Development Overview

Home , 1000M, 340 on the Park, Essex on the Park, NEMA (Chicago), One Bennett Park, Park Tower (Chicago)

DEVELOPMENT OVERVIEW

1000 SOUTH MICHIGAN AVENUE CHICAGO, IL WINTER 2019/2020

*There can be no assurance these objectives will be achieved. An investment in the Offering may incur a selling commission of 4%. Please see the PPM for a complete description of the fees. This is neither an offer to sell nor a solicitation of an offer to buy the securities referenced herein. The offering of membership units in 1000 South Michigan Preferred LLC (the “Company”) is made only by a Confidential Private Placement Memorandum of the Company (the “PPM”). You must read the entire PPM in order to fully understand the risks related to the purchase of units in the Company. The information set forth herein is not indicative of future performance and there is no assurance that the Company will experience similar returns. Time Equities Inc. and Time Equities Securities LLC are affiliates. Securities Offered Through Time Equities Securities LLC, a Member of FINRA. NORTH VIEW OVER GRANT PARK + LAKE MICHIGAN CONTENTS

1000 South Michigan Avenue �� 3 Project Overview �� 4 Estimated Project Timeline �� 5 Optimized Unit Mix & Product Diversification �� 6 Site Description �� 10 Land Acquisition & Assemblage �� 11 Land Basis & Entitlement ��12 ARO & Site Access ��13 Project Capital Investment & Pre-Sales To Date ��14 Project Team ��15 Business Plans ��16 Strong Case for Condo as Highest & Best Use ��17 Parking ��18 Chicago Condo Market Overview ��19 1000M Condo Comparable Sales Analysis ��20 Chicago Rental Market Overview �� 23 1000M Comparable Rental Market Analysis �� 24 Grant Park & Michigan Avenue Sub-Market Description ��27 Detailed Project Description �� 28 Sponsor Team ��29

Development Overview Winter 2019/2020 / 2 NORTH VIEW OVER GRANT PARK + LAKE MICHIGAN 1000 SOUTH MICHIGAN AVENUE

Time Equities Inc. (Sponsor) is developing 1000 South Michigan Avenue, Chicago, IL – an 830-foot-tall, 450-unit, Helmut Jahn- designed, luxury condominium tower (with 430 space parking garage) located directly on Grant Park in downtown Chicago.

1000M is fully entitled with active an active pre-sale campaign. Construction on site has commenced as of November 2019 (with completion anticipated 38 months later, at the end of 2022).

The total working project budget – including land, hard costs (for tower and attached garage), soft costs and contingency – is $~473,000,000, as reflected in the sources and uses schedule below. This project budget represents a total cost basis of $720.00 per sellable SF, based on the project’s 656,000 residential sellable SF.

Sponsor notes that the project budget remains subject to adjustment at this time, pending the finalization of the GMP budget/contract and other costs.

1000M Sources and Uses Sources of Funds GS Construction Loan 72.5% 343,096,113 Pref Equity Investor 15.0% 70,985,403 Sponsor Equity 12.5% 59,154,502 Total Sources 100% 473,236,018

Uses of Funds Site Costs 38,000,000 Hard Costs 330,500,000 Soft Costs 65,510,493 Construction Loan Interest 18,500,000 Contingency 20,725,525 Total Uses 473,236,018

Development Overview Winter 2019/2020 / 3 58TH FLOOR — KITCHEN PROJECT OVERVIEW

1000M represents an opportunity to invest in a Within Chicago, the limited supply of new luxury world class, 72-story, skyline-changing tower in condominium product is well documented the ‘Second City.’ and described further herein. The comparable projects in the market achieve average sales of The project Sponsor is a leading private +$1,000/SF (as documented in the sales comps international real estate investment and herein), which is the same price level that development company with the resources and 1000M seeks to achieve on average (and has experience required for an undertaking of this already achieved on certain pre-sale contracts). magnitude. In addition to strong Sponsorship, The Chicago condo sale high-water mark was the 1000M preferred equity opportunity hopes set in 2018 at $2,200/SF. to benefit from an attractive last-dollar basis, strong pre-sales, entitlements/GMP in place Looking forward, the pipeline of luxury condo prior to funding, and various other factors deliveries in Chicago remains extremely that we believe de-risk the deal and offer a low – and even lower for tower projects of compelling risk/reward relationship (including scale with views (such as 1000M). Downtown low Sponsor land cost and advantageous first Chicago remains a high-barrier-to-entry mortgage/construction financing). market in which land costs, construction costs and government policy/politics will constrain The Sponsor has already spent 4 years planning large-scale condominium development for the MICHIGAN AVENUE LOBBY ENTRANCE the 1000M development – from land acquisition foreseeable future. and site assemblage to entitlement, design and presales. Having now demonstrated market At the same time, the downtown Chicago viability through its presales program the project market is experiencing impressive economic and will move forward with construction, which population growth. As detailed elsewhere in this commenced November 2019. project overview, Chicago is one of the most robust markets in the country for the growth of Once complete 1000M will be an architectural young, affluent households, and has welcomed icon and will have a dramatic impact on the dozens of major corporate relocations in recent Chicago skyline. With its curved corners and years. In addition, Google, Salesforce, Facebook, cantilevering facades, the tower grows as it Glassdoor and Accenture have recently ascends to its pinnacle at 830’ – reaching announced major workforce expansions in high above neighboring buildings to unlock the downtown core. ‘forever’ views. All of the above factors come together to make Relative to New York City, Miami, London and 1000M a compelling project and, we believe, various other gateway cities around the globe, the next great American skyscraper. the Chicago luxury condo market is today both undervalued and undersupplied. Purchasing a condominium in a building with equivalent scale and prestige in one of these other cities might cost double or triple that of a unit at 1000M.

Development Overview Winter 2019/2020 / 4 VIEW LOOKING NORTH TOWARD DOWNTOWN

ESTIMATED PROJECT TIMELINE

Estimated 1000M Project Timeline Sign GMP Contract December, 2019 Start Construction January, 2020 Start Pref Equity Funding May, 2020 Start Loan Funding January, 2021 First TCOs July, 2022 Condo Closings Begin August, 2022 Constr. Comp./All TCOs December, 2022 Lease Up Begins/Unsold Units January, 2023 Finish Early Closings June, 2023 Inventory Loan Closing December, 2023

Development Overview Winter 2019/2020 / 5 LEVEL 11 — LOUNGE OPTIMIZED UNIT MIX & PRODUCT DIVERSIFICATION

1000M offers 450 condominium units spread out over 71 floors. However, as reflected below, in the Unit Program Snapshot, 1000M is really broken up into three smaller ‘buildings within a building.’ The Signature Base units are located on floors 3-40, the International Collection is located on floors 41-47, and the Signature Tower units are located on floors 48-71.

1000M’s three different unit programs/tiers appeal to different buyer profiles and therefore generally do not compete with each other. Said another way, 1000M is designed to offer compelling product to an extremely wide range of customers. Units range from a $300,000 micro studio on the 40th floor, to an $8,500,000 penthouse on the DINING ROOM — 48TH FLOOR 71st floor – and everything in between.

Among other things, this strategy is designed to speed up absorption and maximize $/SF by presenting a limited offering of diverse product within the building. Each program type has its own target buyer, unit mix/sizing and pricing structure and value proposition.

1000M UNIT PROGRAM SNAP SHOT Floors # of Units Total SF Gross Sales Avg $/Unit Avg. $/SF Avg. SF 3-40: Sig. Base 212 329,818 244,243,100 1,152,090 $741 1,556 41-47: Int. Coll. 133 70,653 73,388,256 551,791 $1,039 531 48-71: Sig. Tower 105 251,740 299,781,980 2,855,066 $1,191 2,398 450 652,211 617,413,336 1,372,030 947 1,449

Development Overview Winter 2019/2020 / 6 LIVING ROOM — 39TH FLOOR

The Signature Base Units: UNIT MIX: SIGNATURE UNITS - BASE BR Type # of Units Total SF Gross Sales Avg. $/Unit Avg. $/SF Avg. SF The Signature Base units, which represent ~50% Most importantly, these units offer competitive pricing 1 67 71,160 43,769,500 653,276.12 615 1,062 of the building sellable SF, average 1,556 SF. These units and generally a strong value proposition relative to the 2 69 104,418 76,648,600 1,110,849 734 1,513 are designed for the “luxury/value” buyer. As reflected scale/prominence of 1000M and its best-in-class amenity in the Signature Base unit mix below, there is a wide program. The Chicago market has had success with 2+ 26 54,005 46,995,000 1,807,500 870 2,077 range of options in this tier. Layouts in this program are this product type at a number of recent developments, 3 46 89,548 66,960,000 1,455,652 748 1,947 comfortable without being over-sized. Finishes here are notably the completed Aqua Tower and 340 on the the same as those offered in the Signature Tower units – Park, and more recently, the under-construction and/or 3+ 4 10,687 9,870,000 2,467,500 924 2,672 including Subzero refrigerators and Wolf ranges. currently delivering Renelle on the River, Superior House Total 212 329,818 244,243,100 1,152,090 741 1,556 and 360 West Erie condo developments.

Development Overview Winter 2019/2020 / 7 BEDROOM — INTERNATIONAL COLLECTION

The International Collection Units: UNIT MIX: INTERNATIONAL COLLECTIONS UNITS BR Type # of Units Total SF Gross Sales Avg. $/Unit Avg. $/SF Avg. SF The International Collection units, which represent ~10% 1000M is the first condominium development in Chicago S 21 6,664 6,229,981 296,666 935 317 of the building sellable SF, average 531 SF. to introduce luxury micro condos. Further distinguishing 1C 28 13,055 12,613,074 450,467 966 466 These homes are designed as pure ‘micro units’ and this product type is access to the full 40,000 square feet are coveted by investors, in-town/pied-a-terre owners, of amenities at 1000M- an unprecedented offering for 1 42 21,002 22,287,201 530,648 1,061 500 students, international buyers and an increasing home buyers in this price range. The 1000M micro units 2 28 17,955 19,140,000 683,571 1,066 641 number of full-time residents. As reflected in the offer low chunk prices and higher prices per square foot, International Collection unit mix below, there is also making them both attractive to target purchases, and 3 14 11,977 13,118,000 937,000 1,095 856 a wide variety of micro units, from 300 SF studios accretive to the overall value of the building. Total 133 70,653 73,388,256 551,791 1,039 531 to 850 SF three bedroom units.

Development Overview Winter 2019/2020 / 8 LIVING ROOM AND KITCHEN — 58TH FLOOR

The Signature Tower Units: UNIT MIX: SIGNATURE UNITS - TOWER BR Type # of Units Total SF Gross Sales Avg. $/Unit Avg. $/SF Avg. SF The Signature Tower units, which represent ~40% of Ultra-luxury product has performed exceedingly well – 1 ------the building sellable SF, average 2,400 SF. These homes both on a unit-absorption and price-per-square-foot are design for those buyers seeking best-in-class, ultra- basis – in Chicago’s downtown market, as exemplified 2 34 55,080 56,462,000 1,660,647 1,025 1,620 luxury. As reflected in the Signature Tower unit mix by projects such as 4 East Elm (sold out), No. 9 Walton 2+ ------below, the majority of the units in this tier are graciously (sold out) and One Bennett Park. The resale market in this 3 48 117,902 135,500,000 2,822,917 1,149 2,456 sized three bedrooms. Many of these units offer studies category has also experienced strong performance since and balconies. Lake, park and city views from the 2012. The Signature Tower units will be highly competitive 3+ 18 56,958 76,219,940 4,234,441 1,338 3,164 Signature Tower units are ‘forever.’ vs. the few other ultra-luxury new condominium projects in 4 3 10,821 14,860,040 4,953,347 1,373 3,607 Chicago, given 1000M’s low relative ‘chunk prices’, high design, and forever views PH 2 10,979 16,740,000 8,370,000 1,525 5,490 Total 105 251,740 299,781,980 2,855,066 1,191 2,398

Development Overview Winter 2019/2020 / 9 SOUTHWEST VIEW OVER GRANT PARK SITE DESCRIPTION

1000M is among the very few remaining large-scale development sites on Chicago’s prestigious Michigan Avenue. Currently used as a surface parking lot, the property measures 32,357 SF of land area (134’ x 241’).

As a result of its position on Michigan Avenue, as well as the generally lower heights of buildings in the neighborhood, 1000M will offer largely unobstructed, 360-degree views of the downtown Chicago skyline, historic Grant Park and of Lake Michigan.

Centrally located along Chicago’s Cultural Mile and Historic Michigan Boulevard District, 1000M is within walking distance of countless neighborhood amenities – including numerous parks, the lakefront, restaurants, transportation, schools and world class institutions such as the Art Institute, Field Museum, Adler Planetarium, Auditorium Theater and Soldier Field.

The site is also just one mile south of Chicago’s Magnificent Mile, the section of Michigan Avenue world-famous for its shopping and dining experiences.

Development Overview Winter 2019/2020 / 10 LAND ART INSTITUTE AON CENTER OF CHICAGO ACQUISITION & WILLIS TOWER BUCKINGHAM MICHIGAN AVENUE MILLENNIUM FOUNTAIN ASSEMBLAGE CHICAGO PARK CULTURAL CENTER On June 20, 2015 Sponsor closed on the 1000M site. The seller was First American Bank, who had foreclosed on the previous fee owner. During a lengthy due diligence period prior to closing, Sponsor designed the 1000M project and completed a complex entitlement process with the City of Chicago.

Among other challenges that had to be overcome during the acquisition and design process, was that 1000M did not have vehicular access (it was ‘landlocked). The only street frontage the property had was onto South Michigan Avenue, a street where curb cuts are not permitted.

Sponsor recognized that to the extent it could solve the access problem – as well as secure entitlements and variances for a larger/taller tower than would otherwise be permitted – the true potential and value of the site could be unlocked.

To that end, Sponsor (through a separate entity) acquired the neighboring property to the south (1006 South Michigan Avenue). 1006M is an 8-story loft office building, which Sponsor (through a separate entity) owns and operates today. Importantly the 1006M site is block-through, offering access from Wabash Avenue to both 1006M and to 1000M.

By owning both properties, and incorporating them into a Planned Development with the City, Sponsor was able to arrange for elegant vehicular access to the 1000M site via Wabash Avenue. It was also able to arrange for the transfer and consolidation of unused air rights and FAR bonuses from the 1006M site to the 1000M site. Lastly, the 1000M tower design actually ON FOOT 3 MIN 9 MIN 10 MIN 12 MIN 15 MIN 24 MIN BY CAR 6 MIN 7 MIN 7 MIN 10 MIN 10 MIN 16 MIN 24 MIN extends its floor plate over the 1006M site, which allows for 1000M’s highly efficient design and its GRANT COLUMBIA LAKE BUCKINGHAM MUSEUM MILLENNIUM SOLDIER NAVY UNIVERSITY CHINA MAGNIFICENT WRIGLEY O’HARE remarkable architecture. PARK COLLEGE MICHIGAN FOUNTAIN CAMPUS PARK FIELD PIER OF ILLINOIS TOWN MILE FIELD INTERNATIONAL CHICAGO AIRPORT

Development Overview Winter 2019/2020 / 11 LEVEL 72 WINTER GARDEN LAND BASIS & ENTITLEMENT

Today the 1000M site is fully entitled as designed, with all FAR consolidated – and includes a variance allowing for the height of 830’ (which is approximately 2x the height what is normally permitted in the Historic Michigan Avenue zone).

The property recently appraised for a value of $38,000,000 ($57/sellable SF; $85,000/unit) – which represents 8% of the total project budget.

The 1000M land value is advantageous relative to market comparables for land in downtown Chicago. The high-water-mark land sale in the market was the 9 Walton site which sold for $1,000,000 per unit (68 units; $70,000,0000 for the land).

Development Overview Winter 2019/2020 / 12 LOBBY ARO

1000M entitlement was approved under the previous Affordable Housing Ordinance (ARO), which allows a one-time payment to the City (due at first building-permit) in the amount of ~$850,000. Under today’s ARO, the regulation would require a payment of $10,500,000. The importance of 1000M’s approval under the previous regulation cannot be overstated – it represents a major competitive advantage in the market.

As discussed further below, this dramatic increase in the cost of the ARO program in Chicago is among the reasons that residential supply (both condo and rental product) is projected to decrease substantially in the coming few years. SITE ACCESS

As mentioned above, through the 1006M/1000M land assemblage and Planned Development processes, Sponsor was able to arrange direct, elegant vehicular access to 1000M from Wabash Avenue.

Sponsor has obtained an easement for vehicular access through another adjacent property providing a separate access from 1000M to East 9th Street.

Development Overview Winter 2019/2020 / 13 1000M SPA PROJECT CAPITAL INVESTMENT & PRE-SALES TO DATE

To date, through mid-November 2019, Sponsor will provide updated sales Sponsor has invested approximately information upon request. $40,000,000 (and counting) into the 1000M project – needed to fund the land acquisition, To date, over 940 individual qualified design, entitlement and sales center build- potential purchasers have visited the 1000M out. The sources for this investment to sales gallery over the 24 months since sales date include a first mortgage on the land inception (an average of 39 per month). in the amount of $16,000,000, as well as The 100 current sales contracts represent a approximately $24,000,000 in cash equity. conversation rate of ~10.6%. 1000M leads the market in both of these statistics, traffic and With respect to project sales and marketing, sell-through. the 1000M gallery opened in the 4th quarter of 2017. The 1000M sales center is located on the ground floor of the neighboring 1006 South Through mid-November 2019 Sponsor has Michigan Avenue, which is also owned by an sold contracts for 100 of the 450 units, ~22%. affiliate of the Sponsor. The award-winning, These 100 sales represent ~115,000 SF out of state-of-the-art sales center is built, staffed the project’s total 656,000 SF. Total contract and fully operational. It measures over 7,000 volume through this date is ~$90,000,000, SF and cost over $2,000,000 to construct. indicating an average selling price per square foot of $785 (with prices ranging from $480/ SF to $1,300/SF).

Development Overview Winter 2019/2020 / 14 MASTER BATHROOM — 58TH FLOOR PROJECT TEAM As further described below, Sponsor has assembled a top-tier team of design and construction professionals for the project.

Design Architect: Helmut Jahn Interior Designer: Kara Mann Mr. Jahn and his firm have earned numerous Kara Mann is the founder and creative director awards including American Institute of Architect of Kara Mann Design, established in Chicago Fellow (1987), “Ten Most Influential Living in 2005. She expanded her offices to include American Architects” (1991), and “Firm of the a location in Manhattan in 2011, where she Year (2005). In 2012 Mr. Jahn was awarded the works with an international roster of discerning prestigious lifetime achievement award from the clients and industry leaders. The New York Times both the AIA Chicago and form the Council on described her signature style – a balance of edgy Tall Building and Urban Habitats. yet sophisticated design, as “interiors with a subversive side.”

Sales & Marketing Agent: @properties Construction Manager: McHugh Construction @properties is the exclusive sales and marketing McHugh is the premier builder of landmark, agent for 1000M. Established in 2000, @ one-of-a-kind structures in Chicago and across properties is the largest real estate brokerage the Midwest. Specializing in high-rise concrete firm in the state of Illinois and one of the top construction, residential buildings of all sizes, 12 residential brokers in the United States. @ historic restoration, special use projects, and properties is also Chicago’s leading firm for infrastructure works, McHugh serves clients in the sales and marketing of new-construction both the public and private sectors, delivering condominium developments, having successfully a seamless and positive project experience sold more than 100 local projects totaling over driven by excellence and innovation. 5,500 residences valued at more than $2.5 billion.

Development Overview Winter 2019/2020 / 15 LEVEL 72 SKY TERRACE

BUSINESS PLANS, FINANCIAL SCENARIOS & ABSORPTION PROJECTIONS See associated project PPM.

Development Overview Winter 2019/2020 / 16 BATHROOM — 48TH FLOOR STRONG CASE FOR CONDO AS HIGHEST & BEST USE

1000M offers a strong business case for Sponsor notes here that it is successfully condominium exit as the highest and best employing this exact hybrid business plan use. As reflected below in the condo sell-out at its recently built condo tower in Lower P&L, the project offers a gross margin of 30% Manhattan, 50 West Street - leased unsold on cost. units and secured inventory loans.

1000M’s scale, location, views, design and 1000M Condo P&L overall importance reinforce the condo Total Condo Sellabe SF 656,000 plan viability – as do macro factors in the Avg. Condo Sales Price/SF $ 950 market, including documented low-supply of Total Parking Spaces 430 comparable product as described herein. Ave. Parking Space Sales Price$ 50,000

That said, depending on the ultimate 1000M 1000M Revenue Total $/Sellable SF condo sales rate, as described above, Condo Sales $ 623,200,000 $ 950 Sponsor would have the economically viable Parking Sales $ 21,500,000 $ 22,632 option of renting a group/bulk of unsold Comm./Costs $ (32,235,000) $ (33,932) Sponsor condos. Total Revenue $ 612,465,000 $ 644,700

This type of potential rental program for Land $ 38,000,000 $ 58 unsold units would provide cash flow/staying Hard Cost $ 330,500,000 $ 504 power that may be necessary to maximize Soft Cost $ 65,455,435 $ 100 profits/full value of the tower over the Interest Reserve $ 18,197,024 $ 28 longer term. To that end, the rental market in Contingency $ 20,707,623 $ 32 Total Cost $ 472,860,082 $ 721 Chicago – especially for high-end condo product – is extremely strong, and in limited supply, as Profit $ 139,604,918 $ 643,979 documented herein. Margin 29.52%

Development Overview Winter 2019/2020 / 17 PORTE-COCHÈRE

PARKING

The final revenue driver for 1000M will be its parking garage, which will have 430 spaces. As is customary in the Chicago CBD market, condo buyers purchase parking spaces at an extra charge of between $35,000 and $60,000.

Development Overview Winter 2019/2020 / 18 LEVEL 11 LIBRARY LOUNGE CHICAGO CONDO MARKET OVERVIEW

Since 2010, the market for new-construction/ Chicago new construction/Sponsor condo Sponsor condominiums in downtown Chicago contract absorption volume was between has been defined by delivery, inventory and 3,000 and 8,000 units per year from the late absorption levels that are dramatically below 1990s to the mid-2000s. That number dropped the historic trend. Over the past 20 years, from precipitously into the 400-500 contract/ 1999 to 2018, developers delivered an average year range following the financial crisis. It has of 1,443 units per year in the downtown core. continued to decline even more over the last However, the trailing 10-year average drops to two years. just 438 units, and the trailing 5-year average is just 121 units. New construction/Sponsor condo contracts absorbed during 2018 totaled only 161 units - The decline in new construction/Sponsor with 1000M making up roughly half that total. condo deliveries has resulted in an equally dramatic drop in inventory levels and, as a result, sales/absorption. We reiterate here, For perspective, we however, that this drop in condo activity is not consider that even at this related to a drop in real demand for living in LEVEL 11 SUN DECK downtown Chicago. As reflected elsewhere in historic dearth of contract this document, just to the contrary, demand for Chicago is at historic highs by various metrics. absorption – 161 units during 2018 – the market would That said, digging into the data, unsold new- construction/Sponsor condo inventory peaked absorb the 879 units in 5.5 at over 8,000 units in 2008. Meanwhile, years (assuming no new Integra Realty Resources reported that downtown developers held just 879 units in additions). inventory at the end of 1Q19. The unsold units at 1000M represent approximately 355 Of those 5.5 years, 1000M will be in pre- units of this 879-unit total. 95% of this 879-unit construction for 1 year and under construction universe is currently either under construction or for an additional 3 years. in pre-construction (not available for move in). Obviously, though, if the market were to go In order to appreciate just how low new condo back toward the 400 contract/year absorption inventory is in downtown Chicago, we look level, the existing universe of inventory would at the historic annual closed contracts on be absorbed in a little more than 2 years, downtown developer units, statistics that are assuming no new supply. maintained by Integra Realty Resources.

Development Overview Winter 2019/2020 / 19 RESIDENCE TERRACE FACING NORTH 1000M CONDO COMPARABLE SALES ANALYSIS

Given how far the pendulum has swung away from new condo activity in downtown Chicago – not to mention the extraordinary barriers to entry associated with any large-scale project – Sponsor sees the 1000M project as highly strategic. Sponsor worked with @ properties to determine the pricing of each individual unit at 1000M, which averages to $950/sf (in today’s dollars, see project inventory sheet for detail by unit).

Below, Sponsor provides a breakdown and comparable analysis on each of the three segments of the high- end condominium market in downtown Chicago. This sales comparable data will support the projected average pricing at 1000M. It will also reinforce that the primary challenge facing 1000M is not in achieving the average pricing, but in predicting the absorption period at the specified prices (which risk is mitigated with the 1000M leasing program as described).

SEGMENT 1: Last Generation Towers Located In & Near The Loop

SEGMENT 2: Premier Boutique Building – Gold Coast

SEGMENT 3: Luxury Towers Under Construction

Development Overview Winter 2019/2020 / 20 VIEW OF 1000M FROM GRANT PARK SEGMENT 1: Last Generation Towers Located in & Near The Loop

As a point of reference and baseline, we start When complete, 1000M will compare very with a set of condo towers from the previous favorably to these last-generation towers on cycle – completed between 2000-2010: Trump every level. In doing so it will command (at Tower, Park Tower, Aqua, and 340 on the Park. least) the ~10% average premium above the Each of these are of similar size and location 2018 average closed sales from this older set. and have similar views as compared to 1000M. As reflected in the comparable analysis below, during 2018 there were 47 sales in this set at an average of ~$864/SF.

340 ON THE PARK PARK TOWER TRUMP TOWER AQUA TOWER

SEGMENT 1: LAST GENERATION BUILDINGS, NORTH LOOP & RIVER NORTH - TRAILING 12 MONTHS SALES 12/31/18 2018 Sales Address (Closed) Total # Units Year Built Floors Low Sale $ Hi Sale $ Avg. Sale $ Low $/PSF High $/PSF Avg $/PSF Trump Tower - 401 N. Wabash 20 486 2009 98 $479,900 $9,400,000 $2,024,120 $533 $1,400 $929 Aqua Tower - 225 N. Columbus 8 240 2009 86 $360,750 $3,750,000 $1,119,219 $550 $1,250 $807 340 On The Park - 340 E. Randolph 15 344 2007 64 $680,000 $4,200,000 $1,387,050 $521 $1,021 $729 Park Tower - 800 N. Michigan 4 117 2000 67 $2,900,000 $4,670,000 $3,917,500 $906 $1,112 $992

MIN $1,119,219 $521 $1,021 $729 AVG $2,111,972 $628 $1,196 $864 MAX $3,917,500 $906 $1,400 $992

Development Overview SEGMENT 2: PREMIER BUILDINGS, GOLD COAST - Winter 2019/2020 / 21 TRAILING 12 MONTHS SALES 12/31/18 2018 Sales Address (Closed) Total # Units Year Built Floors Low Sale $ Hi Sale $ Avg. Sale $ Low $/PSF High $/PSF Avg $/PSF No. 9 Walton - 9 W. Walton 51 70 2018 37 $1,700,000 $58,750,000 $5,401,173 $872 $2,350 $1,329 Waldorf Astoria - 11 E. Walton 4 51 2010 60 $3,350,000 $5,500,000 $4,131,250 $975 $1,375 $1,155 4EastElm-4E.Elm 3 35 2016 24 $3,280,000 $5,170,000 $4,033,333 $933 $1,175 $1,095

MIN $4,033,333 $872 $1,175 $1,095 AVG $4,521,919 $927 $1,633 $1,193 MAX $5,401,173 $975 $2,350 $1,329

SEGMENT 3: UNDER CONSTRUCTION, CURRENT PENDING FEB. 2019 # Current Projected Address Pending Total # Units Completion Floors Low Pend $ HiPend$ Avg. Pend $ Low $/PSF High $/PSF Avg $/PSF One Bennett Park - 451 E. Grand 13 69 2019 67 $1,850,000 $6,350,000 $4,610,313 $1,047 $1,461 $1,198 Vista Tower - 363 E. Wacker 178 406 2020 91 $935,850 $18,500,000 $2,620,416 $542 $1,850 $1,051

MIN $2,620,416 $542 $1,461 $1,051 AVG $3,615,365 $795 $1,656 $1,125 MAX $4,610,313 $1,047 $1,850 $1,198 SEGMENT 2: SEGMENT 3: Pricing Conclusion/Analysis As reflected in the data, the pricing for 1000M ($950/ SF average) places the project competitively among Premier Towers, Currently the downtown luxury high-rises – with a sufficient premium over last-generation Loop towers, and at a sufficient discount to new high-rises in locations farther Gold Coast Under Construction up the Magnificent Mile and into the Gold Coast (where developments traditionally have achieved the highest The next data point to understand is the highest, most There are only two high-rise towers currently under prices in the market). expensive segment of Chicago’s condo market. These NO. 9 WALTON WALDORF ASTORIA construction in the market. One is Vista Tower, which is buildings are located within a 3-block radius of Rush and located in the Lakeshore East development at the north Pipeline: Three new luxury high-rise projects totaling Oak streets in the heart of the Gold Coast, and were 4 EAST ELM end of the Loop. The other is One Bennett Park, which approximately 600 condo units either have launched or completed between 2000 and 2018. They include No. is located in Streeterville. Both Vista and One Bennett are planning sales launches in 2019: 9 Walton, Waldorf Astoria, and 4 East Elm. The most are similar to 1000M in that they are ‘mega-towers’ • Tribune Tower 435 N. Michigan | 163 adaptive-reuse condos recently completed of these was 9 West Walton, where with ‘forever’ views. They are designed by internationally the 4-story penthouse sold as raw space for a record- recognized architects, feature designer-selected finishes, Sales starting August 2019 setting $58.75 million (over $2,200/SF). and offer extensive amenity programs. • One Chicago Square Chicago Ave. & State St. | 75 condos + 795 rental apartments + retail | Start of sales TBD As reflected in the chart below, units in these buildings Vista is approaching 50% sold, and the 91-story building • Cirrus Lakeshore East - Parcel J | 363 condos that closed during 2018 averaged $1,200/SF. is nearly topped off. Sales at Vista are averaging $1,051/ Pre-construction sales began 2Q19 SF. In addition to 406 condominiums, Vista also includes These buildings are generally boutique in nature, a 5-star Wanda Hotel. Amenities are shared between While these projects will increase unsold downtown offering 35 to 70 units. Floor plans are larger with the residential building and the hotelSEGMENT. 1: LAST GENERATION BUILDINGS,developer NORTH LOOP condo & RIVER units, NORTH -the resulting total ~1,500-unit a prevalence of 3BR and 4BR layouts of 3,000+ SF. ONE BENNETT PARK VISTA TOWER TRAILING 12 MONTHSinventory SALES 12/31/18 will still be exceptionally low by historical 2018 Sales Amenity programs are limited by the size of the The 67-storyAddress One Bennett Park(Closed) featuresTotal #69 Units condominiumsYear Built Floors standardsLow Sale. $ Furthermore,Hi Sale $ Avg. the Sale projects $ Low $/PSF underscoreHigh $/PSF developerAvg $/PSF buildings, and views are limited by lower heights Trumpatop Tower a 279-unit - 401 N. Wabash rental property20 . Construction486 is complete,2009 98 confidence$479,900 in$9,400,000 the market,$2,024,120 as well$533 as current$1,400 pent-up$929 (and by not being located on the park/lake). Aquaand Tower the - 225first N. Columbuscondominium closings8 occurred240 2009in 1Q19. 86 demand$360,750. Each$3,750,000 project$1,119,219 is led by a$550 local, experienced$1,250 $807 340 On The Park - 340 E. Randolph 15 344 2007 64 $680,000 $4,200,000 $1,387,050 $521 $1,021 $729 ParkThe Tower relatively - 800 N. Michigan small condo component4 117 of the project2000 is 67 developer$2,900,000 with$4,670,000 a deep$3,917,500 understanding$906 of the$1,112 market and$992 When complete, 1000M will also compare favorably approximately 40% sold at an average of $1,200/SF. a strong track record. Condo pricing at each of these MIN $1,119,219 $521 $1,021 $729 with this set – as it offers more product diversity, AVG project is in-line (or higher)$2,111,972 than the$628 pricing$1,196 offered at$864 lower chunk prices/prices per SF, as well as views MAXIt also should be noted that both Vista Tower and One 1000M. Finally, these projects$3,917,500 are unique$906 in$1,400 terms of $992 and amenities that are far more extensive.SEGMENT 1: LAST GENERATION BUILDINGS, NORTH LOOP & RIVER NORTH - Bennett Park broke ground early in their condominium product mix/quality/views and location, and therefore TRAILING 12 MONTHS SALES 12/31/18 SEGMENT 2: PREMIER BUILDINGS, GOLD COAST - 2018 Sales sales programs, before reaching conventional TRAILINGpre-sale 12 MONTHS1000M SALES 12/31/18 will maintain its value proposition. Tribune Tower Address (Closed) Total # Units Year Built Floors Low Sale $ Hi Sale $ Avg. Sale $ Low $/PSF High $/PSF Avg $/PSF levels. As a result, both projects2018 Sales are benefiting from the is an historic adaptive reuse. One Chicago Square is part Trump Tower - 401 N. Wabash 20 486 2009 98 $479,900 $9,400,000 $2,024,120 $533 $1,400 $929 aforementionedAddress ‘show me’(Closed) mentallyTotal that # Units is inherentYear Built in Floors of aLow massive Sale $ mixed-useHi Sale $ Avg. complex Sale $ Low (795 $/PSF apartmentsHigh $/PSF andAvg $/PSF Aqua Tower - 225 N. Columbus 8 240 2009 86 $360,750 $3,750,000 $1,119,219 $550 $1,250 $807 No. 9 Walton - 9 W. Walton 51 70 2018 37 $1,700,000 $58,750,000 $5,401,173 $872 $2,350 $1,329 340 On The Park - 340 E. Randolph 15 344 2007 64 $680,000 $4,200,000 $1,387,050 $521 $1,021 $729 Waldorfthe buyer Astoria -market 11 E. Walton today. 4 51 2010 60 over$3,350,000 100,000$5,500,000 square feet$4,131,250 of retail space)$975 . Cirrus$1,375 offers$1,155 a Park Tower - 800 N. Michigan 4 117 2000 67 $2,900,000 $4,670,000 $3,917,500 $906 $1,112 $992 4EastElm-4E.Elm 3 35 2016 24 new-construction$3,280,000 $5,170,000 condo-only$4,033,333 product,$933 near$1,175 Vista Tower,$1,095 within the dense Lakeshore East community. MIN $1,119,219 $521 $1,021 $729 MIN $4,033,333 $872 $1,175 $1,095 AVG $2,111,972 $628 $1,196 $864 AVG $4,521,919 $927 $1,633 $1,193 MAX $3,917,500 $906 $1,400 $992 MAX $5,401,173 $975 $2,350 $1,329

SEGMENT 2: PREMIER BUILDINGS, GOLD COAST - SEGMENT 3: UNDER CONSTRUCTION, TRAILING 12 MONTHS SALES 12/31/18 CURRENT PENDING FEB. 2019 2018 Sales # Current Projected Address (Closed) Total # Units Year Built Floors Low Sale $ Hi Sale $ Avg. Sale $ Low $/PSF High $/PSF Avg $/PSF Address Pending Total # Units Completion Floors Low Pend $ HiPend$ Avg. Pend $ Low $/PSF High $/PSF Avg $/PSF No. 9 Walton - 9 W. Walton 51 70 2018 37 $1,700,000 $58,750,000 $5,401,173 $872 $2,350 $1,329 One Bennett Park - 451 E. Grand 13 69 2019 67 $1,850,000 $6,350,000 $4,610,313 $1,047 $1,461 $1,198 Waldorf Astoria - 11 E. Walton 4 51 2010 60 $3,350,000 $5,500,000 $4,131,250 $975 $1,375 $1,155 Vista Tower - 363 E. Wacker 178 406 2020 91 $935,850 $18,500,000 $2,620,416 $542 $1,850 $1,051 4EastElm-4E.Elm 3 35 2016 24 $3,280,000 $5,170,000 $4,033,333 $933 $1,175 $1,095 MIN $2,620,416 $542 $1,461 $1,051 MIN $4,033,333 $872 $1,175 $1,095 AVG $3,615,365 $795 $1,656 $1,125 AVG $4,521,919 $927 $1,633 $1,193 MAX $4,610,313 $1,047 $1,850 $1,198 MAX $5,401,173 $975 $2,350 $1,329

Development Overview SEGMENT 3: UNDER CONSTRUCTION, Winter 2019/2020 / 22 CURRENT PENDING FEB. 2019 # Current Projected Address Pending Total # Units Completion Floors Low Pend $ HiPend$ Avg. Pend $ Low $/PSF High $/PSF Avg $/PSF One Bennett Park - 451 E. Grand 13 69 2019 67 $1,850,000 $6,350,000 $4,610,313 $1,047 $1,461 $1,198 Vista Tower - 363 E. Wacker 178 406 2020 91 $935,850 $18,500,000 $2,620,416 $542 $1,850 $1,051

MIN $2,620,416 $542 $1,461 $1,051 AVG $3,615,365 $795 $1,656 $1,125 MAX $4,610,313 $1,047 $1,850 $1,198 VIEW OF 1000M FROM GRANT PARK KITCHEN — 48TH FLOOR CHICAGO RENTAL MARKET OVERVIEW The Class-A apartment market in downtown Chicago has enjoyed a historic run over the past five years, achieving record deliveries, absorption and rents. Rents According to multi-family research firm Integra Realty Gross Class-A rents set a record average of $3.24 This is not just a recent trend. According to the Census Resources (IRR), there are now nearly 30,000 Class A per square foot in the second quarter of 2018 before Bureau, between 2000 and 2010 Chicago added apartments in the downtown market. More than 55% settling in at $3.16 PSF in the third quarter – a record more residents to its downtown core than any other of those were delivered between 2014 and 2018. for the July-September period. (Given the seasonality of U.S. city. Since 2008 nearly 40 major corporations, Chicago’s apartment market, it is typical for rents to be including McDonald’s, Caterpillar and KraftHeinz, have Absorption & Occupancy higher in Q1 and Q2 vs. Q3 and Q4). also relocated to downtown Chicago. Site Selection These units are also being absorbed at a record pace. magazine has named Chicago the “top metro area in In a study prepared for 1000M in 4Q18, IRR reported The 3Q18 reading was 6.4% above 3Q17 gross rents. the nation for corporate relocation and investment” absorption of 3,369 units through the first three quarters Gross rents in the newest Class A buildings are now in for five consecutive years. of 2018, 22% above the same period in 2017, which the $3.70-$3.80 range and up, according to IRR, and the was also a record-setting year. Estimated absorption of best new buildings are targeting rents of $4.50 to $5.00 On average, people who are moving to the city center 3,600 units for 2018 far exceeded added supply of just per square foot. are also younger and more affluent, supporting the under 2,800 units. luxury multi-family housing boom. According to Meanwhile, renters who are looking for larger floor U.S. Census Bureau data reported in Crain’s Chicago As a result, Class A occupancy stood at 94% in 3Q18, plans, more luxurious finishes and/or a greater level of Business, Chicago gained more households with HHI the highest 3Q reading since 2014. IRR noted that “on exclusivity and privacy are turning to individually owned above $100,000, and headed by individuals 45 and a long-term basis, stabilized market occupancy of condominiums in top-tier luxury buildings, where rents under, than any other U.S. city except New York. 94-95% is considered a reasonable projection.” With 19 can top $5.00 per square foot. apartment buildings currently under construction in the Outlook downtown market and several more in the pipeline, Demographics Looking beyond 2021, IRR notes that, “New additions deliveries and absorption are projected to continue The robust performance is being driven by a number to the rental apartment pipeline will be constrained,” at near-record levels over the next two years. of local economic and demographic factors that are citing Chicago’s new, more restrictive affordable projected to continue for the foreseeable future. housing requirements ordinance, rising construction However, according to IRR deliveries will taper in 2021 The core downtown area of Chicago has seen a costs and real estate taxes. The increased barrier to while absorption remains at current levels. Over the substantial increase in population, driven by the entry will benefit apartment owners, especially those next several years, this strong supply/demand dynamic aforementioned construction boom as well as major with well-located assets offering park and lakefront should continue to support healthy rent growth corporate relocations. access and extensive luxury amenities, like 1000M. consistent with trend.

Development Overview Winter 2019/2020 / 23 BEDROOM — 58TH FLOOR 1000M COMPARABLE RENTAL MARKET ANALYSIS

In its financial projections/scenarios, Sponsor to live in a condo building that offers a higher is projecting an average rental rate of $4.00 level of luxury, privacy and service vs. more PSF (in 2019 dollars) for the lease-up of unsold standard Class-A rental projects. units at 1000M. As reflected in the data below/ attached, this rental rate projection is arguably In many cases, these customers are also looking low/conservative, considering comparable for larger layouts and better finishes than those buildings are leasing for between $4.00 - offered in standard apartment buildings. The data $4.50/SF. Sponsor feels that $4.00/SF at for individually leased condominiums supports 1000M will spur strong leasing absorption – the viability of this market, as reflected in the projected to be 15-25 units per month (when comparable analysis below, which averages leasing commences in 2023). $4.39/SF.

Sponsor assumes annual rent growth/trending Comparable Analysis of 3% starting 2020, which growth rate is Sponsor worked with @properties to ‘triangulate’ consistent with 10-year performance in the data from several segments of the rental market downtown market. Using the trended $4.00/ in order to arrive at its $4.00 PSF per month SF in 2019 dollars, in 2023 when leasing projection for 1000M. commences the rent will be $4.50/SF (again, a rate that 1000M could arguably achieve in These segments include: today’s market, if it existed). SEGMENT 1: Sponsor notes that during 2018, rent growth The broader Class-A market for downtown in the wider Class-A market was over 6% vs. rental buildings (30,000 units). 2017. Furthermore, absorption in the Chicago market is out-pacing supply – a positive trend that appears to be strengthening over SEGMENT 2: the coming years as new deliveries are set Top-ten stabilized downtown Class-A rental to drop (while demand for new product is buildings (a subset of Segment 1, above). projected to remain strong). These metrics and dynamics help to put Sponsor’s projection of SEGMENT 3: 3% annual rent growth into perspective. New buildings currently in lease-up that are programmatically and/or geographically Condo-Rental Market comparable to 1000M. Far from being just ‘another rental building’ in Chicago, 1000M will offer a differentiated product. It will serve a growing segment of SEGMENT 4: renters who desire “true condominium living,” Individually leased condo units in top-tier but are not interested in owning, for various buildings. reasons. These renters have demonstrated that they are willing to pay a rent premium

Development Overview Winter 2019/2020 / 24 BATHROOM — 48TH FLOOR SEGMENT 1: SEGMENT 2: Class-A Market Top-Ten Stabilized

As a point of reference, average gross rents for the overall Class-A market (universe of over 30,000 units in Class-A Buildings buildings built after 1990) was $3.16 PSF in 3Q18. This represents a year over year increase of 6.4%, and The next segment reflects the top stabilized/operating occupancy within this universe is 94%. Class-A rental buildings in the downtown market by gross rent per square foot (a subset of Segment 1). The buildings in this set reflect an average rent of $3.87/ SF (a rate that is close to the $4.00/SF being projected 3Q18 QUARTERLY RENT TRENDS - PRIOR QUARTER/YEAR COMPARISON for 1000M). 1000M will offer higher quality and more Category Current Qtr. Prior Qtr. Year Ago Change Q:Q Change Y:Y differentiated product than this set. Gross Class A Rent PSF $3.16 $3.24 $2.97 -2.47% 6.40% Net Class A Rent PSF $3.05 $3.18 $2.83 -4.09% 7.77% Class A Occupancy 93.70% 94.00% 92.00% -0.30% 1.70%

SEGMENT 2: TOP 10 DOWNTOWN CHICAGO RENTAL BUILDINGS BuildingLIVING + DINING ROOM — 48TH FLOORArea # of Units Average SF Average PSF Residencesat8EastHuron-8E.Huron RiverNorth 102 1016 $4.10 The Ardus - 676 N. LaSalle River North 149 603 $4.02 State & Chestnut - 845 N. State Gold Coast 367 718 $3.94 EMME - 165 N. Desplaines West Loop 199 667 $3.91 3Q18 QUARTERLY RENT TRENDS - PRIOR QUARTER/YEAR COMPARISON One Eleven - 111 W. Wacker Loop 504 887 $3.89 Category Current Qtr. Prior Qtr. Year Ago Change Q:Q Change Y:Y 3Eleven - 311 W. Illinois River North 245 794 $3.88 Gross Class A Rent PSF $3.16 $3.24 $2.97 -2.47% 6.40% Wolf Point West - 343 W. Wolf Point Plaza River North 245 794 $3.88 Net Class A Rent PSF $3.05 $3.18 $2.83 -4.09% 7.77% The Sinclair - 1201 N. LaSalle Gold Coast 390 839 $3.83 Old Town Park Old Town 375 824 $3.77 Class A Occupancy 93.70% 94.00% 92.00% -0.30% 1.70% MILA - 201 N. Garland Ct. Loop 402 782 $3.73 The Hudson - 750 N. Hudson River North 240 912 $3.63 SEGMENT 2: TOP 10 DOWNTOWN CHICAGO RENTAL BUILDINGS Building Area # of Units Average SF Average PSF MIN 102 603 $3.63 Residencesat8EastHuron-8E.Huron RiverNorth 102 1016 $4.10 AVG 293 803 $3.87 The Ardus - 676 N. LaSalle River North 149 603 $4.02 MAX 504 1,016 $4.10 State & Chestnut - 845 N. State Gold Coast 367 718 $3.94 SEGMENT 3: SUPER CLASS A BUILDINGS IN LEASE-UP (PROJECTED RPSF) EMME - 165 N. Desplaines West Loop 199 667 $3.91 Building Area # of Units Average SF Average PSF One Eleven - 111 W. Wacker Loop 504 887 $3.89 61 Banks Street – 61 E. Banks Gold Coast 58 1833 $5.00 3Eleven - 311 W. Illinois River North 245 794 $3.88 One Bennett Park – 541 Peshtigo Streeterville 279 1305 $4.50 Wolf Point West - 343 W. Wolf Point Plaza River North 245 794 $3.88 NEMA – 1201 S. Indiana South Loop 792 1123 $3.90 The Sinclair - 1201 N. LaSalle Gold Coast 390 839 $3.83 Essex on the Park – 800 S. Michigan South Loop 479 1041 $3.90 Old Town Park Old Town 375 824 $3.77 MIN 58 1,041 $3.90 MILA - 201 N. Garland Ct. Loop 402 782 $3.73 AVG 402 1,326 $4.33 The Hudson - 750 N. Hudson River North 240 912 $3.63 MAX 792 1,833 $5.00 MIN 102 603 $3.63 AVG 293 803 $3.87 SEGMENT 4: RENTED APARTMENTS IN LUXURY CONDOMINIUM BUILDINGS MAX 504 1,016 $4.10 Building Area # Units Rented LTM High PSF Avg. PSF Waldorf AstoriaDevelopment – 11 E. Walton Overview Gold Coast 4 $9.38 $5.97 Winter 2019/2020 / 25 No. 9 Walton - 9 W. Walton* Gold Coast 1 $5.67 $5.67 SEGMENT 3: SUPER CLASS A BUILDINGS IN LEASE-UP (PROJECTED RPSF) Ritz Carlton Residences – 118 E. Erie River North 6 $5.82 $4.91 Building Area # of Units Average SF Average PSF Water Tower Place – 180 E. Pearson** Gold Coast 5 $8.40 $4.61 61 Banks Street – 61 E. Banks Gold Coast 58 1833 $5.00 Trump Tower – 401 N. Wabash River North 48 $4.84 $3.64 One Bennett Park – 541 Peshtigo Streeterville 279 1305 $4.50 Ten East Delaware – 10 E. Delaware Gold Coast 4 $4.42 $3.54 NEMA – 1201 S. Indiana South Loop 792 1123 $3.90 Aqua – 225 N. Columbus*** Loop 16 $4.30 $3.45 Essex on the Park – 800 S. Michigan South Loop 479 1041 $3.90 340 On The Park – 340 E. Randolph Loop 14 $4.15 $3.29

MIN 1 $3.29 MIN 58 1,041 $3.90 AVG 12 $4.39 AVG 402 1,326 $4.33 MAX 48 $5.97 MAX 792 1,833 $5.00

SEGMENT 4: RENTED APARTMENTS IN LUXURY CONDOMINIUM BUILDINGS Building Area # Units Rented LTM High PSF Avg. PSF Waldorf Astoria – 11 E. Walton Gold Coast 4 $9.38 $5.97 No. 9 Walton - 9 W. Walton* Gold Coast 1 $5.67 $5.67 Ritz Carlton Residences – 118 E. Erie River North 6 $5.82 $4.91 Water Tower Place – 180 E. Pearson** Gold Coast 5 $8.40 $4.61 Trump Tower – 401 N. Wabash River North 48 $4.84 $3.64 Ten East Delaware – 10 E. Delaware Gold Coast 4 $4.42 $3.54 Aqua – 225 N. Columbus*** Loop 16 $4.30 $3.45 340 On The Park – 340 E. Randolph Loop 14 $4.15 $3.29

MIN 1 $3.29 AVG 12 $4.39 MAX 48 $5.97 3Q18 QUARTERLY RENT TRENDS - PRIOR QUARTER/YEAR COMPARISON Category Current Qtr. Prior Qtr. Year Ago Change Q:Q Change Y:Y Gross Class A Rent PSF $3.16 $3.24 $2.97 -2.47% 6.40% Net Class A Rent PSF $3.05 $3.18 $2.83 -4.09% 7.77% LIVING ROOM — 48TH FLOOR Class A Occupancy 93.70% 94.00% 92.00% -0.30% 1.70%

SEGMENT 2: TOP 10 DOWNTOWN CHICAGO RENTAL BUILDINGS Building Area # of Units Average SF Average PSF Residencesat8EastHuron-8E.Huron RiverNorth 102 1016 $4.10 SEGMENT 3: The Ardus - 676 N. LaSalle River North SEGMENT149 603 4: $4.02 State & Chestnut - 845 N. State Gold Coast 367 718 $3.94 EMME - 165 N. Desplaines West Loop 199 667 $3.91 Super Class-A One Eleven - 111 W. Wacker Loop Luxury 504Condominium887 $3.89 3Q18 QUARTERLY RENT TRENDS - PRIOR QUARTER/YEAR COMPARISON 3Eleven - 311 W. Illinois River North 245 794 $3.88 Category Current Qtr. Prior Qtr. Year Ago Change Q:Q Change Y:Y Buildings in Lease-Up Wolf Point West - 343 W. Wolf Point Plaza River North Rentals245 794 $3.88 Gross Class A Rent PSF $3.16 $3.24 $2.97 -2.47% 6.40% The Sinclair - 1201 N. LaSalle Gold Coast 390 839 $3.83 Net Class A Rent PSF $3.05 $3.18 $2.83 -4.09% 7.77% In addition the high-end operating/stabilized buildings Old Town Park Old Town Finally, together with375 @properties, Sponsor824 evaluated $3.77 Class A Occupancy 93.70% 94.00% 92.00% -0.30% 1.70% in Chicago, there are a handful of brand new buildings in MILA - 201 N. Garland Ct. Loop the niche market of402 individually owned782 condominiums $3.73 the market that are currently leasing-up. These buildings in luxury building that are leased to third party tenants. The Hudson - 750 N. Hudson River North 240 912 $3.63 even more accurately reflect SEGMENTthe offering 2: TOP at 1000M, 10 DOWNTOWN CHICAGO RENTAL BUILDINGS This segment is filling a gap in the current downtown eitherBuilding in terms of location (NEMA and Essex),Area larger # of Units Average SF Average PSF rental market, providing highly discerning residents MIN 102 603 $3.63 layoutsResidencesat8EastHuron-8E.Huron (Banks and One Bennett), finishes (One RiverNorth Bennett) 102 1016 $4.10 with larger floor plans, greater privacy, more luxurious AVG 293 803 $3.87 orThe amenities Ardus - 676 (NEMA N. LaSalle and One Bennett). River North 149 603 $4.02 finishes and a higher level of service than Class-A 504 1,016 $4.10 State & Chestnut - 845 N. State Gold Coast 367 718 $3.94 MAX apartment buildings. The average rent in this set is $4.33/SF, which further EMME - 165 N. Desplaines West Loop 199 667 $3.91 reinforces that strong demand and pricing for top The average rent/SF in the 8-building comparable One Eleven - 111 W. Wacker Loop 504 887 $3.89 SEGMENT 3: SUPER CLASS A BUILDINGS IN LEASE-UP (PROJECTED RPSF) quality product in the market. Pricing for these buildings, Building Area studied# of Units sample set wasAverage $4.39/SF, SF which Averageis based PSFon a reflected3Eleven- below, 311 W. is Illinois based on multiple sourcesRiver including North 245 794 $3.88 total of 98 individual leases during 2018. Importantly 61 Banks Street – 61 E. Banks Gold Coast 58 1833 $5.00 IRRWolf data, Point quoted West - 343rents W. on Wolf property Point Plaza websites,River and Northprice 245 794 $3.88 in this set, rents/SF ranged from $4.15/SF to as high One Bennett Park – 541 Peshtigo Streeterville 279 1305 $4.50 sheetsThe Sinclair obtained - 1201 from N. LaSalle property leasing teams. Gold Coast 390 839 $3.83 as $9.38/SF. While more anecdotal than the market-wide Old Town Park Old Town 375 824 $3.77 NEMA – 1201 S. Indiana South Loop rental data, this data792 highlights the1123 demand for rented $3.90 MILA - 201 N. Garland Ct. Loop 402 782 $3.73 Essex on the Park – 800 S. Michigan South Loop condos in the market479 – and the premium1041 that market $3.90 The Hudson - 750 N. Hudson River North 240 912 $3.63 is willing to pay to rent condos (as will be the case MIN at 1000M). 58 1,041 $3.90 MIN 102 603 $3.63 AVG 402 1,326 $4.33 AVG 293 803 $3.87 MAX 792 1,833 $5.00 MAX 504 1,016 $4.10

SEGMENT 3: SUPER CLASS A BUILDINGS IN LEASE-UP (PROJECTED RPSF) SEGMENT 4: RENTED APARTMENTS IN LUXURY CONDOMINIUM BUILDINGS Building Area # of Units Average SF Average PSF Building Area # Units Rented LTM High PSF Avg. PSF 61 Banks Street – 61 E. Banks Gold Coast 58 1833 $5.00 Waldorf Astoria – 11 E. Walton Gold Coast 4 $9.38 $5.97 One Bennett Park – 541 Peshtigo Streeterville 279 1305 $4.50 No. 9 Walton - 9 W. Walton* Gold Coast 1 $5.67 $5.67 NEMA – 1201 S. Indiana South Loop 792 1123 $3.90 Ritz Carlton Residences – 118 E. Erie River North 6 $5.82 $4.91 Essex on the Park – 800 S. Michigan South Loop 479 1041 $3.90 Water Tower Place – 180 E. Pearson** Gold Coast 5 $8.40 $4.61 Trump Tower – 401 N. Wabash River North 48 $4.84 $3.64 MIN 58 1,041 $3.90 Ten East Delaware – 10 E. Delaware Gold Coast 4 $4.42 $3.54 AVG 402 1,326 $4.33 Aqua – 225 N. Columbus*** Loop 16 $4.30 $3.45 MAX 792 1,833 $5.00 340 On The Park – 340 E. Randolph Loop 14 $4.15 $3.29

MIN 1 $3.29 SEGMENT 4: RENTED APARTMENTS IN LUXURY CONDOMINIUM BUILDINGS AVG 12 $4.39 Building Area # Units Rented LTM High PSF Avg. PSF MAX 48 $5.97 Waldorf Astoria – 11 E. Walton Gold Coast 4 $9.38 $5.97 No. 9 Walton - 9 W. Walton* Gold Coast 1 $5.67 $5.67 Ritz Carlton Residences – 118 E. Erie River North 6 $5.82 $4.91 Water TowerDevelopment Place – 180 E.Overview Pearson** Gold Coast 5 $8.40 $4.61 Winter 2019/2020 / 26 Trump Tower – 401 N. Wabash River North 48 $4.84 $3.64 Ten East Delaware – 10 E. Delaware Gold Coast 4 $4.42 $3.54 Aqua – 225 N. Columbus*** Loop 16 $4.30 $3.45 340 On The Park – 340 E. Randolph Loop 14 $4.15 $3.29

MIN 1 $3.29 AVG 12 $4.39 MAX 48 $5.97 LEVEL 11 PRIVATE CONCERT ROOM GRANT PARK & MICHIGAN AVENUE SUB-MARKET DESCRIPTION

1000M is located on the edge of Grant Today, South Michigan Avenue defines the Park, on Chicago’s most iconic street: Michigan western edge of Grant Park and represents Avenue. Named after the Great Lake that it one of the most distinguished images of borders, this avenue is now the backdrop downtown Chicago. In addition to offering to Chicago’s best shopping and cultural history, architecture, open space and experiences. While Chicago’s North Michigan expansive views, the neighborhood offers Avenue has earned a reputation as the an eclectic mix of office buildings, chic new “Magnificent Mile” with its world-renowned restaurants, hotels, residential buildings, loft stores and boutiques, South Michigan Avenue offices and numerous universities. claims the “Cultural Mile” as its moniker because of its extraordinary museums, theaters, art This neighborhood is currently gaining 48TH FLOOR — BEDROOM galleries – and most importantly –Grant Park: prominence, as downtown Chicago’s ‘center Chicago’s own front yard. of gravity’ continues to move south. 1000M’s neighborhood now bridges the gap between With its rolling lawns, monuments and Chicago’s coveted River North and South Loop sculptures, Grant Park, is a fascinating sight neighborhoods making all that Chicago has to from above and within. Broad pedestrian offer easily accessible. paths meander through 319 acres of gardens, contemporary and classical sculptures, and expansive sports fields. The park also boasts access to an 18-mile lakefront running and biking path that connects the northern and southern portions of the city. Grant Park is not only Chicago’s figurative front yard, but is 1000M’s actual front yard, as the building sits across the street from the park, providing amenities to the residents and forever protecting the views of the lake for 1000M’s residents.

Development Overview Winter 2019/2020 / 27 LEVEL 72 PRIVATE DINING ROOM DETAILED PROJECT DESCRIPTION

1000M features 450 units ranging from 350 SF Condo finishes features natural wood floors as well micro units to 5,500 SF penthouse homes with as a mix of natural and man-made stone options expansive outdoor space. All unit owners and in the kitchens and bathrooms. Purchasers will residents will enjoy over 40,000 square feet of be able to choose from three elegant interior amenities. The project also includes a 10-level design packages. Kitchens will feature custom parking garage with 430 spaces. cabinetry, Sub-Zero refrigerators and Wolf ranges. Master bathrooms contain over-sized showers and Exterior Design ‘wet rooms’ furnished with large soaking tubs. 1000M was designed by German-born and Upper floor homes will feature extra-large in-set long-time Chicago resident Helmut Jahn, balconies, which function as outdoor rooms. one of the world’s leading architects. Jahn’s design for 1000M is inspired by the site’s Lobby, Port Cochere, Amenities and Services position at the intersection of nature (Grant 1000M will have a two-story formal entry on Park) and city. 1000M gradually widens at the Michigan Avenue featuring a dramatic canopy/ northeast and southwest corners as it ascends, awning. Inside, residents will be greeted by allowing its floor plate to transition from an 24/7 doormen/concierge, as well as curated art efficient rectangle at the base to an expansive installations, and multiple lounge seating areas. parallelogram at the top. In addition, 1000M will offer a direct entry for residents from the port cochere. These graceful exterior movements work together allowing for unique homes on the 1000M will offer an extensive, best-in-class interior. Jahn’s design optimizes views of Lake amenity package, with nearly 30,000 SF on Michigan and surrounding vistas throughout the 11th floor and 10,000 SF at the observation the tower. Due to the increasing area of the deck. Designed by Kara Mann, public areas will floor plates, the design allows homes to be augment the sophisticated lifestyle enjoyed by more efficient lower in the building, and more residents of 1000M. spacious above. Amenities will include an outdoor pool/sun deck Structural elements such as sheer walls and and great lawn, as well as library/lounge, game structural columns have been carefully studied room, business center, children’s play room and to ensure their impact on interior spaces and movie theater. In addition, 1000M will offer a state views is minimized. Additionally, floor-to-ceiling of the art fitness center and a full spa complete glass panels with large operable windows with hot and cold plunge pools, salt room, sauna, ensure maximum natural light and fresh air for meditation room and therapy room. the homes. 1000M will provide residents with 24/7 concierge, Interior Design doormen, and a live-in superintendent to take KARA MANN programmed and designed all of care of their every need. the residences and amenity spaces at 1000M. Ms. Mann is a rising interior design star and Chicago native.

Development Overview Winter 2019/2020 / 28 50 WEST, MANHATTAN SPONSOR TEAM

Founded by Francis Greenburger in 1966, TEI is a diversified real estate investment and development company based in New York City. TEI’s real estate portfolio consists of mix of 250+ properties totaling over 30,000,000 square feet (valued in at approximately $5B). TEI properties are and located in 34 US states, 5 Canadian provinces, Germany, Netherlands, Italy and the Caribbean.

In addition to its portfolio of operating assets, TEI is also a top-tier residential developer. It has renovated and converted over 100 buildings with more than 10,000 condominium units. Furthermore, over the last 10 years it has developed and sold-out/leased- up several significant new-construction projects. To date the company’s largest new development projects have been 500 Wellington in Toronto and 50 West Street in New York City.

500 Wellington was completed in 2012 and consists of 350 condominiums and a 150-room luxury hotel. 50 West Street was completed in 2017. It is an 800’ tall, 185-unit, curved-glass luxury tower in New York’s Financial District. Both projects set sales records for their submarkets.

Development Overview Winter 2019/2020 / 29 SEEK BEAUTY

EXTRAORDINARY MICHIGAN AVENUE CONDOMINIUM RESIDENCES

Development Overview