Investment Update

INVESTMENT UPDATE

TABLE OF CONTENTS

1. Executive and Descriptive Summaries

2. Locational Information & Maps • Location • Public Transportation / Subway Lines • Neighboring Residential • Recreation / Entertainment / Restaurants

3. Chicago Overview & Market Update

4. Proposed Amenities

5. Proforma

6. Market Rent Comps

7. Tax Credit Supporting Information

8. Market Cap Rate Data

SECTION 1

EXECUTIVE AND DESCRIPTIVE SUMMARIES

Executive and Descriptive Summaries

Executive Summary

Summary

32 West Randolph is a proposed apartment unit rehabilitation of an existing twenty- two story building, originally constructed in 1926, in the heart of downtown Chicago. The property is located on the North side of Randolph Street, East of Dearborn Avenue and west of State Street. The building is situated in the heart of the Theatre District within the Central Loop submarket, and just west of the prestigious LaSalle Street Financial District. Directly to the east lies the East Loop submarket, one of the most dynamic areas in Downtown Chicago. This area is experiencing a rebirth via its transformation into a world renowned residential, cultural and recreational center, which includes Millennium Park, the Art Institute, the Chicago Theatre and the Lakeshore East.

Proposed Development

32 West Randolph is a proposed 220 apartment unit rehabilitation within a vertical subdivision, housing the famous 2,253- seat Oriental Theater on the majority of the first seven floors, and the proposed 220 apartments on the upper floors. The apartments will occupy approximately 175,000 square feet of space on portions of floors 3 - 22 in the Tower, and Floors 8 - 15 above the Theater. The high ceilings of the existing structure will allow spacious "loft" style residences, some with two levels.

Executive and Descriptive Summaries

The 220-unit property will be comprised a mix of studios, convertibles, one and two bedroom units averaging approximately 799 sf. The clubhouse/amenity areas will be positioned over the center portions of the floors above the Theater area. These areas will present a special opportunity to provide unique recreational and community spaces, in perfect concert with active urban lifestyles - a major multipurpose sports, meeting and entertainment area within the 20' high space of the 14th floor, a full health club on the 12th floor, and office, theater, study, music practice and storage spaces on three more core areas on floors 8, 9 and 10.

Property History

Historically known as the Oriental Theatre Building, construction of 32 West Randolph was completed in 1926. Designed by Chicago’s famed architects, Rapp and Rapp, 32 West Randolph was originally constructed as a theatre and Masonic Temple and was built on the same location as the former Iroquois Theatre (later the Colonial Theatre). Although the outer facade looks identical, the Property did not retain anything from the original building that once stood here.

The theatre, occupying the majority of the first 7 stories of the building, was originally designed as a 3,250-seat theatre presenting popular first-run movies and lavish stage shows. The surrounding space was occupied by the Masonic Temple, which originally included 11 separate Masonic halls.

The current owner of The Property acquired title to the entire building, including the theatre and Masonic Temple in 1978. In 1996, a vertical subdivision of the building was completed with the building ownership being separated between the theatre space and the former Masonic Temple space. At the same time, the ownership of the theatre space completed a full renovation and restoration of the Oriental Theatre. The theatre was reopened in 1998 and now hosts the visiting companies of Broadway shows.

Executive and Descriptive Summaries

The Property is no longer used by any Masonic organizations and all of the rentable space is used as office space. The State of Illinois and its related entities have occupied the majority of the building since the 1990s. The State has recently started vacating the premises with full vacancy expected in 2nd quarter 2013.

Location

32 West Randolph is located on the north side of Randolph Street, approximately 60 feet east of the northeast corner of Randolph Street and Dearborn Street. The common address is 32 West Randolph Street. The building is situated at an irreplaceable location at the convergence of the Loop's financial, governmental, retail, residential and theatre districts and it is located directly across the street from the new Block 37 development, a mixed-use development comprised of 277,000 SF of retail space, 440,000 of office space and a transportation center. Executive and Descriptive Summaries

The property has tremendous access to the Downtown Chicago's public transportation system. Every CTA train line has a stop within one block of the property and State Street, the first street east of the property, is a main artery for numerous major CTA bus lines. In addition, all of the major Metro commuter rail stations are within walking distance to the property.

Existing Structure

The building is situated on an L-shaped land parcel containing 27,837 square feet. The building has approximately 140 feet of frontage along the north side of Randolph Street and approximately 162 feet of frontage along the south side of Couch Place. The property is approximately 181 feet in depth. The site is currently zoned DX-16, Downtown Mixed-Use District.

The Property is comprised of 226,666-SF of office space on Floors 1, 3 through 22 plus an elevator penthouse and portions of the two basement levels that are all part of a vertical subdivision, with the remaining space in the building being separately owned and utilized as the 2,253-seat Oriental Theatre/Ford Center for the Performing Arts.

The total gross building of The Property is 237,188 square feet. The main entrance to the building is on Randolph Street. The ground floor space is comprised of the main lobby area, six elevators, and stairwells. Executive and Descriptive Summaries

There is no rentable space on the 2nd floor. The rentable space on Floors 3 through 7 share floors with the theatre and is located along the south side of the building with frontage along Randolph Street.

Floors 8 through 22 are all located above the theatre. Floors 8 through 15 approximately comprise the footprint of the site and have floorplates ranging from 20,260 SF to 23,573 SF, with the exception of the 13th Floor which contains 13,111 SF. Floors 16 through 22 are located on the tower portion of the site and range in size from 5,372 SF to 7,598 SF.

Interior Finish: The lobby area is finished with travertine panel walls, granite tile floors and painted drywall ceilings.

The upper floor tenant spaces and common areas finishes vary from floor to floor but generally consist of carpeted floors, painted drywall walls and acoustical droptile ceilings. Finished ceiling heights in the upper floor office spaces are approximately 8.0 to 8.5 feet.

The restrooms are typically finished with acoustical droptile ceilings, ceramic tile floors and painted drywall walls with ceramic tile wainscoting.

Exterior: Terra cotta on south elevation and common brick on majority of remaining elevations with some terra cotta accents.

Structure: Steel beams and columns encased in clay tile. Floors are reinforced concrete.

HVAC Systems: Heating is provided via four boilers located on the 17th floor that provide steam heat which is distributed in risers to baseboard radiators along the perimeter of the floors. In addition, heat is also distributed via steam coils and air handlers that provide heat to the central portions of the floors.

Cooling is provided via package units. The majority of the water-cooled package units are located on the respective floors with some located on the roof. The cooled water is provided via a cooling tower located on the roof.

Electrical: Three-phase, three-wire system, 480-volt service into the building.

Roof: Flat concrete deck covered with two-ply modified bitumen roofing system. All rooves were installed in 2001.

Windows: Aluminum-framed, double-pane, double-hung

Elevators: There are six passenger elevators and two freight elevators. The passenger elevators service Floors 1 through 22. One freight elevator services the two basements up to Floor 22. The other freight elevator services the 1st Floor and the first basement. All of the elevators have 2,500-lb. capacity.

Plumbing: Floors 3 through 22 all contain at least one restroom with most containing one men’s and one women’s restroom, all equipped with adequate fixtures. Each men’s and women’s restroom has at least one 5-gallon electric hot water heater. There is a 40- gallon gas hot water heater that services the 14th floor. Executive and Descriptive Summaries

Life Safety: There is a standpipe system with fire hose connections on every floor. Approximately 35%- 40% of the building is sprinklered. All risers have been installed for the building’s sprinkler system and fully operational sprinklers have been installed in the basement and Floors 1, 3, 4, 8, 9, 13, 21 and 22.

Emergency lighting is backed up by a natural-gas fired emergency generator. Smoke alarms, horn strobes and pull stations that are connected to the fire panel are provided on every floor.

Loading: There is a grade level loading dock on the north side of the building which is accessible via Couch Place. Executive and Descriptive Summaries

Descriptive Summary

TOTAL UNITS: 220 TOTAL RENTABLE SQUARE FEET: 175,730 Square Feet AVERAGE UNIT SIZE: 799 Square Feet STRUCTURE: 22-Story Existing Building PARKING: Existing Parking Garage located behind building ANTICIPATED START: 1st Quarter, 2014 ANTICIPATED COMPLETION: 2nd Quarter, 2015

DESIGNER STYLE KITCHEN: The contemporary styled kitchen include attractive espresso finish, Wood cabinets with abundant storage, wood flooring, expansive pass through entertainment bar with stainless steel double bowl sink, and decorator selected granite countertops. A separate full-size pantry closet is provided for extra kitchen storage in all units.

The kitchen is equipped with a designer stainless electric appliance package including energy saving refrigerator with automatic icemaker, built in microwave, glass top range /self-cleaning oven combo, and energy saving sound conditioned multi-cycle dishwasher and disposal. Executive and Descriptive Summaries

DESIGNER STYLE BATHROOM: The bathrooms will include elegantly styled marble countertops, vessel sinks, vanities with abundant storage space, mirrored wall with theatrical lighting, ceramic tile flooring throughout with matching ceramic tile tub surrounds.

FLOORS: All units will have wood flooring through the living areas. Bathrooms will have designer style ceramic tile.

WALLS & CEILINGS: Units will be painted in Designer Custom decorator colors.

Executive and Descriptive Summaries

ADDITIONAL CUSTOM FEATURES: Each apartment includes horizontal 2” faux wood blinds, walk-in closets with abundant storage space; decorator track lighting in dining rooms, ceiling fans in master bedrooms and solid wood trim.

LAUNDRY: Each apartment includes a washer and dryer.

Executive and Descriptive Summaries

AMENITIES: The amenity areas will feature a full-circuit fitness center, bar area, multipurpose room with media center, bar and kitchen area, cyber café, and a children’s fun and study center.

Typical Amenity Area Executive and Descriptive Summaries

Meeting Room and Fitness Center SECTION 2

LOCATIONAL INFORMATION & MAPS

• Location • Public Transportation / Subway Lines • Neighboring Residential • Recreation / Entertainment / Restaurants • Comparables

LOCATIONAL INFORMATION & MAPS

Location LOCATIONAL INFORMATION & MAPS

Location

32 West Randolph is located on the north side of Randolph Street, approximately 60 feet east of the northeast corner of Randolph Street and Dearborn Street. The common address is 32 West Randolph Street. The building is situated at an irreplaceable location at the convergence of the Loop's financial, governmental, retail, residential and theatre districts. It is located directly across the street from the new Transportation Center in the lower level of Block 37.

32 West Randolph has a very central location for work, shopping, transportation, entertainment, dining, nightlife and education, and conveniently located to Depaul, Roosevelt University, School of the Art Institute, Columbia College, University of Chicago grad school, Robert Morris, Illinois Institute of Art, and the Chicago School (Industrial Design). LOCATIONAL INFORMATION & MAPS

Location / Subject Property

Block 37 LOCATIONAL INFORMATION & MAPS

Public Transportation / Subway Lines

Neighboring Residential LOCATIONAL INFORMATION & MAPS

Neighboring Residential

1 Randolph Tower

At the NE corner of Randolph and Wells Streets, in the Loop, adjacent to the “EL” tracks (Three blocks west of the 32 West Randolph property)

312 units . Renovation of a 45-story, 1929 office building by Village Green. Completed in late 2012. Very rapid lease-up, despite the ragged condition of the exterior during the lease-up period. Leasing at 98% as of July, 2013. A typical floor contains: a One Bedroom with 675 sf, two One Bedroom units with Den of 750 sf and 800 sf, a Two Bedroom of 975 sf, five Studios averaging 525 sf and four Convertibles averaging 625 sf. There are 26 Two Bedroom Penthouses that typically range from 1080 sf to 1138 sf, plus one 1337 sf Penthouse and one 2008 sf Penthouse. Effective rents average $2.94/sf.

2 Oakwood Apartments

NW Corner of Lake and Wells (1 Block north of Randolph Tower)

329 Units (Including 120 furnished corporate extended-stay units). Completed in October, 2010. 42 floors, 549 parking spaces. The majority of the units are studios, convertibles or one bedroom units. The staff indicated they are 98% occupied. The sales manager quoted a 554 sf studio unit at $1,668, for occupancy in September ($3.01).

3 215 West Washington

Mid-Block, south side of Washington Street, between Wells Franklin Street. (One block south, one half block west from Randolph Tower)

389 Units, 50 floors, 600 parking spaces Opened in 2010. 93.8% occupied 18% Studios, 18% Convertibles (662 sf with alcove) Typical floor has: 18% 2 Bedroom, 18% 1 bedroom/Den, 28% 1 Bedroom. $2.97 average rent per CBRE. LOCATIONAL INFORMATION & MAPS

4 EnV Chicago

SE corner of Wells and Kinzie – adjacent to the Merchandise Mart (Three blocks plus the River north of Randolph Tower)

249 units, 28 floors, 213 parking spaces Opened in 2010. 95.2% occupied Typical floor has: 17% studios, 50% 1 Bedroom, 8% 1 Bedroom/Den, 25% 2 Bedroom $3.01 average rent per CBRE.

5 111 West Wacker Apartments

SW corner of Clark Street and Wacker Drive. (One block west and two blocks north of 32 West Randolph)

504 units, 59 stories, 439 parking spaces. A revision of the Waterview condominium/hotel building begun on the site in early 2006 by Related Midwest. Completion is anticipated for 2014. The building is to include a mix of studio, convertible, one bedroom, one bedroom with den, two bedroom, three bedroom and penthouse units.

6 Century Tower Condominiums

NE Corner of Wells and Lake Streets (One block north of Randolph Tower)

293 Units - 1930 Office Building, converted in 2006 Variety of sizes. Sales prices generally from $100,000 to $300,000; $137/sf - $190/sf. LOCATIONAL INFORMATION & MAPS

7 212 West Washington Condominiums

Mid-block on the north side of West Washington Street, between Wells and Franklin. (One block south and one half-block west of Randolph Tower – across the street from 215 West Washington)

183 units. Converted from office to condominium in 1999. Very attractive millwork lobby. Building built in 1910. Approximately 5% Studios, 45% One Bedrooms, 45% Two Bedrooms, 5% Three Bedrooms. The Manager confirms there are only two units on the market – an 823 sf One Bedroom is listed for $250,000 - $303/sf, and a 1,120 sf Two Bedroom listed for $299,000 - $267/sf.

8 City Centre Condominiums – 208 West Washington

Mid-block on the north side of West Washington Street, between Wells and Franklin. (One block south and one half-block west of Randolph Tower – immediately adjacent to the east of 212 West Washington, and across the street from 215 West Washington)

214 Units. Converted from office to Condominium in 2001. 45% One Bedroom, 45% Tow Bedroom. 10% Penthouse. There appear to be three Units on the market – 1,165 sf Two Bedroom at $285,000 - $244/sf; 1,080 sf Two Bedroom at $299,000 - $277/sf; 910 sf One Bedroom at $175,000 -$192/sf.

9 73 East Lake Street Apartments

North side of Lake Street, one half-block east of Wabash Avenue (former Enterprise Rental Car garage site) (One block north and two Block east of 32 West Randolph)

332 Units. Delivery stated as Spring 2014. 42 floors, 183 parking spaces. Contemporary design. 36% Studios, 28% One Bedroom, 36% Two Bedroom. No stated rents yet. Developer is RMK, who built the Parc- Huron in west River North. LOCATIONAL INFORMATION & MAPS

10 Joffrey Tower Condos

NE corner of State Street and Randolph Street, across the Street from Macy’s (One half-block from 32 West Randolph)

184 units. 32 stories. Completed in 2008. Striking modern design. Houses the home of the Joffrey Ballet – offices and practice studios. One and two bedroom units. There seem to be few units on the market: a Two Bedroom of 1,460 sf is listed at $469,000 - $321/sf; a 850 sf One Bedroom is listed at $250,000 - $294/sf.

11 200 North Dearborn Condos

NW corner of Dearborn and Lake Streets (One half-block east and one block north of 32 West Randolph)

310 Units. 47 Stories. Conversion from rental began in 2008. 7 Studios, 32 Convertibles, 193 One Bedrooms, 77 Two Bedrooms, One Penthouse. Only three remain – a 1,165 sf Two Bedroom listed at $515,000 -$442/sf; a 1,535 sf Three Bedroom at $485,000 - $316/sf (used to be the shop & back-of-house space); and an unfinished Penthouse of 2,875 sf at $1,300,000 - $452/sf.

12 Park Millennium Condos

South side of Randolph Street (2 blocks east of 32 West Randolph)

480 units. 57 stories, 500 parking spaces. Completed in 2002 as a rental, converted to condos in 2005. Mix of units, from studios to penthouses. Example units for sale: 1,120 sf Two Bedroom at $395,000 - $352/sf; 1,850 sf Three Bedroom at $829,000 - $448/sf; 835 sf One Bedroom at $300,000 - $359/sf. LOCATIONAL INFORMATION & MAPS

Recreation / Entertainment / Restaurants

Shown here are the many restaurants and bars in close proximity to 32 West Randolph. There are popular lunch locations for Loop workers, and for evening and weekend dining.

The area includes large, very popular bars with good food, like Moe’s Cantina, John Barleycorn, Rockit, Public House, and Bull & Bear; great innovative, upscale dining venues like Epic, Mercadito, NAHA, Frontera Grill, Piccolo Sogno Due; upscale club-style places like the Paris Club and Gilt Bar; more traditional good restaurants like Keefer’s, Chicago Cut Steakhouse, Fulton’s, and Shaw’s. This is one of the key areas for the young market in Chicago, and for all ages for fun, innovative and fashionable dining and nightlife.

LOCATIONAL INFORMATION & MAPS

Comparables LOCATIONAL INFORMATION & MAPS

Comparables SECTION 3

CHICAGO OVERVIEW & MARKET UPDATE

CHICAGO MARKET OVERVIEW

Chicago Market Overview 51 CHICAGO

Chicago is the third-largest metropolitan area in the United Premier Global Business Center States and the primary commercial services center in A global city can be defined as one that manages the global the Midwest. Twenty-eight Fortune 500 companies are economy and influences its direction. It is a place where based in the Chicagoland area, and according to World business is conducted, great art can be seen, wonderful Business Chicago, 96 major publicly traded companies orchestras can be heard, latest styles are embraced and have headquarters in Chicago. the best cuisine can be consumed.

The City maintains an outstanding transportation and According to A.T. Kearney, The Chicago Council on Global distribution system that allows corporations and other Affairs and Foreign Policy magazine, the Global Cities Index organizations to do business effectively on a global, 2010, which includes business activity, human capital, national, state and local level. It is served by an extensive information exchange, cultural experience and political highway system, four major commuter rail stations and engagement, has ranked Chicago as sixth in the world. one of the Nation’s most elaborate and convenient rapid- Additionally, the city has been cited as #1 in Top Foreign transit systems. Direct Investment Strategy among major cities around the world. Of the U.S. cities considered to be the prime With its diversified business platform, the City of Chicago office investment markets - Boston, Chicago, New York, has begun to recover quickly from the recent economic Washington D.C., San Francisco, and Los Angeles. downturn faster than most cities.

52 ALTA AT K STATION Population With a population of more than 9.6 million people, the Chicago metropolitan area is the third most populous in the United States. In the past twenty years, the metropolitan area has grown by more than 1.6 million people.

Current and historical population figures for the fourteen counties comprising the Chicago MSA are summarized in the following table:

CHICAGO AREA POPULATION STATISTICS

5,239,879 5,296,700 COOK 5,376,741 COOK COUNTY COOK COUNTY (CHICAGO) 5,105,067 COUNTY (CHICAGO) (CHICAGO) COOK COUNTY (CHICAGO)

4,592,204 4,331,084 REMAINING 13 REMAINING 13 COUNTIES 3,701,649 COUNTIES REMAINING 13 3,062,658 COUNTIES REMAINING 13 COUNTIES

1990 CENSUS 2000 CENSUS 2010 CENSUS 2015 ESTIMATE 8,167,725 9,078,390 9,627,784 9,832,083 TOTAL TOTAL TOTAL TOTAL

Source: CBRE Fast Report

Global Gateway Airports Currently, Chicago’s metropolitan area has the 4th largest Chicago is home to O’Hare International Airport, which Gross Domestic Product (GDP) of all metropolitan areas in is the second busiest airport in the world, and is a major the world. Chicago is the hub of the Midwestern United airport serving numerous domestic and international States. It is located along Lake Michigan. Approximately 17 destinations with 2,900 daily flights with direct and percent of the national population lives within 500 miles nonstop airline service to more than 220 cities worldwide. of Chicago, making the city the focal point of the Midwest Chicago is within a four hour flight, of all major North markets. American destinations. It is a non-stop global gateway to 60 international and 142 domestic business centers. It is a Chicago retains its status as a major hub for industry, major hub for United Airlines and American Airlines. telecommunications and infrastructure as well as one of the world’s top ten Global Financial Centers for business Chicago Midway International Airport serves primarily and finance. domestic destinations. It is a major hub for Southwest Airlines, as well as a focus city for AirTran Airways. It is The city has maintained this stature by remaining the considered the second airport in the Chicago metropolitan third largest and most significant transportation hub in the area. United States and top five in the world. Chicago provides local firms access to both national and international The O’Hare Modernization Program (OMP) will reconfigure markets and suppliers, as well as provides travelers with O’Hare International Airport’s intersecting runways into convenient traveling alternatives. a more modern, parallel layout. The $6.6 billion Program

Chicago Market Overview 53 will substantially reduce delays in all weather conditions and increase capacity at the airport, allowing O’Hare to meet the region’s aviation needs well into the future. O’Hare already generates 450,000 jobs and $38 billion in economic activity for the Chicago region and State of Illinois. A modernized O’Hare means the creation of 195,000 additional jobs and another $18 billion in annual economic activity.

Chicago is one of the few cities in the United States that provides rapid transit service to two major airports. From the downtown area the CTA’s Blue Line takes riders to O’Hare International Airport in about 40 minutes and the Orange Line takes customers to Chicago Midway International Airport in about 30 minutes from the Loop.

CTA/Metra The expansive network of Chicago’s public transportation system enables Chicago businesses access to attract the top-talented employees who would otherwise be encumbered by commute distance or time. Similarly, the public transportation system provides Chicago-area residents access to Chicago’s wide-ranging cultural and business opportunities. The largest commuter rail system in the United States, the Northeastern Illinois Regional Commuter Railroad Corporation, under its trademark Metra, operates eleven CTA commuter rail lines that serve 200+ stations across the The Chicago Transit Authority or “CTA” operates the second RTA’s six-county service area. In addition, being mainly a largest public transportation system – the elevated train commuter rail service, frequent service is generally only system (commonly referred to as the ‘EL’) - in the United provided during rush hours, although Metra is known for States (with the largest being New York’s Metropolitan its speed and reliability. The eleven lines connect into one Transportation Authority). It covers the City of Chicago of four different downtown stations: Union Pacific North, and the 40 surrounding suburbs. The CTA operates 24 West and Northwest arrive in the Ogilvie Transportation hours a day and, on an average weekday, 1.6 million rides Center (located two blocks from the subject); Milwaukee are taken on the CTA system. CTA trains provide about District North and West, North Central Service, Southwest 650,000 customer trips each day and serve 144 stations Service, Burlington Northern and Heritage Corridor in Chicago, Evanston, Skokie, Wilmette, Rosemont, Forest converge in Union Station (along with being the nexus of Park, Oak Park and Cicero. CTA has approximately 2,000 Amtrak); the Rock Island Line arrives in the LaSalle Street buses that operate over 152 routes and 2,273 route miles, Station; and the Metra Electric arrives in Millennium which provide about 1 million passenger trips a day and Station. serve more than 12,000 posted bus stops.

Roads and Interstate Highways Rail Chicago is a significant hub for the logistics industry Chicago has an extensive regional and national passenger through its main interstate roadways. The city has a system as well as an extraordinary freight rail transportation convergence of seven major interstate highways crossing network, where all six Class-One North American railroads through it. Commonly referred to as “expressways,” each can interchange traffic, making it one of the largest and roadway is typically known by their various given names most active rail hubs in the world. Additionally, regional rather than their Interstate numbers. The Ronald Reagan and national Amtrak trains connect via Union Station, the Memorial Tollway (I-88) and the Eisenhower Expressway fourth busiest Amtrak station. (I-290) are the main east-west routes, providing access to the Central Business District [CBD] to the east and the Quad Cities to the west.

54 ALTA AT K STATION Access to the south and southwestern suburban areas and The downtown road system is referred to as being a “grid ultimately the city of St. Louis is the Stevenson Expressway system” which continually rates Chicago as one of the top (I-55). Additional south access is available via the Dan ten most walkable cities in the nation. Ryan Expressway (I-90/I-94) which continues south and splits into the Chicago Skyway (I-90) and the Bishop Ford Freeway also known as the Calumet Expressway (I-94) and Waterways Interstate 57 (I-57). The city is linked to the Atlantic Ocean via the St. Lawrence Seaway and to the Gulf of Mexico via the Mississippi River, Communities to the north and northwest are accessed offering two ports capable of handling ocean-going ships via the Jane Addams Memorial Tollway (I-90), the Kennedy and barges. According to World Business Chicago, Chicago Expressway (I-90/I-94) and the Edens Expressway (I-94). is in the top five Container Ports in the World, handling over The Tri-State Tollway (I-294) and the Veterans Memorial 13 million TEU’s (Twenty-foot equivalent unit). Tollway (I-355) facilitate travel between the north and the south skirting the city congestion. Additionally, there are numerous other major U.S. Interstate highways crossing the state, including the historic Route 66. Its central location is the reason that Illinois carries the distinction of having the most primary (2-digit) Interstates pass through it among the 50 states.

Chicago Market Overview 55 Economic Overview The Chicago metropolitan area has a large and well- Moody’s Investor Services, Chicago is a key participant in diversified economic structure. Due to this economic every economic sector from risk management innovation diversification, the Chicago metropolitan area tends to to manufacturing to information technology to health experience fewer seasonal and cyclical peaks and valleys. services. According to World Business Chicago, Chicago has one of the world’s largest and most diversified economies, with Businesses in the Chicago area benefit greatly from a nearly 4.3 million employees and a gross regional product sizable and concentrated pool of specialized services. (GRP) of more than $480 billion. It is an efficient economic Prominent companies in advertising, management powerhouse that is home to more than 400 major corporate consulting, finance, human resources, accounting, law and headquarters, including 28 Fortune 500 Headquarters. logistics all serve to promote businesses in Chicago and Rated the #1 Large US Metro for Economic Diversity by around the world.

CHICAGO METRO AREA’S ECONOMIC INDICATORS

2006 2007 2008 2009 2010 2 011 2012 2013 2014

Gross Metro 339.3 345.2 331 336.8 336.8 347.7 367.1 382.9 389.6 Product(C$B)

Total Employment 3,843 3,873 3,845 3,645 3,753 3,584 3,684 3,781 3,861

Unemployment 4.5 4.9 6.2 10 10.4 9 8.8 7.4 5 Rate

Personal Income Growth 7.2 5.5 3.2 -3 2.4 3.2 5.1 6.2 5.9

Source: Precis Metro at Economy.com, 2010

Metropolitan Leading Employers Metropolitan Chicago is appealing to expanding companies, such as Pepsi, Wrigley and Motorola, who are utilizing the available office space to build new development and research centers. The following are the largest employers in Metropolitan Chicago:

NUMBER OF FULL TIME EMPLOYEES U.S. Government 49,573

Chicago Public Schools 40,883

City of Chicago 35,237 State of Illinois 25,700 Cook County 23,083 Wal-Mart Stores 21,329 Advocate Health Care 14,873 J.P. Morgan Chase & Co. 13,639 Walgreen Co. 13,122 Abbott Laboratories 13,000 United Continental Holdings 13,000 AT&T Inc. 12,200 Motorola Inc. 10,000 American Airlines 9,766 Allstate Corp. 8,100 Comcast Corp. 8,632 Jewel-Osco 8,000 Bank of America 7,800

56 ALTA AT K STATION Chicago is top-ranked for economic potential among major cities across the world, and in 2010, World Business Chicago identified more than 230 medium-sized new & expanding facilities announced, under development or completed in the metro area, representing a total of more than 14 million square feet and nearly $2 billion in economic development activity. Chicago (City) companies had 101 companies listed on Inc. Magazine’s List of the 5,000 Fastest Growing Companies for 2010 and 23 companies were listed on Crain’s List of the Fast 50 in 2010.

CHICAGO FORTUNE 500 COMPANIES SALES- WORLDWIDE EMPLOYEES- LOCATION ($ MIL) CHICAGO MSA Abbott Laboratories* Abbott Park $30,765 13,000

Allstate Corp., The* Northbrook $32,013 8,706

Anixter International Inc. Glenview $4,982 28 (HQ) Aon Corp.* Chicago $7,595 1,200 (HQ) Baxter International Inc.* Deerfield $12,562 1,500 (HQ) Boeing Company, The* Chicago $68,281 400 (HQ) Discover Financial Services Riverwoods $7,986 2,500 (HQ) Exelon Corp.* Chicago $17,318 6,435 Fortune Brands, Inc. Deerfield $6,695 95 (HQ) Illinois Tool Works Inc.* Glenview $13,877 250 (HQ) Integrys Energy Group, Inc. Chicago $7,500 900 (HQ) Kraft Foods Inc.* Northfield $40,386 1,300 (HQ) McDonald’s Corp.* Oak Brook $22,745 2,200 (HQ) Motorola, Inc. Schaumburg $22,044 10,300 Navistar International Corp. Warrenville $11,569 1,400 (HQ) NiSource Inc. Merrillville $6,649 700 (HQ) Northern Trust Corp.* Chicago $4,193 1,234 OfficeMax Incorporated Naperville $7,212 1,500 (HQ) R.R. Donnelley Chicago $9,857 1,000 Sara Lee Corp. Downers Grove $12,881 280 (HQ) Sears Holdings Corp. Hoffman Estates $44,043 4,800 (HQ) Smurfit-Stone Container Corp. Chicago $5,574 400 (HQ) Telephone and Data Systems Chicago $5,021 35 (HQ) Tenneco Inc. Lake Forest $4,649 135 (HQ) UAL Corp. Chicago $16,335 13,000 United Stationers Inc. Deerfield $4,710 800 (HQ) W.W. Grainger, Inc. Lake Forest $6,222 1,200 (HQ) Walgreen Co.* Deerfield $63,335 13,281

*Also a FT Global 500 company (HQ) Headquarters employment Source: Fortune, May 3, 2010, Hoover’s, Inc., Crain’s Chicago Business, MNI

Chicago Market Overview 57 Trade and Commerce Hotels Chicago is also home to four major exchanges (Chicago Chicago’s hospitality industry is one of the largest and most Mercantile Exchange, Chicago Board Options Exchange, competitively priced markets for major business centers Mid-America Commodity Exchange and Midwest Stock in the country. The City’s CBD alone offers more than Exchange) representing over 80% of the world’s trade in 35,000 rooms, and more than 100,000 rooms are located commodities. The Chicago Board of Trade and Mercantile throughout the metropolitan area. Several luxury hotels are Exchange merged companies in July 2007, creating the located within proximate distance of the CBD, including 5 largest derivatives market ever. five-star hotels and more than 18 four-star hotels. While more upscale offerings are certainly available, a large The Chicago Board of Trade is a leading futures/options inventory exists of hotel offerings from boutique venues exchange with more than 3,600 members trading over and limited services hotels to ones that are designed for 50 different products. The Chicago Mercantile Exchange budget travel. is the largest futures exchange in the United States, and operates the largest futures clearing house in the world, The City’s hotels are constantly upgrading their while the CBOE is the world’s largest options market. The accommodations to stay on top of traveling needs. The Chicago Stock Exchange provides for the trading of over City’s popularity as a convention destination is due in 3,500 NYSE, AMEX, NASDAQ and CHX-exclusive issues. part to the high quality and accessibility of its hospitality industry. More than 20,000 rooms are located within three miles of McCormick Place and more than 17,000 are Conventions and Tourism located within one mile of Navy Pier. Many hotels offer Chicago’s many cultural and entertainment attractions shuttle and bus systems that provide easy access to these draw over 45 million visitors per year. Due to Chicago’s and other popular locations. central location, it attracts more than nine million attendees and exhibitors to over 30,000 annual events Chicago is home to 4 Condé Nast Gold List 2011 Hotels, at some of the nation’s largest and best convention and plus Travel & Leisure’s 2010 pick for the #1 Large City Hotel trade show facilities, such as McCormick Place and Navy in North America. Additionally, Chicago is home to 4 of Pier. McCormick Place is Chicago’s premier convention the Top 10 Large City Hotels according to the U.S. Travel + location and now features four state-of-the-art buildings: Leisure: Trump International Hotel & Tower, The Peninsula, McCormick Place North, McCormick Place South, Lakeside Sutton Place Hotel and the Four Seasons Hotel. Center and The West Building. McCormick Place has 2.7 million square feet of exhibit halls and meeting rooms. CHICAGO’S LARGEST HOTELS AVERAGE NUMBER OF ROOM GUEST ROOMS RATE

Hyatt Regency Chicago 2,019 $189-$215

Palmer House Hilton 1,639 $129-$459

Hilton Chicago 1,544 $129-$459

Sheraton Chicago Hotel 1,209 $169-$259

Chicago Marriott Downtown 1,198 $169-$469

Source: Crain’s

58 ALTA AT K STATION Cost of Doing Business

Wage Rates According to KPMG’s 2010 Guide to Competitive by far the lowest wage rates. This means comparable work Alternatives, Chicago was ranked one of the most cost- achieved in the other markets will be done less expensively effective cities in the world for doing business - ahead of in Chicago. The cost-effectiveness of Chicago’s labor pool London, New York and Boston. is attractive to businesses looking to maximize their labor- to-revenue ratios, an important factor for businesses and PricewaterhouseCoopers, in a recent study comparing other organizations to consider when opening or relocating “Cities of Opportunity,” measured average costs of living their operations, particularly in the current market cycle. and business occupancy against a city’s purchasing power. Chicago’s comparatively low wage rates undoubtedly Chicago proved to be among the better deals, scoring played a factor in the decisions of many corporations higher than a host of global cities including Paris, Tokyo, and other organizations that have recently moved their New York, Shanghai, London and Singapore. operations to Chicago. Of the major markets for office investment, Chicago has

GLOBAL CITY RANKING CBD OFFICE OCCUPANCY COST

LOS ANGELES $28.80 Chicago New York #6 CHICAGO $33.89 #1 NEW YORK - DOWNTOWN $39.96 Los Angeles BOSTON $43.42 Washington # D.C. 7 WASHINGTON D.C. #13 $53.03 Boston #19 NEW YORK - MIDTOWN $66.59

Source: A.T. Kearney, The Chicago Council on Global Affairs and Foreign Policy magazine, the Global Cities Index 2010

Cost of Living COST OF LIVING In addition to being a more cost-efficient market in wage U.S. AVERAGE 100.0 rates and occupancy costs, Chicago also maintains a lower cost of living when compared to the other major investment NEW YORK MANHATTAN 217.2 markets. Grocery items, housing and other miscellaneous goods and services are all less expensive in Chicago than SAN FRANCISCO 162.9 they are in the other leading cities including New York, San Francisco, Los Angeles, Washington, D.C., Boston and LOS ANGELES 141.6 Philadelphia. The following chart is issued quarterly by the WASHINGTON, D.C. 138.6 Council for Community and Economic Research and tracks six major expense categories. BOSTON 130.9

PHILADELPHIA 123.9

CHICAGO 113.2

*Note: All figures are for the primary urbanized area within each MSA, not for entire MSA Source: ACCRA Cost of Living Index, 2009 Annual Average Source: Crain’s

Chicago Market Overview 59 Demographics Chicago has a higher proportion of its population in each age group under the age of 24 than the other selected metro areas. By 2013, Chicago, continuing its growth trend, is projected to have a higher percentage of its population in every age group below 35 years old than the other 5 metros. Similarly, Chicago’s median age is the youngest of all the selected metro areas - more than three years younger than that of San Francisco. Chicago’s comparatively younger population is a good sign for businesses and other organizations that will rely on the area as a major source of labor into the future. The area’s prime working aged residents (aged 21-64) is projected to increase by more than 113,000 people by 2013.

Academics and Education

Top universities attract top global talent as an educated • Chicago is rated, according to Sustain Lane Media, a workforce is a prime attractor for global businesses and leader in the promotion of sustainable practices as: usually a driver of affluence in all sectors. Five prestigious institutions anchor Chicago’s higher education community: • #1 City in Green Innovation • University of Chicago • Leader in Metro Transit Ridership, City Commuting,

• Northwestern University Water Supply and Solid Waste Diversion Advanced in Green Economy, Green (LEED) Building, Planning & • DePaul University Land Use and Knowledge Base & Communication

• Loyola University In an era where Western states are experiencing water • University of Illinois shortages, Chicago has the nation’s greatest water Among the leading institutions granting graduate & supply. In an era when hurricanes have devastated professional degrees in the Chicago area are two of the major cities and earthquakes rumble beneath others, top MBA programs in the world according to the Financial Chicago is relatively impervious to natural disasters. And Times / The Economist 2010 MBA Global Rankings: in an age of oil dependency, Chicago has high public Booth School of Business, University of Chicago (#12/#1) transportation ridership and is among the most innovative Kellogg School of Management, Northwestern University cities in adopting sustainable practices. Given the recent (#21/#16) heightened public awareness of environmental issues and the increasing importance of sustainable design in both business and government circles, Chicago’s receptiveness Sustainability to the adoption of sustainable practices suggests its Chicago’s position as a leader in sustainable business willingness to improve the health of its inhabitants and is underscored by former Mayor Richard M. Daley’s the environmental impact on its environment which are commitment to making Chicago the greenest city in viewed positively by people and organizations. America.

Chicago continuously ranks as one of the most sustainable Healthcare cities in the country, with more LEED registered and Chicago hospitals are credited with being among the certified buildings than any other city, 18 wind energy leading health care facilities in the country as well as some companies (and growing), a Top 5 Metro rating for the of the nation’s best teaching and children’s hospitals. Within number of Energy Star rated buildings, and an incomparable the Chicago metropolitan area, there are 106 hospitals workforce - including more than 2,600 LEED credentialed with over 24,700 beds. The Chicago healthcare market employees. has been drastically changing in the past few years due to hospital system acquisitions, mergers and partnerships. • Chicago is an ideal location for sustainable businesses In order to satisfy newly generated demand caused by an to locate and grow. expanding population, Chicago’s primary hospital systems are expanding considerably.

60 ALTA AT K STATION In Chicago there are nearing 500,000 people employed The City of Chicago also has pledged that in five years, at in healthcare & life science occupations with over 5,000 least 20% of the electricity it uses will be from renewable medical and dental residents (second only to New York sources. One of the items that the City implemented to City). There are 47 teaching hospitals and 6 medical reduce area temperatures, lower demand for electricity schools to offer the most cutting-edge medicine to Chicago and improve water run-off was the implementation of residents. rooftop gardens. City Hall now boasts the biggest roof top garden and the city as a whole has one of the largest quantity of green roofs in the nation. Culture and Recreation Chicago is a sophisticated, dynamic city that offers a THE MOST VISITED CITY PARKS (# OF VISITORS) quality of life unparalleled by any other major metropolis, # NEW YORK providing a true community with world class amenities for 1 Central Park 25 MILLION businesses and people. The city’s extraordinary character can be attributed to its people, its location/infrastructure, its # CHICAGO 2 Lincoln Park 20 MILLION collaborative business and government community, and an unprecedented array of cultural activities and destinations. # Mission Bay SAN DIEGO 16 MILLION Chicago may be the only city that is both global and middle- 3 Park class. Global in that it is one of the great cities of the world # SAN DIEGO with all the finer things life can offer. Middle-class in that 4 Balboa Park 14 MILLION people of varying means and tastes not only live, but thrive # Golden SAN FRAN. here with a real neighborhood for everybody. 5 Gate Park 13 MILLION

# CHICAGO “Urbus en Horto” which translates to “City in a Garden” 31 Millennium 20 MILLION is the Chicago Latin motto. This motto captures the natural Source: The Trust for Public Land beauty of the city and its abundant green spaces.

Civic Activities & Festivals Natural Terrain The wide-ranging, bustling festivals held throughout the • 68,000 acres of Forest Preserve Chicago Metro Area embody the City’s civic vitality. More than 400 neighborhood festivals are produced every year • 31 beaches in celebration of various local traditions, holidays and other

• 29 miles of lakefront, waterways cultural customs, many of which are free to attendees.

Parks & Playgrounds Music • 570 parks spanning 7600+ acres of parkland Chicago is the birth place of urban blues and house

• 534 baseball fields music. It is the home of one of the nation’s top symphony orchestras and the hometown of many famous musicians, • 518 playgrounds including: Muddy Waters, Buddy Guy, Sir George Solti, Sam Cooke, Bo Diddley, R. Kelly, Common, Smashing Nature Education & Gardens Pumpkins, Kanye West, Liz Phair and Fall Out Boy. • Adler Planetarium

• Brookfield Zoo

• Chicago Botanic Garden

• Garfield & Lincoln Park Conservatories

• Lincoln Park Zoo (2nd most visited city park in the country, attracting 20 million visitors annually)

• Millennium Park (25-acre park in the heart of downtown, attracting 4 million visitors annually)

• 90 gardens, including 50 community gardens

Chicago Market Overview 61 Literature With 79 libraries throughout the city, and hundreds more in the suburbs, all Chicagoans have ample access to public libraries. Additionally, the Harold Washington Library Center, located in the CBD, consists of 10 floors, and 70.85 miles of shelving, making it one of the largest public libraries in the world.

Theater The City of Chicago is home to over 200 theater companies, including the legendary Second City (Members include: John Belushi, Steve Carell, Bill Murray, Stephen Colbert, Dan Akroyd, Mike Myers, Chris Farley, Gilda Radner, Joan Rivers, Martin Short, John Candy), Steppenwolf (Members Professional Sports include: Gary Sinise, Joan Allen, John Malkovich), Chicago Chicago is one of the premier professional sporting cities Shakespeare Theater and Broadway in Chicago (which in the United States. It is one of few cities where major attracts an annual audience of nearly 2 million people). It professional sports teams in baseball (2 teams), basketball, is the only city with 4 Tony Award-winning regional theater football and hockey all play within the city limits. Chicago companies. Furthermore, the city is home to the Gene sports teams enjoy strong followings that are typically Siskel Film Center, the Chicago Symphony, Lyric Opera among the most numerous in their respective sports. and the Joffrey Ballet rounding out the full arts stage experience. CHICAGO’S PROFESSIONAL SPORTS TEAMS

TEAM VENUE ATTENDANCE Cubs Museums Wrigley Field 3,062,973 MLB Baseball There are over 35 museums in the city including the White Sox U.S. Cellular Field 2,194,378 renowned Art Institute, Museum of Science & Industry, MLB Baseball John G. Shedd Aquarium and Oceanarium and the Field Bulls United Center 849,760 Museum of Natural History — each attracting more than 1 NBA Basketball Blackhawks million visitors annually. United Center 854,267 NHL Hockey Bears Solider Field 497,561 NFL Football CHICAGO’S LARGEST TOURIST ATTRACTIONS Wolves Allstate Arena 318,514 AHL Hockey BUDGET Fire ATTENDANCE (IN MILLIONS) Toyota Park 247,793 MLS Soccer John G. Shedd 1,964,791 $46.90 Sky Aquarium Allstate Arena 4,292 WNBA Basketball Museum of Science and 1,605,020 $43.30 Industry Source: ESPN 2010, TheAHL.com, WomensBasketballOnline.Com Art Institute of 1,527,000 $194.50 Chicago Field Museum of Natural 1,325,007 $64.30 History Chicago Cultural 808,000 $17.30 Center

Source: Crain’s

ALTA AT K STATION

62 Giants27 Photo Credit: CHICAGO MARKET OVERVIEW UPDATE CHICAGO MARKET OVERVIEW UPDATE Downtown Chicago outperforms its suburbs, in a role reversal - In Other News - Crain's Chicago Business

Tuesday, August 6th, 2013 This Week’s Crain’s Crain’s Events Crain's Custom Media Subscribe to Crain’s Welcome Guest Login

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Home > This Week's Crain's > News > >Browse Crain's complete Topics Pages The hottest urban center in the U.S. — MARCH 04, 2013 Chicago's mega-Loop Past Weeks By Greg Hinz March 04, 2013

ADVERTISING 1K 1K 142 79 15

It's late afternoon on a winter News Focus Business of Life weekend and the Kerasotes ShowPlace Icon movie theaters in More from This Week's the South Loop are packed, never The hottest urban center in the U.S. — Chicago's mind that tickets go for as much mega-Loop as $17.50 a pop. The 14-screen From jobs to income, retail sales and population, the central area of Chicago is far outpacing the suburbs, complex is doing “very well,” says lifting the city as a whole above the metropolitan area. Tony Kerasotes, owner of Read Now Chicago-based Kerasotes ShowPlace Theatres LLC. With Groupon's toughest sell yet: CEO post more than 1 million admissions Will state budget problems force the income tax last year, in fact, “it's the best- increase to become permanent? grossing theater in the Midwest,” Which schools produce the most Peace Corps he claims. volunteers? Barely a decade ago, the site at Roosevelt Road and Clark Street was a forsaken railroad yard. Chicago's back-to-the-farm movement Today, it's part of a 1.3 million-square-foot complex of shops, restaurants and apartments. This is Look who's hiring again: Rust Belt manufacturers the new Chicago, a skyscraper-studded expanse that stretches well beyond the traditional Loop View All The Stories to cover 10 square miles roughly from Cermak Road to North Avenue and from the lakefront to Ashland Avenue. ADVERTISING This is the new economic engine of the metropolitan area and, increasingly, the rest of Illinois. And it has reached a critical mass, data suggest, enabling its growth to be self-perpetuating, as more jobs downtown attract more residents to move nearby, which, in turn, becomes a magnet for more employers to join the inward migration.

The Chicago Loop long has been one of the world's greatest job centers, of course. For much of its history, though, downtown emptied out after office hours. And as the city aged and its population declined, the suburbs rose to become the preferred home to generations of young families and the tollways became employment corridors of their own.

In recent years, those trends have reversed. After decades of watching the suburbs boom (often at the city's expense), Chicago now is outperforming the surrounding area by almost any measure—jobs, income, retail sales and residential property values, to name a few—despite the loss of 200,000 people in the 2010 census.

The city is so hot that this expanded downtown is adding residents faster than any other urban core in America, according to U.S. Census Bureau data.

“In the year 2020, no matter how many condos are built or sold, Chicago is likely to be a nest of center-city affluence unequaled in size—or even approached—by anyplace in America,” journalist Alan Ehrenhalt writes in “The Great Inversion and the Future of the American City.”

http://www.chicagobusiness.com/article/20130302/ISSUE01/303029987/the-hottest-urban-center-in-the-u-s-chicagos-mega-loop[8/6/2013 1:26:06 PM] Downtown Chicago outperforms its suburbs, in a role reversal - In Other News - Crain's Chicago Business

This isn't to claim that Chicago has it made. Beyond the glitz of the mega-Loop, the city has ominous problems, from a gang-fueled murder wave to the seemingly unending cycle of poverty, abysmal education, broken families and joblessness, particularly in minority neighborhoods on the South and West sides. Unpaid pension bills and hefty public payrolls could drive out business. The middle-class exodus to the suburbs could resume if Chicago schools don't improve before today's 20-somethings start having children.

Just as worrisome, the city center often looks good only because the region generally is doing so poorly, lagging many others in recovering from even the 2001 recession. The millstone now is older suburbs, with shrinking economic bases, aging populations and many of the social ills of long-struggling city wards.

If for decades after World War II we asked whether the area could prosper with rich suburbs but a dying inner city, the question now is whether the area can prosper with a thriving core but sinking neighborhoods and inner-ring suburbs around it. “We're creating this paradox of prosperity and despair at the same time,” says Joe Schwieterman, director of DePaul University's Chaddick Institute for Metropolitan Development.

INTERACTIVE: From taxes to building permits, take a closer look at the numbers

There's no question, however, that the mega-Loop is benefiting from a back-to-the-city movement that is reviving urban centers elsewhere in the U.S. In Chicago, the trend appears to be sustainable. “This is a pattern that has developed for the last 30 years, and it has only strengthened,” says Columbia University sociologist Saskia Sassen, author of “The Global City.”

What's occurring is “an inversion” of the post-World War II paradigm, and it's happening more in metropolitan Chicago than just about any other city in the country, says Mr. Ehrenhalt, who recently left the Washington-based Pew Center on the States to return to Governing magazine, where he was longtime editor. “The city is rearranging itself.”

For Mayor Rahm Emanuel, the rise of downtown Chicago presents a rare opportunity. “We're not just riding the wave—we're trying to accelerate ahead of it,” he says. He points to his emphasis on education, at Chicago Public Schools and City Colleges of Chicago, and to increased municipal investment in the South and West Loop. He also calls out every business relocation to the city, which since he became mayor almost two years ago comes to a promise of 25,000 jobs new to the city.

“For many years, the suburbs became the siren song, the place where everybody wanted to go,” says J. Paul Beitler, president of Chicago-based Beitler Real Estate Services LLC and a veteran commercial developer. Then the suburbs began to choke on their own traffic and city amenities blossomed. Now the young workforce “wants to be downtown,” he says. “The city of Chicago is becoming truly a 24/7 place like New York.”

FOLLOWING THE MONEY

The numbers are unequivocal, both on the fact that the metropolitan area has lagged national growth rates for at least a decade and that the city is thriving, relatively speaking, from State and Madison streets outward.

On sales tax receipts, for instance, Chicago consistently trailed suburban Cook County and the five collar counties, according to the Regional Transportation Authority, which imposes a sales tax for transit. But that changed early in the last decade. From 2001 to 2011, collections in the city

grew 19.3 percent, almost twice the 10.2 percent increase across the region, with the trend continuing into 2012.

Similar data on retail activity come from the Chicago Metropolitan Agency for Planning. Between 2000 and 2011 in the seven-county region, sales increased 19.7 percent in the city and 13.9 percent in the region. The figures were significantly higher in the exurban boom towns of the pre- recession 2000s, in Kendall and Will counties. But closer in, suburbs badly trailed the city, with retail sales inching up just 3.4 percent in suburban Cook and a miniscule 1.8 percent in DuPage County.

“We're much more similar to suburban Cook County now than the collar counties,” DuPage County Board Chairman Dan Cronin says in an acknowledgment of how the economic momentum has shifted. (See “DuPage at middle age.”)

Some of the city's gain undoubtedly is due to the change in the retail landscape. Target Corp. had no locations in Chicago until 1994, while Wal-Mart Stores Inc. didn't open its first big box in the city until 2006. Discount shoppers had little choice but to drive to the suburbs for bargains. Today Wal-Mart has eight city stores and Target soon will open its 13th. With each Target grossing an estimated average of $40 million in annual sales, that's more than $500 million in city spending that might have gone elsewhere.

But there's more to it than that. Overall, Chicago residents have more money to spend than they used to. Census data analyzed by World Business Chicago indicate that the city, especially the central area, is gaining upper-end households and losing poor households faster than the suburbs. The number of households with annual income of more than $200,000 grew 81.8 percent in the region between 1999 and 2011. But that number rose 94.6 percent across the city and 113.1 percent in the central district.

POPULATION BOOM

The number of people living downtown is soaring, too. According to Richard Greene, a Northern Illinois University geographer and urban researcher, Chicago's central population leaped 114 percent from 1990 to 2010, hitting 141,511. If it were counted separately, the greater Loop would be the sixth-largest municipality in the state, with just a few thousand fewer people than Joliet and Naperville.

In fact, the Census Bureau reported in 2012 that Chicago gained more people within two miles of City Hall—48,288, or 36.2 percent—than any other American city, including New York, in the previous decade, in both absolute and percentage terms. An outsize share of these newcomers are young, ages 25 to 34. By the city's estimate, 38,000 full-time college students attend classes in the greater Loop.

DePaul University awarded more master's degrees in computing and information sciences at its Loop campus—442 last year—than all but three schools in the U.S. “We've been showing strong demand here,” with students drawn by the proximity to big employers that need information- technology help, says David Miller, dean of DePaul's College of Computing and Digital Media.

Becky Carroll, 41, a former Barack Obama campaign staffer, and her husband, Jon Friend, 33, moved to the West Loop in 2007. She's communications chief at Chicago Public Schools and he's chief technology officer for the city clerk; both had lived in outlying neighborhoods before.

“It's more convenient,” Ms. Carroll says, especially since creature comforts like restaurants and full-line grocery stores have arrived. ”Taking taxi cabs all the time was more than my wallet could handle. Moving downtown made economic sense.”

The central business district also stands out when it comes to job growth. According to employer- provided information tallied by the Illinois Department of Employment Security, private-sector employment slid 1.3 percent in Chicago from 1993 to 2012, while it rose 8 percent in the six- county region. Downtown outdid that overall figure, however, with payrolls up 13.2 percent.

Even more significant is the value of those jobs. Bill Testa, director of regional programs and a vice president at the Federal Reserve Bank of Chicago, has computed both the number of jobs and what they pay to chart total annual earnings by location. Between 1994 and 2008, adjusted for inflation, gross payroll in the central area grew 71.4 percent, according to Mr. Testa, well

above the national increase of 41.95 percent.

That means the area in 2008 produced roughly 70 cents of every dollar earned in all of Chicago. It also means that the workers in the city center produced 148 percent of the total earnings of all of DuPage County, up from 124 percent in 1994.

Since the recession hit in late 2007, the Loop gave up some of its lead, Mr. Testa says. But it appears to have regained all of the 3.8 percent of jobs it lost during the downturn, and that's even before the recently announced downtown moves of such big companies as Google Inc.'s Motorola Mobility subsidiary, United Continental Holdings Inc. and Hillshire Brands Co. By comparison, DuPage lost 12.3 percent of its jobs in the recession, according to Mr. Testa.

“Recruiting went up immensely” after Motorola Mobility said it would leave its corporate campus in Libertyville for space in the Merchandise Mart, says Jim Wicks, who oversees the company's design teams. ”In Libertyville, you don't feel you're in the social mix.”

Other tech-sector employers say that to attract talent, they need to cluster within that two-mile radius of City Hall, too. “Seventy-five percent of our employees walk, bike or take public transportation to work,” says Logan LaHive, CEO of Belly Inc., a digital customer-loyalty and rewards firm that announced last month that it's adding 150 jobs in what once was a desolate stretch near the Cabrini-Green housing project. “It really comes down to where talent is looking to be.”

Then there's Groupon Inc. The daily-deal pioneer launched with five employees in 2009. Today it has 2,300-plus at its riverfront headquarters (in the same converted, century-old warehouse that's home to Belly on the Near North Side) and in leased space in Illinois Center.

Another measure of Chicago's changing fortune is property values. Though real estate data often are more subjective, the value of all real estate subject to property taxes grew 24.8 percent in the past decade in the city, five times more than the 5.6 percent increase in suburban Cook County, according to the Civic Federation, a nonpartisan research center in Chicago.

Figures on mass transit ridership affirm the other data. Ridership on the Chicago Transit Authority's Brown Line, which snakes through yuppie neighborhoods on the North Side and stops near Groupon's headquarters and at Motorola Mobility's new home in the Mart, has tripled since 1970 and doubled since 1994.

STANDING ON BIG SHOULDERS

Some researchers argue that America's reverse diaspora away from the suburbs is exaggerated and that fringe areas such as Will County will outgrow the city center once the housing market stabilizes. They point to a collapse of Chicago's condominium market in the recession as a sign that the greater Loop is a house of cards.

But high-rise construction continues. Instead of condos, though, developers are building apartments. More than 5,200 new residential units are under development in the central area.

Tracy Cross, president of a namesake housing consultancy in Schaumburg, expects the city's share of new residential construction to hold at 35 to 40 percent of the metro area's total for the foreseeable future. That's less than the 45 percent of a few years ago but way ahead of 20 percent or less in the 1980s and "90s, when the suburbs boomed. “The city becomes the dominant place for (new) construction,” he says.

The city's advantage often comes down to lifestyle. Like young adults, empty-nesters are moving downtown for the cultural and entertainment options that suburbs lack. In addition, Chicago is a

changed place: The housing projects that ringed greater downtown are mostly gone. So are most of the factories. Today trees, shrubbery and flowers grace boulevards. Bike lanes share city streets. Millennium Park dazzles.

'KEPT SELLING'

Joel Carlins is founder of Magellan Development Group LLC, which since 2004 has opened 3,600 residential units in the giant Lakeshore East development just east of Michigan Avenue at the north end of Grant Park. He plans 2,300 more. Even in the height of the recession, Chicago- based Magellan kept building. “We kept selling,” he explains, with most of the buyers in one tower paying in cash, even though units sold for an average of $715,000. “Who wants to drive two miles to get a gallon of milk?”

The center is expanding outward, too, as development moves north, west and south. “This has become a self-sustaining process,” Chicago Plan Commissioner Andrew Mooney says. “Chicago has become an attractor of talent, and that talent attracts jobs, which means there's a larger job base that attracts more talent.”

Still, there are reasons to worry that even a vibrant hub won't be enough to sustain metropolitan Chicago. The region's edge cities never developed the amenities needed to keep a new generation of talented young adults living there, and those young adults now are moving, some to Chicago and some to other states, Mr. Cross says. Left behind are suburbs and their aging populations, with minority residents with smaller incomes increasingly moving in.

The Federal Reserve's Mr. Testa counters that the departure of lower-income minorities for the suburbs is a good thing—Chicago lost 200,000 African-Americans between 2000 and 2010. For one, it means they're no longer as trapped by racial barriers. Also, it often reduces their commuting time to jobs that have shifted to the suburbs. “African-Americans migrated in the same way that prior immigrant groups did,” he says, “along the same byways.”

Unless the region's overall growth picks up, though, northeastern Illinois risks becoming a land of a prosperous center, growing exurbs (where land is cheap) and a troubled inner ring, says Randy Blankenhorn, executive director of the Chicago Metropolitan Agency for Planning. It could turn into a sort of Paris on the prairie.

To make sure Chicago's oldest suburbs and outer neighborhoods aren't left behind, public officials and urban planners urge infrastructure projects that would reduce traffic congestion, making it easier for commuters to get to and from work. DePaul's Mr. Schwieterman says the suburbs need better commuter-train access to the Loop and points to Berwyn as a close-in suburb that has rebranded itself for a new generation.

Frank Beale, executive director of Metropolis Strategies, an advocate for regional government in Chicago, worries that on their own, suburbs will be overwhelmed. The city is so large that even poor areas get police and fire protection, paid for by wealthier wards. “But what if you live in a small (poor) suburb?” he says. “You can't afford a police or fire department.”

Within the city, the debate rages over whether tax-increment financing and other municipal subsidies should continue to go largely to downtown developments or be shifted to neighborhoods more in need of an economic boost. “The easiest, the smartest thing to do is to keep and maintain what you have,” the plan commission's Mr. Mooney says.

The Emanuel administration also needs to halt violent crime, which traps residents of many neighborhoods in their homes and threatens to make center-city denizens doubt their safety, too. In addition, it must find a way to meet the city's pension obligations without scaring off businesses and residents with tax hikes.

Ultimately, though, a new paradigm is being written. “Where people live is the most important driver” of economic development, Mr. Testa says. “Companies are following the talent.” And right now, for the good of Chicago, if not always the entire region, that leads downtown.

Read more from Greg Hinz on his blog.

From this week's In Other News

http://www.chicagobusiness.com/article/20130302/ISSUE01/303029987/the-hottest-urban-center-in-the-u-s-chicagos-mega-loop[8/6/2013 1:26:06 PM] SECTION 4

PROPOSED AMENITIES

Unit Amenities Building Amenities

• Faux Wood Floor in Living Room, • 4 Pipe System HVAC Dining Room and Kitchen • Swimming Pool/Spa • Bath Ceramic Tile • Club/Game Room • Burberry Carpet Bedrooms • Café – Party Room/Business Center • Pantry Closet • Yoga, Pilates, Aerobics Room or • Linen Closet Area

• Wine Rack Over Refrigerator • State of the Art Complete Fitness Center with Boxing and Spinning • Stainless Steel Back Splash/or Tile • Poker/Wine Tasting/Conference • Washer/Dryer Room

• Moveable Island, Granite Top • Outdoor Roof Garden

• Bowed Shower Rod • Barbeque Area

• Adjustable Rain, Low Flow, • Pool, Pool Pavilion with Appliance Showerhead Bar, etc.

• Slide by Translucent • Movie Theatre Bedroom/Sleeping Alcove Doors • Indoor Park/Dog Park /With Running • Fireplaces in Selected Units Track

• High Ceilings • Pet Grooming Room

• USB Outlet in Each Unit • Demonstration Kitchen

• Pre‐wire for Surround • Wi‐Fi in all Common Areas

• Indoor Basketball Court SECTION 5

PROFORMA

32 W Randolph A 220-Unit Apartment Development Project Pro Forma and Estimated Capitalization

ESTIMATED CAPITALIZATION

DEVELOPMENT COSTS Total Per Unit Per SF

Land $13,495,000 61,341 $76.68 Construction Hard Costs 40,203,106 182,741 $228.44 Other Development Costs 17,281,668 78,553 98.20 Total Development Costs $70,979,774 $322,635 $403.32

CAPITALIZATION Total Per Unit Per SF

1st Mortgage $40,592,918 184,513 $230.65 Bridge Loan (tax credits) $9,567,874 43,490 $54.37 2nd Mortgage $0 0 $0.00 Deferred Development Fee $7,048,072 32,037 $40.05 Upfront Tax Credits $2,391,969 10,873 $13.59 Equity 11,378,941 51,722 $64.66 Total Sources $70,979,774 $322,635 $403.32

PRO FORMA - CURRENT

OPERATING RETURNS Total Per Unit/Month Per SF/Month

Gross Potential Rent $6,075,780 2,301 $2.88 Unit Premiums 54,000 20 0.03 Property Premiums 18,000 7 0.01 Other Income 108,240 41 0.05 Potential Income $6,256,020 $2,370 $2.96

Loss to Lease 0 0 0.00 Vacancy (312,801) (118) (0.15) Total Income $5,943,219 $2,251 $2.81

Operating Expenses 2,247,907 851 1.06 Reserves 44,000 17 0.02 Net Operating Income $3,651,312 $1,383 $1.73

Return on Fully Loaded Costs 5.1% Return on True Costs 7.0% (TDC less Def Dev Fee + tax credits)

PRO FORMA - STABILIZED

OPERATING RETURNS Total Per Unit/Month Per SF/Month

Gross Potential Rent $6,347,385 2,404 $3.01 Unit Premiums $54,000 20 0.03 Property Premiums 18,000 7 0.01 Other Income 108,240 41 0.05 Potential Income $6,527,625 $2,473 $3.09

Loss to Lease (81,973) (31) (0.04) Vacancy (326,381) (124) (0.15) Total Income $6,119,270 $2,318 $2.90

Operating Expenses 2,348,160 889 1.11 Reserves 44,000 17 0.02 Net Operating Income $3,727,111 $1,412 $1.76

Return on Fully Loaded Costs 5.3% Return on True Costs 7.2% (TDC less Def Dev Fee + tax credits)

Pro Forma Summary 8/22/2013 32 W Randolph Financial Summary 08-22-13 Page 1 of 8 12:06 PM 32 W Randolph A 220-Unit Apartment Development Project Tax Credit Calculation / Development Budget

IN OUT

Land $13,495,000 0% 100% $0

Construction Hard Costs 40,203,106 100% 0% $40,203,106

Construction Soft Costs 831,594 100% 0% $831,594

Architectural / Engineering 1,780,000 100% 0% $1,780,000

Furniture, Fixtures & Equipment 875,000 0% 100% $0

Marketing Costs 400,000 0% 100% $0

Legal & Organizational 320,000 50% 50% $160,000

Property Taxes During Construction 520,000 60% 40% $312,000

Developer Fee 2,012,378 100% 0% $2,012,378

Deferred Developer Fee 7,048,072 100% 0% $7,048,072

Development Contingency 1,376,221 60% 40% $825,733

Points on Construction Loan 307,188 60% 40% $184,313

Construction Loan Closing Costs 400,000 60% 40% $240,000

Other Development Costs 135,000 0% 100% $0

Interest During Construction 876,215 60% 40% $525,729

Interest Reserve 400,000 60% 40% 240,000

Total Development Costs $70,979,774 $54,362,924

Capital Stack

Construction Loan 40,592,918 Deferred Development Fee 7,048,072 Tax Credits Up Front 2,391,969 Bridge /Mezz Loan 9,567,875 Equity 11,959,843 Bridge Equity - Permanent 11,378,941 11,378,941 70,979,774

Credit Basis 54,362,924 Credit Rate 20% Tax Credits 10,872,585 Purchase Price 110% Credit Sale Price 11,959,843

Credit Sale Proceeds Closing (20%) 2,391,969 C.O. (70%) 8,371,890 Part III (10%) 1,195,984 Deferred Credit Proceeds 9,567,875 11,959,843

Deferred Credit Sale Proceeds 9,567,875 Bridge / Mezz Loan Rate 100% Bridge Loan Proceeds 9,567,875

Tax Credits 8/22/2013 32 W Randolph Financial Summary 08-22-13 Page 2 of 8 12:06 PM 32 W Randolph Current Operating Pro Forma

Income # units sq. ft. $ rent / month / year / unit / year / SF

Gross Potential Rent S1 23 538 $1,550 $35,650 $427,800 $18,600 $2.88 Convertible 22 659 $1,850 $40,700 $488,400 $22,200 $2.81 1 Bed / 1 Bath (A1) 137 794 $2,325 $318,525 $3,822,300 $27,900 $2.93 1 Bed / 1 Bath (A2) 6 940 $2,650 $15,900 $190,800 $31,800 $2.82 1 Bed / 1 Bath (A3) 22 992 $2,795 $61,490 $737,880 $33,540 $2.82 2 Bed / 2 Bath (C1) 4 1,136 $3,075 $12,300 $147,600 $36,900 $2.71 2 Bed / 2 Bath (C2) 4 1,331 $3,475 $13,900 $166,800 $41,700 $2.61 2 Bed / 2 Bath (C3) 2 1,504 $3,925 $7,850 $94,200 $47,100 $2.61 0 0 $0 $0 $0 $0 $0.00 0 0 $0 $0 $0 $0 $0.00 0 0 $0 $0 $0 $0 $0.00 0 0 $0 $0 $0 $0 $0.00

Totals / Averages 220 $506,315 $6,075,780 $27,617 $2.88

Unit Premiums Loft & Vaulted Ceiling 40 $113 4,500 $54,000 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 Total / Averages $4,500 $54,000 $245 $0.03

Property Premiums Storage Units 30 $50 1,500 $18,000 0 $0 0 $0 0 $0 0 $0 Total / Averages $1,500 $18,000 $82 $0.01

Other Income Other Income 220 $41 9,020 $108,240 $492 $0.05 0 $0 0 $0 $0 $0.00 Total / Averages $108,240 $492 $0.05

Potential Income $6,256,020 $28,436 $2.96

Loss to Lease $0 $0 $0.00 Vacancy ($312,801) ($1,421.82) ($0.15) Total Income $5,943,219 $27,015 $2.81

Operating Expenses Management Fee (3% of collections) $175,948 $800 $0.08 Payroll $654,810 $2,976 $0.31 General & Administrative $71,175 $324 $0.03 Marketing $217,029 $986 $0.10 Utilities $213,525 $971 $0.10 Turnover / Make-Ready $66,795 $304 $0.03 Repair & Maintenance $104,025 $473 $0.05 Nonroutine Maintenance $10,950 $50 $0.01 Grounds / Snow Removal $27,375 $124 $0.01 Taxes $558,450 $2,538 $0.26 Insurance $147,825 $672 $0.07 Association Dues $0 $0 $0.00 Replacment Reserves $44,000 $200 $0.02 Miscellaneous $0 $0 $0.00 Total Operating Expenses $2,291,907 $10,418 $1.09

NET OPERATING INCOME $3,651,312 $16,597 $1.73

Current proforma 8/22/2013 32 W Randolph Financial Summary 08-22-13 Page 3 of 8 12:06 PM 32 W Randolph Stabilized Operating Pro Forma 08/01/2015 - 07/31/2016

Income # units sq. ft. $ rent / month / year / unit / year / SF

Gross Potential Rent S1 23 538 $1,619 $37,244 $446,924 $19,431 $3.01 Convertible 22 659 $1,933 $42,519 $510,233 $23,192 $2.93 1 Bed / 1 Bath (A1) 137 794 $2,429 $332,764 $3,993,168 $29,147 $3.06 1 Bed / 1 Bath (A2) 6 940 $2,768 $16,611 $199,329 $33,222 $2.95 1 Bed / 1 Bath (A3) 22 992 $2,920 $64,239 $770,865 $35,039 $2.94 2 Bed / 2 Bath (C1) 4 1,136 $3,212 $12,850 $154,198 $38,550 $2.83 2 Bed / 2 Bath (C2) 4 1,331 $3,630 $14,521 $174,256 $43,564 $2.73 2 Bed / 2 Bath (C3) 2 1,504 $4,100 $8,201 $98,411 $49,206 $2.73 0 0 $0 $0 $0 $0 $0.00 0 0 $0 $0 $0 $0 $0.00 0 0 $0 $0 $0 $0 $0.00 0 0 $0 $0 $0 $0 $0.00

Totals / Averages 220 $528,949 $6,347,385 $28,852 $3.01

Unit Premiums Loft & Vaulted Ceiling 40 $113 4,500 $54,000 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 Total / Averages $4,500 $54,000 $245 $0.03

Property Premiums Storage Units 30 $50 1,500 $18,000 0 $0 0 $0 0 $0 0 $0 Total / Averages $1,500 $18,000 $82 $0.01

Other Income Other Income 220 $41 9,020 $108,240 $492 $0.05 0 $0 0 $0 $0 $0.00 Total / Averages $108,240 $492 $0.05

Potential Income $6,527,625 $29,671 $3.09

Loss to Lease ($81,973) ($373) ($0.04) Vacancy ($326,381) ($1,484) ($0.15) Total Income $6,119,270 $27,815 $2.90

Operating Expenses Management Fee (3% of collections) $183,578 $834 $0.09 Payroll $684,082 $3,109 $0.32 General & Administrative $74,357 $338 $0.04 Marketing $226,731 $1,031 $0.11 Utilities $223,070 $1,014 $0.11 Turnover / Make-Ready $69,781 $317 $0.03 Repair & Maintenance $108,675 $494 $0.05 Nonroutine Maintenance $11,439 $52 $0.01 Grounds / Snow Removal $28,599 $130 $0.01 Taxes $583,414 $2,652 $0.28 Insurance $154,433 $702 $0.07 Association Dues $0 $0 $0.00 Replacment Reserves $44,000 $200 $0.02 Miscellaneous $0 $0 $0.00 Total Operating Expenses $2,392,160 $10,873 $1.13

NET OPERATING INCOME $3,727,111 $16,941 $1.76

Stabilized Proforma 8/22/2013 32 W Randolph Financial Summary 08-22-13 Page 4 of 8 12:06 PM 32 W Randolph Sale Pro Forma 12/01/2019 - 11/30/2020

Income # units sq. ft. $ rent / month / year / unit / year / SF

Gross Potential Rent S1 23 538 $1,844 $42,407 $508,887 $22,126 $3.43 Convertible 22 659 $2,201 $48,414 $580,973 $26,408 $3.34 1 Bed / 1 Bath (A1) 137 794 $2,766 $378,900 $4,546,795 $33,188 $3.48 1 Bed / 1 Bath (A2) 6 940 $3,152 $18,914 $226,965 $37,828 $3.35 1 Bed / 1 Bath (A3) 22 992 $3,325 $73,145 $877,741 $39,897 $3.35 2 Bed / 2 Bath (C1) 4 1,136 $3,658 $14,631 $175,577 $43,894 $3.22 2 Bed / 2 Bath (C2) 4 1,331 $4,134 $16,535 $198,416 $49,604 $3.11 2 Bed / 2 Bath (C3) 2 1,504 $4,669 $9,338 $112,055 $56,028 $3.10 0 0 $0 $0 $0 $0 $0.00 0 0 $0 $0 $0 $0 $0.00 0 0 $0 $0 $0 $0 $0.00 0 0 $0 $0 $0 $0 $0.00

Totals / Averages 220 $602,284 $7,227,410 $32,852 $3.42

Unit Premiums Loft & Vaulted Ceiling 40 $113 4,500 $54,000 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 0 $0 Total / Averages $4,500 $54,000 $245 $0.03

Property Premiums Storage Units 30 $50 1,500 $18,000 0 $0 0 $0 0 $0 0 $0 Total / Averages $1,500 $18,000 $82 $0.01

Other Income Other Income 220 $41 9,020 $108,240 $492 $0.05 0 $0 0 $0 $0 $0.00 Total / Averages $108,240 $492 $0.05

Potential Income $7,407,650 $33,671 $3.51

Loss to Lease ($93,434) ($425) ($0.04) Vacancy ($370,382) ($1,684) ($0.18) Total Income $6,943,833 $31,563 $3.29

Operating Expenses Management Fee (3% of collections) $208,315 $947 $0.10 Payroll $778,926 $3,541 $0.37 General & Administrative $84,666 $385 $0.04 Marketing $258,166 $1,173 $0.12 Utilities $253,997 $1,155 $0.12 Turnover / Make-Ready $79,456 $361 $0.04 Repair & Maintenance $123,742 $562 $0.06 Nonroutine Maintenance $13,026 $59 $0.01 Grounds / Snow Removal $32,564 $148 $0.02 Taxes (Taxes Not Adjusted for Sale Price) $664,301 $3,020 $0.31 Insurance $175,844 $799 $0.08 Association Dues $0 $0 $0.00 Replacment Reserves $44,000 $200 $0.02 Miscellaneous $0 $0 $0.00 Total Operating Expenses $2,717,002 $12,350 $1.29

NET OPERATING INCOME $4,226,831 $19,213 $2.00

Sale Proforma 8/22/2013 32 W Randolph Financial Summary 08-22-13 Page 5 of 8 12:06 PM 32 W Randolph - 220 Apartments 0.00% : Interest Rate Floor Pro Forma Interest Calculations N/A : Interest Rate Cap Futures as of : 6/3/2013 2.75% : Interest Rate Spread

Equity / Deferred Dev. Const. Loan Required Fee / Upfront Bridge Loan Bridge Loan Bridge Loan Const. Loan Month Total Cost Rate Interest Funding Tax Credits Draw Balance Interest Draw Loan Balance 1 Nov-13 $ 24,279,288 2.97% $ - $ 24,279,288 $ 20,818,981 $ 3,460,307 $ 3,460,307 $ - $ - 2 Dec-13 $ 1,018,286 2.98% $ - $ 1,018,286 $ - $ 1,018,286 $ 4,478,593 $ 9,372 $ - $ - 3 Jan-14 $ 1,818,583 2.98% $ - $ 1,818,583 $ - $ 1,818,583 $ 6,297,176 $ 12,130 $ - $ - 4 Feb-14 $ 2,189,831 3.00% $ - $ 2,189,831 $ - $ 2,189,831 $ 8,487,007 $ 17,055 $ - $ - 5 Mar-14 $ 2,221,230 3.02% $ - $ 2,221,230 $ - $ 1,080,868 $ 9,567,874 $ 22,986 $ 1,140,363 $ 1,140,363 6 Apr-14 $ 2,597,857 3.04% $ 1,436 $ 2,599,293 $ - $ - $ 9,567,874 $ 25,913 $ 2,599,293 $ 3,739,656 7 May-14 $ 2,955,652 3.06% $ 6,181 $ 2,961,833 $ - $ - $ 9,567,874 $ 25,913 $ 2,961,833 $ 6,701,490 8 Jun-14 $ 4,062,813 3.09% $ 13,302 $ 4,076,115 $ - $ - $ 9,567,874 $ 25,913 $ 4,076,115 $ 10,777,604 9 Jul-14 $ 4,261,134 3.11% $ 22,486 $ 4,283,620 $ - $ - $ 9,567,874 $ 25,913 $ 4,283,620 $ 15,061,224 10 Aug-14 $ 4,158,080 3.24% $ 33,456 $ 4,191,536 $ - $ - $ 9,567,874 $ 25,913 $ 4,191,536 $ 19,252,760 11 Sep-14 $ 4,203,340 3.24% $ 46,288 $ 4,249,628 $ - $ - $ 9,567,874 $ 25,913 $ 4,249,628 $ 23,502,388 12 Oct-14 $ 4,013,499 3.28% $ 57,675 $ 4,071,174 $ - $ - $ 9,567,874 $ 25,913 $ 4,071,174 $ 27,573,561 13 Nov-14 $ 3,759,269 3.32% $ 69,697 $ 3,828,966 $ - $ - $ 9,567,874 $ 25,913 $ 3,828,966 $ 31,402,528 14 Dec-14 $ 3,622,098 3.32% $ 81,584 $ 3,703,682 $ - $ - $ 1,195,984 $ 25,913 $ 3,703,682 $ 35,106,209 15 Jan-15 $ 4,676,000 3.37% $ 92,004 $ 4,768,004 $ - $ - $ 1,195,984 $ 3,239 $ 4,768,004 $ 39,874,213 16 Feb-15 $ 133,078 3.42% $ 105,129 $ 238,206 $ - $ - $ 1,195,984 $ 3,239 $ 238,206 $ 40,112,419 17 Mar-15 $ 133,521 3.42% $ 114,148 $ 247,669 $ - $ - $ - $ 3,239 $ 247,669 $ 40,360,088 18 Apr-15 $ - 3.49% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 19 May-15 $ - 3.56% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 20 Jun-15 $ - 3.56% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 21 Jul-15 $ - 3.64% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 22 Aug-15 $ - 3.74% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 23 Sep-15 $ - 3.74% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 24 Oct-15 $ - 3.84% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 25 Nov-15 $ - 3.96% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 26 Dec-15 $ - 3.96% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 27 Jan-16 $ - 4.07% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 28 Feb-16 $ - 4.07% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 29 Mar-16 $ - 4.07% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088 30 Apr-16 $ - 4.07% $ - $ - $ - $ - $ - $ - $ - $ 40,360,088

$ 70,103,559 $ 643,385 $ 70,746,944 $ 20,818,981 $ 9,567,874 $ 304,476 $ 40,360,088 $ 40,360,088

Interest Rate Cap Fee + Contingency: $ 232,830

Total Projected Interest: $ 876,215

Interest 8/22/2013 32 W Randolph Financial Summary 08-22-13 Page 6 of 8 12:06 PM Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Start: Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Nov-19 End: Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20

Rental Revenue 2,029,061 6,206,338 6,395,110 6,589,623 6,790,053 6,996,579 592,566 Unit Premiums 18,000 54,000 54,000 54,000 54,000 54,000 4,500 Property Premiums 6,000 18,000 18,000 18,000 18,000 18,000 1,500 Other Income 36,080 108,240 108,240 108,240 108,240 108,240 9,020

Total Potential Income

Loss to Lease -144 -50,584 -82,669 -85,183 -87,774 -90,444 -7,876 Vacancy Loss / Non-Rev / Bad Debt -1,985,618 -1,976,115 -353,463 -338,493 -348,515 -358,841 -30,379 Concessions -58,361 -458,647 0 0 0 0 0

Total Income 45,017 3,901,232 6,139,218 6,346,187 6,534,004 6,727,534 569,330

Management Fee (3% of collections) 25,000 140,666 184,177 190,386 196,020 201,826 17,080 Payroll 157,890 695,984 689,225 710,189 731,790 754,048 63,863 General & Administrative 17,838 72,704 74,916 77,194 79,542 81,962 6,942 Marketing 54,393 221,693 228,436 235,384 242,543 249,920 21,167 Utilities 22,849 279,126 225,791 231,583 238,627 245,885 20,825 Turnover / Make-Ready 0 15,600 70,306 72,444 74,647 76,918 6,514 Repair & Maintenance 2,790 80,877 109,060 112,823 116,254 119,790 10,145 Nonroutine Maintenance 0 9,344 11,526 11,876 12,237 12,609 1,068 Grounds / Snow Removal 1,687 27,451 28,814 29,690 30,593 31,524 2,670 Taxes 0 380,644 576,809 605,679 624,102 643,084 54,465 Insurance 0 113,674 155,594 160,327 165,203 170,228 14,417 Association Dues 0 0 0 0 0 0 0 Replacment Reserves 0 0 25,667 44,000 44,000 44,000 3,667 Miscellaneous 0 0 0 0 0 0 0

Total Operating Expenses 282,448 2,037,764 2,380,318 2,481,575 2,555,560 2,631,795 222,823

NOI -237,431 1,863,468 3,758,900 3,864,612 3,978,444 4,095,739 346,507

Construction Loan Interest 0 628,184 0 0 0 0 0 Bridge Loan Interest 0 0 0 0 0 0 0 Permanent Loan Interest 0 367,468 2,185,916 2,152,333 2,117,031 2,079,924 171,593 Permanent Loan Principal 0 106,252 656,407 689,990 725,291 762,399 65,267 Other Financing Costs 0 545,177 239,197 239,197 239,197 239,197 0 Total Debt Service 0 1,647,081 3,081,520 3,081,520 3,081,520 3,081,520 236,860

Net Cashflow available for Distribution -237,431 216,387 677,380 783,092 896,924 1,014,219 109,647

Beginning Cash 0 0 229,689 240,447 249,764 259,365 269,257

CO & Part III Tax Credits Received 0 9,567,874 0 0 0 0 0 Bridge Loan Paydown 0 -9,567,874 0 0 0 0 0 Construction Loan Paydown 0 -40,592,918 0 0 0 0 0 Permanent Financing 0 44,122,708 0 0 0 0 0 Financing Proceeds 0 3,529,790 0 0 0 0 0

Development Funding 237,431 42,860 0 0 0 0 0

Distribution 0 3,559,348 666,623 773,775 887,323 1,004,326 0

Ending Cash / Reserves 0 229,689 240,447 249,764 259,365 269,257 0

Distributable Sale Proceeds 0 0 0 0 0 0 27,504,056

TOTAL DISTRIBUTIONS -11,378,941 3,559,348 666,623 773,775 887,323 1,004,326 27,504,056

Construction Loan START Balance 0 27,573,561 0 0 0 0 0 Construction Loan END Balance 27,573,561 0 0 0 0 0 0

Bridge Loan START Balance 3,460,307 9,567,874 0 0 0 0 0 Bridge Loan END Balance 9,567,874 0 0 0 0 0 0

Mezzanine Loan START Balance 0 0 0 0 0 0 0 Mezzanine Loan END Balance 0 0 0 0 0 0 0

Permanent Loan START Balance 0 0 44,016,456 43,360,049 42,670,058 41,944,767 41,182,368 Permanent Loan END Balance 0 44,016,456 43,360,049 42,670,058 41,944,767 41,182,368 0

CF Summary 8/22/2013 32 W Randolph Financial Summary 08-22-13 Page 7 of 8 12:06 PM 32 W Randolph Waterfall Analysis

Construction Start (Closing Date) 11/1/2013 Term (# months) 73 Sale Date 12/1/2019

Total Land Cost 13,495,000 Total Land Cost / Unit 61,341

TDC 70,979,774

PROJECT CAPITALIZATION Construction Debt 57% 40,592,918 Bridge Loan 13% 9,567,874 Mezzanine Debt 0% 0 Deferred Development Fee 10% 7,048,072 Upfront Tax Credits 3% 2,391,969 Equity 16% 11,378,941 100% 70,979,774 SALE INFORMATION Yeild at Time of Sale 5.95% Sale NOI 4,226,831 Cap Rate 6.00% Sale Price 70,447,178 Closing Costs (1.5% of sale price) (1,056,708) Put/Reversion Tax Credits (597,992) Construction Loan Repayment 0 Permanent Loan Repayment (41,288,422) (5% fixed rate) Available for Equity at Sale 27,504,056

Total Cash Flow Distributions 6,891,395

Total Distributions 34,395,451

Total Distributions 34,395,451 Project IRR 23.7%

Waterfall Summary 8/22/2013 32 W Randolph Financial Summary 08-22-13 Page 8 of 8 12:06 PM SECTION 6

MARKET RENT COMPS MARKET RENT COMPS

Downtown Chicago Rental Market Highlights

. The 2012 downtown Chicago market will surpass the record breaking year of 2006 in occupancy and effective rental rates.

. Current Occupancy for the overall Chicago apartment market is 95.4%

. Overall effective rent of $2.57 PSF, 18% higher than 2006.

. In 2012, rental demand continues to outpace supply.

. Even with the delivery of approximately 1,200 units this year there will be an inventory shortage by the end of the year.

. Rental rates for renewals and new leases have been increasing 5%‐20% above previous rents.

. Class A apartment occupancy is 96%.

. Class A apartment effective rents in stabilized buildings are up to $2.57 PSF, up 5.76% from a year ago.

. Luxury effective rents averaged $2.78 PSF and the top 10 buildings are averaging $2.91 PSF.

. Gross rents in the luxury buildings are exceeding $3.00 PSF for some units.

. Rental buildings that have delivered this year have all met or exceeded their lease‐up and effective rent projections.

. 2012 deliveries include: Randolph Tower 312 units, Lexington Park 333 units, SoNo East 324 units and 1225 Old Town 250 units.

. Improving job trends this year with approximately 24,000 jobs added in 2012 and another 68,000 in 2013 according to a CBRE report.

. The long term trend of Condo conversions and the lack of new apartment development over the last 20 years has constrained and even reduced the supply of A/B units in the downtown area, currently there are 23,930 units in the downtown area compared to 27,374 in 1991.

. There are currently 7 buildings totaling 3,018 units under construction; however the deliveries are staggered and within different submarkets and locations.

. Condo conversion will eventually return and further deplete the apartment market.

. The fear of buying a home and the difficulty to obtain a mortgage these days continues, which further increases the rental population.

. According to CBRE Multi‐housing Outlook Report, the Chicago Metropolitan area is projected to add 235,000 jobs from 2012‐2017.

. Only four projects have been delivered this year excluding the one in the South Loop the average effective rent is $2.88.

. Given the rent growth sustained in 2011 and 2012, cap rates have returned to between 4-5%. MARKET RENT COMPS

1. Randolph Tower

Randolph Tower is a 313 unit development rehab completed by Village Green in 2012. The Property is a 45 Story building, originally built in 1929. The property is located 3 blocks west of 32 W. Randolph. The property opened in 2012 and has averaged 30+/- leases per month in lease up. As of August 2013, the property was 94% occupied, averaging $2.97 effective rents, on daily pricing. The property’s product and interior finishes are comparable to 32 W. Randolph, while the location is inferior.

2. ENV

ENV is a 249 unit development built by Lynd Co in 2010. The property is located 1/2 mile north of 32 W. Randolph. The property is on daily pricing and recently sold to Met Life for $120.2M. As of August 2013, the property was 94% occupied and averaging $3.04 effective rents, on daily pricing. The property’s product is superior to 32 W. Randolph, while interior finishes are comparable. MARKET RENT COMPS

3. 215 West

215 West is a 50 Story 389 unit development built by Jupiter/Cornerstone in 2010. The property is located 1 block south of 32 W. Randolph. The property opened in April of 2010. As of August 2013, the property was 94% occupied and averaging $2.91 effective rents, on daily pricing. The property’s product is superior to 32 W. Randolph, while interior finishes are inferior. 32 W Randolph Comparable Summary 08-05-13.xlsx

Altman Unit Type Studio CON A1 A3 C1 C2 C3 TL/AVG Building Location Floor Location Unit Type Bedrooms 0 0 1 1 2 2 2 0.8 Bathrooms 1 1 1 1 2 2 2 1.0 Garage 0 0 0 0 0 0 0 Den 0 0 0 1 0 0 0 Number of Units 25 22 137 28 4 4 2 222 % of Total 11.3% 9.9% 61.7% 12.6% 1.8% 1.8% 0.9% 100% Square Footage 538 659 794 992 1136 1331 1504 799 Market Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 $ 3,475.00 $ 3,925.00 2283 Market Rent / SF $ 2.88 $ 2.81 $ 2.90 $ 2.82 $ 2.71 $ 2.61 $ 2.61 2.86 Effective Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 $ 3,475.00 $ 3,925.00 Effective Rent / SF $ 2.88 $ 2.81 $ 2.90 $ 2.82 $ 2.71 $ 2.61 $ 2.61 Property: Randolph Towers Location: 188 W Randolph Owner: Village Green Units: 313 Units Altman Product Unit Type Studio CON A1 A3 C1 C2 Square Footage 538 659 794 992 1,136 1,331 Altman Base Market Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 $ 3,475.00 Altman Base Effective Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 $ 3,475.00 Comparative Data Unit Type Studio CON A8 A8 C4 - Pent C7 - Pent Number of Units Bedrooms 0 0 1 1 2 2 Bathrooms 1 1 1 1 2 2 Den Floor Location 17 7 12 12 34 39 Private Entry Square Footage 522 652 803 803 1136 1337 Market Base Monthly Rent $ 1,560.00 $ 1,840.00 $ 2,350.00 $ 2,350.00 $ 3,650.00 $ 3,950.00 Market Base Per SF Rent $ 2.99 $ 2.82 $ 2.93 $ 2.93 $ 3.21 $ 2.95 Effective Base Monthly Rent $ 1,560.00 $ 1,840.00 $ 2,350.00 $ 2,350.00 $ 3,650.00 $ 3,950.00 Effective Base Per SF Rent $ 2.99 $ 2.82 $ 2.93 $ 2.93 $ 3.21 $ 2.95 $ 2.97 Adjustments: Unit Size Adjustment $ - $ - $ - $ 490.42 $ - $ - Location Age & Condition Quality of Construction Design/Style Club/Amenity Package Microwave $5 Stainless Appliances $5 Water/Sewer $40 Trash $15 Cable $30 Security System $10 Security Guard $25 Entry Gate $25 Direct Access Garage $140 Other - Private Entry $25 Other - School $10 Required Insurance $18 Comp. Adjusted Market Base Rent $ 1,560.00 $ 1,840.00 $ 2,350.00 $ 2,840.42 $ 3,650.00 $ 3,950.00

Altman Base Market Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 $ 3,475.00

Comp. Adjusted Effective Base Rent $ 1,560.00 $ 1,840.00 $ 2,350.00 $ 2,840.42 $ 3,650.00 $ 3,950.00

Altman Base Effective Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 $ 3,475.00

Altman Premiums Notes: Updated 7/25/13 Year Built 2012 (Rehab) Security System No OTHER: Occupancy @ 94% Washer/Dryer Yes Entry Gate Current concessions: Microwave Yes No Concessions Water/Sewer No COMP FY2012 SUBJECT FY2012 (On Daily Pricing) Trash No Elementary Schl ** Size Difference: None Avaiable Cable No Middle School Per SF 0.99 High School

Altman Development Corporation Comps 8/8/2013 32 W Randolph Comparable Summary 08-05-13.xlsx

Altman Unit Type Studio CON A1 A3 C1 C2 C3 TL/AVG Building Location Floor Location Unit Type Bedrooms 1 1 2 2 2 0.8 Bathrooms 1 1 1 1 2 2 2 1.0 Garage Den 1 Number of Units 25 22 137 28 4 4 2 222 % of Total 11.3% 9.9% 61.7% 12.6% 1.8% 1.8% 0.9% 100% Square Footage 538 659 794 992 1136 1331 1504 799 Market Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 $ 3,475.00 $ 3,925.00 Market Rent / SF $ 2.88 $ 2.81 $ 2.90 $ 2.82 $ 2.71 $ 2.61 $ 2.61 Effective Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 $ 3,475.00 $ 3,925.00 Effective Rent / SF $ 2.88 $ 2.81 $ 2.90 $ 2.82 $ 2.71 $ 2.61 $ 2.61 Property: ENV - Chicago Location: 161 W. Kinzie (855) 571-9927 Owner: Lincoln (Management) Units: 249 Altman Product Unit Type Studio CON A1 C1 C1 Square Footage 538 659 794 1,136 1,136 Altman Base Market Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 3,075.00 $ 3,075.00 Altman Base Effective Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 3,075.00 $ 3,075.00 Comparative Data Unit Type S1 S1 A1 B1 B2 Number of Units Bedrooms 0 0 1 2 2 Bathrooms 1 1 1 2 2 Den Floor Location 12 12 13 21 10 Private Entry Square Footage 527 632 860 1145 1197 Market Base Monthly Rent $ 1,729.00 $ 1,975.00 $ 2,696.00 $ 3,288.00 $ 3,345.00 Market Base Per SF Rent $ 3.28 $ 3.13 $ 3.13 $ 2.87 $ 2.79 Effective Base Monthly Rent $ 1,729.00 $ 1,975.00 $ 2,696.00 $ 3,288.00 $ 3,345.00 Effective Base Per SF Rent $ 3.28 $ 3.13 $ 3.13 $ 2.87 $ 2.79 $ 3.04 Adjustments: Unit Size Adjustment $ - $ 21.69 $ (142.99) $ - $ (113.61) Location $ (100.00) $ (100.00) $ (125.00) $ (125.00) $ (125.00) Age & Condition Quality of Construction Design/Style Club/Amenity Package Microwave $5 Stainless Appliances $5 Water/Sewer $40 Trash $15 Cable $30 Security System $10 Security Guard $25 Entry Gate $25 Direct Access Garage $140 Other - Private Entry $25 Other - Shower Stall $25 Required Insurance $18 Comp. Adjusted Market Base Rent $ 1,629.00 $ 1,896.69 $ 2,428.01 $ 3,163.00 $ 3,106.39

Altman Base Market Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 3,075.00 $ 3,075.00

Comp. Adjusted Effective Base Rent $ 1,629.00 $ 1,896.69 $ 2,428.01 $ 3,163.00 $ 3,106.39

Altman Base Effective Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 3,075.00 $ 3,075.00

Altman Premiums Notes: Updated 7/25/13 Year Built 2010 Security System No OTHER: Occupancy @ Washer/Dryer Yes Entry Gate No Current concessions: Microwave Yes Daily Pricing Water/Sewer No COMP FY2012 SUBJECT FY2012 Trash No Elementary Schl 0 0 ** Size Difference: Cable No Middle School 0 0 Per SF 0.99 High School 0 0

Altman Development Corporation Comps 8/8/2013 32 W Randolph Comparable Summary 08-05-13.xlsx

Altman Unit Type Studio CON A1 A3 C1 C2 C3 TL/AVG Building Location Floor Location Unit Type Bedrooms 1 1 2 2 2 0.8 Bathrooms 1 1 1 1 2 2 2 1.0 Garage Den 1 Number of Units 25 22 137 28 4 4 2 222 % of Total 11.3% 9.9% 61.7% 12.6% 1.8% 1.8% 0.9% 100% Square Footage 538 659 794 992 1136 1331 1504 799 Market Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 $ 3,475.00 $ 3,925.00 Market Rent / SF $ 2.88 $ 2.81 $ 2.90 $ 2.82 $ 2.71 $ 2.61 $ 2.61 Effective Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 $ 3,475.00 $ 3,925.00 Effective Rent / SF $ 2.88 $ 2.81 $ 2.90 $ 2.82 $ 2.71 $ 2.61 $ 2.61 Property: 215 West Location: 215 West Washington Street 877-215-9378 Owner: Lincoln (Management) Units: 389 Altman Product Unit Type Studio CON A1 A3 C1 Square Footage 538 659 794 992 1,136 Altman Base Market Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 Altman Base Effective Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00 Comparative Data Unit Type S1 Con 1 1/1B 1/1C 2/2B Number of Units Bedrooms 0 0 1 1 2 Bathrooms 1 1 1 1 2 Den 1 Floor Location Private Entry Square Footage 525 662 768 931 1108 Market Base Monthly Rent $ 1,698.00 $ 1,950.00 $ 2,247.00 $ 2,350.00 $ 3,244.00 Market Base Per SF Rent $ 3.23 $ 2.95 $ 2.93 $ 2.52 $ 2.93 Effective Base Monthly Rent $ 1,698.00 $ 1,950.00 $ 2,247.00 $ 2,350.00 $ 3,244.00 Effective Base Per SF Rent $ 3.23 $ 2.95 $ 2.93 $ 2.52 $ 2.93 $ 2.91 Adjustments: Unit Size Adjustment $ - $ - $ 17.41 $ 102.62 $ 23.23 Location Age & Condition Quality of Construction Design/Style Club/Amenity Package $0 Microwave $5 Stainless Appliances $5 Water/Sewer $40 Trash $15 Cable $30 Security System $10 Security Guard $25 Entry Gate $25 Direct Access Garage $140 Other - Private Entry $25 Other - School $10 Required Insurance $18 Comp. Adjusted Market Base Rent $ 1,698.00 $ 1,950.00 $ 2,264.41 $ 2,452.62 $ 3,267.23

Altman Base Market Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00

Comp. Adjusted Effective Base Rent $ 1,698.00 $ 1,950.00 $ 2,264.41 $ 2,452.62 $ 3,267.23

Altman Base Effective Rent $ 1,550.00 $ 1,850.00 $ 2,300.00 $ 2,795.00 $ 3,075.00

Altman Premiums Notes: Updated 7/25/13 Year Built 2010 Security System No OTHER: Occupancy @ Washer/Dryer Yes Entry Gate No Current concessions: Microwave Yes Daily Pricing Water/Sewer No COMP FY2012 SUBJECT FY2012 Trash No Elementary Schl 0 A 0 0 ** Size Difference: Cable No Middle School 0 A 0 0 Per SF 0.99 High School 0 A 0 0

Altman Development Corporation Comps 8/8/2013 SECTION 7

TAX CREDIT MEMORANDUM

SECTION 8

MARKET CAP RATE DATA

• HFF Chicago Multi-Housing Market Overview • Moran & Company Comparable Sales Lists

CHICAGO MULTI-HOUSING MARKET OVERVIEW

HFF Chicago Matthew D. Lawton Sean P. Fogarty Marty F. O’Connell Wickliffe B. Kirby 181 West Madison | Suite 3900 Executive Managing Director Managing Director Managing Director Associate Director Chicago, IL 60602 t: 312.528.3656 t: 312.528.3675 t: 312.528.3653 t: 312.980.3611 www.hfflp.com t: 312.528.3650 f: 312.528.3651 [email protected] [email protected] [email protected] [email protected] Downtown Chicago Rent Trends & Concessions • The Class A Market is at $2.63 PSF, up 5.2% from a year ago. Downtown Chicago Market Overview (1Q 13) • Luxury Rents are at $2.85 PSF, up 4.78% from a year ago, partly influenced by the introduction of new buildings to the data set. • Class B Net Effective rents are up 6.91% from a year ago, due primarily to the extensive renovation that occurred in this data set. AnnualAnnual Average Average Occupancy Occupancy Trends Trends • The spread between Class A and B narrowed to 13.8% (down from 15.2% last year) The B building rents 98% grew at a faster rate, catching up with the growth in A product. Occupancy 97% • Concession for Class A buildings have reduced from 1.5 to 2 months or more for buildings offering a • The Class A market is at 95.3%, up 40 bps from a year ago. 96% concession to one half to a full month free. 95% • Concessions are far less prevalent for Class B buildings. • Luxury buildings are at 94.7%, up 70 bps from a year ago. 94% • Most buildings have transitioned to a revenue management system which is part of the reason for fewer 93% concessions. • Class B occupancies are also at 95.3%, up 60 bps from a year ago. 92% • Some ownersClass are using A (including incentives like luxury) waiving move-in Rent and Trends or application PSF fees to on select units. 91% • Options for renters remain low, but this should be remedied by the supply hitting Class A (Including Luxury)Gross vs.Rent Effective Trends PSF - Gross vs. Effective 90% the market in 2013 and 2014. On a long term basis, stabilized occupancy of 95% is $2.90 89% considered a reasonable projection. 88% $2.70 $2.50 2002 2004 1998 2000 2Q05 4Q05 2Q06 4Q06 2Q07 4Q07 2Q08 4Q08 2Q09 4Q09 2Q10 4Q10 2Q11 4Q11 2Q12 4Q12 $2.30 Supply $2.10 As of 1Q 2013 there were ten buildings under construction (plus two in lease up) with 5 (1,884) units slated for delivery in 2013 and 5 buildings (1,855 units) for 2014. It should be noted there is good diversity in locations for these deliveries with no particular submarket being over whelmed by new supply. $1.90 $1.70 New Unit Deliveries 1990 -2014 New Unit Deliveries 2000 - 2014 $1.50 3,500

3,000 Class A (Includes Luxury) GrossNet PSF Rents ClassPSF A (Includes Luxury) Effective PSF 2,500 NetClass Rents A PSF vs. - ClassClass A vs.B ClassBuildings B Buildings 2,000 $2.70 1,500 $2.50 1,000 $2.30 500 $2.10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $1.90 Rental Units 605 1,017 1,324 274 909 1,258 420 1,974 1,296 2,529 465 1,149 2,895 2,330 $1.70 $1.50 Top 10 Buildings - Net Rent PSF (As of 1Q13) Building Year Built Sub-Market # Units Avg Size Occupancy Current Market Rent/SF Current Effective Rent/SF Concessions Aqua 2009 NES/Loop 474 758 94.9% $3.29 $3.29 Class A (Includes Luxury) Class B Concessions - Net/Gross Spread 1225 Old Town 2012 Gold Coast 250 876 92.0% $3.06 $3.06 1.1% Concessions - Net/Gross Spread 12.00% SoNo 2012 NN/Gold Coast 324 842 93.2% $3.00 $3.00 EnV 2010 River North 249 910 95.2% $3.01 $2.98 1.1% 10.00%

Flair Tower 2010 River North 198 947 97.5% $2.97 $2.97 8.00% 215 West 2010 NES/Loop 389 826 93.8% $2.97 $2.97 6.00% All Parc Huron 2010 River North 221 963 91.9% $2.97 $2.94 0.9% Class A The Bernardin 2005 River North 171 1059 94.7% $2.92 $2.92 4.00% Class B

One Superior 2002 River North 809 746 97.9% $2.91 $2.91 2.00% One E Delaware 1990 Gold Coast 306 689 95.1% $2.90 $2.90 0.00% Top 10 Average 862 94.6% $3.00 $2.99 1.0% All Luxury Average (Stabilized) 811 $2.87 $2.85 0.4% Source: ARC 1Q 2013 94 90 Fullerton Pkwy

Elston Ave Halsted St Dayton St

Downtown CBurling St hicago Multi-Housing sALES COMPARABLES Kedzie Blvd W California Av estern Av

e 90 Sales Comparables e North Ave

Larrabee St

94 Clybourn Ave 1 1225 Old Town

2 Onterie Center W Clark Street ells St ells e

St 3 SoNo East Division St Division St Division Street 4 Alta at K Station

Ashland Av Kingsbury St

Halsted St 41

Racine Av Oak St Sedgewick St 5 215 West Washington

e Chestnut St

e Lake Shore Dr 6 1401 South State Chicago Avenue Chicago Avenue Superior St 7 Park Huron Huron St Erie St Ontario St 8 Echelon Milwaukee Ave Ohio SSt Grand Avenue Ogden Ave Grand Avenue Illinois St Navy Pier 9 EnV HubbardHubb St Kinzie St 90 Kinzie St 10 Flair Tower

Chicago River Lake St Fulton Market Wacker Dr 11 1212 S. Michigan Lake St Lake St 94 Randolph St Randolph St 12 77 West Huron Washington St LaSalle Drive Canal Street Clark Street Clinton Street Jefferson Street Dearborn Street

Washington Blvd Des Plaines Av Madison St Michigan Av Grant Park

Franklin Street 13 W 505 North State

ells St Monroe St S Columbus Drive Lake Michigan

Adams St Dr Shore Lake 14 Cityfront Place

Adams St e

e Jackson Blvd Jackson Blvd Van Buren St 15 Roosevelt Collection

290 Congress Parkway

State Street 16 Halsted St Harrison Street One Superior Place Racine Av 41 Balbo Avemue W

reet 17 Ashland Av Mondial

PPolkk St abash Street e e 18 Aqua Taylor St e 19 Astoria Tower Roosevelt Road Roosevelt Road Indiana Av Canal Street Ave 20 Trio

e 21 Burnham Pointe S Blue Island

18th St Downtown Chicago Multi-Housing sALES COMPAR ABLES – Componentized

Gross Value Detail 1 Closed 2 Closed 3 Closed 4 Closed 5 Closed 6 Closed 7 Closed 8 Closed 9 Closed 10 Closed 11 Closed Name 1225 Old Town Onterie Center SoNo East Alta at K Station 215 W. Washington 1401 South State Parc Huron Echelon EnV Flair Tower 1212 S. Michigan Submarket Gold Coast Streeterville Lincoln Park West Loop Loop South Loop River North West Loop River North River North South Loop Year Built 2013 1986 June 2012 2010 2010 2008 2010 2010 2010 2010 1981 Home Count 250 615 324 848 389 278 221 350 249 198 344 Avg. Home Size 871 756 797 744 814 850 963 785 893 947 689 Residential NRSF 217,747 464,657 258,194 630,912 316,788 236,398 212,823 274,750 222,399 187,429 237,410 Retail SF 33,925 102,351 3,990 12,962 0 2,430 1,200 0 27,118 8,944 19,957 Total SF 251,672 567,008 262,184 643,874 316,788 238,828 214,023 274,750 249,517 196,373 257,367 Price $156,900,000 $188,000,000 $106,375,000 $302,000,000 $120,000,000 $70,500,000 $110,000,000 $104,250,000 $119,500,000 $85,000,000 $66,000,000 Price/Home $ 627,600 $305,691 $328,318 $356,132 $308,483 $253,597 $497,738 $297,857 $479,920 $429,293 $191,860 Price/SF $623 $332 $406 $469 $379 $295 $514 $379 $479 $433 $256 Cap Rate N/A N/A 5.50% 4.90% 4.75% 4.60% 4.75% 4.50% 4.45% Hines / Northwestern Metropolitan Properties Fifi eld Realty Corp. / Jupiter Holdings/ EQR/ Canyon/ DV Urban Realty Seller Smith Partners Moran F i fi e l d Lynd/L&B Mutual / JDL of America PacLife Cornerstone Lincoln McCaffery Partners LaSalle Investment ARA/Hunt/ Buyer Heitman Prudential Morguard Corp. MetLife L&B Crescent Heights MetLife GID Crescent Heights Management Marquette Date of Sale Jun-13 Feb-13 Dec-12 Dec-12 Dec-12 Sep-12 Mar-12 Feb-12 Dec-11 Dec-11 Dec-11 Component Detail Gross Price (All Components) $156,900,000 $188,000,000 $106,375,000 $302,000,000 $120,000,000 $70,500,000 $110,000,000 $104,250,000 $119,500,000 $85,000,000 $66,000,000 Components: Residential Parking Residential Parking Spaces 236 363 204 684 0 195 232 280 129 185 217 Total Parking Value $8,260,000 $12,705,000 $4,080,000 $20,520,000 $0 $4,875,000 $8,120,000 $8,400,000 $4,515,000 $6,475,000 $5,425,000 Parking Value Per Space $35,000 $35,000 $20,000 $30,000 $0 $25,000 $35,000 $30,000 $35,000 $35,000 $25,000 Retail and Retail Parking [ProForma] [ProForma] (conv to sales ctr.) [ProForma] [ProForma] Retail SF 33,925 102,616 3,990 12,962 0 2,430 1,200 0 27,118 8,944 19,957 Retail Rent/SF $47.50 $24.17 $15.00 $20.00 $0.00 $20.00 $0.00 $0.00 $20.00 $42.43 $25.00 Retail Cap Rate 8.00% 8.00% 8.00% 8.50% 0.00% 8.50% 0.00% 0.00% 8.00% 8.00% 8.25% Retail NOI $1,611,438 $2,480,000 $59,850 $259,240 $0 $48,600 $0 $0 $542,360 $379,528 $498,925 Total Retail Value $20,142,969 $31,000,000 $748,125 $3,049,882 $0 $571,765 $0 $0 $6,779,500 $4,744,100 $6,047,576 Excess Land Parcels Land Parcels $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net Residential Value $128,497,031 $144,295,000 $101,546,875 $278,430,118 $120,000,000 $65,053,235 $101,880,000 $95,850,000 $108,205,500 $73,780,900 $ 54,527,424 Net Residential Value/Unit $513,988 $234,626 $313,416 $328,337 $308,483 $234,004 $460,995 $273,857 $434,560 $372,631 $158,510 Net Residential Value/SF $590 $311 $393 $441 $379 $275 $479 $349 $487 $394 $230 Owner converted Property completed 90,000 sf in the in summer of 2nd and 3rd story smaller structure 2012. Small retail retail going to 2 from commercial component currently tenants from the Retail/commercial Parking and Small 1,200 SF to 32 loft style used as sales center. Assumes small Mart. $20 NNN Includes 2 leased space includes Ground fl oor retail retail is owned retail component. Comments: apartments. And This transaction was ground fl oor retail No retail wit ~$60/ft TI on boutique retail ground fl oor retail includes restaurant separately; 221 Assume it will not upgraded 91 a pre-sale, property space is leased. 10 yr lease. Most spaces and also second stalls via REA be leased. units in the main priced in summer of the $60 is to fl oor commercial. tower resulting in of 2011 at a 5.50% vanilla box space. $125-$225 rent cap rate on Year 1 1 yr+ of free rent. premiums. untrended numbers. Downtown Chicago Multi-Housing sALES COMPAR ABLES – Componentized

Gross Value Detail 12 Closed 13 Closed 14 Closed 15 Closed 16 Closed 17 Closed 18 Closed 19 Closed 20 Closed 21 Closed Name 77 West Huron 505 North State Cityfront Place Roosevelt Collection One Superior Place Mondial Aqua Astoria Tower Trio Burnham Pointe Submarket River North River North Streeterville South Loop River North River West Lakeshore East South Loop West Loop South Loop Year Built 1988 2010 1991 2010 1999 2009 2009 2010 2010 2008 Home Count 304 145 480 342 809 124 474 205 100 298 Avg. Home Size 841 902 752 914 749 1,081 758 975 1,162 984 Residential NRSF 255,659 130,843 360,750 312,668 605,709 135,887 359,462 182,700 116,935 300,843 Retail SF 6,213 0 7,552 398,384 58,978 1,900 60,700 9,247 0 16,000 Total SF 261,872 130,843 368,302 711,052 664,687 137,787 420,162 191,947 116,935 316,843 Price $90,000,000 $62,000,000 $106,000,000 $159,850,000 $320,000,000 $31,600,000 $182,000,000 $44,739,000 $29,033,000 $88,000,000 Price/Home $296,053 $427,586 $220,833 $467,398 $395,550 $254,839 $383,966 $218,239 $290,330 $295,302 Price/SF $344 $474 $288 $225 $481 $229 $433 $233 $248 $278 Cap Rate 4.50% 4.50% 3.00% 4.35% N/A 4.11% N/A N/A 5.45% Citta Development Brookfi eld Asset Seller Archstone John Buck Company Crescent Heights Centrum/BofA Group / Wells Fargo Magellan M&I Bank Bank of America Stark Investments Mgmt. Bank LaSalle Investment McCaffery/ Buyer L&B Realty RREEF Hartz Mountain Waterton JP Morgan Crescent Heights Marquette Behringer Harvard Management Canyon Date of Sale Oct-11 Jul-11 Jul-11 Jun-11 May-11 Apr-11 Dec-10 Nov-10 Oct-10 Jul-10 Component Detail Gross Price (All Components) $90,000,000 $62,000,000 $106,000,000 $159,850,000 $320,000,000 $31,600,000 $182,000,000 $44,739,000 $29,033,000 $88,000,000 Components: Residential Parking Residential Parking Spaces 185 113 288 272 809 225 967 200 100 267 Total Parking Value $6,475,000 $3,955,000 $10,080,000 $8,160,000 $28,315,000 $5,625,000 $33,845,000 $5,000,000 $3,000,000 $8,010,000 Parking Value Per Space $35,000 $35,000 $35,000 $30,000 $35,000 $25,000 $35,000 $25,000 $30,000 $30,000 Retail and Retail Parking 6,213 0 7,552 398,384 58,978 1,900 60,700 9,247 0 16,000 Retail SF $35.00 $0.00 $41.71 $20.30 $37.00 $0.00 $20.00 $30.00 $0.00 $30.00 Retail Rent/SF 8.75% 0.00% 8.50% 23.31% 6.25% 0.00% 8.25% 8.50% 0.00% 8.50% Retail Cap Rate $217,455 $0 $315,000 $8,085,958 $2,182,186 $0 $1,214,000 $277,410 $0 $480,000 Retail NOI $2,485,200 $0 $3,705,882 $34,690,000 $34,914,976 $14,715,152 $3,263,647 $0 $5,647,059 Total Retail Value $31,000,000 $748,125 $3,049,882 $0 $571,765 $0 $0 $6,779,500 $4,744,100 $6,047,576 Excess Land Parcels Land Parcels $0 $0 $0 $17,000,000 $0 $0 $0 $0 $0 $0 Net Residential Value $81,039,800 $58,045,000 $92,214,118 $100,000,000 $256,770,024 $25,975,000 $133,439,848 $36,475,353 $26,033,000 $74,342,941 Net Residential Value/Unit $266,578 $400,310 $192,113 $292,398 $317,392 $209,476 $281,519 $177,929 $260,330 $249,473 Net Residential Value/SF $317 $444 $256 $320 $424 $191 $371 $200 $223 $247 Property totals 141 units. Broken condo, Property was subject Small retail buyer converting Mixed use with to ground lease. 205 of the 243 component. L&B No retail, condo 124 unsold condos hotel, condo, and Hartz bought both fee condos unsold and bought as value add. quality interiors. to rental. Nominal rental. Retail/ Allocations per interest in land and buyer converting HFF arranged $47 Located above RREEF bought as retail space of 1,900 commercial Built originally for Comments: purchaser. Retail is leasehold interest. to rental. Estimate No retail. million in fi nancing Hotel Palomar. value add. SF which may be includes a CVS but condo by Terrapin. only 22% leased. Land was $80M 200 of 250 parking 10-year loan with Bridgestreet has used for future also offi ce space and improvements spaces used for New York Life 100% corp lease. amenity space. currently leased by $240M. Whole Foods rental. Insurance Co. Assumes 225 of Magellan. is main retail tenant. 250 spaces used for rental units. Downtown Chicago Multi-Housing Development Pipeline

Clybourn Ave 12 Old Town Scott St 26 Division Str Legend Crosby St Seward Elm St Oak Park Street CTA Train Stations LaSalle St Red Line Gold Coast Beach Blue Line (O’Hare) Brown Line

Rush St Purple Line Oak St Dearborn Pkwy Orange Line (Midway) Green Line Pink Line Larrabee St Wells St Delaware Pl Commuter/Commercial Train Lines Chestnut St 20 8 Pearson St © HFF, L.P. March 2013 N Orleans St 29 Lake Shore Dr Chicago Ave Chicago Ave

Superior St 24

Huron St Michigan Ave Clark St Kingsbury St Sedgewick St Fairbank Ct Erie St State St

Ontario St On Ramp to Kennedy Expressway / I-90 / I-94 River North Streeterville Ohio St 32 Grand Ave Grand Ave 22 3 5 35 27 Ilinois St 18 Navy Pier

6 Wells St 4 16 Kinzie St Water St 1

Wacker Dr 15 2 Fulton St Wacker Dr 10

Lake St 30 Lake St 9

Randolph St Columbus Dr Randolph St

Ogilvie Station Ogilvie Millennium Park LAKE

Clinton St Washington St MICHIGAN 28 Madison St Wacker Dr 90 West Loop COMMITTED UNITS EXP. DELIVERY Monroe St Monroe St 94 13 1 K2 496 1Q 2013 17 Adams St 2 Coast 515 1Q 2013 Union 3 500 North LSD 500 2Q 2013 Lake Shore Dr Station Michigan Ave 4 AMLI River North 409 2Q 2013 Jackson Blvd Evanston 41 5 Optima Center Chicago 325 3Q 2013 Van Buren St 6 Hubbard Place 450 4Q 2013 Des Plaines 7 2100 S. Indiana 59 4Q 2013 8 850 N. Lake Shore Drive 200 4Q 2013 90 290 Congress Pkwy 9 Summit on Lake 332 2Q 2014 10 Waterview Apartments 504 2Q 2014 Harrison St 11 3740 North Halsted 277 2Q 2014 12 SWC Wells and Scott 71 2Q 2014

O’Hare Plymouth Ct Balbo St 13 Catalyst 223 3Q 2014 International Lake Shore Dr 14 AMLI Lofts 398 2014 Wells St Airport Polk St 15 Wolf Point 500 2014 36 14 Indiana Ave Irving Park Rd Grant 16 454 N. Park 398 2014 Park 17 Arkadia Tower 351 11 21 23 18 220 E. Illinois 600 41 South Loop Lakeview TOTAL 6,608 94 31 11th St PLANNED/PROPOSED 90 19 New City YMCA Site 280 Lincoln Park North Ave 20 State & Chestnut 367 Michigan Ave Clark St State St Columbus Dr

Ashland Ave 19 21 SEC Ninth & State 396 Canal St Roosevelt Rd 34 22 353 W. Grand 200 CBD 23 Roosevelt Tower 500 Museum 24 Wells & Ontario 400 290 13th St Campus 25 City Hyde Park 182 Cicero Ave Lake Shore Dr 26 Jewel Site (Clark & Division) 500 27 212 W. Illinois 188 14th St Roosevelt Rd 28 One South Halsted 492 29 Moody Site 290

Halsted St 30 215 N. Michigan 500 55 Ogden Ave Wabash Ave Soldier 31 Children's Memorial Site 548 7 Ping Tom 32 SEC McClurg & Ohio 443 Field Northerly 41 Park 33 Project 235 16th St Island 33 34 3 acres in Central Station 1200 25 35 MCL Site 400 55th St Clark St 36 Lakeview Station 770 Hyde Park Chinatown TOTAL 7,891

Midway International Airport 79th St 90

95th St

57 94 Downtown Chicago Multi-Housing Development Pipeline Report

Expected Start Under Expected Delivery Project Address Sub-Market Developer Equity Units Likelihood Quarter Year Construction Quarter Year K2 365 N. Halsted River West Fifield CBREI 496 Committed 4 2011 1 2013 Coast 345 E. Wacker New East Side Magellan JPMIM 515 Committed 1 2012 1 2013 500 North LSD 500 N. Lake Shore Streeterville Related PNC (AFL-CIO) 500 Committed 3 2011 x 2 2013 AMLI River North 71 W. Hubbard River North AMLI/Friedman MS-PPF 409 Committed 4 2011 x 2 2013 Optima Center Chicago 200 E. Illinois Streeterville Optima/Debartolo LaSalle Investment 325 Committed 2 2012 x 3 2013 Hubbard Place 360 W. Hubbard River North Habitat Bentall Kennedy / CPP 450 Committed 1 2012 x 4 2013 2100 S. Indiana 2100 S. Indiana South Loop Karlik/JK Equities JK Equities 59 Committed 1 2013 4 2013 850 N. Lake Shore Drive 850 N. Lake Shore Drive Gold Coast Integrated NEBF 200 Committed 1 2013 x 4 2013 Summit on Lake 73 E. Lake Loop M&R Development UBS 332 Committed 3 2012 x 2 2014 Waterview Apartments 111 W. Wacker Loop Related Related Opp Fund 504 Committed 4 2012 x 2 2014 3740 North Halsted 3740 North Halsted Lake View Harlem Irving/JDL Prudential Mezz 277 Committed 4 2012 x 2 2014 Catalyst 123 N. Des Plaines West Loop Marquette / Urban R2 Kayne Anderson 223 Committed 2 2013 x 3 2014 AMLI Lofts Clark & Polk South Loop AMLI PPF/CPP 398 Committed 2 2013 x 2014 Wolf Point Wolf Point River North Hines/Magellan Pending/Confidential 500 Committed 2 2013 2014 454 N. Park 454 N. Park Streeterville DRWilson / John Buck Don Wilson 398 Committed 1 2013 x 2014 Arkadia Tower 756 W. Adams Greek Town White Oak Realty Partners, LLC Prudential 351 Committed 2013 SWC Wells and Scott 1220 North Wells Gold Coast JDL Harlem Irving 71 Committed 1 2014 220 E. Illinois 220 E. Illinois Streeterville Optima/Debartolo OPSEU Pension Trust 600 Committed 2017 Madison & Racine Madison & Racine West Loop Rebenson Intercontinental 216 High 2 2013 x 3 2014 New City YMCA Site 1515 N. Halsted St. Clybourn Corridor Structured Dev/John Bucksbaum JPMIM 280 High 1 2014 State & Chestnut 845 N. State Gold Coast Newcastle Limited Pending/Confidential 367 High 1 2014 SEC Ninth & State SEC Ninth & State South Loop Golub 396 High 1 2014 353 W. Grand 353 W. Grand River North Onni Group 200 Moderate 2014 Roosevelt Tower Wells & 9th South Loop McCaffery 500 Moderate 2014 Gino's East Site/Wells & Ontario 162 East Superior River North Magellan 400 Moderate 2014 City Hyde Park 51st and Lake Park Hyde Park Antheus Capital 182 Moderate 2014 Jewel Site (Clark & Division) NWC Clark and Division Gold Coast Fifield 500 Moderate 2014 212 W. Illinois Illinois & Franklin River North Fred Latsko 188 Moderate 2014 One South Halsted 1 S. Halsted West Loop F&F Realty 492 Moderate 2014 Moody Site 819 N. LaSalle River North Smithfield 290 Moderate 2014 215 N. Michigan 215 N. Michigan East Loop John Buck 500 Moderate Children's Memorial Site 2515 N. Clark Lincoln park McCaffery 548 Moderate SEC McClurg & Ohio 545 N. McCLurg Streeterville Golub CalSTRS 443 Moderate Project Michigan/ Wabash and 46th/47thBronzeville Street Landwhite Developers 235 Moderate 3 acres in Centeral Station Roosevelt and Michigan South Loop Crescent Heights 1200 Moderate MCL Site McClurg & Illinois Streeterville MCL 400 Moderate Lakeview Station Montrose and Clarendon Uptown JDL / Harlem Irving 770 Moderate XO Site 1712 S Prairie South Loop Golub 400 Low 1035 W. Van Buren 1035 W. Van Buren West Loop Horner 315 Low The Gateway 14 S. Halsted West Loop Taxman 200 Low 750 North Hudson 750 North Hudson River North Onni Group 240 Low The Curve 1100 S. Clark Street South Loop iStar 700 Low 630 W. Washington 630 W. Washington West Loop Marquette 233 Low 601 W. Jackson Jackson & Jefferson West Loop Moceri 198 Low Walton on the Park SWC Walton and State Gold Coast Dart / TBD 300 Low Block 37 Air Rights 108 N. State St. Loop CIM Group 900 Low Spire Site 400 N Lake Shore Drive Streeterville TBD TBD Low 723-29 Randolph 723-29 West Randolph West Loop Levine/Ezgur 97 Low Atrium Village 300 West Hill Street Gold Coast Security Capital 2000 Low 500 N. Milwaukee 500 N. Milwaukee River West Contemporary Concepts 240 Low 1333 S. Wabash 1333 S. Wabash South Loop CMK Cos. 268 Low Old Post Office 433 W. Van Buren South Loop Bill Davies 400 Low

Total Historic and Expected Summary: Committed Under Construction Expected Deliveries Pipeline Start

2011 1,405 2011 - 2012 2,403 2012 - Totals Units 21,206 6,608 2013 2,345 4,016 2013 2,954 2014 3,866 2014 2,848 2015 - 2015 - There are currently 6,608 units committed and 4,016 units under construction. COMPARABLE SALES LISTS 2005-201 CHICAGO: DOWNTOWN & SUBURBAN 3 JANUARY 2013

• DOWNTOWN CHICAGO INSTITUTIONAL APARTMENT SALES SUMMARY • SUBURBAN CHICAGO INSTITUTIONAL APARTMENT SALES SUMMARY • CHICAGO METRO INSTITUTIONAL APARTMENT SALES: DOWNTOWN AND SUBURBAN Chicago Institutional Apartment Sales Summary DOWNTOWN 2005-2013 MORAN & COMPANY BY DATE 39 TOTALS 18,672 16,109,788 863 $5,103,825,000 $273,341 $317

Year Total SF (Apt + Average Unit No. Property Name Date of Sale Year of Sale Buyer Seller City Submarket Unit Count Sale Price Price Per Unit Price PSF Retail Cap Rate Cap Calc. Completed Retail) SF 1 Onterie Center Feb-13 2013 LaSalle Investment Management MPA Chicago Streeterville 1986 615 567,273 756 $188,000,000 $305,691 $331 * 4.50% T-6

2 SoNo East Dec-12 2012 Prudential Real Estate Smithfield JV Gordon Segal JV Nitzberg Chicago River North 2012 324 258,194 797 $106,400,000 $328,395 $412 TBD TBD

3 MDA City Apartments Dec-12 2012 Bluerock Enhanced Multifamily Trust Village Green (Retained Partial Equity Chicago Loop 1929/2006 190 168,490 844 $54,900,000 $288,947 $326 * TBD TBD (Partial Equity Interest 56.5%) Interest 43.5%) 4 215 West Dec-12 2012 MetLife Cornerstone JV Jupiter Chicago Loop 2010 389 316,788 814 $119,000,000 $305,913 $376 TBD TBD

5 Alta at K Station Dec-12 2012 Morguard Corp. Fifield JV Pacific Life Chicago West Loop 2010 848 662,693 766 $300,000,000 $353,774 $453 * 4.00% T-6

6 1401 S. State Sep-12 2012 Marquette Cos. EQR JV Lincoln Property Chicago South Loop 2008 278 236,398 850 $70,000,000 $251,799 $296 * 4.14% T-6

7 Parc Huon Mar-12 2012 L&B Realty Advisors J.P. Morgan Asset JV M&R Development Chicago River North 2010 221 214,060 969 $110,000,000 $497,738 $514 4.20% T-3

8 The Seneca Feb-12 2012 Waterton Associates IRMCO Management Chicago Gold Coast 1926 264 168,651 639 $35,600,000 $134,848 $211 2.00% T-6

9 Echelon at K Station Jan-12 2012 Crescent Heights Fifield JV Pacific Life Chicago West Loop 2008 350 275,170 786 $104,500,000 $298,571 $380 * 4.30% T-3

10 EnV Dec-11 2011 MetLife Lynd Chicago River North 2010 249 249,517 893 $122,000,000 $489,960 $489 * 4.00% T-3

11 Flair Tower Dec-11 2011 GID McCaffery Interests JV CalPERS via Canyon Chicago River North 2010 198 196,450 947 $85,000,000 $429,293 $433 * 4.69% T-3 Johnson 12 Park Michigan (fka 1212 South Michigan) Dec-11 2011 Crescent Heights Urban Realty Partners JV Davis Group Chicago South Loop 1981 344 237,154 689 $65,000,000 $188,953 $274 4.75% T-3

13 Belden-Stratford Dec-11 2011 Laramar IRMCO Management Chicago Lincoln Park 1923 297 198,365 668 $59,300,000 $199,663 $299 N/A Mixed-Use Hotel

14 Regents Park Oct-11 2011 Antheus Capital Crescent Heights Chicago Hyde Park 1970 1,031 1,016,940 979 $159,000,000 $154,219 $156 * 5.25% T-3

15 77 West Huron Oct-11 2011 L&B Realty Advisors Archstone (Lehman Bros. Holdings) Chicago River North 1988 304 261,877 841 $90,000,000 $296,053 $344 * Sub-4% Terminated Corp. Contract 16 505 N. State Jun-11 2011 LaSalle Investment Management John Buck Chicago River North 2010 145 130,843 902 $61,300,000 $422,759 $469 N/A Corporate Contract

17 Roosevelt Collection Jun-11 2011 McCaffery / Canyon Johnson Centrum / Bank of America Chicago South Loop 2009 342 710,912 914 $159,850,000 $467,398 $225 ** 4.00% T-3

18 One Superior Place (includes land) May-11 2011 Hartz Mountain Industries Brookfield Asset Management / Stellar Chicago River North 2000 809 661,052 748 $320,000,000 $395,550 $484 *** 3.22% T-6 Management 19 Cityfront Place May-11 2011 RREEF Crescent Heights Chicago Streeterville 1991 480 376,672 769 $106,000,000 $220,833 $281 * 4.58% T-3

20 Aqua (Partial Interest) Dec-10 2010 JP Morgan Asset Management Magellan Development Chicago New East Side 2009 474 362,743 765 $181,500,000 $385,000 $500 * 4.00% Actual

21 Burnham Pointe Jul-10 2010 Behringer Harvard Stark Investments Chicago South Loop 2008 298 293,232 984 $88,000,000 $295,302 $300 4.80% Actual

22 Cityfront Place Dec-09 2009 Crescent Heights Northwestern Mutual Chicago Streeterville 1991 480 376,672 769 $82,750,000 $172,396 $220 * 5.80% July2009 Annualized 23 The Streeter Aug-07 2007 OHSTRS Golub & Company JV AEW JV BlackRock Chicago Streeterville 2006 481 454,699 945 $210,000,000 $436,590 $462 * 4.15% Actual

24 One Superior Place (excludes land) Aug-07 2007 Stellar Management Archstone Chicago River North 2000 809 661,052 748 $217,600,000 $268,974 $329 **** N/A N/A

25 180 N. Jefferson Jun-07 2007 Draper and Kramer BlackRock & CalSTRS Chicago West Loop 2004 274 217,099 764 $75,300,000 $274,818 $347 * 3.50% Actual

26 Presidential Towers Mar-07 2007 Waterton Associates JV CalSTRS Pritzker Residential Chicago West Loop 1983 2,346 1,648,976 656 $475,000,000 $202,472 $288 * 4.10% Actual

27 Left Bank at K Station Jan-07 2007 Prudential Real Estate Fifield Realty Corp. Chicago West Loop 2007 451 343,764 762 $115,000,000 $254,989 $335 Pre-Sale Pre-Sale

28 Grand Plaza (East Tower) Jan-07 2007 Strategic Real Estate Advisors US Equities JV Magellan Chicago River North 2003 481 570,899 979 $262,500,000 $545,738 $460 * 4.00% Actual

29 One East Delaware Dec-06 2006 Waterton Associates Archstone Chicago Gold Coast 1989 306 250,834 689 $91,250,000 $298,203 $364 * 4.40% Actual

30 1212 South Michigan Oct-06 2006 Urban Realty Partners BlackRock Chicago South Loop 1981 344 237,154 689 $65,000,000 $188,953 $274 4.75% Actual

31 River North Park May-06 2006 Waterton Associates Archstone Chicago River North 1987 399 306,604 694 $60,050,000 $150,501 $196 5.75% Actual

32 McClurg Court May-06 2006 Kennedy Associates Archstone Chicago Streeterville 1972 1,058 784,844 742 $126,000,000 $169,853 $161 * 6.00% Actual (GROUND LEASE) 33 The Bernardin Dec-05 2005 UBS Realty RREEF Chicago River North 2005 171 200,050 1,048 $89,425,000 $522,953 $447 * 4.50% Actual

34 Ontario Place Oct-05 2005 American Invsco General Investment & Development Chicago River North 1984 468 472,400 800 $125,000,000 $267,094 $265 N/A N/A

35 Onterie Center Sep-05 2005 Metropolitan Properties of America Clark Realty Capital Chicago Streeterville 1986 583 600,845 715 $132,000,000 $226,415 $220 * 5.25% Actual

36 Grand Plaza (West Tower) Aug-05 2005 Terrapin Properties US Equities JV Magellan Chicago River North 2003 283 277,057 979 $91,000,000 $321,555 $328 5.00% Actual

37 Printers Square Jul-05 2005 JDL Enterprises Waterton Associates Chicago South Loop 1909 356 299,823 842 $44,600,000 $125,281 $149 4.10% Actual

38 400 North LaSalle Apr-05 2005 Draper and Kramer JV JP Morgan Habitat JV Vornado Chicago River North 2003 452 381,182 837 $126,000,000 $278,761 $331 4.40% Actual

39 Park Millennium Jan-05 2005 MCZ Dev. JV Centrum Properties Archstone Chicago New East Side 2002 480 462,360 963 $130,000,000 $270,833 $281 4.80% Actual

* Price Includes Retail/Commercial Square Footage ** Total Purchase Included 398,324 sf retail 23% leased by Kerasotes Theater and 1,482 space parking garage and 2 development sites zoned for 658 units. *** Price Includes Retail/Commercial Square Footage. Price includes the land, which was sold separately to the same buyer. **** Price excludes the land, which was sold separately. Note: Total SF for The Streeter and McClurg Court is Apartment SF only. Chicago Institutional Apartment Sales Summary SUBURBAN 2005-2013 MORAN & COMPANY BY DATE 92 TOTALS 32,900 30,184,822 917 $3,978,603,000 $120,930 $132

Year Average Price Per Cap No. Property Name Date of Sale Year of Sale Buyer Seller Address City Submarket Unit Count Total SF Sale Price Price PSF Cap Calc. Completed Unit SF Unit Rate 1 The Retreat at Seven Bridges Under Contract 2013 CONFIDENTIAL Edge Principal Advisors 6690 Double Eagle Drive Woodridge DuPage County 1996 252 267,200 1,060 CONFIDENTIAL N/A N/A N/A N/A

2 Farmington Lakes Under Contract 2013 CONFIDENTIAL ASB Capital Management 2000 Farmington Lakes Drive Oswego Kane/Kendall 2002 304 280,844 924 CONFIDENTIAL N/A N/A N/A N/A Counties 3 Ashford at Geneva Feb-13 2013 The RADCO Cos. Shodeen Management 390 Brittany Court Geneva Kane/Kendall 1989 226 217,340 962 $27,900,000 $123,451 $128 5.60% T-12 (fka Brittany Court) Counties 4 AMLI at Oakhurst North Feb-13 2013 Abacus Capital Group AMLI 2800 Pontiac Ct Aurora Naperville/Aurora 1999 464 469,568 1,012 $60,300,000 $129,957 $128 5.71% T-6

5 TGM Willowbrook (fka Ascot Glen & Ascot Feb-13 2013 TGM Associates RREEF 6096 Knollwood Road Willowbrook DuPage County 1985-1987 712 602,904 847 $101,000,000 $141,854 $168 N/A N/A Glen at Willowbrook) 6 Camden at Bloomingdale Dec-12 2012 Friedkin Realty LaSalle Investment Management 348 Glenwood Drive Bloomingdale DuPage County 1990 360 317,920 883 $54,800,000 $152,222 $172 5.80% T-6

7 Stratford Place Dec-12 2012 Friedkin Realty LaSalle Investment Management 232 Butterfield Drive Bloomingdale DuPage County 1990 342 322,680 944 $50,000,000 $146,199 $155 5.80% T-6

8 Arbors of Glen Ellyn Dec-12 2012 Friedkin Realty Berkshire Property Advisors 325 Ramblewood Drive Glen Ellyn DuPage County 1975 264 206,184 781 $24,200,000 $91,667 $117 TBD TBD (fka Berkshires of Glen Ellyn) 9 Chesapeake Landing Dec-12 2012 TGM Associates AIMCO 4101 Chesapeake Drive Aurora Naperville/Aurora 1987 600 523,731 873 $57,600,000 $96,000 $110 TBD TBD

10 The Moorings Nov-12 2012 Steadfast Income REIT Berkshire Property Advisors 619 Plum Grove Road Roselle NW Cook County 1977 216 190,512 882 $20,300,000 $93,981 $107 6.89% T-6

11 Arrowhead Nov-12 2012 Steadfast Income REIT Berkshire Property Advisors 1950 Cambridge Court Palatine NW Cook County 1975 200 173,400 867 $16,800,000 $84,000 $97 7.05% T-6

12 Oak Park Place Oct-12 2012 Cornerstone White Peterman 479 North Harlem Avenue Oak Park Oak Park 2009 204 174,189 854 $62,900,000 $308,333 $361 3.77% T-6

13 Grand Vista Aug-12 2012 Stadt Group LNR Properties 1010 Knollwood Drive Schaumburg NW Cook County 1979 300 282,000 940 $19,400,000 $64,667 $69 9.00% T-6 (fka Schaumburg Villas) 14 Hancock Square at Arlington Station Jun-12 2012 John Hancock AvalonBay 200 N. Arlington Heights Road Arlington Heights NW Cook County 1988 409 346,146 846 $87,250,000 $213,325 $252 5.28% T-6 (fka Avalon Arlington Heights) 15 Fieldpointe of Schaumburg Jun-12 2012 Westdale Investment Partners Draper & Kramer 1730 Birch Place Schaumburg NW Cook County 1973 396 297,600 752 $37,375,000 $94,381 $126 TBD TBD

16 Legacy at Martin's Point May-12 2012 KBS Legacy Partners REIT AvalonBay 2101 S. Finley Road Lombard DuPage County 1989-2009 256 202,000 789 $35,500,000 $138,672 $176 5.50% T-6 (fka Avalon Lombard) 17 TGM Park Meadows Apr-12 2012 TGM Associates Invesco 10 Lincoln Meadows Drive Schaumburg NW Cook County 1990 576 471,959 819 $86,700,000 $150,521 $184 5.80% T-6 (fka Lincoln Meadows) 18 Dunton Tower Mar-12 2012 Henderson Global Oakbrook Corp 55 S. Vail Avenue Arlington Heights NW Cook County 1986 216 193,705 897 $39,350,000 $182,176 $203 5.38% T-6

19 Stratford Green Apartments Jan-12 2012 KCK Properties AvalonBay 492 Vinings Drive Bloomingdale DuPage County 1997 192 251,520 1,310 $38,275,000 $199,349 $152 5.25% T-6 (fka Avalon at Stratford Green) 20 Gates of Deer Grove Jan-12 2012 Home Properties Laramar Group 125 West Dundee Road Palatine NW Cook County 1974 204 183,000 897 $20,200,000 $99,020 $110 6.00% T-6

21 Aspen Place Dec-11 2011 Friedkin Realty Kensington Realty Advisors 826 Terrace Lake Drive Aurora Naperville/Aurora 1988 416 441,280 1,061 $49,088,000 $118,000 $111 5.75% T-6

22 The Windbrooke Crossing Apartments Dec-11 2011 Mesirow Financial AMLI 1160 Windbrooke Drive Bufffalo Grove Lake County 1986 236 213,160 903 $34,250,000 $145,127 $161 5.31% T-6 (fka AMLI at Windbrooke) 23 Pembrook Club Dec-11 2011 Captec Financial Northwestern Mutual 5389 Leslie Lane Gurnee Lake County 1989 280 241,920 864 $30,000,000 $107,143 $124 6.50% T-6

24 Legacy at Poplar Creek Dec-11 2011 KBS Legacy Partners REIT AvalonBay 1900 Windsong Drive Schaumburg NW Cook County 1986 196 173,264 884 $27,200,000 $138,776 $157 5.75% T-6 (fka Avalon at Poplar Creek) 25 Brook Hill Dec-11 2011 Friedkin Realty Heitman 201 W. Oakley Dr N Westmont DuPage County 1972 408 404,050 990 $58,500,000 $143,382 $145 6.25% T-6

26 Lakeside Apartment Homes Dec-11 2011 Friedkin Realty AvalonBay 1750 East 22nd Street Wheaton DuPage County 1978 204 160,752 788 $20,500,000 $100,490 $128 5.75% T-6 (fka Avalon Lakeside) 27 Fordham Glen Nov-11 2011 Henderson Global UBS 1245 Fordham Drive Glendale Heights DuPage County 1989 296 268,400 907 $34,500,000 $116,554 $129 5.86% T-6

28 Hamilton Court Aug-11 2011 Golub & Company JV Alcion Ventures Baird Family 1030 Charlela Lane Elk Grove Village NW Cook County 1977 579 486,360 840 $40,000,000 $69,085 $82 7.00% T-6

29 The Reserve at Evanston Jul-11 2011 Cornerstone Invesco JV Atlantic Realty 1930 Ridge Avenue Evanston North Shore 2003 193 162,935 844 $55,600,000 $288,083 $341 4.75% T-6

30 Briarbrook Jul-11 2011 Westdale Investment Partners Heitman 1147 Briarbrook Drive Wheaton DuPage County 1972 342 299,672 876 $34,250,000 $100,146 $114 5.84% T-3

31 Parkway Commons Jun-11 2011 Friedkin Realty Heitman 545 Gundersen Drive Carol Stream DuPage County 1972 384 363,400 946 $33,000,000 $85,938 $91 6.06% T-3

32 Deer Valley Jun-11 2011 Prime Property Investors Stockbridge 30011 N. Waukegan Road Lake Bluff Lake County 1990 224 189,800 847 $22,000,000 $98,214 $116 6.00% T-6

33 Country Lakes May-11 2011 Hayman AIMCO 1598 Fairway Drive Naperville Naperville/Aurora 1985 640 574,859 898 $60,000,000 $93,750 $104 7.25% T-6

34 Prentiss Creek at Downers Grove Mar-11 2011 Pensam Capital JV BH Equities PRG Real Estate 2210 Prentiss Drive Downers Grove DuPage County 1974 700 615,850 880 $49,300,000 $70,429 $80 6.74% T-12

35 The Preserve at Osprey Lake Dec-10 2010 TA Associates AMLI 2025 Greystem Circle Gurnee Lake County 1997 483 453,289 938 $55,050,000 $113,975 $121 5.42% T-12 (fka AMLI at Osprey Lake) 36 The Villages at Canterfield Sep-10 2010 TA Associates AMLI 50 Canterfield Parkway West Dundee Kane County 2001 352 359,040 1,020 $59,300,000 $168,466 $165 5.84% T-12 (fka AMLI at Canterfield) 37 Clover Creek Aug-10 2010 Golub & Company Intercontinental/Olympic JV 830 Foxworth Blvd. Lombard DuPage County 1987 504 473,318 939 $45,000,000 $89,286 $95 6.16% T-3

38 Lakes of Schaumburg Aug-10 2010 Marquette Companies Cornerstone Advisers 801 Belinder Lane Schaumburg NW Cook County 1988 428 342,600 800 $47,000,000 $109,813 $137 6.40% T-6

39 McDowell Place Jul-10 2010 Banner Realty BlackRock 1647 Westminster Drive Naperville Naperville/Aurora 1988 400 406,400 1,016 $41,000,000 $102,500 $101 5.80% T-6

40 The Retreat at Seven Bridges Jul-10 2010 Edge Principal Advisors Kennedy Associates 6690 Double Eagle Drive Woodridge DuPage County 1996 252 267,200 1,060 $30,720,000 $121,905 $115 5.65% T-12 (fka Lincoln at Seven Bridges) 41 Arbors of Brookdale Dec-09 2009 Prime Property Investors Northwestern Mutual 1373 Ivy Lane Naperville Naperville/Aurora 1989 281 275,345 980 $32,000,000 $113,879 $116 6.75% T-6

42 Waterford Place Dec-09 2009 Legacy Real Estate Development Capreit, Inc. 313 Happfield Road Arlington Heights NW Cook County 1987 280 216,824 774 $22,000,000 $78,571 $101 6.50% T-6

43 Oak Park City Dec-09 2009 Intercontinental BlackRock 675 West Lake Street Oak Park South Cook County 1987 125 105,915 847 $20,000,000 $160,000 $189 5.85% T-6 Real Estate Corp 44 The Retreat at Danada Farms Dec-09 2009 Edge Principal Advisors AvalonBay 22 Vivaldi Court Wheaton DuPage County 1997 295 350,606 1,188 $45,450,000 $154,068 $130 6.70% T-6 (fka Avalon at Danada Farms) 45 Brook Run Oct-09 2009 Draper and Kramer AIMCO 2734 Buffalo Grove Road Arlington Heights NW Cook County 1986 182 187,866 1,032 $15,500,000 $85,165 $83 7.10% T-12

46 Autumn Run Sep-09 2009 Peter Fazio AIMCO 1627 Country Lakes Drive Naperville Naperville/Aurora 1988 320 253,882 793 $24,600,000 $76,875 $97 7.50% T-12 Chicago Institutional Apartment Sales Summary SUBURBAN 2005-2013 MORAN & COMPANY BY DATE 92 TOTALS 32,900 30,184,822 917 $3,978,603,000 $120,930 $132

Year Average Price Per Cap No. Property Name Date of Sale Year of Sale Buyer Seller Address City Submarket Unit Count Total SF Sale Price Price PSF Cap Calc. Completed Unit SF Unit Rate 47 Chevy Chase Jun-09 2009 Penobscot AMLI 1701 Johnson Drive Buffalo Grove Lake County 1988 592 478,768 809 $60,000,000 $101,351 $125 7.00% T-12

48 Landings of Lake Zurich Jun-09 2009 Eagle Management JP Morgan 25 N. Buesching Road Lake Zurich Lake County 2000 206 186,018 903 $18,600,000 $90,291 $100 7.00% T-12

49 Brookdale Lakes Jun-09 2009 Royal Imperial Group AIMCO 1812 Gowdey Road Naperville Naperville/Aurora 1990 200 191,400 957 $19,500,000 $97,500 $102 7.25% T-12

50 Yorktree Sep-08 2008 Friedkin Realty AIMCO 201 Flame Drive Carol Stream DuPage County 1972 293 258,721 883 $23,000,000 $78,498 $89 6.25% T-12

51 Lakehaven I & II Jul-08 2008 F & F Realty AIMCO 746 Bluff Street Carol Stream DuPage County 1984 492 466,908 949 $52,252,000 $106,203 $112 6.25% T-12

52 Hunters Ridge Jul-08 2008 Marquette Companies Concert Realty 1355 Todd Farm Drive Elgin Kane County 1972 408 342,000 838 $39,300,000 $96,324 $115 6.50% T-12

53 Fountains at Stone Crest Jun-08 2008 Redwood Capital AvalonBay One Fountainhead Drive Westmont DuPage County 1966 400 388,600 972 $38,700,000 $96,750 $100 6.25% T-12 (fka Avalon at West Grove) 54 Woodlake May-08 2008 Benj. Sherman ING-Clarion 101 Woodlake Blvd. Gurnee Lake County 2000 260 235,520 906 $34,250,000 $131,731 $145 5.18% T-12

55 Thornberry Woods Jan-08 2008 UBS Realty Lincoln National Life 7501 Gladstone Drive Naperville Naperville/Aurora 2002 280 272,720 974 $39,200,000 $140,000 $144 N/A N/A

56 Berkshires at Hoffman Estates Jan-08 2008 Berkshire Property Advisors Park Place 875 Pacific Avenue Schaumburg NW Cook County 1985 642 620,172 966 $66,000,000 $102,804 $106 N/A N/A (fka Park Place) 57 Lakes at Fountain Square Jan-08 2008 Redwood Capital Waterton Associates 500 Lakehurst Road Waukegan Lake County 1976 384 303,360 790 $30,650,000 $79,818 $101 6.25% T-12

58 Park Evanston Jan-08 2008 TIAA John Buck Company 1630 Chicago Avenue Evanston North Shore 1997 283 260,794 922 $100,000,000 $353,357 $383 3.85% T-12

59 Briarbrook Dec-07 2007 Heitman Inland Real Estate 1147 Briarbrook Drive Wheaton DuPage County 1972 342 300,302 878 $33,000,000 $96,491 $110 5.00% T-12

60 Glenmuir Nov-07 2007 JP Morgan Chase ARA 2604 Rockport Lane Naperville Naperville/Aurora 1999 321 331,800 1,034 $55,500,000 $172,897 $167 5.02% T-6

61 The Oaks at Knollwood Oct-07 2007 RREEF Invesco 6096 Knollwood Road Willowbrook DuPage County 1986 224 181,984 812 $30,100,000 $134,375 $165 4.75% T-6

62 Stratford Place Sep-07 2007 LaSalle Investment Management Blackrock 232 Butterfield Drive Bloomingdale DuPage County 1990 342 322,680 944 $50,500,000 $147,661 $157 4.28% T-6

63 Camden at Bloomingdale Sep-07 2007 LaSalle Investment Management Blackrock 348 Glenwood Drive Bloomingdale DuPage County 1990 360 317,920 883 $54,300,000 $150,833 $171 4.32% T-6

64 Covey at Fox Valley Sep-07 2007 Sentinel America First Apartment Investors 2160 Walcott Road Aurora Naperville/Aurora 1987 216 192,672 892 $23,511,000 $108,847 $122 N/A N/A

65 Reserve at Eagle Ridge Aug-07 2007 Jupiter Realty DeBruller & Company 1947 West Eagle Ridge Drive Waukegan Lake County 2001 370 302,290 817 $31,800,000 $85,946 $105 N/A N/A

66 Woodland Creek Jun-07 2007 JP Morgan Confidential 333 Wood Creek Road Wheeling NW Cook County 1986 640 593,440 927 $95,000,000 $148,438 $160 5.16% T-6

67 Glenlake Club May-07 2007 Henderson Global EQR 1400 N. Oakmont Drive Glendale Heights DuPage County 1986 336 267,360 796 $35,000,000 $104,167 $131 N/A N/A

68 Four Lakes May-07 2007 Marquette Companies EQR 5885 Forest View Road Lisle DuPage County 1989 476 308,924 649 $38,000,000 $79,832 $123 N/A N/A

69 Brookdale Village Apr-07 2007 Sterling Enterprises EQR 1652 Brookdale Road Naperville Naperville/Aurora 1986 252 222,880 884 $29,000,000 $115,079 $130 N/A N/A

70 Grand Reserve Apr-07 2007 Heitman UBS 504 Chamberlain Lane Naperville Naperville/Aurora 1997 319 326,657 1,024 $52,400,000 $164,263 $160 4.55% T-12

71 The Park Butterfield Mar-07 2007 BPG Properties Laramar Group 2223 Mayfair Place Mundelein Lake County 1974 522 490,788 940 $60,000,000 $114,943 $122 6.50% T-6

72 Orchard Village Jan-07 2007 Benj. Sherman GE Capital 1240 W. Indian Trail Road Aurora Naperville/Aurora 2000 272 238,272 876 $27,800,000 $102,206 $117 5.32% T-12

73 Fox Valley Villages Jan-07 2007 American Realty Advisors H. Schein 2700 Village Green Drive Aurora Naperville/Aurora 1990 420 403,760 961 $46,050,000 $109,643 $114 4.34% T-12

74 Windscape Village Dec-06 2006 Sterling Enterprises TGM 896 Benedetti Drive Naperville Naperville/Aurora 1985 352 267,872 761 $33,500,000 $95,170 $125 5.00% T-12

75 21 Kristin Place Dec-06 2006 Christopher Feurer BJB Realty 21 Kristin Drive Schaumburg NW Cook County 1972 359 332,075 925 $36,000,000 $100,279 $108 N/A N/A

76 Avalon Lombard Nov-06 2006 AvalonBay Prudential 2101 S. Finley Road Lombard DuPage County 1989 256 199,424 779 $32,250,000 $125,977 $162 4.75% T-12 (fka The Covington) 77 Railway Plaza Oct-06 2006 ING Clarion Wiseman-Hughes 507 Railway Drive Naperville Naperville/Aurora 2000 417 440,840 1,057 $66,250,000 $158,873 $150 4.39% T-12

78 Alara at Summerfield Aug-06 2006 ARA Gables Mgt. 1847 Clubhouse Drive Aurora Naperville/Aurora 2002 368 413,815 1,124 $50,500,000 $137,228 $122 4.75% T-12 (fka The Gables) 79 The Landings at Amhurst Lake Jul-06 2006 JP Morgan MIG 1375 S. White Oak Drive Waukegan Lake County 1996 340 322,388 948 $39,550,000 $116,324 $123 N/A N/A (fka Northern Crossing) 80 Countryside Jul-06 2006 Vince Manglardi & TJ Wojtas Alliance Holdings 975 N. Sterling Avenue Palatine NW Cook County 1973 719 627,640 873 $68,200,000 $94,854 $109 N/A N/A

81 GlenGarry Club May-06 2006 Equity Marketing EQR 231 Butterfield Drive Bloomingdale DuPage County 1989 250 215,098 860 $28,850,000 $115,400 $134 5.20% T-12

82 McDowell Place Apr-06 2006 BlackRock EQR 1647 Westminster Driver Naperville Naperville/Aurora 1988 400 406,400 1,016 $47,500,000 $118,750 $117 5.00% T-12

83 The Landings of Lake Zurich Mar-06 2006 JP Morgan EQR 25 N. Buesching Road Lake Zurich Lake County 2001 206 185,956 903 $30,100,000 $146,117 $162 5.00% T-12

84 Bourbon Square Mar-06 2006 Marquette Companies EQR 548 Constitution Lane Palatine NW Cook County 1984 612 875,160 1,430 $78,000,000 $127,451 $89 N/A N/A

85 City View At The Highlands Jan-06 2006 Sentinel EQR 2720 S. Highland Avenue Lombard DuPage County 2003 403 363,696 903 $78,650,000 $195,161 $216 3.40% T-12

86 Oak View Jan-06 2006 Heitman Inland 201 W. Oakley Drive N Westmont DuPage County 1972 408 403,920 990 $39,900,000 $97,794 $99 4.95% T-12

87 Archstone Garden Glen Dec-05 2005 Michael Sparks Archstone 120 Kristin Circle Schaumburg NW Cook County 1987 460 442,805 834 $63,000,000 $136,957 $142 5.00% T-12

88 Forest Pointe Sep-05 2005 BlackRock RREEF 29533 N. Waukegan Road Waukegan Lake County 1990 236 200,714 850 $27,282,000 $115,602 $136 5.25% T-12

89 Walden Woods Sep-05 2005 Hudson Capital Waterton Associates 1931 Prairie Square Schaumburg NW Cook County 1972 613 551,700 900 $50,300,000 $82,055 $91 5.50% T-12

90 Avalon at Poplar Creek Jun-05 2005 AvalonBay AMLI 1900 Windsong Drive Schaumburg NW Cook County 1986 196 178,556 911 $24,950,000 $127,296 $140 5.00% T-12 (fka AMLI at Poplar Creek) 91 Archstone at Willowbrook Jun-05 2005 RREEF Archstone 6060 Laurel Lane Willowbrook DuPage County 1987 488 418,384 857 $65,000,000 $133,197 $155 5.50% T-12 (fka Ascot Glen) 92 Legacy at Fox Valley May-05 2005 TA Associates AMLI 3750 E. New York Street Aurora Naperville/Aurora 1998 272 269,280 990 $34,500,000 $126,838 $128 5.50% T-12 (fka AMLI at Fox Valley Chicago Institutional Apartment Sales Summary CHICAGO METRO (DOWNTOWN + SUBURBAN) MORAN & COMPANY 2005-2013 BY DATE 131 TOTALS 51,572 46,294,610 898 $9,082,428,000 $176,112 $196.19 92 SUBURBAN 32,900 30,184,822 917 $3,978,603,000 $120,930 $131.81 39 DOWNTOWN 18,672 16,109,788 863 $5,103,825,000 $273,341 $316.82 Year Average No. Property Name Date of Sale Year of Sale Buyer Seller City Submarket Market Unit Count Total SF Sale Price Price Per Unit Price PSF Retail Cap Rate Cap Calc. Completed Unit SF 1 The Retreat at Seven Bridges Under Contract 2013 CONFIDENTIAL Edge Principal Advisors Woodridge DuPage County Chicago 1996 252 267,200 1,060 CONFIDENTIAL N/A N/A N/A N/A

2 Farmington Lakes Under Contract 2013 CONFIDENTIAL ASB Capital Management Oswego Kane/Kendall Chicago 2002 304 280,844 924 CONFIDENTIAL N/A N/A N/A N/A N/A Counties 3 Ashford at Geneva Feb-13 2013 The RADCO Cos. Shodeen Management Geneva Kane/Kendall Chicago 1989 226 217,340 962 $27,900,000 $123,451 $128 5.60% T-12 N/A (fka Brittany Court) Counties 4 Onterie Center Feb-13 2013 LaSalle Investment Management MPA Chicago Streeterville Chicago 1986 615 567,273 756 $188,000,000 $305,691 $331 * 4.50% T-6

5 AMLI at Oakhurst North Feb-13 2013 Abacus Capital Group AMLI Aurora Naperville/Aurora Chicago 1999 464 469,568 1,012 $60,300,000 $129,957 $128 5.71% T-6

6 TGM Willowbrook (fka Ascot Glen & Feb-13 2013 TGM Associates RREEF Willowbrook DuPage County Chicago 1985-1987 712 602,904 847 $101,000,000 $141,854 $168 N/A N/A N/A Ascot Glen at Willowbrook) 7 Camden at Bloomingdale Dec-12 2012 Friedkin Realty LaSalle Investment Management Bloomingdale DuPage County Chicago 1990 360 317,920 883 $54,800,000 $152,222 $172 5.80% T-6

8 Stratford Place Dec-12 2012 Friedkin Realty LaSalle Investment Management Bloomingdale DuPage County Chicago 1990 342 322,680 944 $50,000,000 $146,199 $155 5.80% T-6

9 Arbors of Glen Ellyn (fka Berkshires of Dec-12 2012 Friedkin Realty Berkshire Property Advisors Glen Ellyn DuPage County Chicago 1975 264 206,184 781 $24,200,000 $91,667 $117 TBD TBD Glen Ellyn) 10 Chesapeake Landing Dec-12 2012 TGM Associates AIMCO Aurora Naperville/Aurora Chicago 1987 600 523,731 873 $57,600,000 $96,000 $110 TBD TBD

11 215 West Dec-12 2012 Prudential Real Estate Smithfield JV Gordon Segal JV Chicago River North Chicago 2012 324 258,194 797 $106,400,000 $328,395 $412 TBD TBD Nitzberg 12 SoNo East Dec-12 2012 Bluerock Enhanced Multifamily Village Green (Retained Partial Equity Chicago Loop Chicago 1929/2006 190 168,490 844 $54,900,000 $288,947 $326 * TBD TBD Trust (Partial Equity Interest Interest 43.5%) 13 MDA City Apartments Dec-12 2012 MetLife Cornerstone JV Jupiter Chicago Loop Chicago 2010 389 316,788 814 $119,000,000 $305,913 $376 TBD TBD

14 Alta at K Station Dec-12 2012 Morguard Corp. Fifield JV Pacific Life Chicago West Loop Chicago 2010 848 662,693 766 $300,000,000 $353,774 $453 * 4.00% T-6

15 The Moorings Nov-12 2012 Steadfast Income REIT Berkshire Property Advisors Roselle NW Cook County Chicago 1977 216 190,512 882 $20,300,000 $93,981 $107 6.89% T-6

16 Arrowhead Nov-12 2012 Steadfast Income REIT Berkshire Property Advisors Palatine NW Cook County Chicago 1975 200 173,400 867 $16,800,000 $84,000 $97 7.05% T-6

17 Oak Park Place Oct-12 2012 Cornerstone White Peterman Oak Park Oak Park Chicago 2009 204 174,189 854 $62,900,000 $308,333 $361 3.77% T-6

18 1401 S. State Sep-12 2012 Marquette Cos. EQR JV Lincoln Property Chicago South Loop Chicago 2008 278 236,398 850 $70,000,000 $251,799 $296 * 4.14% 2011 Actual 19 Grand Vista (fka Schaumburg Villas) Aug-12 2012 Stadt Group LNR Properties Schaumburg NW Cook County Chicago 1979 300 282,000 940 $19,400,000 $64,667 $69 9.00% T-6

20 Hancock Square at Arlington Station Jun-12 2012 John Hancock AvalonBay Arlington Heights NW Cook County Chicago 1988 409 346,146 846 $87,250,000 $213,325 $252 5.28% T-6 (fka Avalon Arlington Heights) 21 Fieldpointe of Schaumburg Jun-12 2012 Westdale Investment Partners Draper & Kramer Schaumburg NW Cook County Chicago 1973 396 297,600 752 $37,375,000 $94,381 $126 TBD TBD

22 Legacy at Martin's Point (fka Avalon May-12 2012 KBS Legacy Partners REIT AvalonBay Lombard DuPage County Chicago 1989-2009 256 202,000 789 $35,500,000 $138,672 $176 5.50% T-6 Lombard) 23 TGM Park Meadows (fka Lincoln Apr-12 2012 TGM Associates Invesco Schaumburg NW Cook County Chicago 1990 576 471,959 819 $86,700,000 $150,521 $184 5.80% T-6 Meadows) 24 Dunton Tower Mar-12 2012 Henderson Global Oakbrook Corp Arlington Heights NW Cook County Chicago 1986 216 193,705 897 $39,350,000 $182,176 $203 5.38% T-6

25 Parc Huon Mar-12 2012 L&B Realty Advisors J.P. Morgan Asset JV M&R Chicago River North Chicago 2010 221 214,060 969 $110,000,000 $497,738 $514 4.20% T-3 Development 26 The Seneca Feb-12 2012 Waterton Associates IRMCO Management Chicago Gold Coast Chicago 1926 264 168,651 639 $35,600,000 $134,848 $211 2.00% Actual

27 Stratford Green Apartments (fka Avalon Jan-12 2012 KCK Properties AvalonBay Bloomingdale DuPage County Chicago 1997 192 251,520 1,310 $38,275,000 $199,349 $152 5.25% T-6 at Stratford Green) 28 Gates of Deer Grove Jan-12 2012 Home Properties Laramar Group Palatine NW Cook County Chicago 1974 204 183,000 897 $20,200,000 $99,020 $110 6.00% T-6

29 Echelon at K Station Jan-12 2012 Crescent Heights Fifield JV Pacific Life Chicago West Loop Chicago 2008 350 275,170 786 $104,500,000 $298,571 $380 * 4.30% T-3

30 EnV Dec-11 2011 MetLife Lynd Chicago River North Chicago 2010 249 249,517 893 $122,000,000 $489,960 $489 * 4.00% T-3

31 Flair Tower Dec-11 2011 GID McCaffery Interests JV CalPERS via Chicago River North Chicago 2010 198 196,450 947 $85,000,000 $429,293 $433 * 4.69% T-3 Canyon Johnson 32 Park Michigan (fka 1212 South Dec-11 2011 Crescent Heights Urban Realty Partners JV Davis Group Chicago South Loop Chicago 1981 344 237,154 689 $65,000,000 $188,953 $274 4.75% T-3 Michigan) 33 Belden-Stratford Dec-11 2011 Laramar IRMCO Management Chicago Lincoln Park Chicago 1923 297 198,365 668 $59,300,000 $199,663 $299 N/A Mixed Use

34 Aspen Place Dec-11 2011 Friedkin Realty Kensington Realty Advisors Aurora Naperville/Aurora Chicago 1988 416 441,280 1,061 $49,088,000 $118,000 $111 5.75% T-6

35 The Windbrooke Crossing Apartments Dec-11 2011 Mesirow Financial AMLI Residential Bufffalo Grove Lake County Chicago 1986 236 213,160 903 $34,250,000 $145,127 $161 5.31% T-6 (fka AMLI at Windbrooke) 36 Pembrook Club Dec-11 2011 Captec Financial Northwestern Mutual Gurnee Lake County Chicago 1989 280 241,920 864 $30,000,000 $107,143 $124 6.50% T-6

37 Legacy at Poplar Creek (fka Avalon at Dec-11 2011 KBS Legacy Partners REIT AvalonBay Schaumburg NW Cook County Chicago 1986 196 173,264 884 $27,200,000 $138,776 $157 5.75% T-6 Poplar Creek) 38 Brook Hill Dec-11 2011 Friedkin Realty Heitman Westmont DuPage County Chicago 1972 408 404,050 990 $58,500,000 $143,382 $145 6.25% T-6

39 Lakeside Apartment Homes (fka Avalon Dec-11 2011 Friedkin Realty AvalonBay Wheaton DuPage County Chicago 1978 204 160,752 788 $20,500,000 $100,490 $128 5.75% T-6 Lakeside) 40 Fordham Glen Nov-11 2011 Henderson Global UBS Glendale Heights DuPage County Chicago 1989 296 268,400 907 $34,500,000 $116,554 $129 5.86% T-6

41 Regents Park Oct-11 2011 Antheus Capital Crescent Heights Chicago Hyde Park Chicago 1970 1,031 1,016,940 979 $159,000,000 $154,219 $156 * 5.25% T-3

42 77 West Huron Oct-11 2011 L&B Realty Advisors Archstone (Lehman Bros. Holdings) Chicago River North Chicago 1988 304 261,877 841 $90,000,000 $296,053 $344 * Sub-4% Terminate d Corp. 43 Hamilton Court Aug-11 2011 Golub & Company JV Alcion Baird Family Elk Grove Village NW Cook County Chicago 1977 579 486,360 840 $40,000,000 $69,085 $82 7.00% T-6 Ventures 44 The Reserve at Evanston Jul-11 2011 Cornerstone Invesco JV Atlantic Realty Evanston North Shore Chicago 2003 193 162,935 844 $55,600,000 $288,083 $341 4.75% T-6 Chicago Institutional Apartment Sales Summary CHICAGO METRO (DOWNTOWN + SUBURBAN) MORAN & COMPANY 2005-2013 BY DATE 131 TOTALS 51,572 46,294,610 898 $9,082,428,000 $176,112 $196.19 92 SUBURBAN 32,900 30,184,822 917 $3,978,603,000 $120,930 $131.81 39 DOWNTOWN 18,672 16,109,788 863 $5,103,825,000 $273,341 $316.82 Year Average No. Property Name Date of Sale Year of Sale Buyer Seller City Submarket Market Unit Count Total SF Sale Price Price Per Unit Price PSF Retail Cap Rate Cap Calc. Completed Unit SF 45 Briarbrook Jul-11 2011 Westdale Investment Partners Heitman Wheaton DuPage County Chicago 1972 342 299,672 876 $34,250,000 $100,146 $114 5.84% T-3

46 Parkway Commons Jun-11 2011 Friedkin Realty Heitman Carol Stream DuPage County Chicago 1972 384 363,400 946 $33,000,000 $85,938 $91 6.06% T-3

47 Deer Valley Jun-11 2011 Prime Property Investors Stockbridge Lake Bluff Lake County Chicago 1990 224 189,800 847 $22,000,000 $98,214 $116 6.00% T-6

48 505 N. State Jun-11 2011 LaSalle Investment Management John Buck Chicago River North Chicago 2010 145 130,843 902 $61,300,000 $422,759 $469 N/A Corporate Contract 49 Roosevelt Collection Jun-11 2011 McCaffery / Canyon Johnson Centrum / Bank of America Chicago South Loop Chicago 2009 342 710,912 914 $159,850,000 $467,398 $225 ** 4.00% T-3

50 Country Lakes May-11 2011 Hayman AIMCO Naperville Naperville/Aurora Chicago 1985 640 574,859 898 $60,000,000 $93,750 $104 7.25% T-6

51 One Superior Place (includes land) May-11 2011 Hartz Mountain Industries Brookfield Asset Management / Stellar Chicago River North Chicago 2000 809 661,052 748 $320,000,000 $395,550 $484 *** 3.22% 2010 Management Actual 52 Cityfront Place May-11 2011 RREEF Crescent Heights Chicago Streeterville Chicago 1991 480 376,672 769 $106,000,000 $220,833 $281 * 4.58% T-3

53 Prentiss Creek at Downers Grove Mar-11 2011 Pensam Capital JV BH Equities PRG Real Estate Downers Grove DuPage County Chicago 1974 700 615,850 880 $49,300,000 $70,429 $80 6.74% T-12

54 Aqua (Partial Interest) Dec-10 2010 JP Morgan Asset Management Magellan Development Chicago New East Side Chicago 2009 474 362,743 765 $181,500,000 $385,000 $500 * 4.00% Actual

55 The Preserve at Osprey Lake (fka AMLI Dec-10 2010 TA Associates AMLI Gurnee Lake County Chicago 1997 483 453,289 938 $55,050,000 $113,975 $121 5.42% T-12 at Osprey Lake) 56 The Villages at Canterfield (fka AMLI at Sep-10 2010 TA Associates AMLI West Dundee Kane County Chicago 2001 352 359,040 1,020 $59,300,000 $168,466 $165 5.84% T-12 Canterfield) 57 Clover Creek Aug-10 2010 Golub & Company Intercontinental/Olympic JV Lombard DuPage County Chicago 1987 504 473,318 939 $45,000,000 $89,286 $95 6.16% T-3

58 Lakes of Schaumburg Aug-10 2010 Marquette Companies Cornerstone Advisers Schaumburg NW Cook County Chicago 1988 428 342,600 800 $47,000,000 $109,813 $137 6.40% T-6

59 Burnham Pointe Jul-10 2010 Behringer Harvard Stark Investments Chicago South Loop Chicago 2008 298 293,232 984 $88,000,000 $295,302 $300 4.80% Actual

60 McDowell Place Jul-10 2010 Banner Realty BlackRock Naperville Naperville/Aurora Chicago 1988 400 406,400 1,016 $41,000,000 $102,500 $101 5.80% T-6

61 The Retreat at Seven Bridges (fka Jul-10 2010 Edge Principal Advisors Kennedy Associates Woodridge DuPage County Chicago 1996 252 267,200 1,060 $30,720,000 $121,905 $115 5.65% T-12 Lincoln at Seven Bridges) 62 Arbors of Brookdale Dec-09 2009 Prime Property Investors Northwestern Mutual Naperville Naperville/Aurora Chicago 1989 281 275,345 980 $32,000,000 $113,879 $116 6.75% T-6

63 Waterford Place Dec-09 2009 Legacy Real Estate Development Capreit, Inc. Arlington Heights NW Cook County Chicago 1987 280 216,824 774 $22,000,000 $78,571 $101 6.50% T-6

64 Oak Park City Dec-09 2009 Intercontinental BlackRock Oak Park South Cook County Chicago 1987 125 105,915 847 $20,000,000 $160,000 $189 5.85% T-6 Real Estate Corp 65 Cityfront Place Dec-09 2009 Crescent Heights Northwestern Mutual Chicago Streeterville Chicago 1991 480 376,672 769 $82,750,000 $172,396 $220 * 5.80% July2009 Annualize 66 The Retreat at Danada Farms (fka Dec-09 2009 Edge Principal Advisors AvalonBay Wheaton DuPage County Chicago 1997 295 350,606 1,188 $45,450,000 $154,068 $130 6.70% T-6 Avalon at Danada Farms) 67 Brook Run Oct-09 2009 Draper and Kramer AIMCO Arlington Heights NW Cook County Chicago 1986 182 187,866 1,032 $15,500,000 $85,165 $83 7.10% T-12

68 Autumn Run Sep-09 2009 Peter Fazio AIMCO Naperville Naperville/Aurora Chicago 1988 320 253,882 793 $24,600,000 $76,875 $97 7.50% T-12

69 Chevy Chase Jun-09 2009 Penobscot AMLI Buffalo Grove Lake County Chicago 1988 592 478,768 809 $60,000,000 $101,351 $125 7.00% T-12

70 Landings of Lake Zurich Jun-09 2009 Eagle Management JP Morgan Lake Zurich Lake County Chicago 2000 206 186,018 903 $18,600,000 $90,291 $100 7.00% T-12

71 Brookdale Lakes Jun-09 2009 Royal Imperial Group AIMCO Naperville Naperville/Aurora Chicago 1990 200 191,400 957 $19,500,000 $97,500 $102 7.25% T-12

72 Yorktree Sep-08 2008 Friedkin Realty AIMCO Carol Stream DuPage County Chicago 1972 293 258,721 883 $23,000,000 $78,498 $89 6.25% T-12

73 Lakehaven I & II Jul-08 2008 F & F Realty AIMCO Carol Stream DuPage County Chicago 1984 492 466,908 949 $52,252,000 $106,203 $112 6.25% T-12

74 Hunters Ridge Jul-08 2008 Marquette Companies Concert Realty Elgin Kane County Chicago 1972 408 342,000 838 $39,300,000 $96,324 $115 6.50% T-12

75 Fountains at Stone Crest (fka Avalon at Jun-08 2008 Redwood Capital AvalonBay Westmont DuPage County Chicago 1966 400 388,600 972 $38,700,000 $96,750 $100 6.25% T-12 West Grove) 76 Woodlake May-08 2008 Benj. Sherman ING-Clarion Gurnee Lake County Chicago 2000 260 235,520 906 $34,250,000 $131,731 $145 5.18% T-12

77 Thornberry Woods Jan-08 2008 UBS Realty Lincoln National Life Naperville Naperville/Aurora Chicago 2002 280 272,720 974 $39,200,000 $140,000 $144 N/A N/A

78 Berkshires at Hoffman Estates (fka Jan-08 2008 Berkshire Property Advisors Park Place Schaumburg NW Cook County Chicago 1985 642 620,172 966 $66,000,000 $102,804 $106 N/A N/A Park Place) 79 Lakes at Fountain Square Jan-08 2008 Redwood Capital Waterton Associates Waukegan Lake County Chicago 1976 384 303,360 790 $30,650,000 $79,818 $101 6.25% T-12

80 Park Evanston Jan-08 2008 TIAA John Buck Company Evanston North Shore Chicago 1997 283 260,794 922 $100,000,000 $353,357 $383 3.85% T-12

81 Briarbrook Dec-07 2007 Heitman Inland Real Estate Wheaton DuPage County Chicago 1972 342 300,302 878 $33,000,000 $96,491 $110 5.00% T-12

82 Glenmuir Nov-07 2007 JP Morgan Chase ARA Naperville Naperville/Aurora Chicago 1999 321 331,800 1,034 $55,500,000 $172,897 $167 5.02% T-6

83 The Oaks at Knollwood Oct-07 2007 RREEF Invesco Willowbrook DuPage County Chicago 1986 224 181,984 812 $30,100,000 $134,375 $165 4.75% T-6

84 Stratford Place Sep-07 2007 LaSalle Investment Management Blackrock Bloomingdale DuPage County Chicago 1990 342 322,680 944 $50,500,000 $147,661 $157 4.28% T-6

85 Camden at Bloomingdale Sep-07 2007 LaSalle Investment Management Blackrock Bloomingdale DuPage County Chicago 1990 360 317,920 883 $54,300,000 $150,833 $171 4.32% T-6

86 Covey at Fox Valley Sep-07 2007 Sentinel America First Apartment Investors Aurora Naperville/Aurora Chicago 1987 216 192,672 892 $23,511,000 $108,847 $122 N/A N/A

87 The Streeter Aug-07 2007 OHSTRS Golub & Company JV AEW JV Chicago Streeterville Chicago 2006 481 454,699 945 $210,000,000 $436,590 $462 * 4.15% Actual BlackRock 88 One Superior Place (excludes land) Aug-07 2007 Stellar Management Archstone Chicago River North Chicago 2000 809 661,052 748 $217,600,000 $268,974 $329 **** N/A N/A Chicago Institutional Apartment Sales Summary CHICAGO METRO (DOWNTOWN + SUBURBAN) MORAN & COMPANY 2005-2013 BY DATE 131 TOTALS 51,572 46,294,610 898 $9,082,428,000 $176,112 $196.19 92 SUBURBAN 32,900 30,184,822 917 $3,978,603,000 $120,930 $131.81 39 DOWNTOWN 18,672 16,109,788 863 $5,103,825,000 $273,341 $316.82 Year Average No. Property Name Date of Sale Year of Sale Buyer Seller City Submarket Market Unit Count Total SF Sale Price Price Per Unit Price PSF Retail Cap Rate Cap Calc. Completed Unit SF 89 Reserve at Eagle Ridge Aug-07 2007 Jupiter Realty DeBruller & Company Waukegan Lake County Chicago 2001 370 302,290 817 $31,800,000 $85,946 $105 N/A N/A

90 Woodland Creek Jun-07 2007 JP Morgan Confidential Wheeling NW Cook County Chicago 1986 640 593,440 927 $95,000,000 $148,438 $160 5.16% T-6

91 180 N. Jefferson Jun-07 2007 Draper and Kramer BlackRock & CalSTRS Chicago West Loop Chicago 2004 274 217,099 764 $75,300,000 $274,818 $347 * 3.50% Actual

92 Glenlake Club May-07 2007 Henderson Global EQR Glendale Heights DuPage County Chicago 1986 336 267,360 796 $35,000,000 $104,167 $131 N/A N/A

93 Four Lakes May-07 2007 Marquette Companies EQR Lisle DuPage County Chicago 1989 476 308,924 649 $38,000,000 $79,832 $123 N/A N/A

94 Brookdale Village Apr-07 2007 Sterling Enterprises EQR Naperville Naperville/Aurora Chicago 1986 252 222,880 884 $29,000,000 $115,079 $130 N/A N/A

95 Grand Reserve Apr-07 2007 Heitman UBS Naperville Naperville/Aurora Chicago 1997 319 326,657 1,024 $52,400,000 $164,263 $160 4.55% T-12

96 The Park Butterfield Mar-07 2007 BPG Properties Laramar Group Mundelein Lake County Chicago 1974 522 490,788 940 $60,000,000 $114,943 $122 6.50% T-6

97 Presidential Towers Mar-07 2007 Waterton Associates JV CalSTRS Pritzker Residential Chicago West Loop Chicago 1983 2,346 1,648,976 656 $475,000,000 $202,472 $288 * 4.10% Actual

98 Grand Plaza (East Tower) Jan-07 2007 Strategic Real Estate Advisors US Equities JV Magellan Chicago River North Chicago 2003 481 570,899 979 $262,500,000 $545,738 $460 * 4.00% Actual

99 Left Bank at K Station Jan-07 2007 Prudential Real Estate Fifield Realty Corp. Chicago West Loop Chicago 2007 451 343,764 762 $115,000,000 $254,989 $335 Pre-Sale Pre-Sale

100 Orchard Village Jan-07 2007 Benj. Sherman GE Capital Aurora Naperville/Aurora Chicago 2000 272 238,272 876 $27,800,000 $102,206 $117 5.32% T-12

101 Fox Valley Villages Jan-07 2007 American Realty Advisors H. Schein Aurora Naperville/Aurora Chicago 1990 420 403,760 961 $46,050,000 $109,643 $114 4.34% T-12

102 One East Delaware Dec-06 2006 Waterton Associates Archstone Chicago Gold Coast Chicago 1989 306 250,834 689 $91,250,000 $298,203 $364 * 4.40% Actual

103 Windscape Village Dec-06 2006 Sterling Enterprises TGM Naperville Naperville/Aurora Chicago 1985 352 267,872 761 $33,500,000 $95,170 $125 5.00% T-12

104 21 Kristin Place Dec-06 2006 Christopher Feurer BJB Realty Schaumburg NW Cook County Chicago 1972 359 332,075 925 $36,000,000 $100,279 $108N/AN/A

105 Avalon Lombard (fka The Covington) Nov-06 2006 AvalonBay Prudential Lombard DuPage County Chicago 1989 256 199,424 779 $32,250,000 $125,977 $162 4.75% T-12

106 1212 South Michigan Oct-06 2006 Urban Realty Partners BlackRock Chicago South Loop Chicago 1981 344 237,154 689 $65,000,000 $188,953 $274 4.75% Actual

107 Railway Plaza Oct-06 2006 ING Clarion Wiseman-Hughes Naperville Naperville/Aurora Chicago 2000 417 440,840 1,057 $66,250,000 $158,873 $150 4.39% T-12

108 Alara at Summerfield Aug-06 2006 ARA Gables Mgt. Aurora Naperville/Aurora Chicago 2002 368 413,815 1,124 $50,500,000 $137,228 $122 4.75% T-12 (The Gables) 109 The Landings at Amhurst Lake Jul-06 2006 JP Morgan MIG Waukegan Lake County Chicago 1996 340 322,388 948 $39,550,000 $116,324 $123 N/A N/A (formerly Northern Crossing) 110 Countryside Jul-06 2006 Vince Manglardi & TJ Wojtas Alliance Holdings Palatine NW Cook County Chicago 1973 719 627,640 873 $68,200,000 $94,854 $109 N/A N/A

111 GlenGarry Club May-06 2006 Equity Marketing EQR Bloomingdale DuPage County Chicago 1989 250 215,098 860 $28,850,000 $115,400 $134 5.20% T-12

112 River North Park May-06 2006 Waterton Associates Archstone Chicago River North Chicago 1987 399 306,604 694 $60,050,000 $150,501 $196 5.75% Actual

113 McClurg Court May-06 2006 Kennedy Associates Archstone Chicago Streeterville Chicago 1972 1,058 784,844 742 $126,000,000 $169,853 $161 * 6.00% Actual (GROUND 114 McDowell Place Apr-06 2006 BlackRock EQR Naperville Naperville/Aurora Chicago 1988 400 406,400 1,016 $47,500,000 $118,750 $117 5.00% T-12

115 The Landings of Lake Zurich Mar-06 2006 JP Morgan EQR Lake Zurich Lake County Chicago 2001 206 185,956 903 $30,100,000 $146,117 $162 5.00% T-12

116 Bourbon Square Mar-06 2006 Marquette Companies EQR Palatine NW Cook County Chicago 1984 612 875,160 1,430 $78,000,000 $127,451 $89 N/A N/A

117 City View At The Highlands Jan-06 2006 Sentinel EQR Lombard DuPage County Chicago 2003 403 363,696 903 $78,650,000 $195,161 $216 3.40% T-12

118 Oak View Jan-06 2006 Heitman Inland Westmont DuPage County Chicago 1972 408 403,920 990 $39,900,000 $97,794 $99 4.95% T-12

119 The Bernardin Dec-05 2005 UBS Realty RREEF Chicago River North Chicago 2005 171 200,050 1,048 $89,425,000 $522,953 $447 * 4.50% Actual

120 Archstone Garden Glen Dec-05 2005 Michael Sparks Archstone Schaumburg NW Cook County Chicago 1987 460 442,805 834 $63,000,000 $136,957 $142 5.00% T-12

121 Ontario Place Oct-05 2005 American Invsco General Investment & Development Chicago River North Chicago 1984 468 472,400 800 $125,000,000 $267,094 $265 N/A N/A

122 Onterie Center Sep-05 2005 Metropolitan Properties of America Clark Realty Capital Chicago Streeterville Chicago 1986 583 600,845 715 $132,000,000 $226,415 $220 * 5.25% Actual

123 Forest Pointe Sep-05 2005 BlackRock RREEF Waukegan Lake County Chicago 1990 236 200,714 850 $27,282,000 $115,602 $136 5.25% T-12

124 Walden Woods Sep-05 2005 Hudson Capital Waterton Associates Schaumburg NW Cook County Chicago 1972 613 551,700 900 $50,300,000 $82,055 $91 5.50% T-12

125 Grand Plaza (West Tower) Aug-05 2005 Terrapin Properties US Equities JV Magellan Chicago River North Chicago 2003 283 277,057 979 $91,000,000 $321,555 $328 5.00% Actual

126 Printers Square Jul-05 2005 JDL Enterprises Waterton Associates Chicago South Loop Chicago 1909 356 299,823 842 $44,600,000 $125,281 $149 4.10% Actual

127 Avalon at Poplar Creek (fka AMLI at Jun-05 2005 AvalonBay AMLI Schaumburg NW Cook County Chicago 1986 196 178,556 911 $24,950,000 $127,296 $140 5.00% T-12 Poplar Creek) 128 Archstone at Willobrook (fka Ascot Jun-05 2005 RREEF Archstone Willowbrook DuPage County Chicago 1987 488 418,384 857 $65,000,000 $133,197 $155 5.50% T-12 Glen) 129 Legacy at Fox Valley (fka AMLI at Fox May-05 2005 TA Associates AMLI Aurora Naperville/Aurora Chicago 1998 272 269,280 990 $34,500,000 $126,838 $128 5.50% T-12 Valley 130 400 North LaSalle Apr-05 2005 Draper and Kramer JV JP Morgan Habitat JV Vornado Chicago River North Chicago 2003 452 381,182 837 $126,000,000 $278,761 $331 4.40% Actual

131 Park Millennium Jan-05 2005 MCZ Dev. JV Centrum Properties Archstone Chicago New East Side Chicago 2002 480 462,360 963 $130,000,000 $270,833 $281 4.80% Actual 2013 2011 ONTERIE CENTER CHICAGO INSTITUTIONAL As of 1/22/2013 1212 SOUTH MICHIGAN DATE OF SALE Under Contract DATE OF SALE Dec-11 BUYER NAME CONFIDENTIAL BUYER NAME Crescent Heights SELLER NAME MPA SELLER NAME Urban Realty CITY Chicago APARTMENT SALES SUMMARY & JV Davis Group SUBMARKET Streeterville CITY Chicago 1 YEAR BUILT 1986 12 SUBMARKET South Loop UNIT COUNT 615 YEAR BUILT 1981 TOTAL SF 567,273 2010-2013 UNIT COUNT 344 AVG UNIT SF 756 TOTAL SF 237,154 SALE PRICE CONFIDENTIAL KEY IN LEASE-UP AVG UNIT SF 689 PRICE PER UNIT CONFIDENTIAL SALE PRICE $65,000,000 PRICE PSF CONFIDENTIAL PRICE PER UNIT $188,953 2013 CAP RATE CONFIDENTIAL LAND STABILIZED 2010 2011 PRICE PSF $274 CAP CALC CONFIDENTIAL CAP RATE 4.75% UNDER CONSTRUCTION STABILIZED 2011 OR 2012 CAP CALC T-3 BELDEN-STRATFORD 2012 2013 START CONDO REVERSION DATE OF SALE Dec-11 BUYER NAME Laramar 215 WEST SELLER NAME IRMCO Management DATE OF SALE Dec-12 CITY Chicago BUYER NAME MetLife Inc. 13 SUBMARKET Lincoln Park SELLER NAME Jupiter / Cornerstone 4 YEAR BUILT 1923 CITY Chicago 13 14 UNIT COUNT 297 SUBMARKET Loop TOTAL SF 198,365 2 YEAR BUILT 2010 AVG UNIT SF 668 UNIT COUNT 389 SALE PRICE $59,300,000 TOTAL SF 259,194 PRICE PER UNIT $199,663 AVG UNIT SF 797 PRICE PSF $299 SALE PRICE $120,000,000 2011 CAP RATE N/A PRICE PER UNIT $308,000 CAP CALC Mixed Use PRICE PSF $412 2012 CAP RATE TBD CAP CALC TBD REGENTS PARK DATE OF SALE Oct-11 MDA CITY APARTMENTS BUYER NAME Antheus Capital SELLER NAME Crescent Heights DATE OF SALE Dec-12 GOLD CITY Chicago BUYER NAME Blue Rock (56.5%) NEAR SUBMARKET Hyde Park JV Village Green 14 COAST YEAR BUILT 1970 SELLER NAME Village Green UNIT COUNT 1,031 3 CITY Chicago NORTH TOTAL SF 1,016,940 SUBMARKET Loop AVG UNIT SF 979 YEAR BUILT 1929 / 2006 8 SALE PRICE $159,000,000 UNIT COUNT 190 PRICE PER UNIT $154,219 TOTAL SF 168,490 PRICE PSF $156 AVG UNIT SF 844 2011 CAP RATE 5.25% SALE PRICE $54,900,000 CAP CALC T-3 PRICE PER UNIT $288,947 2012 PRICE PSF $326 CAP RATE TBD CAP CALC TBD 77 WEST HURON DATE OF SALE Oct-11 SONO EAST BUYER NAME L&B Realty Advisors DATE OF SALE Dec-12 SELLER NAME Archstone (Lehman BUYER NAME Prudential STREETERVILLE Bros. Holdings) SELLER NAME Smithfi eld / JV Segal 18 15 CITY Chicago / JV Nitzberg SUBMARKET River North CITY Chicago YEAR BUILT 1988 4 SUBMARKET River North 15 UNIT COUNT 304 YEAR BUILT 2012 7 11 TOTAL SF 261,877 UNIT COUNT 324 AVG UNIT SF 841 TOTAL SF 258,194 SALE PRICE $90,000,000 AVG UNIT SF 797 1 PRICE PER UNIT $296,053 SALE PRICE $106,400,000 2011 PRICE PSF $344 2012 PRICE PER UNIT $328,395 CAP RATE Sub-4% PRICE PSF $412 CAP CALC Terminated Corp. CAP RATE TBD CAP CALC TBD RIVER 505 N. STATE DATE OF SALE Jun-11 ALTA AT K STATION NORTH BUYER NAME LaSalle DATE OF SALE Dec-12 SELLER NAME John Buck BUYER NAME Morguard Corp. 16 CITY Chicago SELLER NAME Fifi eld JV Pacifi c Life SUBMARKET River North CITY Chicago 16 YEAR BUILT 2010 SUBMARKET West Loop UNIT COUNT 145 5 YEAR BUILT 2010 TOTAL SF 130,843 UNIT COUNT 848 AVG UNIT SF 902 TOTAL SF 662,693 SALE PRICE $61,300,000 AVG UNIT SF 766 PRICE PER UNIT $422,759 SALE PRICE $300,000,000 10 19 PRICE PSF $469 2012 PRICE PER UNIT $353,774 5 2011 CAP RATE N/A PRICE PSF $453 9 CAP CALC Corporate Contract CAP RATE 4.00% CAP CALC T-6 ROOSEVELT COLLECTION 1401 S. STATE DATE OF SALE Jun-11 BUYER NAME McCaffery / Canyon DATE OF SALE Sep-12 20 Johnson BUYER NAME Marquette Cos. SELLER NAME Centrum / BoA SELLER NAME EQR JV Lincoln CITY Chicago Property 17 3 SUBMARKET South Loop 6 CITY Chicago YEAR BUILT 2009 SUBMARKET South Loop UNIT COUNT 342 YEAR BUILT 2008 TOTAL SF 710,912 UNIT COUNT 278 NEW EAST SIDE AVG UNIT SF 914 TOTAL SF 236,398 SALE PRICE $159,850,000 AVG UNIT SF 850 PRICE PER UNIT $467,398 SALE PRICE $70,000,000 2011 PRICE PSF $225 PRICE PER UNIT $251,799 CAP RATE 4.00% 2012 PRICE PSF $296 WEST CAP CALC T-3 CAP RATE 4.14% CAP CALC 2011 Actual LOOP 2 ONE SUPERIOR PLACE PARC HUON DATE OF SALE May-11 DATE OF SALE Mar-12 BUYER NAME Hartz Mountain Ind. BUYER NAME L&B Realty Advisors SELLER NAME Brookfi eld Asset SELLER NAME J.P. Morgan Mgmt / Stellar Mgmt JV M&R Development CITY Chicago CITY Chicago 18 SUBMARKET River North 7 SUBMARKET River North LOOP YEAR BUILT 2000 YEAR BUILT 2010 UNIT COUNT 809 UNIT COUNT 221 TOTAL SF 661,052 TOTAL SF 214,060 AVG UNIT SF 748 AVG UNIT SF 969 SALE PRICE $320,000,000 SALE PRICE $110,000,000 PRICE PER UNIT $395,550 PRICE PER UNIT $497,738 2011 PRICE PSF $484 2012 PRICE PSF $514 CAP RATE 3.22% CAP RATE 4.20% CAP CALC 2010 Actual CAP CALC T-3 THE SENECA CITYFRONT PLACE DATE OF SALE May-11 DATE OF SALE Feb-12 BUYER NAME RREEF BUYER NAME Waterton Associates SELLER NAME Crescent Heights SELLER NAME IRMCO Management CITY Chicago CITY Chicago SUBMARKET Streeterville 8 SUBMARKET Gold Coast 19 YEAR BUILT 1991 YEAR BUILT 1926 UNIT COUNT 480 UNIT COUNT 264 TOTAL SF 376,672 TOTAL SF 168,651 AVG UNIT SF 769 AVG UNIT SF 639 SALE PRICE $106,000,000 SALE PRICE $35,600,000 PRICE PER UNIT $220,833 PRICE PER UNIT $134,848 PRICE PSF $281 PRICE PSF $211 2011 CAP RATE 4.58% 2012 CAP RATE 2.00% CAP CALC T-3 CAP CALC Actual ECHELON AT K STATION DATE OF SALE Jan-12 2010 BUYER NAME Crescent Heights SELLER NAME Fifi eld JV Pacifi c Life AQUA (PARTIAL INTEREST) CITY Chicago 21 DATE OF SALE Dec-10 9 SUBMARKET West Loop BUYER NAME JP Morgan YEAR BUILT 2008 SELLER NAME Magellan UNIT COUNT 350 CITY Chicago TOTAL SF 275,170 SUBMARKET New East Side AVG UNIT SF 786 20 YEAR BUILT 2009 SALE PRICE $104,500,000 SOUTH UNIT COUNT 474 PRICE PER UNIT $298,571 TOTAL SF 362,743 PRICE PSF $380 AVG UNIT SF 765 2012 CAP RATE 4.30% LOOP SALE PRICE $181,500,000 CAP CALC T-3 PRICE PER UNIT $385,000 PRICE PSF $500 2010 CAP RATE 4.00% 2011 CAP CALC Actual ENV BURNHAM POINTE DATE OF SALE Dec-11 17 DATE OF SALE Jul-10 BUYER NAME MetLife BUYER NAME Behringer Harvard SELLER NAME Lynd SELLER NAME Stark Investments CITY Chicago CITY Chicago 10 SUBMARKET River North SUBMARKET South Loop YEAR BUILT 2010 6 21 YEAR BUILT 2008 UNIT COUNT 249 12 UNIT COUNT 298 TOTAL SF 249,517 TOTAL SF 293,232 AVG UNIT SF 893 AVG UNIT SF 984 SALE PRICE $122,000,000 SALE PRICE $88,000,000 PRICE PER UNIT $489,960 FLAIR TOWER PRICE PER UNIT $295,302 PRICE PSF $489 PRICE PSF $300 2011 CAP RATE 4.00% DATE OF SALE Dec-11 2010 CAP RATE 4.80% CAP CALC T-3 BUYER NAME GID CAP CALC Actual SELLER NAME McCaffery Interests JV CalPERS CITY Chicago 11 SUBMARKET River North YEAR BUILT 2010 UNIT COUNT 198 TOTAL SF 196,450 AVG UNIT SF 947 SALE PRICE $85,000,000 PRICE PER UNIT $429,293 2011 PRICE PSF $433 CAP RATE 4.69% CAP CALC T-3

CHICAGO INSTITUTIONAL APARTMENT SALES SUMMARY 2010-2012 2009 2006 CITYFRONT PLACE CHICAGO INSTITUTIONAL As of 1/22/2013 RIVER NORTH PARK DATE OF SALE Dec-09 DATE OF SALE 6-May BUYER NAME Crescent Heights BUYER NAME Waterton Associates SELLER NAME Northwestern Mutual SELLER NAME Archstone CITY Chicago APARTMENT SALES SUMMARY CITY Chicago SUBMARKET Streeterville SUBMARKET River North 1 YEAR BUILT 1991 10 YEAR BUILT 1987 UNIT COUNT 480 UNIT COUNT 399 TOTAL SF 376,672 2005-2009 TOTAL SF 306,604 AVG UNIT SF 769 AVG UNIT SF 694 SALE PRICE $82,750,000 KEY IN LEASE-UP SALE PRICE $60,050,000 PRICE PER UNIT $172,396 PRICE PER UNIT $150,501 PRICE PSF $220 PRICE PSF $196 2009 CAP RATE 5.80% LAND STABILIZED 2010 2006 CAP RATE 5.75% CAP CALC July-09 Annualized CAP CALC Actual UNDER CONSTRUCTION STABILIZED 2011 OR 2012 MCCLURG COURT 2007 2013 START CONDO REVERSION DATE OF SALE 6-May BUYER NAME Kennedy Associates THE STREETER SELLER NAME Archstone CITY Chicago DATE OF SALE 7-Aug SUBMARKET Streeterville BUYER NAME OHSTRS 11 YEAR BUILT 1972 SELLER NAME Golub & Company JV UNIT COUNT 1,058 AEW JV BlackRock TOTAL SF 784,844 2 CITY Chicago AVG UNIT SF 742 SUBMARKET Streeterville SALE PRICE $126,000,000 YEAR BUILT 2006 PRICE PER UNIT $169,853 UNIT COUNT 481 PRICE PSF $161 TOTAL SF 454,699 2006 CAP RATE 6.00% AVG UNIT SF 945 CAP CALC Actual (GROUND SALE PRICE $210,000,000 LEASE) PRICE PER UNIT $436,590 2007 PRICE PSF $462 CAP RATE 4.15% CAP CALC Actual 2005 ONE SUPERIOR PLACE THE BERNARDIN DATE OF SALE 7-Aug GOLD DATE OF SALE 5-Dec BUYER NAME Stellar Management NEAR BUYER NAME UBS Realty SELLER NAME Archstone COAST SELLER NAME RREEF CITY Chicago CITY Chicago SUBMARKET River North NORTH SUBMARKET River North 3 YEAR BUILT 2000 8 12 YEAR BUILT 2005 UNIT COUNT 809 UNIT COUNT 171 TOTAL SF 661,052 TOTAL SF 200,050 AVG UNIT SF 748 AVG UNIT SF 1,048 SALE PRICE $217,600,000 SALE PRICE $89,425,000 PRICE PER UNIT $268,974 PRICE PER UNIT $522,953 PRICE PSF $329 PRICE PSF $447 2007 CAP RATE N/A 2005 CAP RATE 4.50% CAP CALC N/A CAP CALC Actual 12 180 N. JEFFERSON ONTARIO PLACE DATE OF SALE 7-Jun DATE OF SALE 5-Oct BUYER NAME Draper and Kramer STREETERVILLE BUYER NAME American Invsco SELLER NAME BlackRock & CalSTRS 3 SELLER NAME General Investment & CITY Chicago Development SUBMARKET West Loop CITY Chicago 4 YEAR BUILT 2004 3 SUBMARKET River North UNIT COUNT 274 YEAR BUILT 1984 TOTAL SF 217,099 UNIT COUNT 468 AVG UNIT SF 764 14 TOTAL SF 472,400 SALE PRICE $75,300,000 13 AVG UNIT SF 800 PRICE PER UNIT $274,818 SALE PRICE $125,000,000 PRICE PSF $347 11 PRICE PER UNIT $267,094 2007 CAP RATE 3.50% 2005 PRICE PSF $265 CAP CALC Actual RIVER CAP RATE N/A 15 7 CAP CALC N/A 2 PRESIDENTIAL TOWERS NORTH ONTERIE CENTER DATE OF SALE 7-Mar 10 DATE OF SALE 5-Sep BUYER NAME Waterton Associates BUYER NAME Metropolitan Proper- JV CalSTRS ties of America SELLER NAME Pritzker Residential SELLER NAME Clark Realty Capital 5 CITY Chicago 14 CITY Chicago SUBMARKET West Loop 17 SUBMARKET Streeterville YEAR BUILT 1983 YEAR BUILT 1986 UNIT COUNT 2,346 UNIT COUNT 583 TOTAL SF 1,648,976 TOTAL SF 600,845 AVG UNIT SF 656 1 AVG UNIT SF 715 SALE PRICE $475,000,000 SALE PRICE $132,000,000 PRICE PER UNIT $202,472 PRICE PER UNIT $226,415 2007 PRICE PSF $288 2005 PRICE PSF $220 CAP RATE 4.10% CAP RATE 5.25% CAP CALC Actual CAP CALC Actual LEFT BANK AT K STATION GRAND PLAZA (WEST TOWER) DATE OF SALE 7-Jan 6 DATE OF SALE 5-Aug BUYER NAME Prudential BUYER NAME Terrapin Properties SELLER NAME Fiﬁ eld Realty Corp. 18 SELLER NAME US Equities CITY Chicago JV Magellan SUBMARKET West Loop CITY Chicago 6 YEAR BUILT 2007 15 SUBMARKET River North UNIT COUNT 451 4 YEAR BUILT 2003 TOTAL SF 343,764 NEW EAST SIDE UNIT COUNT 283 AVG UNIT SF 762 TOTAL SF 277,057 SALE PRICE $115,000,000 AVG UNIT SF 979 PRICE PER UNIT $254,989 SALE PRICE $91,000,000 PRICE PSF $335 WEST PRICE PER UNIT $321,555 2007 CAP RATE Pre-Sale 2005 PRICE PSF $328 CAP CALC Pre-Sale CAP RATE 5.00% LOOP CAP CALC Actual GRAND PLAZA (EAST TOWER) PRINTERS SQUARE DATE OF SALE 7-Jan DATE OF SALE 5-Jul BUYER NAME Strategic RE Advisors BUYER NAME JDL Enterprises SELLER NAME US Equities SELLER NAME Waterton Associates JV Magellan CITY Chicago CITY Chicago 5 LOOP SUBMARKET South Loop 7 SUBMARKET River North 16 YEAR BUILT 1909 YEAR BUILT 2003 UNIT COUNT 356 UNIT COUNT 481 TOTAL SF 299,823 TOTAL SF 570,899 AVG UNIT SF 842 AVG UNIT SF 979 SALE PRICE $44,600,000 SALE PRICE $262,500,000 PRICE PER UNIT $125,281 PRICE PER UNIT $545,738 PRICE PSF $149 2007 PRICE PSF $460 2005 CAP RATE 4.10% CAP RATE 4.00% CAP CALC Actual CAP CALC Actual 400 NORTH LASALLE 2006 DATE OF SALE 5-Apr BUYER NAME Draper and Kramer ONE EAST DELAWARE JV JP Morgan DATE OF SALE 6-Dec SELLER NAME Habitat JV Vornado BUYER NAME Waterton Associates 17 CITY Chicago SELLER NAME Archstone SUBMARKET River North CITY Chicago YEAR BUILT 2003 SUBMARKET Gold Coast UNIT COUNT 452 8 YEAR BUILT 1989 TOTAL SF 381,182 UNIT COUNT 306 AVG UNIT SF 837 TOTAL SF 250,834 SALE PRICE $126,000,000 AVG UNIT SF 689 PRICE PER UNIT $278,761 SALE PRICE $91,250,000 2005 PRICE PSF $331 PRICE PER UNIT $298,203 CAP RATE 4.40% PRICE PSF $364 CAP CALC Actual 2006 CAP RATE 4.40% CAP CALC Actual PARK MILLENNIUM DATE OF SALE 5-Jan BUYER NAME MCZ Dev. JV Centrum- 1212 SOUTH MICHIGAN Properties DATE OF SALE 6-Oct 16 SELLER NAME Archstone BUYER NAME Urban Realty 18 CITY Chicago Partners SUBMARKET New East Side SELLER NAME BlackRock YEAR BUILT 2002 CITY Chicago SOUTH UNIT COUNT 480 9 SUBMARKET South Loop TOTAL SF 462,360 YEAR BUILT 1981 AVG UNIT SF 963 UNIT COUNT 344 LOOP SALE PRICE $130,000,000 TOTAL SF 237,154 PRICE PER UNIT $270,833 AVG UNIT SF 689 2005 PRICE PSF $281 SALE PRICE $65,000,000 CAP RATE 4.80% PRICE PER UNIT $188,953 CAP CALC Actual 2006 PRICE PSF $274 CAP RATE 4.75% CAP CALC Actual

CHICAGO INSTITUTIONAL APARTMENT SALES SUMMARY 2005-2009