Lakeview Condo Deconversion

Offering Memorandum LAKEVIEW CONDO DECONVERSION

628-634 W ROSCOE ST CHICAGO, IL 60657

Exclusive Agent

Colliers International (“Seller’s Agent”) is the exclusive agent for the owner and seller (“Seller”) of 628-634 W Roscoe St (“Property”). Please contact us if you have any questions. No cooperating brokerage commission shall be paid by Colliers or the Seller. Buyer’s Broker, if any, shall seek commission compensation from the Buyer only. Designated Agents

The designated agents for the Seller are:

Tyler Hague Vice President Direct +1 312 612 5936 Email [email protected]

Jack Maloney Associate Direct +1 312 612 5944 Email [email protected]

Colliers International Disclaimer

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2016. All rights reserved.

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL

Table of Contents

> EXECUTIVE SUMMARY ...... 1 Investment Opportunity ...... 2 Rent Roll & Unit Mix ...... 4 Exterior Photographs ...... 5 Unit Photographs ...... 6 Area Map ...... 7

> MARKET OVERVIEW ...... 8 Market Rent Survey ...... 9 Comparable Property Sales ...... 10

> PRICING & CASH FLOW ...... 12 Valuation Summary & Proforma ...... 13 Confidentiality & Disclaimer Statement ...... 19

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL

Offering Memorandum 628-634 W Roscoe St Chicago, Illinois

> Executive Summary

EXECUTIVE SUMMARY

Investment Opportunity

COLLIERS INTERNATIONAL is pleased to exclusively offer for sale, this rare condominium deconversion INVESTMENT HIGHLIGHTS opportunity located at 628-634 West Roscoe Street in  Good long-term rental sustainability Chicago, IL. Just one block west of Lake Michigan in the notable Lakeview submarket, the Property offers the  Minimal deferred maintenance unique ability for an investor to immediately deconvert a  Condo-quality finishes 22 unit, courtyard style condo building into apartments in  one of the historically strongest rental submarkets in Takes advantage of Wrigleyville facelift and Southport Chicago. Corridor emergence  No inventory delivered in last four quarters – the lowest The property was converted from apartments to supply of Chicago submarkets condominiums 15 years ago and due to excellent upkeep by the current owner-occupiers; unit finishes and  Occupancy – 2nd highest submarket in Chicago common areas are in superior condition compared to  Rents – 3rd highest submarket in Chicago similar apartment properties of this vintage. Comprised of 16 one bedroom + den units and 6 two bedroom units, the unit orientation is ideal for young professionals and The Property’s proximity to area recreation and couples looking for higher end units in a neighborhood transportation is excellent: with typically older apartment product, yet at a lower CTA Bus System……...... …...... Immediate price point than newer Class A high-rise rents. Lake Michigan………...... …...... Immediate In a submarket that hasn’t seen any new inventory over Lake Shore Drive…....…...... …...... Immediate the last four quarters, demand is projected to outpace CTA “L” Red/Brown Line…...... 0.6 miles supply over the next year making Lakeview one of the most stable multifamily markets with occupancy at Chicago Loop……………...... …...... 4 miles market highs. The strength of Chicago’s Lakeview neighborhood speaks to the potential long term rent growth and sustainability of this asset.

LAKEVIEW

Boasting a diverse mix of local boutique retailers, bars and restaurants, and music venues, the Lakeview submarket thrives off a diverse population mix. Young urban professionals, families, and baby boomers alike take advantage of a myriad of social and cultural amenities in the area and are additionally attracted to the Walkers Paradise – 93 Excellent Transit – 84 Very Bikeable – 84 proximate lakefront access which make this one of the SOURCE: www.walkscore.com most desirable places to live in Chicago. Home to Wrigley Field and the Southport, Clark, and Broadway retail corridors, the neighborhood offers a diverse mix of retail, residential, and hotel properties. Residential space and street level retail dominate the main thoroughfares while side streets are lined with historic Chicago brownstones and Victorian walkups. With tree lined streets intermixed with busy bar and shopping distance, all with access to mass transit and Chicago’s popular lakefront trail, it’s no wonder this submarket ranks near the top in rents and occupancy in Chicago.

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 2 EXECUTIVE SUMMARY

PROPERTY DETAILS UNIT DETAILS PROPERTY ADDRESS DWELLING UNITS 628-634 W Roscoe Street 22 Chicago, Illinois 60657

Cook County UNIT MIX Sixteen 1 bed / 1 bath – 600 SF YEAR BUILT Three 2 bed / 1 bath – 700 SF 1925/2001 Three 2 bed / 2 bath – 800 SF

UNIT AMENITIES TYPE 9 FT Ceilings Garden Courtyard Granite Countertops Stainless Steel Appliances PARKING 0 Spaces ASSESSOR PARCEL NUMBERS 628 W Roscoe St 14-21-304-037-1001 thru -1006 BUILDING EXTERIOR

Brick Solid Masonry Construction 630 W Roscoe St 14-21-304-037-1007 thru -1013

632 W Roscoe St 14-21-304-037-1014 thru -1016

634 W Roscoe St 14-21-304-037-1017 thru -1022

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Rent Roll & Unit Mix

IN PLACE RENTAL RATES & PROFORMA RENTAL SUMMARY

628-634 W ROSCOE RENTED UNITS UNIT LEASE EXP TYPE MARKET RENT ACTUAL RENT 628 – 1N 5/31/17 1 Bed+ /1 Bath $1,700 $1,575 628 – 2N 3/31/17 1 Bed+ /1 Bath $1,700 $1,600 628 – 3S 11/30/17 1 Bed+ /1 Bath $1,700 $1,675 630 – 1N 6/1/17 1 Bed+ /1 Bath $1,700 $1,500 630 – 2N 7/31/17 1 Bed+ /1 Bath $1,700 $1,550 $1,700 $1,580

628-634 W ROSCOE PROFORMA RENTS TYPE QUANTITY MARKET RENT SQUARE FEET RENT/SF 1 Bed+ / 1 Bath 16 units $1,700 600 $2.83 2 Bed / 1 Bath 3 units $2,100 700 $3.00 2 Bed / 2 Bath 3 units $2,250 800 $2.81 $1,830 641 $2.85

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 4 EXECUTIVE SUMMARY

Exterior Photographs

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 5 EXECUTIVE SUMMARY

Unit Photographs

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 6 EXECUTIVE SUMMARY

Area Map

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Offering Memorandum 624-638 W Roscoe Chicago, Illinois

> Market Overview

MARKET OVERVIEW

Market Rent Survey

ONE BEDROOMS

PROPERTY SF MARKET RENT MARKET RENT/SF The Van der Rohe 690 $1,730 $2.51 The Van der Rohe 690 $1,695 $2.46 Belmont by Reside 555 $1,595 $2.87 Belmont by Reside 629 $1,726 $2.74 Belmont by Reside 638 $1,865 $2.92 Reside on Barry 612 $1,600 $2.61 Hawthorne House 860 $1,910 $2.22 3130 N LSD 650 $1,675 $2.58 Halsted Flats 590 $1,892 $3.21 Reside on Surf 628 $1,555 $2.48 Reside on Surf 653 $1,535 $2.35 Reside 707 666 $1,573 $2.36 Reside 707 673 $1,622 $2.41 Average 656 $1,690 $2.59

TWO BEDROOMS

PROPERTY SF MARKET RENT MARKET RENT/SF The Van der Rohe 775 $2,375 $3.06 Belmont by Reside 1,068 $2,603 $2.44 3130 N LSD 950 $2,273 $2.39 Reside on Barry 805 $2,186 $2.72 Maynard at Elaine 760 $1,897 $2.50 Maynard at Elaine 947 $2,325 $2.46 Average 884 $2,277 $2.59

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 9 MARKET OVERVIEW

Comparable Property Sales

RECENT MULTIFAMILY SALES

DATE PROPERTY UNITS SF TOTAL PRICE ($) PRICE PER SF ($) PRICE PER UNIT CAP RATE

6-16 1201 W Addison 12 43,560 $3,600,000 $82.64 $300,000 -

5-16 525 W Barry 16 15,708 $3,625,100 $230.78 $226,568 -

12-15 445 W Barry 110 94,520 $30,000,000 $317.39 $272,727 -

11-15 530 W Aldine 67 52,075 $13,735,000 $263.75 $205,000 -

11-15 855 W Grace 12 11,175 $3,030,000 $271.14 $252,500 5.06%

11-15 510 W Belmont 277 307,368 $64,629,500 $210.27 $233,319 -

10-15 924 W Newport 23 13,800 $3,230,000 $234.06 $140,434 -

10-15 3161 N Orchard 19 13,719 $6,275,500 $457.43 $330,289 5.43%

9-15 1050 W George 46 46,000 $8,500,0000 $184.78 $184,782 -

7-15 926 W George 13 11,264 $3,800,000 $337.36 $292,307 5.60%

6-15 700 W Grace 16 18,450 $4,909,000 $266.07 $306,812 -

6-15 3402 N Elaine 174 220,764 $50,500,000 $228.75 $290,229 -

5-15 919 W Dakin 36 23,950 $6,462,500 $269.83 $179,513 -

5-15 3505 N Pine Grove 16 16,000 $4,800,000 $300.00 $300,000 7.10%

2-15 2848 N Clark 23 23,966 $8,975,000 $374.49 $390,217 7.18%

2-15 3806 N Sheffield 31 51,056 $7,600,000 $148.86 $245,161 -

11-14 2914 N Broadway 18 27,168 $5,000,000 $184.04 $277,77 -

10-14 1035 W Diversey 12 9,300 $6,000,000 $645.16 $500,000 -

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 10 MARKET OVERVIEW

RECENT MULTIFAMILY APPRAISALS

PROPERTY UNITS SF TOTAL PRICE ($) PRICE PER SF ($) PRICE PER UNIT CAP RATE

1142 W Wellington 6 5,777 $1,575,000 $272.63 $262,500 5.45%

703 W Melrose 5 10,510 $2,750,000 $261,66 $550,000 5.48%

710 W Buckingham 14 19,537 $5,100,000 $261.04 $364,286 5.76%

953 W Fletcher 21 20,340 $6,550,000 $322.03 $311,905 5.76%

1040 W School 12 12,844 $3,625,000 $282.23 $302,083 5.75%

652 W Roscoe 14 11,792 $3,645,000 $309.11 $260,357 5.57%

3045 N Racine 5 4,089 $1,250,000 $305.70 $250,000 5.94%

922 W George 12 8,623 $2,700,000 $313.12 $236,458 5.29%

736 W Cornelia 6 6,597 $1,450,000 $219.80 $241,667 4.87%

3356 N Seminary 6 4,985 $1,420,000 $284.85 $236,667 5.14%

3514 N Lakewood 13 14,547 $3,050,000 $209.67 $234,615 5.04%

3521 N Wilton 6 6,265 $1880,000 $300.08 $313,333 5.50%

350 N Janssen 6 12,858 $2,300,000 $178.88 $383,333 5.27%

3118 N Clifton 6 7,214 $1,625,000 $225.26 $270,833 5.24%

3236 N Clifton 7 7,220 $2,080,000 $288.09 $297,143 5.29%

639 W Oakdale 18 23,359 $5,650,000 $241.88 $313,889 5.50%

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Offering Memorandum 628-634 W Roscoe St Chicago, Illinois

> Pricing & Cash Flow

PRICING & CASH FLOW

Valuation Summary & Proforma FINANCIAL SUMMARY

PROPERTY DESCRIPTION Property 628-634 W Roscoe Property Address 628-634 W Roscoe St Chicago, IL 60657 Number of Units 22 Units Net Rentable Area 14,100 SF Year Renovated 2001

PRICING Proposed sales Price $6,500,000 Total Unleveraged Acquisition Cost $6,500,000 Unleveraged Sales Price per Unit $295,455 Unit Unleveraged Sales Price per SF $460.99 SF

Leveraged Acquisitions Cost $6,545,500 Leveraged Acquisitions Cost per Unit $297,523 Unit Leveraged Acquisitions Cost per SF $464.22 SF RESALE ASSUMPTIONS Terminal cap Rate 6.00% Cost of Sale 2.00%

PROJECTED PRICING INDICATORS & RETURNS Year 1 NOI $339,319 Year 1 Net Cash Flow before DS $339,319 Year 1 Net Cash Flow after DS $78,651

Year 1 GRM 12.82 Year 1 CAP Rate 5.22% Year 1 Unleveraged Cash-on-Cash 5.22% Year 1 Leveraged Cash-on-Cash 3.94% First 5 Years Unleveraged Average Cash-on-Cash 5.61% First 5 Years Leveraged Average Cash-on-Cash 5.22%

10 Year Unleveraged IRR 7.18% 10 Year Leveraged IRR 11.96%

DEBT FINANCING* Loan Amount $4,550,000 Loan-to-Sales Price Ratio 70.00% Effective Interest Rate (over Analysis Period) 4.00% Effective Loan Constant 5.7290% Year 1 Annual Debt Service Payment (P&I only) $260,669

PROPERTY OPERATING PARAMETERS Current Weighted-Average Market Rent per Unit ** $1,830 Unit Year 1 Operating Expenses per Unit $7,070 Unit Year 1 Operating Expenses per SF $11.03 SF Year 1 Income Loss *** 4.00% 10 Year Average Income Loss *** 4.00%

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UNIT SUMMARY

Rentable Total Sep-2016 Sep-2016 Sep-2016 No. of Square Rentable Market Market Total Market Unit Type Units Feet Sq. Ft. Rent/Unit Rent/SF Rent Potential

1-1 16 Units 600 SF 9,600 SF $1,700.00 $2.83 SF $27,200 2-1 3 Units 700 SF 2,100 SF $2,100.00 $3.00 SF $6,300 2-2 3 Units 800 SF 2,400 SF $2,250.00 $2.81 SF $6,750 Totals / Wtd. Averages 22 Units 641 SF 14,100 SF $1,829.55 $2.85 SF $40,250

Most Current Rent Roll Date 9/15/2016

Collected Month Rent $ 40,250 Vacant Units at Market $ - Potential Gross Rent $ 40,250

(Loss) or Gain to Lease $ - % of All Units At Market 0.00%

YEAR 1 PRO FORMA INCOME Year 1 Year Ending Sep-2017 Annual % Total $ EGI Per Unit Per SF INCOME All Units at Market Rent $507,150 $23,052 $35.97 Gain (Loss)-to-Lease $0 $0 $0.00 GROSS POTENTIAL RENT $507,150 $23,052 $35.97

OTHER INCOME RUBS $0 0.0% $0 $0.00 Non-Refundable Move-in fee $5,500 1.1% $250 $0.39 Application Fee $0 0.0% $0 $0.00 Termination Fees $0 0.0% $0 $0.00 Miscellaneous/Other Income $2,500 0.5% $114 $0.18 Late Charges $0 0.0% $0 $0.00 Parking $0 0.0% $0 $0.00 Total Other Income $8,000 1.6% $364 $0.57

GROSS POTENTIAL INCOME $515,150 104.1% $23,416 $36.54 Vacancy/Collection Allowance (% of GPR) -4.00% ($20,286) -4.1% ($922) ($1.44) Model Apartments 0.00% $0 0.0% $0 $0.00 Employee Apartment Discount 0.00% $0 0.0% $0 $0.00 Concessions (% of GPR) 0.00% $0 0.0% $0 $0.00 Bad Debt Allowance 0.00% $0 0.0% $0 $0.00

EFFECTIVE GROSS INCOME $494,864 (100.0%) $22,494 $35.10

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 14 PRICING & CASH FLOW

YEAR 1 PRO FORMA EXPENSES Year 1 Year Ending 9/14/2017 Annual % of Total $ EGI Per Unit Per SF EXPENSES Real Estate Taxes Real Estate Taxes $75,000 (15.2%) $3,409 $5.32 Total Real Estate Taxes $75,000 (15.2%) $3,409 $5.32 Insurance Insurance $11,000 (2.2%) $500 $0.78 Total Insurance $11,000 (2.2%) $500 $0.78 Utilities Electricity $3,500 (0.7%) $159 $0.25 Water/Sewer $4,500 (0.9%) $205 $0.32 Trash Removal $5,500 (1.1%) $250 $0.39 Gas $4,000 (0.8%) $182 $0.28 Total Utilities $17,500 (3.5%) $795 $1.24 Contract Services Janitorial $7,500 (1.5%) $341 $0.53 Landscaping $3,250 (0.7%) $148 $0.23 Snow Removal $2,500 (0.5%) $114 $0.18 Total Contract Services $13,250 (2.7%) $602 $0.94

Repairs & Maintenance $10,000 (2.0%) $455 $0.71 Turnover Expense $0 (0.0%) $0 $0.00 Marketing & Promotion $1,500 (0.3%) $68 $0.11 On-Site Payroll $0 (0.0%) $0 $0.00 Payroll Taxes & Benefits (% of Payroll Expense) 0.00% $0 (0.0%) $0 $0.00 General & Administrative $2,000 (0.4%) $91 $0.14 Management Fee (% of EGI) 4.00% $19,795 (4.0%) $900 $1.40 Replacement & Reserves $5,500 (1.1%) $250 $0.39

TOTAL EXPENSES $155,545 (31.4%) $7,070 $11.03

NET OPERATING INCOME $339,319 (68.6%) $15,424 $24.07

ANNUAL DEBT SERVICE $260,669 CASH FLOW AFTER DEBT SERVICE $78,651

NET OPERATING INCOME RETURN Going-In CAP PURCHASE PRICE (Unleveraged) $6,500,000 5.22% UNLEVERAGED ACQUISITION COST $ 6,500,000 5.22% LEVERAGED ACQUISITION COST $ 6,545,500 5.18%

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 15 PRICING & CASH FLOW

YEAR 1 PRO FORMA FINANCING SUMMARY Loan Origination Date Sep-16 Purchase Price $6,500,000 LTV 70.00% Required Equity $ 1,950,000.00 Loan Fee 1.00% Loan Amount $ 4,550,000.00 Interest Rate 4.00% Loan Constant 5.7290% Loan Acquisition Fee $ 45,500 Amortization 30 Years Loan Term 10 Years Monthly P&I Pmt. $21,722.40 Annual Debt Service $260,668.75 Maturity Date Sep-26 Balance at Maturity $ 3,574,896.65

Acquisition Reserves Due Diligence $ - Unit/Common Area Rehab $ - Roof Replacement $ - Other $ - Loan Fee $ 45,500.00 Total Unleveraged Acquisition Cost $ 6,500,000.00 Required Equity $ 6,500,000.00

Total Leverage Acquisition Cost $ 6,545,500.00 Required Equity $ 1,995,500.00 Loan % of Total Acquisition Cost 69.51%

Month Interest Principle Balance Sep-16 1 $ 15,166.67 $6,555.73 $ 4,543,444.27 Oct-16 2 $ 15,144.81 $6,577.58 $ 4,536,866.69 Nov-16 3 $ 15,122.89 $6,599.51 $ 4,530,267.18 Dec-16 4 $ 15,100.89 $6,621.51 $ 4,523,645.68 Jan-17 5 $ 15,078.82 $6,643.58 $ 4,517,002.10 Feb-17 6 $ 15,056.67 $6,665.72 $ 4,510,336.38 Mar-17 7 $ 15,034.45 $6,687.94 $ 4,503,648.44 Apr-17 8 $ 15,012.16 $6,710.23 $ 4,496,938.20 May-17 9 $ 14,989.79 $6,732.60 $ 4,490,205.60 Jun-17 10 $ 14,967.35 $6,755.04 $ 4,483,450.56 Jul-17 11 $ 14,944.84 $6,777.56 $ 4,476,672.99 Aug-17 12 $ 14,922.24 $6,800.15 $ 4,469,872.84 Year 1 Principal Reduction $80,127.16

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GROWTH RATES

1 2 3 4 5 6 7 8 9 10 11 Fiscal Year Ending: Sep-2017 Sep-2018 Sep-2019 Sep-2020 Sep-2021 Sep-2022 Sep-2023 Sep-2024 Sep-2025 Sep-2026 Sep-2027 INCOME \ Market Rent 5.00% 4.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Loss to Lease (as % of Market Rent) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% OTHER INCOME RUBS 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Non-Refundable Move-in fee 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Application Fee 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Termination Fees 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Month to Month fee 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Corporate Premiums 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Miscellaneous/Other Income 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Transfer Fees 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Late Charges 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Service Charge 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Laundry Income 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Vending Machine Income 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Cox Cable Revenue 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Parking 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Damages Reimbursement 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Reinstatement Fee 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Legal Reimbursement 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% GROSS POTENTIAL INCOME Vacancy/Collection Allowance (% of GPR) 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Model Apartments 5.00% 4.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Employee Apartment Discount 0.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Concessions (% of GPR) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

EXPENSES Total Real Estate Taxes 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Total Insurance 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Total Utilities 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Total Contract Services 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Repairs & Maintenance 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Turnover Expense 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Marketing & Promotion On-Site Payroll 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Payroll Taxes & Benefits (% of Payroll Expense) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% General & Administrative 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Management Fee (% of EGI) 4.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% Replacement & Reserves 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 17 PRICING & CASH FLOW

10 YEAR CASH FLOW

Fiscal Year Ending Sep-2017 Sep-2018 Sep-2019 Sep-2020 Sep-2021 Sep-2022 Sep-2023 Sep-2024 Sep-2025 Sep-2026 Sep-2027 Financial Analysis All Units at Market Rent $507,150 $527,436 $543,259 $559,557 $576,344 $593,634 $611,443 $629,786 $648,680 $668,140 $688,184 Gain (Loss)-to-Lease 0 0 0 0 0 0 0 0 0 0 0 GROSS POTENTIAL RENT $507,150 $527,436 $543,259 $559,557 $576,344 $593,634 $611,443 $629,786 $648,680 $668,140 $688,184

OTHER INCOME RUBS 0 0 0 0 0 0 0 0 0 0 0 Non-Refundable Move-in fee 5,500 5,665 5,835 6,010 6,190 6,376 6,567 6,764 6,967 7,176 7,392 Application Fee 0 0 0 0 0 0 0 0 0 0 0 Termination Fees 0 0 0 0 0 0 0 0 0 0 0 Month to Month fee 0 0 0 0 0 0 0 0 0 0 0 Corporate Premiums 0 0 0 0 0 0 0 0 0 0 0 Miscellaneous/Other Income 2,500 2,575 2,652 2,732 2,814 2,898 2,985 3,075 3,167 3,262 3,360 Transfer Fees 0 0 0 0 0 0 0 0 0 0 0 Late Charges 0 0 0 0 0 0 0 0 0 0 0 Service Charge 0 0 0 0 0 0 0 0 0 0 0 Laundry Income 0 0 0 0 0 0 0 0 0 0 0 Vending Machine Income 0 0 0 0 0 0 0 0 0 0 0 Cox Cable Revenue 0 0 0 0 0 0 0 0 0 0 0 Parking 0 0 0 0 0 0 0 0 0 0 0 Damages Reimbursement 0 0 0 0 0 0 0 0 0 0 0 Reinstatement Fee 0 0 0 0 0 0 0 0 0 0 0 Legal Reimbursement 0 0 0 0 0 0 0 0 0 0 0 TOTAL OTHER INCOME $8,000 $8,240 $8,487 $8,742 $9,004 $9,274 $9,552 $9,839 $10,134 $10,438 $10,751 POTENTIAL GROSS INCOME $515,150 $535,676 $551,746 $568,299 $585,348 $602,908 $620,995 $639,625 $658,814 $678,578 $698,936

Vacancy/Collection Allowance (% of GPR) ($20,286) ($21,097) ($21,730) ($22,382) ($23,054) ($23,745) ($24,458) ($25,191) ($25,947) ($26,726) ($27,527) Model Apartments 0 0 0 0 0 0 0 0 0 0 0 Employee Apartment Discount 0 0 0 0 0 0 0 0 0 0 0 Concessions (% of GPR) 0 0 0 0 0 0 0 0 0 0 0

EFFECTIVE GROSS INCOME $494,864 $514,579 $530,016 $545,916 $562,294 $579,163 $596,538 $614,434 $632,867 $651,853 $671,408

EXPENSES Total Real Estate Taxes $75,000 $77,250 $79,568 $81,955 $84,413 $86,946 $89,554 $92,241 $95,008 $97,858 $100,794 Total Insurance 11,000 11,330 11,670 12,020 12,381 12,752 13,135 13,529 13,934 14,353 14,783 Total Utilities 17,500 18,025 18,566 19,123 19,696 20,287 20,896 21,523 22,168 22,834 23,519 Total Contract Services 13,250 13,648 14,057 14,479 14,913 15,360 15,821 16,296 16,785 17,288 17,807 Repairs & Maintenance 10,000 10,300 10,609 10,927 11,255 11,593 11,941 12,299 12,668 13,048 13,439 Turnover Expense 0 0 0 0 0 0 0 0 0 0 0 Marketing & Promotion 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 On-Site Payroll 0 0 0 0 0 0 0 0 0 0 0 Payroll Taxes & Benefits (% of Payroll Expense) 0 0 0 0 0 0 0 0 0 0 0 General & Administrative 2,000 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 2,688 Management Fee (% of EGI) 19,795 20,388 21,000 21,630 22,279 22,947 23,636 24,345 25,075 25,827 26,602 INPUT 0 0 0 0 0 0 0 0 0 0 0 INPUT 0 0 0 0 0 0 0 0 0 0 0 INPUT 0 0 0 0 0 0 0 0 0 0 0 Replacement & Reserves 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 5,500 TOTAL EXPENSES $155,545 $160,001 $164,591 $169,319 $174,188 $179,204 $184,370 $189,691 $195,172 $200,817 $206,631

NET OPERATING INCOME $339,319 $354,578 $365,425 $376,598 $388,106 $399,959 $412,168 $424,743 $437,695 $451,036 $464,777

CAPITAL COSTS TBD 0 0 0 0 0 0 0 0 0 0 TOTAL CAPITAL ITEMS $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

NET CASH FLOW BEFORE DEBT SERVICE $339,319 $354,578 $365,425 $376,598 $388,106 $399,959 $412,168 $424,743 $437,695 $451,036

DEBT SERVICE Principal Payments $80,127 $83,392 $86,789 $90,325 $94,005 $97,835 $101,821 $105,969 $110,287 $114,780 Interest Payments 180,542 $ 177,277 $ 173,880 $ 170,344 $ 166,664 $ 162,834 $ 158,848 $ 154,699 $ 150,382 $ 145,889 TOTAL DEBT SERVICE $260,669 $260,669 $260,669 $260,669 $260,669 $260,669 $260,669 $260,669 $260,669 $260,669

NET CASH FLOW AFTER DEBT SERVICE $78,651 $93,909 $104,756 $115,929 $127,437 $139,290 $151,499 $164,074 $177,026 $190,367

DEBT SERVICE COVERAGE RATIO 1.30 1.36 1.40 1.44 1.49 1.53 1.58 1.63 1.68 1.73

Unleveraged Cash on Cash 5.22% 5.46% 5.62% 5.79% 5.97% 6.15% 6.34% 6.53% 6.73% 6.94% Leveraged Cash on Cash 3.94% 4.71% 5.25% 5.81% 6.39% 6.98% 7.59% 8.22% 8.87% 9.54%

Net Resale Value $ 5,791,435.17 $ 5,968,608.22 $ 6,151,096.47 $ 6,339,059.36 $ 6,532,661.14 $ 6,732,070.98 $ 6,937,463.11 $ 7,149,017.00 $ 7,366,917.51 $ 7,591,355.03

10 Year Unleverage IRR -5.68% 1.28% 3.70% 4.94% 5.68% 6.18% 6.54% 6.80% 7.01% 7.18% 10 Year Leveraged IRR -29.49% -6.17% 2.39% 6.49% 8.74% 10.06% 10.89% 11.41% 11.74% 11.96%

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 18

Confidentiality & Disclaimer Statement

This Offering Memorandum contains select information pertaining to the business and affairs of the property at 628-634 W Roscoe St, Chicago, IL. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Peter Block from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of 628-634 W Roscoe St, Chicago, IL. or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

628-634 W ROSCOE STREET– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 19