NEW PRICE 2 West Main Street Investment Opportunity Danville, Illinois Strategic Downtown Location Asking Price: $4,750,000 • 9.8% Cap Rate

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Old National Bancorp Single Tenant Net Lease NEW PRICE 2 West Main Street Investment Opportunity Danville, Illinois Strategic Downtown Location Asking Price: $4,750,000 • 9.8% Cap Rate

BROKERS:

Daniel Schmidt Steve Stoner [email protected] [email protected] 312‐654‐3975 630‐805‐0497 License #: 471008680 License #: 471016986 Introduction

Kennedy Wilson and SCGroup Real Estate are pleased to exclusively offer for sale a three‐story office building located in downtown Danville, Illinois. The fully occupied building is leased to Old National Bancorp (NASDAQ, “ONB”). Key elements of this transaction include:

Asset

•Building size: 40,152 square feet •Year built: 1976; Renovated 1994 •Lot size: Approximately 1.9 Acres •Parking: 92 spaces or 2.3/1,000 square feet

Economics/Lease Summary

•Four years remaining on lease; expires October 31, 2022 •Negotiations underway to downsize and extend Bank's lease •Annual NOI*: $465,521 (* For the 12 months ended 10/31/19) •NNN rental rate per square foot: $11.59 •Annual rental increases: 150% of CPI capped at 1.5% •Renewal Options: Four, Five‐Year options •Asking price: $4,750,000 ($118 per square foot) •Capitalization rate: 9.8%

•NNN lease: Tenant responsible for all repairs

Investment Highlights

•Investment grade tenant, Aa3 rating by Moody's •Absolute triple net lease •Located in the heart of Downtown across from the City offices and near other government buildings •Downtown redevelopment district/Civic Center adjacent to property •Limited professional office space competition

Building and Site Overview

The subject property is a 40,152 square feet office building that is fully leased to Old National Bancorp. The property consists of approximately 1.9 acres of land. The first floor is primarily open space consisting of the bank’s lobby and reception area with several bank teller windows and private offices. The second floor is office, meeting and conference space and a kitchen/breakout area. At the far south border of the site, the bank drive through operations are located in a separate free‐standing building. The general delineation of the subject’s property is indicated in red below.

Aerial Site Overiew

Subject

Building Exterior Building Interior

Tenant

Overview

With assets at $15.0 billion, Old National Bancorp is the largest financial services bank holding company headquartered in Indiana. From its initial acquisition in 1985, Old National continues its traditional community‐banking heritage. Old National boasts a 183‐year history of solid performance as a result of the company's unfailing commitment to meeting the diverse needs of its clients, associates, and shareholders.

Headquartered in Evansville, Indiana, Old National Bancorp owns multiple financial services operations in Indiana, Kentucky, Illinois, Michigan and Wisconsin. The company provides a comprehensive range of financial services including commercial and retail banking, trust, brokerage, correspondent banking, and insurance.

The company's stock trades on The NASDAQ Global Select Market under the symbol ONB and has traded consistently around $15 per share for the last five years.

Financial Indicators

Selected financial indicators present the overall strength of the bank.

2017 2016 2015 2014 2013 12/31/2017 12/31/2016 12/31/2015 12/31/2014 12/31/2013

Total Assets 17,518,292 14,860,237 11,991,527 11,646,051 9,581,744 Total Equity 2,154,397 1,814,417 1,491,170 1,465,764 1,162,640 Net Interest Margin 3.48 3.58 3.72 4.22 4.02 Efficiency Ratio 63.90 66.47 67.61 67.10 66.69 Total Capital ($000) 1,424,123 1,229,878 1,024,586 996,929 871,076

Additional financial information is available at http://ir.oldnational.com/FinancialHighlights?keyReport=‐58

Moody’s Investor Services Rating

Old National Bancorp (the guarantor of the lease) is rated Aa3 – high quality and low credit risk by Moody’s Investor Services. It is an investment grade tenant.

Danville, Illinois

Overview

Danville is a city in and the county seat of Vermilion County, Illinois, United States. It’s located approximately 120 miles south of Chicago, 35 miles east of Champaign‐Urbana, and 90 miles west of Indianapolis, Indiana. Illinois Route 1, U.S. Route 136, and U.S. Route 150 intersect in Danville; Interstate 74 passes through the south end of town. The greater Danville area’s population is over 45,000 and Vermilion County has approximately 80,000 residents.

Danville’s diversified economy is a mix of highly successful entrepreneurs, services, national and international manufacturers, transportation and distribution specialists, and regional back office data centers. The area is a desirable location for employers given the work ethic of area residents.

From large national and international employers to smaller companies and suppliers, Danville has been a stable location to locate and grow many successful businesses from a broad cross spectrum of industries, including smaller organizations such as Dawson Logistics that are not instantly recognizable, but are on Forbes’ List of Fastest Growing Entrepreneurs.

Diversified Employment Base Employment by Industry 4.4% 8.2% 20.5% 9.9% 3.4% 6.5%

4.8% 17.4% 0.7% 4.8% 11.9% 7.5%

Government Construction‐Mining Manufacturing Wholesale Trade Retail Trade Transportation‐ Warehousing‐Utilites Information Financial Activities Professional Business Services Educational Health Services Leisure‐Hospitality Other Services

Top Ten Major Employers

 Vermilion County Public Schools and District 118  Veteran’s Affairs Illiana Health Care System  McLane Midwest Company  Genpact  Vermilion County Government  KIK Custom Products  Quaker Oats, Co.  Blue Cross Blue Shield of Illinois  Presence United Samaritans Medical Center  Danville Metal Stamping

Originally a coal mining town, Danville diversified in the 21st century to be a center for Federal, State and Local governments, the medical industry and tourism (focused on outdoor activities) as well as the support amenities required by a city of its size.

Population and other key indicators have been relatively stable over the last 40 years.

Downtown Danville

The subject property is located in the center of downtown Danville. Adjacent uses include city and county government buildings, banks, a large retail shopping center, and other office buildings. Across the street is the multi‐purpose Davis S. Palmer Arena with seating capacity over 4,700. It is the home of the FHL Danville Dashers hockey team.

Subject Property

A key physical feature of downtown is the Vermilion River. The community has created a riverfront redevelopment program financially supported by State and private grants as well as a tax increment financing district (TIF), enterprise zones and special service areas. The primary focus of this effort is to encourage retail and residential development in the downtown while enhancing the River’s edge into a more user friendly destination point. The subject property is located within a special service area and is directly adjacent (to the south) of the TIF.

Commercial Real Estate

The subject property is one of only a few larger office buildings in Danville and one of only two located in the downtown market. The downtown benefits from its central location at the confluence of several roads and proximity to the government and court systems. The tenants in the market are primarily professional services firms that take advantage of the centralized location as well as the downtown client base. The competitive downtown office market consists primarily of class B buildings and the market has a high level of occupancy. The remainder of Danville’s office market is scattered around the community in various submarkets and is characterized by small buildings supporting local businesses as well as several larger build‐to‐suit single tenant buildings. The subject property is well positioned to attract its fair share of office tenants should the need arise.

Disclaimer

This Offering is submitted subject to errors, changes, omissions, changes in price, market and other conditions. It contains selected information pertaining to the Property and does not purport to be all‐inclusive or to contain all of the information that prospective purchasers may desire. It should be noted that any and all market analyses, estimates and projections contained in this Offering are provided for general reference purposes only and are based on assumptions related to the general economy, competition, real estate market trends, and other factors beyond the control of the Seller or Broker. Such analyses, estimates and projections are therefore subject to material variation, and may not be consistent with the views or assumptions held by other professionals.