LINCOLN PARK UFC | REDEVELOPMENT OPPORTUNITY 2219 N Clybourn Avenue • Chicago, IL 60614 1 NON- ENDORSEMENT and DISCLAIMER NOTICE

Offering Memorandum

LINCOLN PARK UFC | REDEVELOPMENT OPPORTUNITY 2219 N Clybourn Avenue • Chicago, IL 60614 1 NON- ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

LINCOLN PARK UFC | REDEVELOPMENT OPPORTUNITY Chicago, IL ACT ID ZAA0370464

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01 Offering Summary Location Overview Regional Map Local Map Aerial Photo Parcel Map

FINANCIAL ANALYSIS 02 Tenant Summary Lease Expiration Chart Operating Statement Notes Pricing Detail Acquisition Financing

MARKET OVERVIEW 03 Market Analysis

Demographic Analysis

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INVESTMENT OVERVIEW

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OFFERING SUMMARY INVESTMENT OVERVIEW

Marcus & Millichap is pleased to present the fee simple interest in 2219 North Clybourn Avenue, positioned along the Clybourn Corridor in Chicago's Lincoln Park neighborhood. The property consists of two city lots (5,906 square feet) with a 5,524 square foot building currently leased to a UFC Gym Franchisee. The tenant's lease runs through June 30th, 2021, and although the tenant is paying rent every month, they are technically in default of the lease. Their rents are currently about $10/sf under market (or about 30% below average rents in this corridor) and a new owner can increase the in place cash flow significantly by re-tenanting the building and raising the rents to market. Furthermore, with the current B1-3 zoning, you can build 2 additional floors of residential units, convert the building to mixed use and decrease the exposure to real estate taxes. Adding residential units would more than double the NOI and increase a new owner's return enough to justify taking on the risks of construction and development, while unlocking the highest and best use of the site.

This asset is located just off the intersection of Clybourn and Webster, neighboring Webster Place, home to Regal Cinemas, Barnes & Noble, Chase Bank, and Webster Place Athletic Club. The site is a 3 minute walk to Sterling Bay's Lincoln Yards development and 0.5 miles from Clybourn Station. With the staggering number of daytime and evening traffic drivers within immediate proximity, combined with strong demographic density (487,484 people live within 3 miles) and average household incomes over $130,000 annually within a 3 mile radius, this location is ideally suited to accommodate any number of potential retail and residential uses.

The asset is being marketed on an unpriced basis, so please contact Marcus & Millichap for additional insight into pricing. There is also the potential to upzone the site and unlock further value, so the intention is to allow the market to form as organically as possible.

INVESTMENT HIGHLIGHTS

. Prime, infill location along the Clybourn Corridor in Lincoln Park . Redevelopment opportunity with a retail tenant in place paying below market rent . In place NOI covers typical carrying costs while the site is re-positioned . Current B1-3 zoning allows for at least two additional floors of residential units to be developed . 0.2 miles from Sterling Bay's Lincoln Yards site -- a 50 acre mixed use development . Close proximity to Regal Cinemas Webster Place, Mariano's, TJ Maxx, Best Buy, Kohl’s and other major retailers

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OFFERING SUMMARY EXECUTIVE SUMMARY

VITAL DATA Mixed Use Current Rent Market Rent Development MAJOR EMPLOYERS Price $2,100,000 CAP Rate 5.3% 7.37% 18.82% Total Return Loan Type All Cash Gross Leasable Area (GLA) 5,524 SF Net Operating Income $111,198 $154,672 $376,677 EMPLOYER # OF EMPLOYEES Price/SF $380.16 Mayors Office 21,148 Current Occupancy 100% AON 11,005 Year Built / Renovated 1965 Westrock Rkt Company 8,100 Lot Size 0.14 acre(s) Board of Educatn of Cy Chicago 6,315 AT&T Illinois 5,594 A B M Inc 5,500 Amtrak 5,292

MAJOR TENANTS Chicago Public Schools 5,268 TENANT GLA LEASE EXPIRATION LEASE TYPE United Center 5,010 UFC Gym 5,524 6/30/2021 Gross with Tax Base Stop Vista Equity Partners MGT LLC 5,002 Northwestern Medicine 4,863 Smx LLC 4,500

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles 2018 Estimate Pop 63,094 487,464 1,033,283 2010 Census Pop 62,270 472,137 1,004,491 2018 Estimate HH 31,230 256,548 472,456 2010 Census HH 30,906 248,134 457,246 Median HH Income $106,652 $83,759 $68,156 Per Capita Income $82,433 $68,693 $49,501 Average HH Income $165,081 $130,010 $107,553

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SURVEY

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LOCAL MAP

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AERIAL PHOTO

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PRICINGPRICING ANDANDLOCATION VALUATIONVALUATIONTENANT OVERVIEWSUMMARY MATRIXMATRIX

Clybourn Station

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MARCUS & MILLICHAP ADVANTAGE LINCOLN YARDS | A Sterling Bay Development Lincoln Yards is a Mixed-Use development that will connect Chicagoans to over 50 acres of riverfront sitting between some of the city’s most iconic neighborhoods: Bucktown, Wicker Park and Lincoln Park. With a vision to breathe fresh life into a former industrial site in Chicago's North Branch Corridor by bringing new and improved infrastructure and transportation, businesses, residences, parks and open spaces, and other amenities to create a vibrant community where Chicago can grow and thrive. The City of Chicago adopted the North Branch Framework Plan in 2017 and subsequently rezoned the Lincoln Yards site to facilitate an opportunity for the creation of a mixed-use neighborhood that promotes economic growth and a natural riverfront environment. Sterling Bay, the City of Chicago and the surrounding neighborhoods are collaborating to ensure that Lincoln Yards is successfully implemented and meets these objectives while creating an inviting place for all.

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FINANCIAL ANALYSIS

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FINANCIAL ANALYSIS TENANT SUMMARY

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FINANCIAL ANALYSIS PRICING DETAIL

Current Rent Market Rent $380.16

Current Rent Market Rent

Developing the property into a mixed-use building with retail on the ground floor and two floors of residential (already buildable under the property’s current zoning) will yield returns of about 20% at list price.

If you plan to visit the property, please do not disturb the tenant.

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ACQUISITION FINANCING

MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC?

CAPABILITIES Optimum financing solutions to MMCC—our fully integrated, dedicated financing arm—is committed to enhance value providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and Our ability to enhance buyer terms. pool by expanding finance options We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance financing options. seller control • Through buyer Our dedicated, knowledgeable experts understand the challenges of financing qualification support and work tirelessly to resolve all potential issues to the benefit of our clients. • Our ability to manage buyers finance expectations • Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings • By relying on a world class Closed 1,678 National platform $6.24 billion Access to more set of debt/equity sources debt and equity operating billion total capital sources financings within the firm’s national than any other and presenting a tightly in 2018 brokerage offices volume in 2018 firm in the underwritten credit file industry

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MARKET OVERVIEW

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MARKETING PLAN MARCUS & MILLICHAP ADVANTAGE Lincoln Park The neighborhood of Lincoln Park is considered one of the city's most desirable neighborhoods. Located just two miles North of the Magnificent Mile and downtown’s many hotels and attractions, it is home to a number of Chicago landmarks. Whether you want to immerse yourself in arts and culture, dine on award-winning cuisine or enjoy first-class shopping, Lincoln Park offers an unparalleled experience for both visitors and residents alike. Home to DePaul University, museums, theaters, several hospitals, and historic homes, Lincoln Park welcomes students, young professionals and families to its bustling, tree-lined streets. It’s an urban environment with convenient public transportation, skyline views and ample green space.

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MARKETINGDEMOGRAPHICS TEAM Created on May 2019

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles Total Average Household Retail . 2023 Projection $84,166 $79,172 $72,976 Expenditure Total Population 62,830 500,180 1,049,459 . Consumer Expenditure Top 10 . 2018 Estimate Categories Total Population 63,094 487,464 1,033,283 Housing $24,228 $22,795 $20,869 . 2010 Census Shelter $15,339 $14,392 $13,104 Total Population 62,270 472,137 1,004,491 Transportation $13,151 $12,335 $11,394 . 2000 Census Personal Insurance and Pensions $9,676 $8,624 $7,436 Total Population 61,836 472,677 1,034,725 Food $8,859 $8,380 $7,747 . Current Daytime Population Health Care $4,844 $4,653 $4,335 2018 Estimate 74,316 772,382 1,529,702 Utilities $4,298 $4,144 $3,917 HOUSEHOLDS 1 Miles 3 Miles 5 Miles Entertainment $3,765 $3,473 $3,190 . 2023 Projection Apparel $2,344 $2,233 $2,063 Total Households 31,072 267,564 492,608 Education $2,229 $1,901 $1,680 . 2018 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles . Total Households 31,230 256,548 472,456 Population By Age Average (Mean) Household Size 1.91 1.86 2.13 2018 Estimate Total Population 63,094 487,464 1,033,283 . 2010 Census Under 20 16.72% 14.82% 19.50% Total Households 30,906 248,134 457,246 20 to 34 Years 45.96% 41.12% 34.70% . 2000 Census 35 to 39 Years 8.83% 10.81% 9.83% Total Households 32,694 237,192 435,132 40 to 49 Years 10.52% 12.24% 12.72% . Occupied Units 50 to 64 Years 10.20% 12.11% 13.98% 2023 Projection 31,072 267,564 492,608 Age 65+ 7.75% 8.89% 9.30% 2018 Estimate 33,541 284,213 529,447 Median Age 30.54 33.01 33.31 . HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles Population 25+ by Education Level . 2018 Estimate 2018 Estimate Population Age 25+ 45,182 376,842 750,718 $150,000 or More 34.00% 24.95% 18.95% Elementary (0-8) 1.12% 2.30% 5.22% $100,000 - $149,000 19.02% 17.43% 15.12% Some High School (9-11) 1.58% 2.82% 5.76% $75,000 - $99,999 10.61% 12.20% 11.90% High School Graduate (12) 4.83% 9.49% 15.33% $50,000 - $74,999 13.07% 15.21% 15.64% Some College (13-15) 7.03% 10.58% 13.11% $35,000 - $49,999 6.57% 8.43% 9.91% Associate Degree Only 2.43% 3.47% 4.21% Under $35,000 16.72% 21.78% 28.47% Bachelors Degree Only 45.51% 41.26% 32.44% Average Household Income $165,081 $130,010 $107,553 Graduate Degree 37.20% 29.34% 22.55% Median Household Income $106,652 $83,759 $68,156 Per Capita Income $82,433 $68,693 $49,501

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MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2018, the population in your selected geography is 63,094. The The current year racial makeup of your selected area is as follows: population has changed by 2.03% since 2000. It is estimated that the 84.57% White, 3.89% Black, 0.04% Native American and 6.51% population in your area will be 62,830.00 five years from now, which Asian/Pacific Islander. Compare these to US averages which are: represents a change of -0.42% from the current year. The current 70.20% White, 12.89% Black, 0.19% Native American and 5.59% population is 48.37% male and 51.63% female. The median age of the Asian/Pacific Islander. People of Hispanic origin are counted population in your area is 30.54, compare this to the US average independently of race. which is 37.95. The population density in your area is 20,044.73 people per square mile. People of Hispanic origin make up 7.02% of the current year population in your selected area. Compare this to the US average of 18.01%.

Households Housing There are currently 31,230 households in your selected geography. The median housing value in your area was $505,002 in 2018, The number of households has changed by -4.48% since 2000. It is compare this to the US average of $201,842. In 2000, there were estimated that the number of households in your area will be 31,072 12,778 owner occupied housing units in your area and there were five years from now, which represents a change of -0.51% from the 19,916 renter occupied housing units in your area. The median rent at current year. The average household size in your area is 1.91 the time was $877. persons.

Income Employment In 2018, the median household income for your selected geography is In 2018, there are 29,546 employees in your selected area, this is also $106,652, compare this to the US average which is currently $58,754. known as the daytime population. The 2000 Census revealed that The median household income for your area has changed by 54.53% 91.54% of employees are employed in white-collar occupations in this since 2000. It is estimated that the median household income in your geography, and 8.52% are employed in blue-collar occupations. In area will be $119,780 five years from now, which represents a change 2018, unemployment in this area is 3.21%. In 2000, the average time of 12.31% from the current year. traveled to work was 32.00 minutes.

The current year per capita income in your area is $82,433, compare this to the US average, which is $32,356. The current year average household income in your area is $165,081, compare this to the US average which is $84,609.

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MARKET OVERVIEW CHICAGO OVERVIEW

Chicago-Naperville-Elgin is one of the largest metros in the nation. Also known as the Greater Chicagoland area, it is bounded to the east by Lake Michigan, expands over a 5,000-square-mile region in northeastern Illinois and extends into Wisconsin and Indiana. The metro houses 9.6 million people and comprises 14 counties. The city of Chicago contains 2.7 million residents. The greatest growth during the past 20 years occurred in the western portion of the region. In recent years, however, businesses are relocating back into the city to attract young workers, supporting the development of high-rise residential towers in the downtown Chicago.

METRO HIGHLIGHTS

THIRD-LARGEST METROPOLITAN AREA The metro population trails only New York City and Los Angeles in size. It will expand to nearly 9.9 million residents by 2023.

WEALTH OF INTELLECTUAL CAPITAL The number of corporate headquarters in Chicago is second only to New York City. There are 34 Fortune 500 companies based locally.

LARGE, DIVERSE EMPLOYMENT BASE The Chicago metro employs nearly 4.8 million workers in an array of industries, including a growing tech sector.

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MARKET OVERVIEW

TRANSPORTATION

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

Million TEU’s CHICAGO HAS RAIL LINES

16.4MOVED THROUGH METRO INTERNATIONAL3 FOR FREIGHT,7 PASSENGER IN 2018 AIRPORTS AND COMMUTER

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

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MARKET OVERVIEW

ECONOMY MAJOR AREA EMPLOYERS Amazon.com, Inc. . The metro has one of the biggest economies in the nation and Advocate Aurora Health is buoyed by its distribution, finance, manufacturing operations and growing high-tech sectors. Walmart . Fortune 500 companies headquartered in the metro include Northwestern University Boeing, Walgreens, Allstate and McDonald’s. United Continental Holdings Inc. . The area is a major global tourist and convention destination. Allstate Corp. Last year, a record 57.6 million people visited the metro, Walgreens Boots Alliance, Inc. supporting 150,600 jobs. Abbott Labs . Large tech firms such as Amazon, Groupon and Google * Forecast attract startup companies. JPMorgan Chase . The workforce is considered one of the most diverse and well AT&T trained among major U.S. metros.

SHARE OF 2018 TOTAL EMPLOYMENT

% % % % % MANUFACTURING9 PROFESSIONAL18 AND 12GOVERNMENT LEISURE AND10 HOSPITALITY FINANCIAL ACTIVITIES7 BUSINESS SERVICES

% % + % % % TRADE, TRANSPORTATION20 CONSTRUCTION4 EDUCATION15 AND INFORMATION2 OTHER SERVICES4 AND UTILITIES HEALTH SERVICES

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MARKET OVERVIEW

DEMOGRAPHICS QUICK FACTS

. Chicago is the third most populous metro in the U.S. and is expected

to grow by approximately 259,500 people during the next five years. 2018 2018 2018 2018 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: . World-class education institutions including Northwestern University and the University of Chicago help provide a skilled labor pool. 9.6M 3.5M 37.2 $67,700 Growth Growth U.S. Median: U.S. Median: Nearly 36 percent of residents age 25 and older hold a bachelor’s 2018-2023*: 2018-2023*: 2.7% 4.1% 38.0 $58,800 degree and of these, 14 percent have also earned a graduate or professional degree, which is well above the national level. . Younger professionals moving to the market for employment provide a skilled workforce and contribute to a median age that is below that of the U.S. and a household income above the national level. . More people are renting as thousands of new apartments are completed. As a result, the local homeownership at 64 percent has declined in recent years and is now on par with the national rate.

* Forecast

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MARKET OVERVIEW

QUALITY OF LIFE

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

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

Cultural activities and artistic venues underpin the metro’s cosmopolitan lifestyle. The region is home to various well-known museums, including the world-class Field Museum, Shedd Aquarium, Art Institute of Chicago and Adler Planetarium. The theater scene rivals the world’s best, and troupes, dance companies, symphony orchestras and music venues abound.

$258,900 70 29 MILES MEDIAN HOME PRICE VARIOUS MUSUEMS OF SHORELINE ARTS & ENTERTAINMENT

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

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CHICAGO METRO AREA

Retailers Increasingly Consider Chicago For New Concept Launches Retail 2018 Outlook Rising household incomes Retailers targeting Chicago for their flagship stores. 2.0 million sq. ft. Construction: supported by corporate expansions are giving consumers increased discretionary Development slows moderately from the 2.3 income and attracting retailers to the Chicago metro. New York & Co. opened its will be completed million square feet completed in 2017. More largest flagship store on State Street earlier this year. Additionally, Amazon opened than half of this year’s deliveries are single- one of its convenience stores in the metro at the end of September. Several other tenant properties. retailers are considering opening flagship stores within the market, including Google and Funko, a company that manufactures pop culture items. Expansions like these will 40 basis point Vacancy: continue to bode well for vacancy improvement. Presently, the rate fell for a fourth Net absorption of 3.5 million square feet will consecutive year during the past 12 months ending in June amid strong net decrease in vacancy tick vacancy down 40 basis points in 2018 to absorption. 6.2 percent. Last year, the rate also fell 40 basis points. Demand outpaces supply in the suburbs. Construction of retail space is beginning Rents: to moderate after several years of elevated development. The bulk of completions 3.4% increase in The average asking rent picks up from the remain in the suburbs. Despite heightened deliveries here, strong net absorption asking rents 0.9 percent increase recorded in the prior continues to sustain demand for retail space, dropping vacancy at a faster pace than year, reaching $17.60 per square foot in the metro average and supporting healthy rent growth. Moving forward, completions 2018. will remain concentrated in outlying areas, though supply additions will likely have a minimal impact on vacancy as much of the space is pre-leased or built-to-suit.

Investment Trends • Buyers in the $1 million to $10 million price tranche are leading transaction velocity in Chicago, with both out-of-state and local investors bidding for available assets. Buyers from California are particularly active targeting properties upward of 200 basis points higher than their home markets. First- year yields for retail assets overall averaged in the low-7 percent band during the past 12 months. • Demand picked up considerably in the Northwest City submarket with the number of sales rising 20 percent in the area during the past 12 months. Heightened demand in the submarket lifted the average price 4 percent to $380 per square foot. Here, cap rates averaged in the low-7 to mid-7 percent range based on property type and location. • Buyers remain interested in multi-tenant assets as these buildings change hands with first-year returns in the mid-7 to low-8 percent band. * Cap rates trailing 12 months through 2Q18; 10-Year Treasury up to June 29. Sources: CoStar Group, Inc.; Real Capital Analytics

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CHICAGO METRO AREA

2Q18 - 12-Month Trend

EMPLOYMENT CONSTRUCTION VACANCY RENTS

increase in total square feet basis point decrease increase in the 0.8% employment Y-O- 1.8 million completed 40 in vacancy Y-O-Y 1.9% average asking rent Y Y-O-Y Y-O-Y • Approximately 38,800 positions • Urban: Since last July, more than • Urban: Net absorption of 59,000 • Urban: The average asking rent were created during the year 372,000 square feet of retail square feet of space did not declined 1 percent during the ending in June, following a 1.2 space was completed, much of outpace completions, lifting year to $25.63 per square foot in percent increase in the prior year. which was located in the vacancy 40 basis points to 4.7 June, nulling the nearly 1 The jobless rate fell 70 basis Northwest City submarket. percent. In the prior year, percent increase recoded in the points during the past 12 months • Suburban: The majority of vacancy fell 80 basis points. prior annual period. to 4.2 percent. completions were located in the • Suburban: In the suburbs, • Suburban: The suburbs • Hiring was led by the education suburbs as 1.4 million square vacancy fell 50 basis points registered stronger-than-metro- and health services sector during feet of space was delivered. during the past four quarters to average growth, with the the prior four quarters with the Construction was widespread 6.8 percent as 3.4 million square average asking rent climbing 3.2 creation of more than 10,000 throughout suburban Chicago feet was absorbed. Vacancy in percent during the past 12 positions. with most submarkets receiving the Schaumburg area months to $15.68 per square retail space. plummeted 130 basis points foot. Last year, rent edged up during this time. 1.3 percent.

* Forecast

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CHICAGO METRO AREA

Submarket Trends

Lowest Vacancy Rates 2Q18

Y-O-Y Asking Y-O-Y % Submarket Vacancy BasisPoint Rate Rent Change Change

Jasper County 1.2% -40 $7.31 1.0%

East Loop 2.2% 40 $30.00 -33.3%

* Forecast **2017-2022 Sales Trends Gold Coast/Old Town 2.6% 40 $18.64 -34.3% Higher Average First-Year Returns Lure Buyers to Strip Centers West Loop 2.8% -210 $36.07 20.2% • Multi-Tenant: The number of multi-tenant transactions over the past 12 months prior to June has held steady from the previous annual time period. Increased competition for available assets lifted the average price 9 percent to $265 per square foot. Grundy County 3.3% -90 $14.56 -6.1% • Single-Tenant: Transaction volume for single-tenant assets fell 4 percent during this time. Properties traded around $345 per square foot on average, up 4 percent year Lincoln Park 4.5% 40 $31.83 -0.9% over year. South Loop 4.6% 100 $34.99 10.7%

Outlook: Strip centers remain popular, Kenosha County 4.7% -40 $11.39 6.0% particularly in the Joliet/Central Will County and Northwest City submarkets. Northwest City 4.7% 60 $22.54 12.8%

River West 4.8% -290 $43.50 -2.9%

South Chicago 4.8% -80 $18.31 -2.2%

Overall Metro 6.4% -40 $17.38 1.9%

* Trailing 12 months through 2Q18 over previous time period. Pricing trend sources: CoStar Group, Inc.; Real Capital Analytics

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8 DEMOGRAPHICS

28 EXCLUSIVELY LISTED BY:

Bennett Kamps Mitchell Kiven Associate Senior Associate Associate Member - National Retail Group Member - National Retail Group Chicago Downtown Office Chicago Downtown Office Tel: (312) 327-5461 Tel: (312) 624-7006 Fax: (312) 327-5410 Fax: (312) 327-5410 [email protected] [email protected] License: IL 475.184550 License: IL 475.164486