NET LYNX SPORTS WAREHOUSE LOVES PARK, ILLINOIS Table of Contents | 2 Net Lynx Sports Warehouse

Financial Overview NET LYNX SPORTS Financial Overview……………………...4 Rent Roll………………………………..5 Building Abstract………………………..6 WAREHOUSE Investment Overview Investment Overview…………………….8 Tenant Overview…………………….9-11 New Property Photos………………….12 Interior Photos………….……………..13-15 Drone Photos……………………………16 New Roof Photos………………………..17 Market Aerial Photos.…………………...18-21 Local & Regional Maps…………………22-23 Market Overview Rockford, Illinois…….………………….25 Chicago Market Overview………………26-30 Demographics …………………..……...31-32

FINANCIAL OVERVIEW

Price $2,750,000 Term Annual Rent Monthly Rent Gross Leaseable Area (GLA) 108,000 SF Current (COE + 5 Years): $226,875 $18,906 Price/ SF $25.46 Option I: $233,681 $19,473 Cap Rate 8.25% Option II: $240,691 $20,058 Net Operating Income $226,875 Option III: $247,912 $20,659 Year Built/Renovated 1989/2017 NET OPERATING INCOME $226,875 Lot Size 4.58 Acres TOTAL RETURN 8.25% / $2,750,000 Type of Ownership Fee Simple

Proposed Loan Terms

Lease Type NNN First Loan Amount: $1,925,000 Roof & Structure Tenant Responsible Down Payment (30%) $825,000 Lease Term 5 Years Interest Rate: 5.00% Rent Commencement Close ofEscrow Amortization Schedule: 20 Years Lease Expiration Close of Escrow + 5 Years Term: 5 Years Term Remaining 5 Years Monthly Payment: $12,704 Increases 3% in EachOption Annual Payment: $152,450 Options 3, 5-Year Option to Terminate None Option to Purchase None Right of First Refusal None

Square Lease Monthly Annual Suite Tenant Footage % of Total Lease Start Expiration Rent Annual Rent PSF Lease Type

Triple 1 Net Lynx 108,000 100.00% COE COE + 5 Years $18,906 $226,875 $2.10 Net

Option I: $19,473 $233,681

Option II: $20,058 $240,691

Option III: $20,659 $247,912

Current Totals: 108,000 100% $18,906 $226,875 $2.10

Occupied 108,000 100% $18,906 $226,875 $2.10 Vacant

Construction Type Steel

Clear Height 23’

Power 3000 Amp: 480 Volt

Parking 118 Spaces (47/1000sf)

Sprinkler System Type Wet

Drive-In Door 1 Roll Up (10’x16’)

Roof & HVAC Roof (Nov 2017) Rooftop Units (Nov 2017) Air Handlers (Dec 2017)

INVESTMENT OVERVIEW

Marcus & Millichap is pleased to exclusively represent the dynamic Net Lynx Sports Investment Highlights Warehouse in Loves Park, Illinois.  Premier Indoor Athletic Training Facility in Over the past twelve months the Net Lynx Sports house has strengthened its market Rockford Area position as a leading provider of sports training to individual and club athletes. The  108,000 square foot steel warehouse (Zoned I-1) was originally constructed in 1989 by Mix of Sports Related Tenants: Volleyball, Clinton Electronics. In 2017 the warehouse under went major renovation including a new Baseball, Soccer, Martial Arts, Oak Strength roof covering, new rooftop units, new air handlers, renovated locker rooms, new Personal Fitness parent/student lounge, new apparel store, refurbished concession area, refinished basketball courts, new volleyball flooring, upgraded electrical service and more. The  23’ Clear Height at Center | Fully Sprinklered facility boasts clear height of 23 feet and includes wet sprinklers, heavy power, and reinforced concrete floors.  Major Capital Improvements Added by Owner 2017/2018 | $700,000 Investment The facility is to be master leased and personally guaranteed by Net Lynx, Inc. a tenant and current owner of the Sports Center. Net Lynx Sports; netlynxsports.com; provides a  HVAC: Two Air Handlers Replaced 2017 | New variety of travel tournament management options including team registration, hotel Rooftop Units 2017 management, equipment services and more. Sub tenants in the Sports Warehouse include respected leading sports clubs including: VC United Volleyball, Oak Strength  New Roof Covering 2017 with 15 year Fitness, Rockford Baseball Academy, Midwest Future Prospects Baseball and Core warranty Combat Fitness. The new five year NNN lease will commence at close of escrow. In addition, the lease includes three (5) year renewal option periods.  Personal Guarantee by Owner of Net Lynx Sports. This offering provides an investor with a steady cash flow. The location allows for a potential exit strategy to convert the facility back to a manufacturing/distribution  Conveniently Located within the High Traffic warehouse in the future. Neighboring properties include: Clinton Electronics Corporation, Logistics I-39 Corridor Rothenberger USA, Ameritech Illinois, Cimco Resources, GKN Aerospace, and the U.S. Postal Service. Rockford has a strong manufacturing economic base and boasts an area population of over 342,552 people.  2016 Rockford Area Population: 342,552 Loves Park is attracting new development including Mercyhealth Hospital and Trauma Center Riverside, Rock Valley Apartments, and other commercial development.

Net Lynx Sports

Net Lynx sports is a comprehensive sporting event solutions company. Net Lynx hosts major tournaments throughout the Midwest specializing in Volleyball, Basketball and Futsal. Additionally, the warehouse offers training to local elite club sports teams such as VC United Volleyball, Oak Strength Fitness, Rockford Baseball Academy, Midwest Future Prospects Baseball and Core Combat Fitness.

Net Lynx plans and hosts camps and other events attracting athletes from the surrounding states.

VC United Volleyball Club United (VC United) is the vision of Owner/Executive Director Eric Schulze for a unique elite junior volleyball club in the Midwest. After evaluating possible locations in the summer of 2017, we realized that Rockford was one of the only major cities in the Midwest that did not have a nationally-renowned club. VC United Currently Serves 360 Families and Will Grow to 400 Families by Year End.

The Rockford Baseball Academy (RBA) is Northern Illinois premier baseball training organization. RBA was created by the Scarpetta family, a name synonymous with baseball in the Midwest. Their philosophy looks beyond wins and losses, and focuses on developing each player’s ability to perform at the highest level. The RBA staff is comprised of four former and current professional baseball players, giving you the benefit of the best instructors in northern Illinois. Rockford Baseball Academy Currently Serves 240 Families.

Oak Strength Oak Strength is focused on giving its members self-confidence through achieving goals they never thought they could. Whether it is losing weight, rehabilitating oneself due to injury, or building confidence, Oak Strength has given its members plenty to talk about. This training program helps current athletes get in great shape and former athletes remain or get back into shape. Oak Strength Currently Serves Over 300 Athletes.

Core Combat The Core Combat Fitness center offers kid’s martial arts, Brazilian Jiu Jitsu, striking/Muay Thai, and MMA. This center allows its members to focus and refine fighting skills as well as build confidence, discipline and other necessary skills. Members that have come through this program have said it has lead them to get into the best shape of their lives. Core Combat Fitness Currently Serves Over 110 Families.

MARKET OVERVIEW

Rockford, Illinois is the 3rd largest city in Illinois and is the county seat of Winnebago County. Rockford is known for various venues of cultural or historical significance, including Anderson Japenese Gardens, Klehm Abroretum, Tinker Swiss Cottage, the BMO Harris Bank Center, the Coronado Tehatre, the Laurent House, and the Burpee Museum of Natural History. The aerospace industry, represented by Woodward and UTC Aerospace Systems, is dominant in Rockford. Loves Park was selected by Woodward for a $200 million manufacturing campus toward its energy control and optimization systems in 2012. A $39 million Regional Cancer Center was opened in 2013 and the Mercy Hospital was just built and opened in late 2017. Rockford is also home to Rockford University and the PURI School of Business, which was ranked as one of the Best Regional University’s in the 2018 US News & World Report.

CHICAGO OVERVIEW Chicago-Naperville-Elgin is one of the largest metros in the nation. Also know as the greater Chicagoland area, it is bounded to the east by Lake Michigan, expands over a 5,000-square-mile region in northeastern Illinois and extends into Wisconsin and Indiana. The metro houses 9.6 million people and comprises 14 counties. The city of Chicago contains 2.7 million residents. The greatest growth during the past 20 years occurred in the western portion of the region. In recent years, however, businesses are relocating back into the city to attract young workers, supporting the development of high-rise residential towers in the downtown Chicago. METRO HIGHLIGHTS THIRD-LARGEST METROPOLITAN AREA The metro population trails only New York City and Los Angeles in size, expanding to nearly 10 million residents.

WEALTH OF INTELLECTUAL CAPITAL The number of corporate headquarters in Chicago is second only to New York City. There are 32 Fortune 500 companies based locally.

LARGE, DIVERSE EMPLOYMENT BASE The Chicago metro employs more than 4.6 million individuals in an array of industries, including a growing tech sector.

MARKET OVERVIEW TRANSPORTATION

. The region’s transit network ranks among the largest and most efficient in the world. . The vast network of freeways, centralized location, the largest rail- truck intermodal facility in the U.S., as well as the Port of Chicago contribute to the metro’s position as a major distribution and logistics hub. . Chicago is the nation’s premier freight rail hub, with four carriers, BNSF, Union Pacific, CSX, Norfolk Southern, servicing the region. . Amtrak routes originate from Union Station, while the Metra commuter rail and the Chicago L provide passenger service throughout the metro area and beyond. . International airports include O’Hare, Midway and Gary/Chicago. Seven smaller airports also provide air service for the region.

Million TEU’s CHICAGO HAS RAIL LINES

INTERNATIONAL FOR FREIGHT,7 PASSENGER 17.2MOVED THROUGH METRO 3 IN 2015 AIRPORTS AND COMMUTER

MORE THAN OF ILLINOIS RESIDENTS LIVE IN THE SUBURBS OF CHICAGO, MANY OF WHOM COMMUTE INTO 40% THE CITY FOR WORK

MARKET OVERVIEW

ECONOMY MAJOR AREA EMPLOYERS

. The metro has one of the biggest economies in the nation Abbott Labs and is buoyed by its distribution, finance, manufacturing Advocate Healthcare operations and growing high-tech sectors. Wal-Mart . There are 32 Fortune 500 companies headquartered in the metro including Boeing, Walgreens and McDonald’s. Motorola Solutions Inc. . The area is a major global tourist and convention destination. United Continental Holdings Inc. Last year, a record 54.1 million people visited the metro Allstate Corp. spending $15 billion and supporting 145,000jobs. Walgreens Co. . Large tech firms such as Amazon, Groupon and Google Target Corp. attract startup companies. * Forecast JPMorgan Chase . The workforce is considered one of the most diverse and well trained among major U.S. metros. AT&T

SHARE OF 2016 TOTAL EMPLOYMENT

% % % % % MANUFACTURING9 PROFESSIONAL18AND 12GOVERNMENT LEISURE AND10HOSPITALITY FINANCIAL ACTIVITIES6 BUSINESS SERVICES

% % + 15% % % TRADE, TRANSPORTATION20 CONSTRUCTION4 EDUCATION AND 2 OTHER SERVICES4 INFORMATION AND UTILITIES HEALTH SERVICES

MARKET OVERVIEW

DEMOGRAPHICS QUICK FACTS

. Chicago is the third most populous metro in the U.S. and is 2016 2016 2016 2016 MEDIAN expected to grow by approximately 275,000 people during the next POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: five years. 9.6M 3.5M 36.8 $62,100 . Growth Growth U.S. Median: U.S.Median: Younger professionals moving to the area for employment provide a 2016-2021*: 2016-2021*: skilled workforce and contribute to the median age of 36.8years, 2.9% 3.5% 37.7 $54,500 below that of the nation. . World class education institutions including Northwestern University and the University of Chicago help provide a skilled labor pool. Nearly 35 percent of residents age 25 and older hold a bachelor’s degree and of these, 13 percent have also earned a graduate or professional degree. . Local homeownership of 65 percent is slightly above thenational rate of 64 percent.

* Forecast

MARKET OVERVIEW

QUALITY OF LIFE

The Chicago metro has something to offer every one of its residents and visitors, whether it is legendary blues and jazz music, cultural and educational venues, professional sports, dining, entertainment, shopping or recreational amenities.

The Chicago area’s relative affordability is largely due to its lower housing costs. The median home price is significantly less than in other cities of its size and is below that of many smaller cities, including Seattle and Denver.

Cultural activities and venues underpin the metro’s cosmopolitan lifestyle. The region is home to various well-known museums, including the world-class Field Museum, Shedd Aquarium, Art Institute of Chicago and Adler Planetarium. The theatre scene rivals the world’s best, and troupes, dance companies, symphony orchestras and music venues abound. $237,400 70 29 MILES MEDIAN HOME PRICE VARIOUS MUSUEMS OF SHORELINE

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

Population Race and Ethnicity In 2016, the population in your selected geography is 59,460. The The current year racial makeup of your selected area is as population has changed by -0.13% since 2000. It is estimated that follows: 86.07% White, 6.34% Black, 0.01% Native American the population in your area will be 60,446.00 five years from now, and 2.41% Asian/Pacific Islander. Compare these to US which represents a change of 1.66% from the current year. The averages which are: 70.77% White, 12.80% Black, 0.19% current population is 48.11% male and 51.89% female. The Native American and 5.36% Asian/Pacific Islander. People of median age of the population in your area is 42.30, compare this Hispanic origin are counted independently of race. to the US average which is 37.68. The population density in your area is 2,098.70 people per square mile. People of Hispanic origin make up 6.95% of the current year Households population in your selected area. Compare this to the US average of 17.65%. There are currently 23,925 households in your selected geography. The number of households has changed by 2.97% since 2000. It is estimated that the number of households in your Employment area will be 24,549 five years from now, which represents a change In 2016, there are 19,896 employees in your selected area, this of 2.61% from the current year. The average household size in is also known as the daytime population. The 2000 Census your area is 2.43 persons. revealed that 60.19% of employees are employed in white- collar occupations in this geography, and 39.85% are employed Income in blue-collar occupations. In 2016, unemployment in this area In 2016, the median household income for your selected is 6.61%. In 2000, the average time traveled to work was 22.00 geography is $52,297, compare this to the US average which is minutes. currently $54,505. The median household income for your area has changed by 4.93% since 2000. It is estimated that the median household income in your area will be $62,181 five years from now, which represents a change of 18.90% from the current year.

The current year per capita income in your area is $27,987, compare this to the US average, which is $29,962. The current year average household income in your area is $69,063, compare this to the US average which is $78,425.

POPULATION 3 Miles 5 Miles 10 Miles HOUSEHOLDS BY INCOME 3 Miles 5 Miles 10 Miles . 2021 Projection . 2016 Estimate Total Population 60,446 133,419 291,298 $200,000 or More 2.92% 2.93% 2.88% . 2016 Estimate $150,000 - $199,000 3.27% 2.84% 3.30% $100,000 - $149,000 11.44% 10.76% 11.19% Total Population 59,460 131,178 283,154 $75,000 - $99,999 13.04% 12.46% 12.71% . 2010 Census $50,000 - $74,999 21.53% 20.51% 19.67% Total Population 60,975 134,256 289,467 $35,000 - $49,999 15.74% 15.05% 14.21% . 2000 Census $25,000 - $34,999 10.47% 11.15% 11.07% Total Population 59,538 129,654 269,208 $15,000 - $24,999 11.02% 11.12% 11.45% . Daytime Population Under $15,000 10.57% 13.19% 13.51% 2016 Estimate 61,660 134,603 282,427 Average Household Income $69,063 $66,307 $66,775 HOUSEHOLDS 3 Miles 5 Miles 10 Miles Median Household Income $52,297 $49,396 $49,660 . 2021 Projection Per Capita Income $27,987 $27,383 $26,098 Total Households 24,549 55,083 113,528 POPULATION PROFILE 3 Miles 5 Miles 10 Miles . 2016 Estimate . Population By Age Total Households 23,925 53,721 109,763 2016 Estimate Total Population 59,460 131,178 283,154 Average (Mean) Household Size 2.43 2.40 2.54 Under 20 23.83% 24.84% 26.52% . 2010 Census 20 to 34 Years 17.83% 18.64% 18.56% 35 to 39 Years 5.48% 5.69% 5.91% Total Households 24,486 54,887 112,122 . 40 to 49 Years 12.86% 12.81% 13.13% 2000 Census 50 to 64 Years 21.48% 20.88% 20.56% Total Households 23,235 51,974 103,708 Age 65+ 18.50% 17.15% 15.34% Median Age 42.30 40.69 39.19 . Population 25+ by Education Level 2016 Estimate Population Age 25+ 41,673 90,420 189,982 Elementary (0-8) 2.29% 2.75% 3.51% Some High School (9-11) 8.49% 9.42% 9.90% High School Graduate (12) 32.00% 30.34% 32.06% Some College (13-15) 23.77% 23.45% 22.98% Associate Degree Only 8.32% 8.06% 8.12% Bachelors Degree Only 14.34% 14.82% 13.70% Graduate Degree 9.80% 9.79% 8.39%

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Services, Inc. © 2015 Marcus & Millichap ACT ID Z0260022 CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepare to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, not has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

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NET LEASED DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly- constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

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