 24 EXHIBITS

CHICAGO INDUSTRIAL MARKET OVERVIEW

SOUTHEAST WISCONSIN

Colliers International

Chicago Industrial Market Statistics LAKE COUNTY McHENRY COUNTY

FIRST QUARTER 2018 12 45 Under New Net 83 60 Total New Supply Vacant Vacancy New Leasing User Sale Submarket Construction Vacancies Absorption 94 Inventory (SF) (SF) Space (SF) Rate Activity (SF) Activity (SF) 83 (SF) (SF) (SF) 22 Lake Michigan 45 Central DuPage County 74,801,557 0 0 501,521 3,199,676 4.28% 681,088 54,688 432,183 NORTH SUBURBS/COOK Chicago North 89,282,038 0 0 508,007 4,577,261 5.13% 88,618 284,233 -29,318 ELGIN I-90 Lake Cook Rd. 68 NORTHWEST Chicago South 82,670,546 215,000 380,944 504,465 7,371,063 8.92% 421,469 55,000 308,550 12 SUBURBS 14 21 41 72 62 DeKalb County 21,179,427 0 67,251 0 1,390,999 6.57% 0 0 -8,898 94 59 Elgin I-90 Corridor 32,590,617 50,136 75,000 187,021 2,733,685 8.39% 222,020 81,325 166,460 53 90 Far South Suburbs 47,425,264 0 0 111,045 1,631,179 3.44% 402,092 82,328 373,375 O'HARE 294 Fox Valley 33,293,994 0 0 755,100 2,365,714 7.11% 341,452 550,095 158,399 58 I-290 North 74,768,187 99,076 1,348,822 762,653 6,430,281 8.60% 187,484 59,109 -380,007 'H 20 O are n- Expy. 41 gi I-290 South 46,419,724 0 323,343 453,895 2,632,400 5.67% 815,421 516,651 642,049 El 31 190 90 20 I-39 Corridor 17,919,915 0 0 0 561,379 3.13% 0 0 0 290 CHICAGO NORTH I-55 Corridor 92,679,451 115,460 408,176 537,625 10,917,644 11.78% 1,366,502 162,765 1,223,905 CENTRAL 290 94 64 I-88 Corridor 74,140,846 0 422,250 193,897 4,643,912 6.26% 24,750 378,214 221,567 DuPAGE 53 I-290 NORTH 90 DeKALB 355 I-80/Joliet Corridor 88,956,903 2,250,591 2,538,913 1,081,360 7,292,923 8.20% 579,294 0 1,790,240 COUNTY 64 I-88 / FOX VALLEY 83 I-290 SOUTH 59 Lake County 72,635,083 133,951 598,128 588,185 5,738,398 7.90% 196,080 175,749 -8,395 290 McHenry County 30,099,848 0 0 313,643 3,744,789 12.44% 10,636 0 -303,007 43 CHICAGO 45 SOUTH North Suburbs 56,887,716 0 368,167 348,683 2,488,721 4.37% 30,685 102,705 -190,343 88 ay 90 East-West Tollw 34 Northwest Suburbs 36,078,754 100,891 326,000 104,863 3,942,316 10.93% 200,543 0 199,653 88 O'Hare 139,326,154 250,555 201,098 1,203,536 4,283,529 3.07% 595,932 420,228 147,872 294 94 South Suburbs 102,310,965 0 0 681,847 4,899,176 4.79% 64,878 176,185 -290,497 55 50 34 43 Metro Chicago Totals 1,213,466,989 3,215,660 7,058,092 8,837,346 80,845,045 6.66% 6,228,944 3,099,275 4,453,788 94 53 355 55 90 Northwest Indiana 55,118,639 0 0 178,092 3,175,845 5.76% 50,000 0 -128,092 I-55 CORRIDOR 12 20 Rockford Area 53,240,347 0 0 255,800 4,259,576 8.00% 0 42,000 -213,800 SOUTH SUBURBS Southeast Wisconsin 58,347,645 520,339 124,000 791,816 3,767,081 6.46% 625,483 0 354,006 Grand Totals 1,380,173,620 3,735,999 7,182,092 10,063,054 92,047,547 6.67% 6,904,427 3,141,275 4,465,902 57 94 53 NORTH- 171 WEST 50 7 45 INDIANA

I-80 / JOLIET CORRIDOR The data compiled in this report is the legal property of COLLIERS INTERNATIONAL 294 Dissemination or reproduction of the information contained herein is strictly prohibited without the express consent of COLLIERS INTERNATIONAL 80

FAR SOUTH SUBURBS NORTH

0 1 5 10 miles 55

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 25 EXHIBITS

O’HARE SUBMARKET OVERVIEW

QUARTER IN REVIEW

»» The O’Hare submarket continues to set new vacancy records. Signifi cant new leasing and user sale activity outpaced the effects of new vacancies being introduced, pushing the vacancy rate down four basis points to 3.03 percent, the lowest rate ever recorded in the submarket.

»» Large blocks of space are hard to fi nd in the O’Hare submarket. There are currently only two available space options for users seeking to lease space 200,000 square feet or more, only one of which is vacant.

»» Net absorption was positive for the fourth consecutive quarter, totaling 38,718 square feet between April and June. Through the first half of 2018, net absorption totaled 186,960 square feet.

»» Two speculative development projects were delivered during the second quarter of 2018 including a 95,962-square-foot building developed by Liberty Property Trust at 350 N York Road in Bensenville and a 24,500-square-foot building developed by Gullo Development Corp at 2416 Estes Avenue in Elk Grove Village.

»» There are currently four infill speculative projects totaling 374,345 square feet under construction, two of which are locations in Elk Grove Village and the other two in Wood Dale. All four buildings are scheduled to deliver by the end of 2018. Several additional speculative projects totaling nearly 1.0 million square feet are about to start construction.

»» New leases and lease expansions totaled 947,998 square feet during the second quarter of 2018, the greatest quarterly tally since the first quarter of 2016. The largest new lease involved United Business Mail Inc subleasing 203,064 square feet at 801 W Bryn Mawr Avenue in Itasca.

»» The largest sale transaction involved Yusen Logistics Inc executing its option to purchase the building it previously leased from Duke Realty Corporation at 1300 Busse Road in Elk Grove Village.

FORECAST

Speculative infi ll development is on the rise, and is expected to increase over the next six months as several sizable projects are just breaking ground. When this new product is delivered, it will likely result in an increase to the submarket’s record-low vacancy rate until some of the newly-developed space is leased.

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 26 EXHIBITS

O’HARE SUBMARKET OVERVIEW

QUARTER IN REVIEW

333 E. TOUHY AVENUE OFFERING MEMORANDUM | COLLIERS INTERNATIONAL // 27