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C B R E , a s e x c l u s i v e a g e n t , i s p l e a s e d t o a n n o u n ce t h e o p p o r t u n i t y t o a c q u i re 240 EAST , a f u l ly l e a s e d p r o p er t y i n t h e h e a r t o f S t ree t er v i l l e , a l i v e ly n e i g h b o r h o o d o n t h e s h o re s o f L a k e M i c h i g a n l o c a t e d i n C h i c a g o ’ s d o w n t o w n . The 12,827-square-foot commercial retail building is situated between a ground floor 50,000-square foot Whole Foods that fronts Lower Illinois, which runs under Michigan Avneue, and the 281-unit Fairbanks at Cityfront Plaza Residences on Upper Illinois, which runs perpendicular to Michigan Avenue just two blocks west. The property features a long term lease with a very successful health club operator, Planet Fitness, who comprises 75% of income and has a lease that runs until 2025 with four 5-year options. Complimenting the health club is Ezza Salon, a cutting edge salon concept that recently opened and is expanding rapidly thoroughout the city. These tenants, along with a dry cleaner and ATM, all boasts uses that are Internet-proof, providing a solid and consistent cash flow stream in a high barriers to entry market a mere two blocks from ’s premier shopping street, the , in a one of Chicago’s premier neighborhoods.

HIgh Credit Tenancy, Internet-Resistant Retail Planet Fitness, publicly traded (NYSE: PLNT) and rated B1 positive by Moody’s has over 1,700 fitness centers throughout North America with plans to open 4,000 more. With a market cap of $5.98B, Planet Fitness boasts revenues of $136.7M and net income of $20.5M (through Q3 2018). Complimenting this use is Ezza Salon, an avant garde nail salon that was founded by two University of Chicago Business School students with the intention of bringing nail salons into the 21st century by offering high-end nail services, paying employees a livable wage and offering longer hours for clients to come in before and after work. Ezza plans to add an additional three stores in Chicago next year. PNC Bank, the 5th largest bank in the US by locations, operates an ATM out of this location.

TWO BLOCKS FROM MICHIGAN AVENUE Immediately east of 240 E Illinois is the highest grossing retail thoroughfare in Chicago and one of the premier shopping destinations in the world: The Magnicifient Mile. With

rents north of $400 psf and international flagships such as Apple, Burberry, Louis Vuitton, Gucci, Nike and many more, the location offers tenants an economical alternative. 3

LEVERAGING CHICAGO’S MOST COMPELLING DEMOGRAPHICS is one of wealthiest and most densely populated neighborhoods in all of Chicago with an array of nationwide retail chains, hotels, boutiques, specialty shops, institutional hospitals and museums, high-density office uses and luxury high-rise residential towers. Within a mile radius of the property there are 84,466 residents, which is expected to grow to 95,000 within the next five years. The area also boasts an average household income exceeds $138,963.

TWO OF CHICAGO’s MOST HIGH PROFILE RESIDENTIAL TOWERS IN IMMEDIATE VICINITY Across the street from the property a 1,422 foot residential tower has been proposed, which would be the tallest tower in Chicago behind and feature over 439 apartments, 125 condominiums and a 200-key luxury hotel. A few blocks east, Related Midwest plans to break ground on a 1,100 foot condominium and hotel building as well as a 850 foot apartment tower.

Proximity to Employment Base/Transportation Access Transportation linkages are excellent and proximity to employment centers cannot be matched by any other Chicago neighborhood.

Chicago’s most prestigious medical and higher education campuses Located within a few blocks of the property sit two of the best business schools in the United States: the University of Chicago Booth School of Business and Northwestern Executive Summary University Kellogg School of Management. Also, Northwestern Hospitals 25 acre campus is just north of 240 E Illinois. Survey E Z Z A N A I L S PLANET FITNESS 4 5

Floorplans Stabilized Pro Forma FOR THE YEAR STARTING 1/1/2020

Lease Dates Minimum Rent Recoveries Option Total Tenant Suite GLA Start End Annual Monthly PSF Annual PSF Periods Revenue Planet Fitness 1 9,497 8/23/2015 8/31/2025 $244,548 $26,252 $25.75 $77,252 $8.13 (4) 5 years $321,799 Loan Annual Cap Estimated Estimated Equity Cash FLOW RETURN on SC Unlimited 2 697 6/29/2007 12/31/2022 $17,675 $9,045 $25.36 $5,670 $8.13 (1) 5 Years $23,344 Amount NOI Debt Rate Value Value PSF Required After Debt Equity at 75% LTV Service PNC Bank 3 343 10/1/2017 9/30/2022 $29,067 $2,42 $84.74 $2,790 $8.13 (1) 5 Years $31,115 5.75% $5,685,366 $443.23 $4,264,024 $1,421,341 $326,909 ($250,222) $76,687 5.40% EzzaSalon 5 2,290 9/6/2017 1/31/2025 $48,281 $4,389 $21.08 $18,628 $8.13 (1) 5 Years $66,908 6.00% $5,448,476 $424.77 $4,086,357 $1,362,119 $326,909 ($239,796) $87,113 6.40% Total 12,827 100.0% Totals $339,570 $42,108 $104,339 $122,110 6.25% $5,230,537 $407.78 $3,922,902 $1,307,634 $326,909 ($230,204) $96,705 7.40% Vacant 0 0.0% 6.50% $5,029,362 $392.09 $3,772,022 $1,257,341 $326,909 ($221,350) $105,559 8.40%

6 Occupied 12,827 100.0% 6.75% $4,843,089 $377.57 $3,632,317 $1,210,772 $326,909 ($213,152) $113,757 9.40% 7

PSF Total PSF Total FINANCING ASSUMPTIONS Total Rental Revenue $26.47 $339,570 Insurance ($0.34) ($4,419) Recoveries $8.13 $104,339 Real Estate Taxes ($5.82) ($74,657) Loan to Value: 75% Amortization Period: 30 Years Effective Gross Income $34.61 $443,909 CAM ($1.97) ($25,262) Interest Rate: 4.20% Loan Constant: 5.87% Management Fee ($0.87) ($11,162) 10 Year Treasury: 2.70% Legal Fee ($0.12) ($1,500) Basis Point Spread: 150 Total Expenses ($9.12) ($117,000) Net Operating Income $25.49 $326,909 Capital Reserves ($0.10) ($1,200) NOI After Reserves $25.39 $325,709 Pricing Matrix STABILIZED NOI Tenant Overview

Branding itself as the gym for “anyone” and a “Judgement-Free Zone,” Planet Fitness has grown to Headquartered in Pittsburgh, Pennsylavania, PNC Financial Services Group, Inc. operates 1,600 clubs in North America since its inception in 1992, making it one of the largest fitness clubs 2,459 banks and and 9,051 ATMs in 19 states and the District of Columbia. Additionally, the franchises in the world. In addition to offering low-cost gym memberships starting at $10 per month, company also provides an array of financial services, including asset and wealth management, the club was main sponsor for NBC’s “The Biggest Loser” for the 2012 season, is the official estate planning, loan services and information processing. Currently, PNC is the 8th largest fitness sponsor of ABC’s Dick Clark’s New Year’s Rockin’ Eve, and partners with such charitable bank in the United States by assets, 5th largest by number of branches, 6th largest by deposits organizations such as STOMP Out Bulling and the Boys & Girls Clubs of America. and 4th largests by number of ATMS.

NYSE: PLNT NYSE: PNC Current share price (as of 3/6/19): $63.88 Current share price (as of 3/6/19): $127.82 Volume (as of 3/6/19): 988,227 Volume (as of 2/13/19): 3,160,060

8 Revenue (THROUGH q3 2018): $136.7M Revenue (THROUGH q3 2018): $4.36B Net Income (Throuhg q3 2018): $20.5M Net Income (Throuhg q3 2018): $1.4B 9 Market cap: $5.98B Market cap: $56.65B CREDIT RATING: B1 POSITIVE CREDIT RATING: BAA2

Founded in 2017 by two University of Chicago Business School students, Ezza Nails Cityfront Drycleaners (listed on the rent roll as “SC Unlimited”) are the dry cleaning and laundry opened its first store at 240 E. Illinois with the intiention of bringing nail salons into the service exclusively for residents at The Fairbanks at Cityfront Plaza, the condominium building CITYFRONT 21st century. Offering an array of manicures and pedicures, Ezza offers online bookings which sits atop the retail at 240 E. Illinois. with advanced color choices and pre-payment, tech-ready stations, and the latest in nail DRYCLEANERS innovation with non-toxic, organic and cruelty-free brands and LED gel lamps. The local business is focused on changing the nail salon industry by offering high-end nail services, paying employees a livable wage and offering longer hours for clients to come in before and after work. The business plans to expand and add an additional three stores through the next year, solidifying its presence throughout Chicago PLANET FITNESS LEASE ABSTRACT CITYFRONT RETAIL REA ABSTRACT

Ownership Description (ix) The use, presence or release of Hazardous Materials, except in the ordinary Owner A – Optima owner course of the permitted and usual business operations conducted thereon, Square Footage 9,497 Owner B – CFP Fairbanks HOA provided that any such use shall at all times be in compliance with all applicable Owner C – CFP Lofts HOA environmental laws; Term 10 full lease years Owner D – CFP Garage HOA Owner E – Whole Foods owner (x) Any foreign governmental offices; Owner F – Planet Fitness [Seller’s property] Option Periods Four 5-year options Owner G – Ezza Nails [Seller’s property] (xi) A massage parlor; Owner H – Dry Cleaner [Seller’s property] Guarantor R&R Development Holdings Owner I – ATM [Seller’s property] (xii) Industrial purposes;

Tenant opens for business or 135 days after the possession date, which is 10 days after the USE Restrictions (xiii) A gun shop or firing range; Commencment Date 14.5 Use. effective date of April 8th. (xiv) A salvage shop; Percentage Rent None (a) No use shall be permitted in all or any portion of the Property which does not comply with Law, or would increase significantly the cost of insurance maintained by an Owner (xv) For the purpose of manufacturing;

10 of any portion of a Building in which such use is contemplated.

A fitness/health club and tanning facility on an exclusive basis 11 Permitted Use (xvi) A methadone clinic or drug or alcohol dependency cli nic ; and (b) The following uses shall not be permitted in the Property without the consent of Owner Common Area The common area excludes the residential area, the grocery area, the parking area, and the A, which may be withheld in such Owner's sole and exclusive discretion: (xvii) A dry cleaner or other use which produces odors that emanate beyond the exclusive use of other tenants. CAM charges shall equal a percentage, which the numerator premises occupied by the use (except for food uses otherwise permitted shall be the square footage of the premises and the denominator shall be the leasable square (i) Any fire sale, bankruptcy or going out of business sale (unless pursuant to a hereunder and except for a dry cleaner in which the cleaning is performed footage in the retail area which is 11,834 sf. court order with proper permits issued by the City); off-premises and not performed at the Property). to that the Approved Appraiser shall apportion the premium based Cap on CAM Shall not exceed 103% of tenants proportionate share of CAM in any prior calender year. (ii) Any mortuary or funeral home; Maintenance (iii) Any establishment selling or exhibiting pornographic materials or drug- related - Façade: Each Owner shall perform maintenance of the portion of the Façade which is Taxes Tenants Proportionate share shall be 100% for the real estate tax pin 17-10-212-025-0000 paraphernalia; appurtenant to such Owner’s Property. - HVAC/Delivery Area and Storage for Owner F: Owner D shall perform maintenance and the Exclusive Use Landlord agrees it shall not enter into a lease for any other space in the retail area which (iv) Any adult theater or live performance theater exhibiting nude or lewd area servicing and appurtenant to the Facilities serving such areas keeping the area in good, sanitary uses more than 20% of its floor area for the operation of a fitness center and health club/ performers or performances or lascivious behavior; and safe condition. gym (v) Any carnival or flea market; CAM Additional Rent Includes late charges, CAM and real estate taxes - Owner B will bill for any building shared expenses per the REA in Exhibit 13.1. These expenses (vi) Any clinic, office or other facility performing abortions; include: Utilities Electricity and telephone are seperately metered and tenant is responsible for its share of all 1.) Maintenance of the Owner B Freight Elevators and Owner B Ground Level Service utility charges (vii) Any off-track betting store or parlor; Corridor 2.) Maintenance of the Owner B Crossover Residential Elevator Lobby Parking All 260 public parking spaces are available to all Planet Fitness customers on a first come, (viii) Any deep discount store; first serve basis. Parking rates are subject to change from time to time Bellevue

MAGNIFICENT MILE Oak

The Drake Hotel Rosebud Steakhouse Walton Residence Inn LEGEND The Westin Dewitt Hotel TOURISM/POINTS OF INTEREST Delaware

JOHN HANCOCK Dollop Coffee Co. CENTER The Seneca RESIDENTIAL/HOTEL Apartments Dewitt Le Petit Paris Chestnut Mies Van Der Rohe Mies Van BROADWAY Cafecito DINING/ENTERTAIMENT PLAYHOUSE 222 E Pearson Condominiums Pearson RETAIL See pg. 26 for retailers and detailed overview See pg. HISTORIC MUSEUM OF HISTORIC WATER TOWER WATER CONTEMPORARY ART TOWER The Ritz Chicago

Cambria Hotel

Superior NORTHWESTERN NORTHWESTERN HOSPITAL UNIVERSITY SYSTEM (Chicago Campus) Hampton Inn Huron M Burger Starbucks Lakeshore Condominiums JARDINE WATER Corner Bakery Beatrix Ace Hardware PURIFICATION PLANT Erie MILTON LEE TGI Friday’s Starbucks Stan’s McDonald’s OLIVE PARK Hyatt Donuts Axis Fairfield Inn

St Clair Apartments McClurg Ontario Fairbanks Courtyard by Dunkin Donuts Timothy 7-Eleven Marriott O’Toole’s Kriser’s 420 E. Ohio Rush Michigan LaVazza Gyu-Kaku Coco Pazzo Natural Pet Apartments JANE ADDAMS CHICAGO CHILDREN’S MUSEUM Ohio MEMORIAL PARK NORTHWESTERN HOSPITAL SYSTEM Second 7-Eleven Jersey Mike’s Dollop Coffee Co. Lake Shore Plaza Story Bar Ramen Misoya Atwater Apts. MAGNIFICENT MAGNIFICENT MILE Moment 530 Lake Shore Drive 535 N Michigan The Streeter Yolk. Apartments Condominiums Condos Grand Giordano’s AMC Navy Pier IMAX ONE at Optimus Volare Whole Foods Lucky Strike Ristorante FTW Chicago Subway 500 Lake Shore Dr CHICAGO Starbucks Texas de Brazil Embassy Suites NAVY PIER 160 E Illinois AMC River Apartments Condominium McDonald’s Walgreens CHILDREN’S MUSEUM Condos East 21 Margaritaville I Dream of Illinois Bubba Gump Fish Bar Billy Goat Tavern Pinstripes Carson’s Ribs Shrimp Co. Restaurant Falafel Target River East Art Center Chicago Line Promenade Cruises NBC Tower

Loews Chicago WRIGLEY North Water POLK BROS BUILDING Apartments PARK

Sheraton Grand Cityfront Place Chicago Apartments

MUSEUM OF CONTEMPORARY ART Retail Overview

With a dense and affluent population, retailers have flocked to the neighborhood to take advantage of the live/work/play atmosphere that is highly desired by residents. Just north of the property, high- end restauarants such as Ramen Misoya, Gyu-Kaku Japanese BBQ, Beatrix, Niu Japanese Fusion Lounge, FTW and many more have BURBERRY FLAGSHIP become staples within the neighborhood. International brands have also moved into the trade area. Cartier & Rolex MICHIGAN AVENUE Two blocks west of 240 E. Illinois, the “Magnificent Mile,” the premier shopping district in Chicago and one of the most prestigious in the country, stretches 13 blocks along North Michigan Avenue. Some of the world’s finest department stores adorn the nearly 4,000,000 square feet of space, including Bloomingdale’s, Neiman Marcus, Saks Fifth Avenue, Nordstrom and Macy’s. Other luxury retailers along the strip include Canada Goose, Gucci, Cartier, Rolex, Prada, Louis Vuitton, Tiffany & Co., Ralph Lauren, and Burberry’s flagship U.S. store.

The Mag Mile also contains three urban shopping centers: , the Shops at North Bridge and Shops, all of which featuring a wide variety of tenants, restaurants SAKS FIFTH AVENUE and other tourist destinations, such as the Chicago Sports Museum in

RALPH LAUREN Water Tower Place.

Just east of the property resides The Retail at River East, a 251,000 SF entertainment complex geared toward the adult crowd. Here, one will find three major entertainment options: AMC River East 21 theaters; FTW Chicago, a state-of-the-art arcade bar featuring gastropub eats; and Lucky Strike, a modern bowling alley with a lounge, DJ and dancing. © 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information KEELY POLCZYNSKI OLIVER JACKSON may not represent the current or future performance of the property. You and FOR MORE Senior Vice President Analyst your advisors should conduct a careful, independent investigation of the property INFORMATION +1 312 861 7870 +1 312 540 4640 CONTACT and verify all information. Any reliance on this information is solely at your own [email protected] [email protected] risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

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