An Iconic Landmark Property Located in Chicago, Illinois

An Iconic Landmark Property Located In Chicago, Illinois

EXECUTIVE SUMMARY

Holliday Fenoglio Fowler, L.P. (“HFF”) an Illinois licensed real estate broker

Situated on the banks of the Chicago River, AMA Plaza is an iconic Chicago Landmark and on the National Register of Historic Places Unparalleled Amenities & Irreplaceable Location EXECUTIVE SUMMARY

Holliday Fenoglio Fowler, L.P. (“HFF”) is pleased to present 330 North Wabash Key Property Statistics Avenue (the “Property” or “AMA Plaza”). AMA Plaza is an iconic 52-story, 1,141,760 RSF trophy office tower completed in 1972 and positioned along BOMA Rentable Area 1,141,760 RSF the Chicago River in Chicago’s dynamic River North submarket. Boasting a weighted average lease term of 9.3 years as of January 1, 2016 and a roster Percent Office Leased 95.2% of internationally recognizable tenants, the Property is Chicago’s premier core office offering in 2015. AMA Plaza is a LEED Gold Certified multi-tenant office Stories 52 building situated on top of a separately owned 316-room, five-star luxury Langham Hotel which opened in July, 2013. 330 North Wabash was originally Date Completed / Renovated 1972/2012 a 1,517,301 RSF office tower built by IBM Corporation(“IBM”) as its Chicago headquarters. The low rise bank of floors was sold to an affiliate of Great Eagle Typical Floor Plates 32,500 - 34,000 RSF Holdings and transformed into a five-star luxury Langham Hotel. In conjunction with the sale of the low rise floors, AMA Plaza, through a $74 million base- Finished Ceiling Height 9' building capital expenditure plan, was completely redeveloped with all new mechanical systems, elevators, HVAC, restrooms and corridors. The Property is a virtually new building within a classic Chicago façade.

The Property is located on an irreplaceable 1.6 acre site in downtown Chicago on the banks of the Chicago River and is a designated Chicago Landmark and listed on the National Register of Historic Places. The building is the last and largest American building designed by the renowned architect Ludwig Mies van der Rohe. Enhanced by a multi-million dollar redevelopment program spanning 2012-2014, its tenants enjoy large, column free floor plates, robust electrical systems, dense floor loading, and state of the art mechanical, security and life safety systems.

Long-Term Durable Cash Flow AMA Plaza’s tenant roster provides exceptional Summary of Major Tenants income stability, with minimal rollover risk, due to its balanced lease expiration profile. The average Weighted Average annual lease rollover through the next seven Largest Tenants RSF % NRA Lease Term years is approximately 3.5% per year and with a American Medical Association 289,452 25.4% 12.7 Yrs weighted average lease term of 9.3 years as of Latham & Watkins 143,475 12.6% 13.2 Yrs January 1, 2016, provides a secure and protected SmithBucklin 115,129 10.1% 12.0 Yrs income stream. The largest tenant, the American Swanson Martin & Bell 85,473 7.5% 6.4 Yrs Medical Association, is the world’s largest member- Perkins & Will 65,666 5.8% 1.4 Yrs supported association of medical doctors and Total/Average 699,195 61.2% 10.9 Yrs medical students in the United States and occupies 25.4% of the total RSF through August 2028. The Property also features a cache of internationally respected firms including Latham & Watkins LLP, SmithBucklin Corporation, Swanson, Martin & Bell LLP, BDO USA, LLP and Oracle America, Inc. to name a few. Included in the offering and contributing to the stable cash flow is the adjacent 11-story, 902 stall, parking garage owned pursuant to a long-term ground lease, while the office building is owned in fee. The quality of the tenant roster, coupled with the balanced rollover schedule and below market rents make this an attractive stable investment for core investors desiring superior cash flow with minimal rollover exposure in a location with extraordinary residual value.

AMA Plaza’s tenant roster provides exceptional income stability, with below market rents and minimal rollover risk, due to its balanced lease expiration profile Permanent, Timeless, Classic Ludwig Mies van der Rohe Perched on an elevated plaza on the north bank of the Chicago River, the Property captures views of the lake, Chicago River and the City of Chicago below. The Property is one of the most recognizable landmarks in the City. It is juxtaposed to its surroundings: black monolith in day, luminous beacon at night. Despite its relative youth, the building was designated a Chicago landmark in 2008 and added to the National Register of Historic Places in 2010; due to the fact that it was the last American creation of one of the 20th century’s most renowned architects, Ludwig Mies van der Rohe. It is the newest building in the City of Chicago to receive both of those honors. Mies was asked to commission a building for the iconic 20th century International Business Machines Corporation. What arose was a structure that became synonymous with corporate power. At 52 stories, this was Mies’ tallest American building, and was also his last, as it was completed in 1972, following his death.

The dark aluminum and bronze-tinted glass curtain wall embodies Mies’ “less is more” modernist style while maintaining a graceful simplicity in the Chicago skyline. Twenty- four large columns, exposed at ground level, extend through the building; I-beams are welded to the exterior, underlining its verticality and adding pattern and texture. The grand, 33,000 square foot, 26 foot high building lobby, expansively glassed, is wrapped in travertine marble with bronze doors and signage. The granite tiles on the exterior plaza are duplicated in the lobby, bringing the outside in - a mark of a Mies building. Large floor- to-ceiling windows in the tenant suites offer panoramic views of the City, River and Lake Michigan. Mies’ forward thinking allowed the building to evolve with changing uses and innovations, and it now houses today’s technology savvy tenants and a 316 room, 5-star hotel. The building continues to evoke power today due to its simplicity, with the Mies van der Rohe signature black anodized aluminum curtain wall and bronze tinted glass facade.

8 EXECUTIVE SUMMARY

Comprehensive Renovation AMA Plaza has recently undergone a dramatic renovation. Ownership has invested $73.7 million in base-building renovations (excluding tenant improvements) since 2007. Highlights of the program include a full mechanical upgrade; replacement of the existing boilers, new elevators and cabs, state of the art fire life safety systems, a new Building Automation System, a complete retrofit of existing air handlers, and the addition of new variable speed pumps for chilled water. Furthermore, the building received substantial corridor and restroom renovations including upgrading the in-place electrical systems & fiber optic wiring, and a full roof replacement including a “Green Roof” to increase efficiency. Ownership has also added several coveted tenant amenities on the 14th floor including a new conference center with state-of-the-art audio and visual technology. Additionally, a new 5,233 square foot fitness center was completed in 2012 and includes state of the art equipment and locker rooms. New to the 16th floor is the 4,280 RSF Café 330, featuring a variety of international dining options for the building’s tenants. All of the Property’s elevators underwent a full modernization program between 2012 and 2014. The extensive renovations have restored 330 North Wabash to one of Chicago’s most prominent and recognizable trophy office towers amongst a skyline steeped in rich architectural history.

The Building also offers lower real estate taxes because of its City of Chicago Landmark status. The “Class L” real estate tax designation means tenants benefit from taxes at less than half of a full assessment for a 10-year period commencing January 1, 2014.

AMA Plaza is LEED EBO&M certified Gold building and multiple BOMA award winner. The Property has been awarded numerous Energy Star labels for its operating efficiency and is a BOMA 360 Performance Building. The Property was awarded the 2007 BOMA Chicago Building of the Year Award, and won it again the following year in 2008, along with the prestigious 2008-2009 BOMA Office Building of the Year (TOBY) for the Five-State Midwestern Region in the 1 Million Plus Square Foot category. Other awards related to efficiency and sustainability include;

• 2009 BOMA 360 Performance; first in Illinois; renewed in 2012

• 2014 LEED EB-O&M Gold Certified

• 2012 Completed BOMA’s 7-point challenge

• 2012 Society of Environmentally Friendly Facilities Certification

• 2012 & 2013 Property Management Leadership Award in City’s Green Office Challenge– highest award

• 2013 Admitted Retrofit Chicago / 2014 Property Manager Excellence Award - Green Office Challenge / 2014 Governor’s Sustainability Award / 2014 IREM Certified Sustainable Property

Fitness Center

The Langham Chicago was singled out as the top large city hotel in the continental United States by readers of Travel + Leisure magazine Unique 5-Star Hotel Amenity Unique to the Property is the ultra-high end 316-room Langham Chicago Hotel. Since opening in July 2013, this elegantly modern hotel has impressed travelers with its commitment to service, luxury, and beyond. Guests praise its spacious rooms that overlook the Chicago River, Mediterranean-inspired Travelle restaurant, and the 22,000 square-foot Chuan wellness facility.

In July, 2015, the Langham Chicago was singled out as the top large city hotel in the continental United States by readers of Travel + Leisure magazine. Earlier this year, TripAdvisor awarded the Langham Chicago as the overall winner in the category of Top Hotels in the U.S. based upon the millions of reviews and opinions collected in a single year from travelers across the globe. Other accolades include;

• 2014 Readers’ Choice Awards - Top 100 Hotels & Resorts in • 2014 Travel + Leisure No. 6 Hotel in the World the World (No.30 out of 100) • 2014 Travel + Leisure Five Diamond Award • 2014 Conde Nast Traveler Readers’ Choice Awards - Top 25 Hotels in the United States (No.3 out of 25) • 2014 AAA Best of the Best in the Hotel Category

• 2014 Conde Nast Traveler Readers’ Choice Awards - Best • 2014 Robb Report Best New Hotel Hotels in Chicago (No.1 out of 10) • 2015 Trip Advisor Number 1 Hotel in Chicago and the • 2014 Travel + Leisure Top 100 Modern Hotels List United States

• 2014 Fodor’s No. 1 City Hotel in the Continental U.S.

12 EXECUTIVE SUMMARY

Irreplaceable Location / Chicago River The Property occupies a prime riverfront location in Chicago RIver Building Out Performance River North, Chicago’s most dynamic submarket. In addition to superior access to transportation, River Address RSF % Leased Class Year Built North riverfront properties boast spectacular views of AMA Plaza 1,141,760 95% A 1972 both the Chicago River and downtown skyline. When The Merchandise Mart 4,000,000 94% B 1930 combined with institutional tenancy, these elements create a tower that is positioned to outperform the 300 North LaSalle 1,302,901 99% A 2009 market, as evidenced by current vacancies of 6.6% for 321 North Clark 896,502 95% A 1987 all riverfront towers versus 12.1% for the remaining Class A office towers within the CBD. 353 North Clark 1,184,255 94% A 2009

Buildings along the Chicago River outperform other CBD buildings owing to the unique top to bottom views. Rent differential between the highest floors and the lowest floors in AMA Plaza is minimal due to the Property’s prominence along the Chicago River and the uncompromised low rise panoramas of street and river life. It is because of the riverfront views and location that Langham Hotel chose to occupy floors 2-13 of the building.

Institutional Grade Anchor Tenancy The Property features an exceptional first-class tenancy that is consistent with the trophy quality of the building. 330 North Wabash is the headquarters of the American Medical Association (“AMA”) which occupies 289,452 RSF or 25.4% of the building. The AMA is the largest member supported association of medical doctors and medical students in the United States and has approximately 232,000 members. The AMA is the nation’s leader in promoting professionalism in medicine and setting standards for medical ethics, practice and education. The AMA helps doctors to better serve patients’ needs by uniting physicians nationwide to collaborate on the most important health and professional concerns. Their Board of Trustees also ensures that they remain focused on their essential purpose, which is to promote the art and science of medicine and the betterment of public health. For more than 160 years, the AMA Code of Medical Ethics has been considered the most comprehensive ethics guide for physicians on a wide range of patient-physician issues.

The AMA also publishes the Journal of the American Medical Association (JAMA), which has the largest circulation of any weekly medical journal in the world. They continue to reaffirm their commitment to excellence by extending awards to medical professionals recognizing them for outstanding endeavors that advance public health. A variety of different awards are bestowed upon the recipients including the Distinguished Service Award, AMA Medal of Valor, Scientific Achievement Award, AMA Foundation Award for Health Education and the Medical Executive Lifetime Achievement Award. AMA’s well-respected position within the medical society combined with their proximity to one of the Nation’s best hospitals, Northwestern Memorial Hospital, enhances the desirability of the Property for investors looking for high-grade tenancy. AMA’s long-term lease will also appeal to core investors seeking superior cash flow yields with minimal near-term rollover exposure.

Upside in Near Term Rollover Many of the tenants at the Property in both the renovated and un-renovated floors have below- % That market rent that provides for upside income as % Market existing leases expire and are renewed or released. Actual Market Below is Above Over 20% of the property or 231,609 RSF of space Floor Size Rent Rent Market Actual has the potential to come back to ownership by May 23 32,420 $11.99 $28.00 57.2% 133.6% of 2017. These floors are in three contiguous blocks 24 32,650 $13.49 $28.00 51.8% 107.6% consisting of floors 23 & 24; 31; and 33, 34, 35 and 36, and represent seven of the only eight floors at 31 33,447 $14.72 $30.00 50.9% 103.8% the Property yet to be renovated. Current tenants 33 33,273 $15.57 $30.00 48.1% 92.7% in this space are paying significantly below market rents. Upon completion of renovations to each floor, 34 33,273 $15.57 $30.00 48.1% 92.7% market rent for this space is upwards of $30.00 net, 35 33,273 $14.03 $30.00 53.2% 113.9% representing more than a 109% increase in rent. This rollover lends to a mark-to-market story, with 36 33,273 $12.79 $30.00 57.4% 134.6% the opportunity to increase NOI and provide a yield Total Weighted Average 231,609 $14.03 $29.44 52.3% 109.8% enhancement to an already durable cash flow stream.

13 Hottest Office Submarket In Chicago AMA Plaza is at the heart of a dynamic “24/7” CBD location that abounds with energy and vitality. The area has undergone a resurgence in recent years with the addition of residential and improved retail. This resurgence has led to the tightest direct office vacancy rate River North has ever seen at 8.8%; even more impressive is the submarket’s Class A office direct vacancy rate of 5.0%. The immediate neighborhood is the premier location for office tenants as well as the best retailers in the world. Office tenants that are attracted to the area’s extraordinary amenity base include government consulates, media, entertainment, advertising, law, accounting, medical and other service-related companies. The addition of 300 North LaSalle, 353 North Clark, 111 West Illinois, Trump International Hotel and Tower and The Langham Hotel at the Property have made the office market west of Michigan Avenue and north of the Chicago River an even more desirable and exclusive market. AMA Plaza is one block south of the Shops of Northbridge and just one block west of Chicago’s “Magnificent Mile”, an approximately one mile stretch of Michigan Avenue starting at the Chicago River to the south and ending at Oak Street to the north containing Chicago’s premier luxury shopping district. AMA Plaza is within walking distance to over 23 million RSF of office buildings, low cost parking, Chicago’s premier hotels, the world’s finest retailers and numerous restaurant and entertainment amenities. The area attracts residents, professionals and visitors that can live, work, and play within a concentrated area.

Live/Work/Play Destination The River North neighborhood surrounding AMA Plaza is an urban mixed-use community flush with entertainment, eating, shopping residential, office and hotel accommodations. Long the location of choice for Chicago’s largest space users, the North bank of the Chicago River strikes the ideal balance between a world class business address and a world class entertainment address. River North boasts the highest concentration of restaurants and entertainment venues in the city and has become the fastest growing residential neighborhood in Chicago. Between the years 2000 and 2010, the River North residential population increased by an impressive 82%.

Convergence of Culture Cultured by day, River North shifts into high-gear by night. The neighborhood is the go-to district for those who appreciate fine art and design. River North is home to one of the country’s largest collection of galleries, second only to New York. For those who appreciate fine dining and drinks, the momentum behind the latest trendsetting openings continues to build as the late night energy swells. The dining scene is constantly brimming, from intimate small plate destinations to high-end steakhouses and famed pizzerias. Just about every type of cuisine is covered in the mix of award-winning restaurants and local favorites. After hours offers the opportunity to slip into any number of sleek new clubs, upscale wine bars and craft cocktail lounges that dot the scene. River North is the premier Chicago location for hotel accommodations with various boutique and high-end offerings within walking distance of an array of Chicago’s renowned attractions.

14 EXECUTIVE SUMMARY

RIVER NORTH IS THE EPICENTER OF A DENSE, 24/7, ENTERTAINMENT DISTRICT THAT IS PACKED WITH RESTAURANTS, BARS, SHOPPING, HOTELS, RESIDENTIAL AND OFFICE PLAYGROUND.

DINING AND ENTERTAINMENT HOTEL/LODGING

• With over a hundred restaurants and bars scattered • 26 Hotels throughout the neighborhood, River North features one of the highest densities of restaurants and bars in the country. • 7,853 Rooms

RESIDENTIAL BOOM • 86% Average Occupancy Rate

• 4,317 units • Average Nightly Room Rate of $264

• PSF Net Ask Rent $3.75 / month TRANSIT-ORIENTED LOCATION

• Average Occupancy of 93.45% • Walk Score of 98

• Over 1,000 Units are Proposed or Under Construction • Transit Score of 100 – Fantastic Access to CTA Red & Brown “EL” Line

• Bike Score of 83

• Water Taxi

Grand Stop

Purple Line Brown Line

Merchandise Mart Stop Purple Line Brown Line Red Line Green Line Blue Line Orange Line Pink Line Clark & Lake Stop Blue Line State & Lake Stop

15 Contact Information

181 West Madison | Suite 3900 Chicago, IL 60602 Telephone: 312.528.3650 Fax: 312.528.3651 Investment Contacts

Jaime M. Fink Senior Managing Director 312.528.3683 [email protected] Jeffrey M. Bramson Senior Managing Director Managing Broker 312.528.3687 [email protected] John Pelusi Executive Managing Director 412.281.8714 ext. 2030 [email protected] Mark B. Katz Managing Director 312.980.3604 [email protected] Patrick M. Shields Analyst 312.528.3685 [email protected] Financing Contacts

Gerard T. Sansosti Executive Managing Director 412.281.8714 ext. 2028 [email protected] Michael A. Kavanau Senior Managing Director 312.528.3676 [email protected]

©2015 HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national 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 at twitter.com/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.