Managed Bid Sale 900-914 W

MANAGED BID SALE 900-914 W. Fulton Market 911-923 W. Fulton Market Chicago, Illinois

Prepared By:

Vernon F. Schultz Michael L. Senner Executive Vice President Executive Vice President 847 698 8233 Direct 847 698 8234 Direct 312 613 1877 Cell 312 315 4228 Cell [email protected] [email protected] DISCLAIMER

Disclaimer

Colliers International is pleased to offer the most exciting investment opportunity available in the Fulton Market submarket. The information enclosed provides the details necessary for you to complete the contract provided and to return it to us on or before Thursday, October 20, 2016. This Offering Memorandum, which contains brief, select information pertaining ot the business and affairs of the Property, has been prepared by olC liers International. This Offering Memorandum does not purport to be all-inclusive or to contain all of the information a prospective purchaser may desire. Neither Owner nor Colliers International, nor any of their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of the Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. By acknowledging your receipt of this Offering Memorandum, you agree: 1) the Offering Memorandum and its contents are confidential; 2) you will hold and treat it in the strictest of confidence; and 3) you will not, directly ro indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of Owner. Photocopying or other duplication is strictly prohibited. The Property and improvements described in the Offering Memorandum are being sold on an “As Is, Where Is” basis without representation or warranties. Owner and Colliers International expressly reserve the right, at their sole discretion; to reject any or all expressions of interest or offers to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you do not wish to pursue negotiations leading to this acquisition, or if in the future you discontinue such negotiations, then you agree to return the Offering Memorandum to Colliers International. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property inces the date the Offering Memorandum was prepared.

OFFERING MEMORANDUM COLLIERS INTERNATIONAL TABLE OF CONTENTS

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... I

LOCATION AREA AND DESCRIPTION ...... II

PROPERTY PHOTOS ...... III

PLANS ...... IV

SURVEY ...... V

REAL ESTATE TAXES ...... VI

TITLE REPORT ...... VII

ENVIRONMENTAL Report ...... VIII

ROOF REPORT ...... IX

HVAC & ELEVATOR REPORT ...... X

ALDERMAN ...... XI

ZONING ...... XII

CONFIDENTIALTY AGREEMENT ...... XIII

PURCHASE & SALE AGREEMENT ...... XIV

Executive Summary PROPERTY Description

The subject property is located at 900-914 and 911-923 W. Fulton market in Chicago’s dynamic Fulton Market neighborhood. Arguably one of the nation’s fastest growing submarkets, the area has transformed virtually overnight. Large corporations such as SRAM, Google and McDonald’s have taken advantage of the areas high end demographics and access to the Central Business District and public transportation. The dramatic increase in the work population and character of the existing inventory have ignited retail, multifamily and hotel development. The existing improvements are captured below.

Property Information 900-914 & 911-923 W. Fulton Market, Chicago, IL execute andreturn the attached confidentiality agreement. In order to review of all the relevant duediligencematerials,please property withoutdue diligencerelated questionsor concerns. available for apotential purchasers to review. Thegoalis to sell the Ownership intends to make of all the relevant duediligencematerials Instructions Wednesday, October 26that12:00PMCST to: VERNON FSCHULTZ, SIOR Please submit all offersPlease submitall prior to 6250 N.River Road, Ste.11-100 [email protected] Executive Vice President DIR +18476988233 Rosemont, IL 60018 EXCLUSIVE Agent Agreement

Colliers International has been retained by ownership as exclusive agent to sell (“Seller/Landlord”) 900-914 & 911-923 W. Fulton Market, Chicago, IL (“property”). Please review, execute and return the “Non-Disclosure Agreement” to receive access to the confidential property information. If you have any questions please feel free to contact us.

Contacts Property The designated agents for the Seller are: Information VERNON F. SCHULTZ, SIOR MICHAEL L. SENNER Executive Vice President Executive Vice President [email protected] [email protected] DIR +1 847 698 8233 DIR +1 847 698 8234

COLLIERS INTERNATIONAL Disclaimer

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excluded unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). © 2016. All rights reserved. 900-914 & 911-923 W. Fulton Market, Chicago, IL PROPERTY Photographs CHICAGO Metropolitan Area

Chicago is the largest market in the Midwest and a global business Chicago is one of the world’s most vibrant and diversified economies, destination. Corporations and financial institutions located in the and the region’s strength is centered on the leadership of the many Chicago Central Business District ensure the city a prominent position companies who do business in its famed CBD, known as “The Loop.” in the world’s financial community. Over 300 domestic banks and 100 The city’s location at the geographic center of the world’s largest foreign banks are located in the Chicago CBD. Chicago financial economy makes it uniquely accessible for international business of exchanges, including the Mercantile Exchange, Chicago Board of all kinds, from manufacturing-based industries to the service sector Trade, Chicago Board of Options Exchange and Chicago Stock Ex- and technology-based firms. While Chicago was a strong force in the change, account for 80% of the world’s commodity trading and technology boom of the 1990s, the metropolitan area’s more traditional international futures trading. A high quality of life plays a key role in industries thrived as well and continue to provide the economic base why corporations make the critical decision to relocate to the Chicago that insulates Chicago from the economic ups and downs of the two area. The CBD’s 650,000 employees can enjoy more than 31 miles coasts. As a global transportation, financial and cultural hub city, of lakefront, an exceptional public transportation system, world-class Chicago – and its thriving 24/7 downtown community – is attractive to architecture, museums, restaurants, theaters and music venues. a myriad of Fortune 500 companies and smaller businesses alike. Market Overview

THE WORLD’S WORKFORCE THE GOOD LIFE

• Culturally diverse private-sector labor force of • Affordable cosmopolitan metropolis over 4 million people • 80 miles (129 km) of public shoreline and • At least 35 ethnic groups with a population 88 vacation beaches greater than 10,000 • Outstanding public, private and parochial • 1,500 foreign-owned firms in Chicago area schools • 19 Michelin-starred restaurants, including one 3-star; 10 James Beard Awards in the past 5 years; and 4 AAA 5-Diamond-rated GLOBAL AND DIVERSE ECONOMY restaurants • The only US city with five Tony Award- • 400+ Major Corporate Headquarters winning theater companies • 28 Fortune 500 companies • 33,000+ hotel rooms at properties including • 29 Fortune 500 HQs, including 7 in the city two of the world’s Top 10 hotels • 10 FT Global 500 HQs SOURCE: World Business Chicago 900-914 & 911-923 W. Fulton Market, Chicago, IL Real Estate PIN 911-923 W. Fulton Market -151ft.onFulton Market 900-914 W. Fulton Market -101ft.onFulton Market Frontage 911-923 W. Fulton Market Street –25,937 SFor .6acres 900-914 W. Fulton Market Street –10,099 SFor .23acres Site Description 911-923 W. Fulton Market Street -32,684SFonTwo (2)floors 900-914 W. Fulton Market Street 25,118 SFonFour (4)floors Improvements Fulton Market Submarket Chicago Market PROPERTY 911-923 W. Fulton: 900-914 W. Fulton: Current Specifications Zoning 219 N.Sangamon 911 W. Fulton St. 917 W. Fulton St. 217 N.Sangamon 921 W. Fulton St. 910 W. Fulton St. 906 W. Fulton St. 900 W. Fulton St. Information

Cur Cur 17 17 17 17 17 17 17 17 -08-424-018-0000 -08-424-017-0000 -08-424-016-0000 -08-424-006-0000 -08-424-001-0000 -08-416-005-0000 -08-416-006-0000 -08-416-007-0000 rent zoningis C1-1 rent zoningis C1-1 SITE Plan

W WAYMAN STREET

100.87’

Market 100.12’ Overview 900-914 Fulton Market

metal canopy

W FULTON MARKET W FULTON MARKET

151.21’ 100.40’ N SANGAMON STREET 186.83’ N PEORIA STREET

911-923 Fulton Market

125.90’

parking lot 900-914 & 911-923 W. Fulton Market, Chicago, IL CHICAGO Metropolitan AreaMetropolitan six counties increase will from 4.4 in 2000 million in 2030. to 5.6 million growwill by 1.2 approximately million, equal to the growth in the previous 30-year period. Employment in the in the six-county metropolitan area over the next three decades. Thenumber ofjobsinnortheasternIllinois Commission recently endorsed the agency’s 2030employment forecasts, whichanticipatecontinuing growth All of these categories are major employers in the Chicagometropolitan area. Planning TheNorthernIllinois in the convention/trade show industry, financialservices, research anddevelopment and theairlineindustry. The servicessector ofChicago’s employment hasrapidly expanded inrecent years with particular strength and electronic goods produced by industrialfirmslocatedinChicago continue toincrease. steel, metal products, furniture, household appliances, food products, chemicals, communications equipment Manufacturing remains still a vital and strong elementofChicago’s economy. Sales figures for manufactured transportation hub, the city hasgrown intoaworld leader in the financialmarkets, bankingandlawindustries. Chicago retains oneof the mostdiversified economies in thenation.Historically known asamanufacturing and EMPLOYMENT companies are a testament to the strength anddiversity ofChicago: home to many multinational publicandprivatecorporations. The top ten Chicago-basedFortune 500 The ChicagoCBDsubmarket hasbeennationally recognized as the business epicenter of the Midwest and INDUSTRY COMPANY Kraft Foods Inc. Exelon Corp. McDonald's Corp. Allstate Corp. Mondelez InternationalInc. United ContinentalHoldingsInc. Sears HoldingsCorp. Abbott Laboratories Walgreen Co. Boeing Co. CONTINUED 2012 REVENUES $35.0 B $23.5 B $27.6 B $37.2 B $33.3 B $39.9 B $39.9 B $18.4 B $71.6 B $81.7 B SOURCE: WorldBusinessChicago # OFEMPLOYEES WORLDWIDE 240,000 440,000 246,000 174,000 110,000 88,000 23,000 38,600 26,057 91,000 CHICAGO Metropolitan Area CONTINUED

TRANSPORTATION Both of Chicago’s two international airports, O’Hare and Midway, offer nonstop and direct service to more than 230 cities worldwide. O’Hare International Airport is consistently ranked as one of the country’s busiest, moving over 180,000 passengers through daily. O’Hare offers flights to over 60 international business destinations. Midway International Airport recently completed an eight-year renovation and expansion program, including a new 900,000-square-foot terminal building. The new terminal offers expanded ticket counters, spacious baggage claim areas, traveler information and a short walking distance to airline gates. The expansion project also resulted in the addition of 14 gates, with the airport now providing 43 gates on three concourses. A new, 6,300-space economy parking garage was also constructed to ease commuting.

Chicago’s city and suburban mass transit system is one of the country’s most technologically advanced, with three autonomous divisions of the Regional Transit Authority (RTA) servicing the entire metropolitan area. Market The transportation system is not subject to the enormous growth pressure and subsequent traffic sprawl experienced by Los Angeles, Atlanta, Dallas and other post World War II cities. Overview

The Chicago Transit Authority (CTA) provides bus and train service within the city and some of the close- in suburbs. Its rapid transit trains include both subway and the famous ‘L’, or elevated lines. The Metra commuter provides rail service to many suburban areas within a 40-mile radius of downtown Chicago. In freight transport, Chicago is the only gateway in which all six Class One North American railroads can interchange with one another.

EDUCATION Chicagoland is home to a number of the Midwest’s leading colleges and universities, including the University of Chicago, Northwestern University, University of Illinois at Chicago, DePaul University and Loyola University. In Chicago alone, there are 95 institutions of higher learning, attracting a large number of resident students. Approximately 98,000 college students attend class within the Loop alone.

• Rated #2 Best City to Get a Degree in among 60 global cities. • Home to Kellogg School of Management at Northwestern University and Booth School of Business at University of Chicago, two of the top business schools in the world. • The Chicago Loop is the “largest college town in Illinois,” with more than 98,000 students attending class daily. • Over 100,000 degrees conferred are by Chicago area colleges and universities annually, including 28,800 bachelor’s degrees, 15,600 master’s degrees and 3,500 doctoral degrees in the city alone. 900-914 & 911-923 W. Fulton Market, Chicago, IL AREA Map CHICAGO’S West Loop The West Loop is also considered a hub for fashion and the arts, staking claim to renowned galleries, dance companies, designers, boutiques and music venues.

HISTORY

Long before the Chicago Fire of 1871, the Near West Side was an area of stark contrast. The rich and poor lived close together. Wealthy Chicagoans built spacious homes while hundreds of less fortunate, many immigrants, migrated to the Near West Side to find peace and prosperity. By 1884, the outlines of the West Side Medical Center The West Loop is known for its award-winning were clearly established with the arrival of Cook County Hospital and restaurants, thriving gallery district, boutiques and Rush Medical Center. unique residential loft-style living. Due to its Although Ashland Avenue retained its reputation as one of Chicago’s contribution to the cultural landscape of Chicago along most prestigious addresses, change was coming swiftly. The con- Market with its proximity to downtown, the West Loop is one struction of two elevated railroads along Lake and Congress streets, led to more commercial development in the area. While this new form Overview of Chicago’s most sought-after neighborhoods. Retail, of transportation linked this part of the city to downtown Chicago, it commercial and office development is also at a high due also played a role in the break-up of the West Side Gold Coast. Many to the West Loop’s diverse buisness climate. residents felt that the railroads altered the residential character of their neighborhood. In 1886, the Near West Side was the scene of AREA BUSINESS many bitter labor strikes and conflicts. Many wealthy Chicagoans no longer felt safe living so close to the site of labor upheavals and With national companies having recently opened up offices in the violence. By the turn of the century, however, the Near West Side had area, business both large and small are migrating to the West Loop at become one of the most densely populated districts in all of Chicago. an exponential rate where warehouse buildings that once dotted this mixed use neighborhood are now being rehabbed and converted into In 1909, famous Chicago planner and architect, Daniel Burnham con- innovative office space. ceived Chicago’s Master Plan, envisioning the area east of Ashland as the “gateway from the west into the Loop;” ultimately, naming the RESIDENTS area the West Loop Gate.

Thanks in part to its convenient location, nearby retail offerings, fam- Today, the West Loop Gate, now known simply as the West Loop, ily-friendly community, loft-style living and budding green space the is one of the hottest neighborhoods in Chicago. Large numbers of West Loop is one of the fastest growing residential neighborhoods in people continue to move into the area every day, drawn to its proxim- the City of Chicago where new residential development continues to ity to the Loop and major expressways. Randolph and Fulton streets emerge as the demand for large, family-friendly housing increases. have become an epicenter for world-famous restaurants that bring in visitors from all over the city VISITORS and beyond.

Known for its award-winning restaurants, boutiques, burgeoning art gallery district and unique residential loft-style living, the West Loop is one of the City of Chicago’s most attractive neighborhoods. Randolph and Fulton Market streets have become an epicenter for international- ly acclaimed restaurants led by some of the world’s most talented and innovative chefs. Location and Area Description Fulton Market Innovation District A plan to coordinate economic growth, preservation, design, and public improvements

CITY OF CHICAGO DPD CONTENTS

A Land Use Plan for Coordinated Economic Growth 3 A History of Specialization and Innovation 5 Prior Planning Initiatives 7 Key Actions 9

Appendix I: Employment Data

Appendix II: General Design Guidelines Masonry 18 Windows 20 Doors and Grilles 22 Storefronts 23 Awnings and Canopies 24 Signs 25 Additions 26 RAHM EMANUEL, MAYOR Streetscapes 29

Appendix III: Public Process and References 34

Adopted by the Chicago Plan Commission ANDREW J. MOONEY, COMMISSIONER July 2014

1 Fulton Market Innovation District

Encompassing 217 acres of primarily low-rise buildings on the Near West Side, the Fulton Market Innovation District is uniquely suited to reflecting the past and accommodating the future of Chicago’s economy.

2 Land Use Planning Principles Fulton Market Innovation District A land use plan for coordinated economic growth

Chicago’s Fulton Market area is a place in which traditional and innovative businesses coexist amid an evolving mixed-use landscape on the edge of downtown. To ensure the area continues to serve the needs of both existing and new companies, the City of Chicago is implementing a strategic land use plan that preserves the area’s fundamental characteristics while providing a framework for sustainable economic growth and investment.

Roughly bounded by Hubbard Street, Halsted Street, Randolph Street and Ogden Avenue (Map 1), the 217-acre area is home to meat packers, food distributors and manufacturers, along with a growing number of innovation-driven firms, restau-

rants, retailers, and leisure-oriented businesses that collectively employ approxi- Map 1: Fulton Market Innovation District boundaries mately 10,000 people. More than 500 technology-related jobs are expected to move into the area within the next two years, which will reinforce its role as an innovation-driven employment center.

The “Fulton Market Innovation District” plan is intended to preserve existing jobs while accommodating private sector investments that reinforce the area’s expanding role as an innovation-driven employment center. The strategic plan will also ensure that new development projects serve their intended purposes without detracting or impeding the often disparate needs of other businesses and community stakeholders.

At the request of local landowners, roughly half of the planning area is zoned C-1, which restricts most uses to small scale business endeavors. Future development proposals are expected to exceed the C-1 district’s parameters, necessitating the broader development guidelines that accommodate future projects while protecting the fundamental characteristics of the area, particularly its historic role as a home to light industries and food-related businesses.

The Fulton Market area’s proximity to the central business district and local and The northern half of the area is zoned for manufacturing, which prohibits residen- regional transportation routes has long supported its role for industry and sup- tial and certain commercial uses. portive services.

3 Fulton Market Innovation District

The Fulton Market Innovation District plan consists of a land use map, general design guidelines, a suite of public investments, and recommendations for preserving historic buildings and providing more food-oriented programming.

• The land use map guides height, density, and use parameters for future construction projects, ensuring that proposed zoning changes are made in context with four specific subareas within the Fulton Market area, including portions of an existing City of Chicago Industrial Corridor and Planned Manufacturing District.

• The design guidelines ensure new construction or redevelopment projects maintain the area’s unique visual identity associated with light industry.

• The public improvements will address critical infrastructure issues as well as create gateways and other visual cues that reinforce the sense of place within the district, along with specific improvements that support the area’s unique association with food, including an incubator facility to foster locally produced and regionally distributed meats, vegetables and other items.

• A proposed historic district for a portion of the Fulton Market area received a preliminary recommendation in spring 2014 by the Commission on Chicago Landmarks. The designation process is underway according to Chicago Land- marks Ordinance procedures.

Unlike other innovation-oriented employment districts across the country in which public entities own the land and buildings, Fulton Market Innovation District properties are almost exclusively owned by individuals, businesses, and organizations. The plan’s goals and objectives rely on select City of Chicago development tools and regulations to succeed, including economic development subsidies, historic preservation regulations and incentives, zoning provisions, and public investments.

The plan does not require existing property owners to conform to new standards, nor does it propose wholesale zoning changes within the area. Its guidelines only apply in the event of new construction or redevelopment within the district, which would be assessed for compatibility by community stakeholders and elected offi- The Fulton Market area’s proximity to downtown and youth-oriented neighbor- cials, along with public entities like the Chicago Plan Commission and City Coun- hoods, along with its vintage industrial buildings and eclectic mix of supportive cil. uses, enhance its viability as a 21st century innovation district. 4 Land Use Planning Principles A history of specialization and innovation Poised for continued business growth, the Fulton Market area is an ideal location for Chicago’s first self-proclaimed “innovation district.” Innovation districts are a relatively new type of business center that are attractive to companies that leverage technology to produce real and virtual goods. Innovation districts also possess traditional industrial and supportive services that offer urban vibrancy and authentic- ity that attract new economy companies. The concentration of innovation-oriented firms in select parts of Boston, Brooklyn, and other cities reflect this trend, one that will significantly expand in the Fulton Market area with the arrival of 500 Google employees in 2015.

Urban innovation districts in the United States possess similar characteristics as the The creative economy thrives in pedestrian-scale environments like Fulton Fulton Market area, including protected areas for manufacturing; technology-orient- Market Street, where buildings of different ages support social and cultural ed anchors; proximity to a central business district; and strategic public infrastruc- activities that help attract companies that produce real and virtual goods. ture investments. A unique aspect of the Fulton Market Innovation District is that it is home to the Fulton-Randolph food market, the last remaining market district within the City of Chicago. The area also provides proximity to affordable, youth- oriented neighborhoods like Wicker Park, Ukrainian Village, and Logan Square, which reinforce the area’s viability for innovation firms and their workforces.

Though the term Fulton Market is used colloquially to reference the entire planning area, the name formally applies to a corridor of meat processors and distributors on the district’s eastern end. The meatpacking area is centered along Fulton Market Street, which once housed satellite facilities for industrial meatpacking giants like Armour, Swift, Morris and other companies. Today, wholesalers continue to occupy Fulton Market buildings. Several of these wholesalers, along with a number of area restaurants, source their raw materials from small farmers that specialize in organic, pesticide free, and/or humanely raised products, reflecting the area’s ongoing association with market-driven innovation, and representing a unique nexus between traditional wholesale food purveyors and restaurants that serve regionally sourced food (Map 2).

Market districts across the United States possess a unique sense of place that often The Fulton Market area’s historic association with food provides urban authen- attracts other types of businesses. Like the Fulton Market area, a number of mar- ticity, a key criteria that attracts the development and supports the viability of kets have become the centers of larger districts where compatible business activi- contemporary innovation districts.

5 Fulton Market Innovation District ties choose to locate, creating highly synergistic and dynamic places. However, since market district properties are nearly always owned by private entities, real estate speculation can lead to the displacement of businesses and the character and uses can be diminished unless protections are put in place to coordinate growth. Seattle, Cleve- land, and New York City have market districts that have been designated as both local and national historic districts.

Market districts are often the most unique and vibrant and economically active portions of U.S. cities. For example, Cleveland’s West Side Market is visited by more than 1 million people each year; Pittsburgh’s Strip District was awash in $1.25 billion in mixed-use development at the close of 2013; and New York City’s Gansevoort meatpacking district saw rental rates in 2012 that were 20 times higher than 20 years ear- lier. Each market is considered an economic engine that benefits their respective city in multiple ways.

As a home to both traditional and innovative firms, the Fulton Market Innovation District’s success is partly due to easy access and egress by shippers and receivers and its proximity to other businesses and consumers. The concentrated location also offers relatively insulated work areas in which to operate without conflict from non-compatible uses involving housing, lodging, and certain retail uses, especially during early morning hours when sidewalks and other public spaces are utilized by food companies for operational needs.

As of 2011, 63% of the jobs in the Fulton Market Innovation District were involved in the making or handling of real and virtual products. (Appendix I). A portion of the innovation district has a Planned Manufacturing District (PMD) zoning designation, Map 2: Locations of wholesale food licenses holders and restaurants serving one of 15 PMDs in Chicago. The purpose of a PMD is to provide land use stability to regional produced food items. serve the needs of both traditional and advanced manufacturers and other production-oriented companies. As of 2011, 90% of the jobs in the PMD portion of the innovation district were involved in the making or handling of real and virtual products. As the Fulton Market Innovation District evolves, the PMD will continue to provide an affordable environment that’s free from disparate uses that are incompatible with the making and distribution of real and virtual products.

Approximately 18% of the jobs in Fulton Market Innovation District are related to leisure and lodging activities, many of which are located adjacent to industrial compa-

6 Land Use Planning Principles nies within the southern half of the area. Since the early 1990s, the district has become increasingly associated with fine dining, entertainment venues, art galleries, and special events, making it today one of the most eclectic concentrations of culturally focused entrepreneurism in the city.

Public streets and private parking lots in the southern portion are also used for events like the annual Taste of Randolph food and music festival; the annual Guerilla Truck Show designer products event; and the bimonthly Randolph Street Market festival featuring various vintage goods.

The southern half of the Fulton Market Innovation District includes 125 properties that exemplify the area’s 150-year association with food entrepreneurism and broader themes about the city’s economic history. Proposed as a formal historic district by the Chicago Landmarks Commission, the uses and buildings convey Chicago’s impor- Opened in May 2012, the $38 million Morgan Street CTA station accom- modates more than 600,000 passenger boardings every year. The improved tance as a wholesaling center that distributed the agricultural bounty of the heartland public access to the area will fuel demand for nearby real estate, a trend exac- across a rapidly growing region. They also reflect Chicago’s importance for meat pro- erbated by Google’s announced relocation to a renovated building at Morgan cessing and distribution while exemplifying the importance of manufacturing to the Street and Fulton Market in 2015. city’s development. Prior planning initiatives

To enhance and protect the unique characteristics of the Fulton Market area, the City of Chicago has worked with area businesses and property owners on several planning initiatives in recent years.

In 1998, the Chicago City Council adopted the Kinzie Industrial Corridor Tax Incre- ment Financing (TIF) plan that foreshadowed the area’s burgeoning attractiveness to both established and new businesses. The Kinzie TIF redevelopment plan includes goals and objectives to:

A $5.9 million streetscape project along West Randolph Street in 1996 helped • Protect the historic food wholesaling and production function of the Fulton/ foster the street’s evolution as a dining destination. Randolph Market area, including the assembly of obsolete industrial buildings for redevelopment as modern market facilities.

• Protect existing industrial concentrations, including the Fulton and Randolph Street markets, from encroachments by incompatible uses. 7 Fulton Market Innovation District

• Preserve the industrial character of the area and redevelop sites for industrial uses.

In 2000, the Chicago Plan Commission adopted the Near West Side Area Land Use Plan. Randolph and Fulton Markets were recognized as a unique business district within the City. The land use framework included recommendations to: establish one consolidated wholesale food district; continue careful management of land use changes; and explore the feasibility of a facility to provide information to businesses and the public about the history of the area and current products and operations.

Design guidelines were also provided because a critical issue confronting the area was the physical quality of the built environment. Specific guidelines included:

Industrial and warehouse buildings within the area exhibit a high degree of “Building scale and architectural design for new buildings should be consistent with the design, detail and craftsmanship in traditional brick masonry. physical character of the Near West Side’s distinct land use sub areas: Randolph and Fulton Markets. Traditional brick industrial buildings represent the most common building type in the area and provide an overall context for new architecture.”

“Buildings should be preserved and renovated where possible to maintain existing building walls along streets.”

“Rehabilitation/renovation should be sensitive to the original architectural character of the building and surrounding area.”

Business and property owners simultaneously worked with DPD staff to adopt a Planned Manufacturing District for the area north of Carroll Street, which preserves the area for heavy industrial users and other compatible businesses. Area stakeholders also supported the rezoning of most of the remaining area as C-1 (Map 3), which helped ensure future uses would be compatible with food wholesale and manufacturing by preventing large scale development projects.

Map 3: Current zoning (Summer 2014) In 2012, Mayor Emanuel released “A Plan for Economic Growth and Jobs,” which outlines 10 transformative strategies to enhance Chicago’s role in the global economy. The Fulton Market Innovation District advances four of the strategies: fostering innovation and entrepreneurship; becoming a hub for advanced manufacturing; making Chicago a premiere destination for tourism and entertainment; and increasing the region’s attractiveness for cutting-edge business services and headquarters.

8 Key Actions Key Actions

1. Adopt a land use map for the Fulton Market Innovation District to minimize future land use conflicts and maximize the production of real and virtual products

The Fulton Market Innovation District Land Use Map (Map 4) provides specific land use parameters for future zoning changes within the district. Its height and density standards for four key subareas are to be used by the Chicago Plan Commission, City Council, and community stakeholders to assess the appropriateness of future zoning change proposals. The four specific sections of the map include:

Innovative Industries Subarea Located within and adjacent to the Kinzie Industrial Corridor and Properties along Lake Street and the elevated CTA public transit line should accommodate mid- rise building construction to foster transit-oriented developments near the new Morgan Street Planned Manufacturing District (PMD), the Innovative Industries commuter station. Subarea is primarily occupied by manufacturing, industrial, and distribution-oriented companies. Land use parameters for the subarea will Lake Street Business and Service Subarea foster the viability of existing companies and the area’s role as a jobs The Business and Service Subarea straddles the CTA rail line along Lake center, especially involving its burgeoning role as a home to innovation Street and includes the recently-opened Morgan Street station, which and technology-driven companies. New residential development is pro- provides opportunities for increased density and height through Transit hibited and retail establishments are limited to sales of goods directly Serviced Location provisions within the Chicago Zoning Ordinance. related to the businesses operating on-site. New construction is limited Lake should continue to function as a service road for existing compa- to low-rise buildings. nies, as well as for future projects that could use intersecting north-south streets for main entrance locations. Mid-rise buildings are permitted, Typical uses include: Manufacturing, artisanal manufacturing, indus- including structures with non-accessory parking for patrons of nearby trial, business and industrial services, food purveyors, food truck com- restaurants, entertainment venues, and hotels. Because the north side of missaries, shared kitchens, printing facilities, commercial photography Lake is within the Kinzie Industrial Corridor, the subarea limits denser studios, offices, high-tech offices, data storage centers, business trade residential development to the south side of the street. schools, warehouses, employment agencies, construction offices, small- scale restaurants, coffee shops, taverns, and other small-scale commer- Typical uses include: Retail, restaurants, salons, personal services, food cial uses that support these trades, such as barber shops and dry clean- purveyors, art galleries and studios, entertainment venues, hotels, of- ers. fices, high tech offices and hotels. New mid-rise residential buildings should be allowed only south of Lake. Building scale: One to approximately four stories. Building scale: Three to eight stories or more. 9 Fulton Market Innovation District Land Use Map: Fulton Market Innovation District

Map 4: Subareas identified within the Fulton Market Innova- tion District land use map are intended to guide future zoning INNOVATIVE INDUSTRIES INNOVATION DISTRICT BOUNDARY change proposals. FULTON MARKET

LAKE STREET BUSINESS AND SERVICE

RANDOLPH ROW

10 Key Actions

Fulton Market Subarea 2. Establish Subdistrict B within the Kinzie Planned Manufac- Located along Fulton Market Street, the historic core of the Fulton turing District (PMD) Market Innovation District has provided meat and food-related services to the city for more than 150 years. The land use plan provides for uses A new subdistrict should be considered within the Kinzie PMD to that are compatible with the operation of food production and distribu- reinforce the area’s expanding role as an innovation-driven employment tion-related enterprises. Existing residential uses are allowed to remain center (Map 5). The purpose of the subdistrict is to provide adequate but new or expanded residential development is discouraged. Retail and affordable space for a broader range of businesses within the portion is limited to smaller-scale businesses, including stores that sell goods of the PMD that’s within the innovation district’s boundaries, while still produced off-site. Building heights are limited to the existing scale of the protecting against the potentially negative impacts of housing, enter- street wall along Fulton Market Street. New uses should renovate and tainment, and lodging uses. B subdistricts provide for a wide range of incorporate existing buildings. retail and commercial uses while still accommodating the industrial and employment-based goals of the PMD. No residential uses are allowed. Typical uses include: Manufacturing, artisanal manufacturing, wholesaling, food purveyors, butcher shops, grocery stores, offices, high-tech offices, co-working offices, restaurants, coffee shops, bakeries, taverns, art galleries, art studios, apparel shops and bike shops. PMD Subdistrict B Building scale: One to three stories; large floor plates.

Randolph Row Subarea Industrial Corridor As one of the most popular destinations for restaurant-goers in Chicago, Randolph Street is lined with restaurants and other hospitality oriented businesses that provide eclectic diversity for the entire Fulton Market area. Located at the southern portion of the district, the subarea also contains entertainment venues and culturally aware businesses that draw visitors from outside of the neighborhood. New uses should renovate and incorporate existing buildings. Map 5. More than half of the Fulton Market Innovation District lies within the Kinzie Industrial Cor- ridor, which extends south to Lake Street. Zoning changes for residential uses are incompatible with the industrial corridor. The northern third of the innovation district is also part of the Kinzie INNOVATION DISTRICT BOUNDARY Typical uses include: Full-service restaurants, coffee shops, taverns, PMD. A Subdistrict B designation within the Kinzie PMD would expand allowable business uses boutique hotels, entertainment venues, retail, offices, personal services, while still maintaining the industrial goals of the PMD. food purveyors, butcher shops, groceries and residential (above the first floor).

Building scale: Two to approximately five stories.

11 Fulton Market Innovation District

4. Coordinate public infrastructure investments to create a co- hesive district identity and support ongoing private investment projects.

The Fulton Market Innovation District plan will provide the framework for more than $42 million in area infrastructure improvements announced by Mayor Rahm Emanuel in June 2014 (Map 6). The improvements will address a variety of above- and below-grade public works needs for both current and future companies. Streetscape improvements focusing on pedestrian safety and loading operations will be initiated for the length of Fulton Market Street. To inform additional improvements, a traffic and curbside use study will begin in the fall of 2014 to address the wide range of users and the changing character of traffic throughout the day. A variety of community identifiers will also be installed to reflect the area’s unique association with the preparation and distribution

Design guidelines should be adopted to ensure the compatibility of new construction with the of food, including a gateway arch near Halsted and Fulton Market. industrial nature of area buildings. 5. Invest in facilities for regional food products, traditional 3. Adopt general design guidelines wholesale businesses and associated historic buildings

General design guidelines should be finalized and adopted by the To complement the Fulton Market area’s historic association with food Chicago Plan Commission to guide the treatment of properties and production, distribution, and consumption, a facility should be estab- streetscapes throughout the Fulton Market Innovation District (Ap- lished within the PMD to serve as an artisanal food incubator and a pendix II). The guidelines should strengthen the unique identity of regional food wholesale and processing facility for use by local chefs, the area and support existing uses, while encouraging new, compatible restaurant owners and other food entrepreneurs. The facility could be development. Renovation of existing buildings for contemporary uses is modeled after the existing incubator in the Kinzie Industrial Corridor encouraged and new construction and additions are allowed, pending that successfully supports various industrial and food processing niches compliance with zoning and land use parameters. Compliance with the within the local economy. In addition, the City should expand assistance guidelines is recommended for all new construction and rehabilitation to existing wholesale and manufacturing companies within the Kinzie projects within the district’s boundaries. Compliance will be monitored Industrial Corridor by increasing the Small Business Investment Fund by City of Chicago zoning and land use staff, which reviews all zoning (SBIF) for tenant improvement projects and TIFWorks for workforce change applications within the city. Specific recommendations will be development projects. made, as appropriate, to property owners as part of the zoning change and permit review process. Property owners should reference the guidelines prior to pursuing a building permit within the innovation district.

12 Key Actions Infrastructure Improvement Program: 2014-2018

Map 6: Location of planned infrastructure improvements

13 Fulton Market Innovation District

6. Encourage programming and events on food and Chicago’s role within the regional and nationwide food systems

The Fulton Market area’s long association with food provides unique opportunities for public events and programming that contribute to the local economy. Given the existing food focus and proximity to downtown and public transit, the area is an ideal location for a seasonal, outdoor farmers market and/or an indoor market that caters to the public, chefs, or both. A potential market steward could be an organization like Green City Market, which is a 16-year old, not for profit organization that op- erates a farmer’s market from May through December in Lincoln Park. The organization is investigating the feasibility of a second market in Chicago, with a primary objective of enhancing access and convenience in order to better connect local producers to downtown restaurateurs. Additional regional and sustainable food programming activities should be explored for opportunities involving pop up exhibits, podcasts/walking tours, demonstrations (cooking, preserving, drying herbs, etc.), and Regularly scheduled farmer’s markets should be introduced to enhance access by area chefs for regionally sourced food items while also reinforcing the area’s historic role as a food-oriented opportunities to learn about how food gets from regional farms and business corridor. producers to the table.

7. Establish a historic district within a portion of the Fulton Market Innovation District

The Fulton-Randolph Market Historic District recommendation being considered by the Commission on Chicago Landmarks should be finalized by DPD preservation staff and, if approved, transmitted to City Historic District Council to preserve the historic core of the innovation district. The City Council designation would provide new financial incentives for building rehabilitation and maintenance needs. Encompassing 47 acres, the Fulton-Randolph Market District focuses exclusively on architecturally significant buildings and others that best represent the area’s industrial growth and association with food production and distribution (Map 7). Like all historic districts in Chicago, the designation would be limited Map 7: Owners of contributing buildings within the proposed Fulton-Randolph historic district to the exterior elevations of properties to allow flexibility to adapt the would be eligible for new economic development and building rehabilitation incentives. interiors for new uses that align with market demands.

14 Appendix I: Employment Data Appendix I: Employment Data

DPD staff used U.S. Census Bureau datai ii to categorize jobs within the Fulton Market Innovation District using a methodology developed for the “Chicago Sustainable Industries” plan.iii Job categories were grouped into 1) Real & Virtual Products, 2) Business and Institutional Services and 3) Leisure and Lodging Services and are detailed below.

Employment data for selected sectors within the Fulton Market Innovation District and Kinzie Planned Manufacturing District

Leisure and Lodging Real & Virtual Products Business & Institutional Services Services

Moving, Informa- Health Arts, storing tion, Care & entertain- Accomo- Area goods & Technolgy Social ment, dations, Manufact- Construc- & Mange- Education Finance & Real Assis- recrea- Food uring tion ment Services Insurance Estate tance Retail tion service Other TOTAL Fulton Market District 855 2350 3011 63% 561 313 132 532 10% 278 273 1255 18% 358 4% 9918 Within PMD only 78 1422 57 90% 83 2 8 1 5% 19 3 1 1% 52 3% 1726

NAICS groupings for analysis of employment data within the Fulton Market Innovation District. Real & Virtual Products = Manufacturing; Moving or storing goods (Utilities, Construction, Wholesale Trade, Transportation & Warehousing, Administrative Support, Waste Management & Remediation; Information, Technology & Management (Information, Professional, Scientific & Technical Services, Management of Companies and Enterprises). Business & Institutional Services = Educational Services; Finance & Insurance; Finance & Insurance; Real Estate (Real Estate, Rental & Leasing); Health Care and Social Assis- tance. Leisure and Lodging Services = Retail; Arts, Entertainment & Recreation. Other = Other Services (Except Public Administration). Note: Excluded from analysis due to zero counts: Agriculture, Forestry, Fishing and Hunting; Mining, Quarry & Oil and Gas Extraction; Public Administration.

i U.S. Census Bureau, Center for Economic Studies, OnTheMap application and LEHD Employment Statistics. http://onthemap.ces.census.gov i i GIS Shapefiles were used to define the area selection and to extract employment data for the Fulton Market Innovation District and segment of PMD 4. iii In 2012, Jon DeVries, who chaired the Land Use Task Force for the Chicago Sustainable Industries plan, and his colleague John McDonald, both professors at Roosevelt University, analyzed employment data for 24 Chicago industrial corridors to assess industrial land use policy. Employment sectors were divided into three land-use categories using NAICS data: Manufacturing (including wholesale trade, transportation and warehousing, and administrative support and waste management services); Retail trade (including arts, entertainment and recreation and accommodation and food service); and Office employment (including seven sectors of private employment).

15 Fulton Market Innovation District Appendix II: General Design Guidelines

The Fulton Market Innovation District general design guidelines are in- lowing compatible new construction and expansion. tended to guide the treatment of properties and streetscapes throughout the district in order to preserve and enhance its unique character. General design principles:

• The guidelines aim to strengthen the identity of the area and support • Repair rather than replace. Deteriorated architectural features existing uses while encouraging new, compatible development. should be repaired rather than replaced whenever possible. Repair and maintenance can stabilize existing features and prevent deterio- • Renovation of existing buildings for contemporary use is encouraged ration. and new construction and additions are allowed throughout. • Replace with compatible features or materials. Removal or altera- • Streetscape guidelines aim to maintain existing uses, such as loading, tion of significant architectural features should be avoided whenever to best serve existing businesses, while improving pedestrian safety possible. and comfort and promoting other streetscape improvements. • Draw from existing examples within the district. For alterations, The guidelines are intended to assist residents, business owners, prop- new elements, and new buildings, lessons can be learned from other erty owners, property managers, builders, developers, architects, plan- buildings about the design of a building element and use of materials ners and other stakeholders in making decisions regarding changes to in a way that respects its neighbors. New designs may be interpre- their properties. Guidelines for streetscapes are also intended to assist tive, but should always preserve the integrity and scale of the dis- property owners and public agencies such as the Chicago Department of trict's character and scale. Transportation (CDOT) when planning infrastructure improvements. The guidelines defer to existing Zoning and Landscape Ordinances and • Allow for creative and contemporary design solutions. Inventiveness also reference CDOTs Complete Street Guidelines. in new construction is encouraged as long as such projects respect the character of the Fulton Market Innovation District. The General Design Guidelines are recommended for all new construction and rehabilitation projects that require City zoning review. Com- • View Corridors of Fulton and Randolph are of primary importance. pliance will be monitored by City of Chicago zoning and land use staff, The mass and scale of view corridors of Fulton and Randolph streets which reviews all zoning change applications within the city. Specific should be preserved. recommendations will be made, as appropriate, to property owners as part of the zoning change review process. Property owners should • Flexibility in Implementation. These guidelines are intended to al- reference the guidelines prior to pursuing a building permit within the low compatible new construction and sympathetic additions and im- innovation district. provements. For that reason the guidelines are intended to remain flexible in order to address current and future needs of the area. The guidelines ensure that the historic and architectural character of the Fulton Market Innovation District is protected and enhanced while al- 16 Appendix II: Overview

Overview Streetscape appearance varies between the main east-west arteries of The Fulton Market Innovation District contains the oldest food market- Randolph, Lake and Fulton Market. ing district in Chicago with an ensemble of historic mercantile buildings that continue to function as wholesale produce and meat packing Randolph Street outlets. Though the majority of the buildings in the district were built Randolph is a wide boulevard, with planted medians that separate two between 1880 and 1929, it began to function as a food market in 1850 center traffic lanes from additional traffic lanes and parking at either side when the then-Town of Chicago built a municipal market hall building of the street. The street width and building construction along Ran- in the middle of Randolph Street at DesPlaines Street. dolph reflects its historic use as a wholesale produce market. Histori- cally, the street was enlarged incrementally to accommodate its growing As Chicago grew, the Fulton Market area developed commodity special- use as an open-air farmers market. Farmers would set up their trucks in ization, with Randolph Street focused on regionally-grown produce and the middle of the widened portion of the street. The center of the street Fulton Market Street specializing in meat packing. In addition to food historically remained open for traffic lanes and included a street car line. marketing and processing, the district includes a number of historic Buildings along Randolph generally consist of smaller scale, mercantile manufacturing and warehouse buildings. These reflect a larger pattern of buildings constructed to supplement the wholesale market activities industrial development on the Near West Side in the late 19th and early here. 20th centuries. Lake Street The period of historic significance for the area is 1850 to 1964, though Lake is largely defined by the elevated track structure that runs above the its function as a food market continues to the present day. Because the street, with support posts located in the parking lanes. This track was district has an extended history of use as a place of wholesale produce completed in 1893 with original stops at Racine, Morgan and Halsted. marketing and meat packing, many buildings within it have sustained The Morgan station has been recently rebuilt. There are no remnants alterations and changes that are related to their historic functions and of the other two stations. Lake carries two lanes of traffic with parking that may have their own historic significance. While historic warehouse, lanes at the curb. Building construction along Lake Street primarily wholesale and other commercial uses remain within the district, the consists of buildings with larger footprints, constructed to house ware- area has also begun to attract new uses and development. Randolph has house and light-manufacturing uses. become a destination for upscale restaurants and bars, while new residential, professional services, retail and gallery uses have also located Fulton Market Street throughout the district. Fulton Market is characterized by heavy truck and loading activities. Curb heights throughout Fulton Market vary and were historically de- Physical Description termined by loading requirements for adjacent businesses. Fulton Mar- The area is a dense, urban space with buildings built up to their lot lines ket carries one lane of one-way traffic with parking lanes and loading and with no setbacks from the sidewalk. Many buildings share party docks at the curbs. Buildings along Fulton tend to be older and larger walls. Construction throughout is primarily two or three stories, with a than those along Randolph Street and were historically constructed to limited number of buildings as low as one story and as tall as 10 stories. house warehouses and light-manufacturing for the meat packing and Buildings throughout were historically built for mercantile, warehouse associated food-related businesses that located here. and light manufacturing purposes.

17 Fulton Market Innovation District

18 Appendix II: Masonry

19 Fulton Market Innovation District

20 Appendix II: Windows

21 Fulton Market Innovation District

22 Appendix II: Storefronts

23 Fulton Market Innovation District

24 Appendix II: Signs

25 Fulton Market Innovation District

26 Appendix II: Additions

27 Fulton Market Innovation District

28 Appendix II: Streetscapes

29 Fulton Market Innovation District

30 Appendix II: Streetscapes

31 Fulton Market Innovation District

32 Appendix II: Streetscapes

33 Fulton Market Innovation District Appendix III: Public Process and References

Public Process The Fulton Market Innovation District plan was led by the Chicago Depart- ment of Planning and Development (DPD) with participation from the Chicago Jan. 31 through March 5, 2014: Individual meetings with leaders of local Department of Transportation (CDOT) and the Chicago Department of Cultural organizations, including the West Loop Community Organization, Industrial Council of Nearwest Chicago (ICNC), West Central Association, Randolph/ Affairs and Special Events (DCASE). Fulton Market Association, Neighbors of West Loop. Andrew J. Mooney, Commissioner, Department of Planning and Development March 11, 2014: Meeting for more than 60 members of the five local organiza- Patti Scuderio, Zoning Administrator, Bureau of Zoning and Land Use tions at Coyne Institute. DPD and CDOT staff presented data and preliminary Rebekah Scheinfeld, Commissioner, Department of Transportation planning ideas. Michelle Boone, Commissioner, Department of Cultural Affairs and Special April 1, 2014: Public meeting at VenueOne, 1044 W. Randolph St, where DPD Events and CDOT staff reviewed an outline of the plan concepts for more than 300 people. Presentation was posted on the DPD website. Project Team

April 22, 2014: Meeting with DPD staff and seven members of the West Central DPD: Matthew Crawford, Kathleen E. Dickhut, Eleanor Gorski, Meg Gus- Association to review alternative plan concepts tafson, C. Benet Haller, Bradley Roback, Lawrence Shure, Peter Strazzabosco, April 23, 2014: DPD staff attended an event hosted by Neighbors of West Loop Steven Valenziano to answer individual questions. CDOT: Janet Attarian, David Leopold, Mike Amsden, Brenda McGruder May 21, 2014: Four-hour DPD open house attended by 50 people at Union Park Field House. A revised draft plan was posted on the DPD website prior to DCASE: Tonya Gross, Yescenia Mota the open house and hard copies were available at the meeting.

References Design Guidelines research, writing and graphic design: McGuire Igleski & As- sociates, Inc. with Site Design Group, Ltd. Bruce Katz and Julie Wagner, “The Rise of Innovation Districts: A New Geog- raphy of Innovation in America.” (Brookings, May 2014) Design Guidelines Editing: Eleanor Gorski, David Leopold, Lawrence Shure, Bruce Katz and Jennifer Bradley, “The Metropolitan Revolution” (Washington, Steven Valenziano D.C.: Brookings Institution Press, 2013) Graphic Design and Renderings: Bradley Roback, Peter Strazzabosco, Koo As- Northwest Michigan Council of Governments, “Food Innovation Districts: An sociates, Ltd. Economic Gardening Tool” (2013) Writing and Research: Kathleen E. Dickhut, Bradley Roback, Peter Strazzabos- Boston Redevelopment Authority, “South Boston Waterfront – Home of the Innovation District” (July 2013) co, Steven Valenziano, U.S. Equities Realty with Project for Public Spaces

HR&A Advisors Inc., “The New York City Tech Ecosystem.” www.nyctechecon- www.brooklyntechtriangle.com omy.com

Research Triangle Foundation of North Carolina, “The Research Triangle Park Master Plan” (November, 2011) 34 Property Photos

Plans

Surveys

Real Estate Taxes

Title Report

Environmental Reports (Full report available in deal room)

557 West Polk Street, Suite 201 Chicago, IL 60607 312.447.1200 p 312.447.0922 f www.egsl.com w

Phase I Environmental Site Assessment Subject Property: 900‐912 West Fulton Market, Chicago, Illinois 60607 EGSL Project No. 1410792

Prepared for: Prepared by: Mr. Eric Nealey Mary Cappellini Nealey Foods, Inc. 900 West Fulton Market Project Manager Chicago, Illinois 60607 October 22, 2014

Reducing the Risks. Stopping the Causes. Correcting the Effects. Phase I Environmental Site Assessment EGSL Project# 1410792: 900‐912 West Fulton Market, Chicago, Illinois 60607

1. EXECUTIVE SUMMARY

Environmental Group Services, Limited (EGSL) of Chicago, Illinois was contracted by Nealey Foods, Inc. to perform a Phase I Environmental Site Assessment of the property located at 900‐912 West Fulton Market, Chicago, Illinois (herein referred to as the Subject Property or the Site).

The Subject Property investigation consisted of reviewing environmental regulatory databases of the Illinois Environmental Protection Agency (IEPA), the United States Environmental Protection Agency (USEPA), the Office of the State Fire Marshal (OSFM), and the Illinois Emergency Management Agency and local government agencies, reviewing historical information, and conducting a site assessment. The purpose of this investigation was to identify areas of environmental concern associated with the Site.

The Subject Property consists of a square shaped parcel that is approximately 8,800 square feet in size. The property contains a partial two‐story, partial four‐story building with a full basement (Subject Building) that encompasses the entire Subject Property. The majority of the Subject Building was constructed prior to 1916. The two‐story building and four‐story building were connected between 1916 and 1938 along with additions to the northern end of the two‐story building.

The Subject Building has been occupied by Nealey Foods, Inc. for approximately the last 30 years for meat packaging/processing operations. Prior to Nealey Foods, Inc.’s occupancy, the Subject Building was occupied by various meat packaging/processing wholesalers since the buildings construction.

EGSL did not identify any recognized environmental conditions, historical recognized environmental conditions, and/or controlled recognized environmental conditions in connection with the Subject Property, as defined by the American Society of Testing and Materials Standard E 1527‐13, “Standard Practice for Environmental Site Assessments”.

The information contained in this report represents the professional opinion of EGSL. In accordance with ASTM Standard E1527‐13, be advised that this environmental site assessment is not a guarantee of site conditions, cannot eliminate uncertainty as to the presence of possible underground storage tanks, contamination, or other recognized environmental conditions, and is not an exhaustive assessment of the property.

The information contained in this report is confidential in nature. This report is exclusively for the use and benefits of Nealey Foods, Inc. and is not for the use or benefit of, nor may it be relied upon by any other person or entity. The contents of this report may not be quoted in whole or part. The information presented in this report is preliminary and shall not be used for abatement or resolution related services.

2. PROJECT OVERVIEW & SCOPE OF WORK

Page 5 Phase I Environmental Site Assessment EGSL Project# 1410792: 900‐912 West Fulton Market, Chicago, Illinois 60607 associated with the Subject Property, and is intended to satisfy the requirements as set forth in the innocent landowner, contiguous property owner, or bona fide prospective purchaser limitations on CERCLA liability. In accordance with ASTM Standard E1527‐13 (1.3), business environmental risk is beyond the scope of the Phase I site assessment and if a comprehensive evaluation of business environmental risk is desired this must be agreed to by the user and environmental professional by separate agreement.

“ASTM defines RECs as the presence or likely presence of any hazardous substances or petroleum products in, on, or at a property (1) due to any release to the environment; (2) under conditions indicative of a release to the environment; or (3) under conditions that pose a material threat of a future release to the environment. De minimis conditions are not recognized environmental conditions.”

2.1 Client Responsibilities

In order to comply with 40 CFR 312 (All Appropriate Inquiries (AAI)), 40 CFR 312.22 (Additional Inquiries (AI)), and ASTM E 1527‐13 Standard, the client bears the following responsibilities for satisfying certain components of the environmental inquiry:

Search for Environmental Cleanup Liens/Activity and Use Limitations. Consider relationship of the purchase price to the fair market value of property, if not contaminated. Consider specialized knowledge or experience on the part of the purchaser. Consider commonly known or reasonably ascertainable information about the property. Consider degree of obviousness of contamination.

Failure of the client to meet these responsibilities could result in forfeiture of CERCLA protection.

2.2 On‐Site Inspection

EGSL conducted an on‐site inspection of the Subject Property that consisted of personnel interviews and visual observations to identify areas of environmental concern.

EGSL visually searched for above‐ground storage tanks (ASTs), underground storage tanks (USTs), and associated piping.

EGSL reviewed environmental documentation files, historical information and records made available to assist in identifying potential environmental liability of the Subject Property.

EGSL collected photographic documentation of significant environmental features of the Subject Property.

Page 6 Phase I Environmental Site Assessment EGSL Project# 1410792: 900‐912 West Fulton Market, Chicago, Illinois 60607

2.3 Inspection of Surrounding Land

EGSL conducted a visual inspection of surrounding land to identify observable potential environmental threats by adjacent land use. EGSL conducted the inspection from the Subject Property and did not enter private properties.

2.4 Site History

EGSL interviewed knowledgeable people, including current and previous owners/operators, where feasible, to determine past and present uses of the Subject Property.

Historical Topographic Maps, Sanborn Maps, City Directories and Aerial Photographs were reviewed in order to assist in determining the past uses of the Subject Property.

EGSL reviewed published literature for geological information for the area of the Subject Property. Intrusive data gathering or sampling of subsurface materials at the Subject Property is beyond the scope of this assessment.

EGSL contacted local agencies to search for information related to environmental files of the Subject Property.

2.5 Regulatory Review

EGSL contracted Environmental Data Resources (EDR) to complete a review of all federal and state government regulatory databases as identified in Section 5 of this report.

2.6 Sample Collection

No samples were collected during EGSL’s site inspection.

2.7 Exceptions, Additions and Deletions

There were no exceptions, additions, or deletions from the requirements specified in ASTM Standard E1527‐13 with the exception of the following:

An ASTM Questionnaire was not provided to EGSL by the client.

Page 7 Phase I Environmental Site Assessment EGSL Project# 1410792: 900‐912 West Fulton Market, Chicago, Illinois 60607

2.8 Clean Construction and Demolition Debris (CCDD) 35 IL. Adm. Code 1100

On July 30, 2010, Public Act 96‐1416 became law and was updated August 30, 2012. This CCDD law requires Illinois EPA to propose rules to establish additional technical requirements for CCDD facilities; set operating standards for uncontaminated soil fill operations; and develop standards for the maximum allowable concentrations of chemical constituents in uncontaminated soil generated during construction or demolition activities and used as fill material at either type of fill site. If any subsurface soils are removed from the site due to construction, demolition, renovations, trenching, etc., then all current CCDD rules and regulations must be followed.

3. SUBJECT PROPERTY DETAILS

3.1 Site Location

The Subject Property is located at 900‐912 West Fulton Market in a meat packaging/commercial area of Chicago, Illinois.

3.2 Legal Description and PIN Numbers

EGSL was not provided with any PINs or a legal description for the Subject Property.

3.3 Site Description

Size of Property A square shaped parcel that is approximately 8,800 square feet in size. A partial two‐story, partial four‐story building with a full basement that Building/Improvements encompasses the entire Subject Property.

3.4 Current and Historical On‐site Operations

3.5 Visual Observations

The following table lists observations noted during the Subject Property site inspection:

Page 8 Phase I Environmental Site Assessment EGSL Project# 1410792: 900‐912 West Fulton Market, Chicago, Illinois 60607

USTs/ASTs None Observed

It should be noted that a non‐intrusive environmental assessment such as this, no matter how thorough, cannot ultimately deny the presence of USTs at any given site, particularly on sites that have been previously developed. Asbestos Based on the age of the Subject Building, suspected asbestos containing materials (ACM) may be present throughout the building. Lead‐Based Paint In 1978, the Consumer Product safety Commission (CPSC) banned the production of virtually all house paints containing lead greater than 600 milligrams per kilogram (mg/kg). Established guidelines for lead in paint include the Housing and Urban Development 0.5 percent by weight (i.e., 5,000 mg/kg) level. Based on the age of the building, there is the possibility of the presence of lead based paint in the building. Spills/Stains None Observed Soil Disturbances None Observed Miscellaneous Debris None Observed Wells None Observed Pits, Ponds, or Lagoons Multiple pits were located within the basement of the Subject Building related to plumbing and sewer lines. Wastewater Discharge None Observed Stressed Vegetation None Observed Septic System None Observed Odors None Observed Pools of Liquid None Observed Other The southern portion of the basement contained a vault underneath the sidewalk.

3.6 Adjacent Properties

North FM Gallery (310 North Peoria Street) followed by West Wayman Street. East North Peoria Street followed by Corfu Foods (856 West Fulton Market). South West Fulton Market followed by Siam Meats, Inc. (905 West Fulton Market). West Old Fashioned Meat Co. (920 West Fulton Market) followed by El Cubano Wholesale Meats (926 West Fulton Market).

3.7 Topography

Site Elevation 594 ft. Site Topography Generally flat. Local Topography Gradient General southeast.

Page 9 Phase I Environmental Site Assessment EGSL Project# 1410792: 900‐912 West Fulton Market, Chicago, Illinois 60607

Soil Survey (USDA) The United States Department of Agriculture Web Soil Survey describes the subsurface geology as “Urban Land”, which is commonly described as areas that are filled with crushed rock or other material resistant to weathering and includes most of what normally would be considered developed land. Urban Land is mostly covered by streets, parking lots, buildings, and other structures of urban areas. Groundwater Depth Unknown. Groundwater Flow Direction Unknown.

4. SITE HISTORY

Emphasis was placed on identifying on‐site and off‐site environmental conditions most likely to:

Adversely affect the future site development and usage. Present financial liabilities to site owners and developers. Be of concern to the various regulatory agencies, in so far as site conditions are covered by current environmental regulations.

Sources for the historical review of the Subject Property and the adjacent properties included interviews, Sanborn Fire Insurance Maps, Aerial Photographs, Topographic Maps, City Directories, Freedom of Information Act (FOIA) Requests, ASTM Questionnaire, and Prior Environmental Reporting, if available.

4.1 Sanborn Fire Insurance Maps

Sanborn Fire Insurance Maps were originally designed for the fire insurance industry to assess fire insurance premiums on structures requiring such insurance. Presently they are used as a tool for determining prior uses of residential, commercial, and industrial properties for potential environmental concerns.

Year Subject Property 1916 A four‐story building with basement is present and representative of the current eastern portion of the current building. A one‐story and two‐story building with basements are present and representative of the majority of the western portion of the current building. Buildings identified as two storefronts, one saloon, two offices, sales, and storage. 1950 A square shaped, partial two‐story, partial four‐story building with basement is present and representative of the current Subject Building. The building is identified as a meat wholesaler. 1975 A square shaped, partial two‐story, partial four‐story building with basement is present and representative of the current Subject Building. The building is identified as a meat wholesaler. 1988 A square shaped, partial two‐story, partial four‐story building with basement is present and representative of the current Subject Building. The building is identified as a meat wholesaler.

Page 10 Phase I Environmental Site Assessment EGSL Project# 1410792: 900‐912 West Fulton Market, Chicago, Illinois 60607

Year Subject Property 1991 A square shaped, partial two‐story, partial four‐story building with basement is present and representative of the current Subject Building. The building is identified as a meat wholesaler. 1993 A square shaped, partial two‐story, partial four‐story building with basement is present and representative of the current Subject Building. The building is identified as a meat wholesaler. 2002 A square shaped, partial two‐story, partial four‐story building with basement is present and representative of the current Subject Building. The building is identified as a meat wholesaler. 2004 A square shaped, partial two‐story, partial four‐story building with basement is present and representative of the current Subject Building. The building is identified as a meat wholesaler.

4.2 Aerial Photographs

Year Subject Property 1938 A square shaped building is present and representative of the current Subject Building. 1952 A square shaped building is present and representative of the current Subject Building. 1962 A square shaped building is present and representative of the current Subject Building. 1978 A square shaped building is present and representative of the current Subject Building. 1980 A square shaped building is present and representative of the current Subject Building. 1988 A square shaped building is present and representative of the current Subject Building. 1994 A square shaped building is present and representative of the current Subject Building. 1999 A square shaped building is present and representative of the current Subject Building. 2005 A square shaped building is present and representative of the current Subject Building. 2007 A square shaped building is present and representative of the current Subject Building. 2009 A square shaped building is present and representative of the current Subject Building. 2010 A square shaped building is present and representative of the current Subject Building. 2011 A square shaped building is present and representative of the current Subject Building. 2012 A square shaped building is present and representative of the current Subject Building.

4.3 Historical Topographic Maps

A topographic map (topo) is a color coded line‐and‐symbol representation of natural and selected artificial features plotted to a scale. Topos show the shape, elevation, and development of the terrain in precise detail by using contour lines and color coded symbols. Historical topographic maps are a valuable resource for documenting the prior use of a property and its surrounding area; and due to their frequent availability, can be particularly helpful when other standard historical sources (i.e. city directories, fire insurance maps or aerial photographs) are not reasonably ascertainable.

Page 11 Phase I Environmental Site Assessment EGSL Project# 1410792: 900‐912 West Fulton Market, Chicago, Illinois 60607

The EDR provided topographic maps range in date from 1901 through 1997. None of the provided maps indicate any structures being present on the Subject Property. Some maps are color‐coded to represent the overall general development of the area.

4.4 City Directory

City Directories are used as a tool for locating individuals and/or businesses in a particular urban or suburban area.

2008‐2013: Nealey Foods, Inc.

4.5 Freedom of Information Act Requests (FOIA)

EGSL performed a search of the online databases of the Illinois Environmental Protection Agency Office Bureau of Land (IEPA Land), IEPA Bureau of Air (IEPA Air), IEPA Bureau of Water (IEPA Water), Illinois Emergency Management Agency Division of Disaster Assistance and Preparedness (IEMA), the Office of the State Fire Marshal (OSFM), and the individual City or Village Hall regarding available information at the Subject Property. If the City or Village Hall did not have an online database, then a formal FOIA request was submitted. Agency Results IEPA Land The Subject Property was not identified on the database. IEPA Air The Subject Property was not identified on the database. IEPA Water The Subject Property was not identified on the database. IEMA The Subject Property was not identified on the database. OSFM The Subject Property was not identified on the database. City of Chicago Various permitting for the installation of two boilers and one emergency generator. One complaint and subsequent inspection regarding noise at the property in 2002. No records of environmental concern were found.

4.6 ASTM Questionnaire

EGSL was not provided with a signed ASTM Questionnaire by the client.

4.7 Previous Environmental Reporting

EGSL was not provided with any previous environmental reporting for the Subject Property by the client.

Page 12 Phase I Environmental Site Assessment EGSL Project# 1410792: 900‐912 West Fulton Market, Chicago, Illinois 60607

4.8 Data Gaps

40 CFR 312 (AAI Rule) defines a data gap as:

“a lack of or inability to obtain information required by this practice despite good faith efforts by the environmental professional to gather such information. Data gaps may result from incompleteness in any of the activities required by this practice, including, but not limited to site reconnaissance (for example, an inability to conduct the site visit), and interview (for example, an inability to interview the key site manager, regulatory officials, etc.).

EGSL did not identify any significant data gaps during this Phase I Environmental Site Assessment.

5. GOVERNMENT REGULATORY DATABASES

A regulatory database search was obtained through Environmental Data Resources to determine the type and number of environmentally regulated sites which might potentially impact the Subject Property. The databases, search distances, and number of properties within the search distances are summarized in the following table:

Sites ASTM Subject Identified Database Definition Search Property Within Distance Identified Search Radius STANDARD ENVIRONMENTAL RECORDS National Priority List ‐ EPA's list of the most serious 1 mile No 0 uncontrolled or abandoned hazardous waste sites identified for possible long‐term remedial action under Superfund. The list is based primarily on the NPL score a site receives from the Hazard Ranking System. EPA is required to update the NPL at least once a year. A site must be on the NPL to receive money from the Trust Fund for remedial action. Proposed NPL Proposed National Priority List Sites 1 mile No 0 Federal Superfund Liens – Under the authority Target No 0 granted the USEPA by CERCLA of 1980, the USEPA has Property the authority to file liens against real property in NPL Liens order to recover remedial action expenditures or when the property owner received notification of potential liability. National Priority List Deletions ‐ The National Oil and ½ mile No 0 Hazardous Substances Pollution Contingency Plan (NCP) establishes the criteria that the EPA uses to Delisted NPL delete sites from the NPL. In accordance with 40 CFR 300.425(e), sites may be deleted from the NPL where no further response is appropriate.

Page 13

557 West Polk Street, Suite 201 Chicago, IL 60607 312.447.1200 p 312.447.0922 f www.egsl.com w

Phase I Environmental Site Assessment Subject Property: 911‐923 West Fulton Market, Chicago, Illinois 60607 EGSL Project No. 1410793

Prepared for: Prepared by: Mr. Eric Nealey Mary Cappellini Nealey Foods, Inc. 900 West Fulton Market Project Manager Chicago, Illinois 60607 October 22, 2014

Reducing the Risks. Stopping the Causes. Correcting the Effects. Phase I Environmental Site Assessment EGSL Project# 1410793: 911‐923 West Fulton Market, Chicago, Illinois 60607

1. EXECUTIVE SUMMARY

Environmental Group Services, Limited (EGSL) of Chicago, Illinois was contracted by Nealey Foods, Inc. to perform a Phase I Environmental Site Assessment of the property located at 911‐923 West Fulton Market, Chicago, Illinois (herein referred to as the Subject Property or the Site).

The Subject Property consists of an irregular shaped parcel that is approximately 22,878 square feet in size. The property contains an irregular shaped, partial two‐story, slab‐on‐grade building (Subject Building) that is approximately 22,432 square feet in size. The remaining northwest corner of the Subject Property is comprised of a recessed loading dock. The northern portion of the building was constructed prior to 1916. Historically, the northwest corner of the property contained a four‐story building that was demolished between 1962 and 1978. An “L” shaped addition was addede to th southwest portion of the building between 1994 and 1999. It should be noted that the original northern portion of the building historically contained a basement; however, the basement was filled in with gravel by Nealey Foods, Inc. approximately 20 years ago.

The Subject Building has been occupied by Nealey Foods, Inc. for approximately the last 25 years for meat packaging/processing operations. Prior to Nealey Foods, Inc.’s occupancy, the Subject Building was primarily occupied by various meat packaging/processing wholesalers since the buildings construction.

Page 5 Phase I Environmental Site Assessment EGSL Project# 1410793: 911‐923 West Fulton Market, Chicago, Illinois 60607

2. PROJECT OVERVIEW & SCOPE OF WORK

Environmental Group Services, Limited (EGSL) conducted the activities as stated in the following scope of work requested by Nealey Foods, Inc. with reference to the American Society for Testing and Materials Standard Practice for Environmental Site Assessments (ASTM E1527‐13). EGSL declares that this report was developed and performed by an Environmental Professional in accordance with 40 CFR 312 (All Appropriate Inquiries Rule) in order to search for areas of recognized environmental conditions (RECs) associated with the Subject Property, and is intended to satisfy the requirements as set forth in the innocent landowner, contiguous property owner, or bona fide prospective purchaser limitations on CERCLA liability. In accordance with ASTM Standard E1527‐13 (1.3), business environmental risk is beyond the scope of the Phase I site assessment and if a comprehensive evaluation of business environmental risk is desired this must be agreed to by the user and environmental professional by separate agreement.

2.1 Client Responsibilities

Failure of the client to meet these responsibilities could result in forfeiture of CERCLA protection.

2.2 On‐Site Inspection

EGSL conducted an on‐site inspection of the Subject Property that consisted of personnel interviews and visual observations to identify areas of environmental concern.

EGSL visually searched for above‐ground storage tanks (ASTs), underground storage tanks (USTs), and associated piping.

Page 6 Phase I Environmental Site Assessment EGSL Project# 1410793: 911‐923 West Fulton Market, Chicago, Illinois 60607

EGSL reviewed environmental documentation files, historical information and records made available to assist in identifying potential environmental liability of the Subject Property.

EGSL collected photographic documentation of significant environmental features of the Subject Property.

2.3 Inspection of Surrounding Land

2.4 Site History

EGSL interviewed knowledgeable people, including current and previous owners/operators, where feasible, to determine past and present uses of the Subject Property.

Historical Topographic Maps, Sanborn Maps, City Directories and Aerial Photographs were reviewed in order to assist in determining the past uses of the Subject Property.

EGSL contacted local agencies to search for information related to environmental files of the Subject Property.

2.5 Regulatory Review

EGSL contracted Environmental Data Resources (EDR) to complete a review of all federal and state government regulatory databases as identified in Section 5 of this report.

2.6 Sample Collection

No samples were collected during EGSL’s site inspection.

2.7 Exceptions, Additions and Deletions

There were no exceptions, additions, or deletions from the requirements specified in ASTM Standard E1527‐13 with the exception of the following:

Page 7 Phase I Environmental Site Assessment EGSL Project# 1410793: 911‐923 West Fulton Market, Chicago, Illinois 60607

An ASTM Questionnaire was not provided to EGSL by the client.

2.8 Clean Construction and Demolition Debris (CCDD) 35 IL. Adm. Code 1100

3. SUBJECT PROPERTY DETAILS

3.1 Site Location

The Subject Property is located at 911‐923 West Fulton Market in a meat packaging/commercial area of Chicago, Illinois.

3.2 Legal Description and PIN Numbers

EGSL was not provided with any PINs or a legal description for the Subject Property.

3.3 Site Description

Size of Property An irregular shaped parcel that is approximately 22,878 square feet in size. An irregular shaped, partial two‐story, slab‐on‐grade building that is Building/Improvements approximately 22,432 square feet in size. Other Significant The remaining northwest corner of the Subject Property is comprised of a Features concrete recessed loading dock.

3.4 Current and Historical On‐site Operations

The northern portion of the building was constructed prior .to 1916 Historically, the northwest corner of the property contained a four‐story building that was demolished between 1962 and 1978. An “L” shaped

Page 8 Phase I Environmental Site Assessment EGSL Project# 1410793: 911‐923 West Fulton Market, Chicago, Illinois 60607 addition was added to the southwest portion of the building between 1994 and 1999. It should be noted that the original northern portion of the building historically contained a basement; however, the basement was filled in with gravel by Nealey Foods, Inc. approximately 20 years ago.

3.5 Visual Observations

The following table lists observations noted during the Subject Property site inspection:

USTs/ASTs None Observed

It should be noted that a non‐intrusive environmental assessment such as this, no matter how thorough, cannot ultimately deny the presence of USTs at any given site, particularly on sites that have been previously developed. Asbestos Based on the age of the Subject Building, suspected asbestos containing materials (ACM) may be present throughout the building. Lead‐Based Paint In 1978, the Consumer Product safety Commission (CPSC) banned the production of virtually all house paints containing lead greater than 600 milligrams per kilogram (mg/kg). Established guidelines for lead in paint include the Housing and Urban Development 0.5 percent by weight (i.e., 5,000 mg/kg) level. Based on the age of the building, there is the possibility of the presence of lead based paint in the building. Spills/Stains None Observed Soil Disturbances None Observed Miscellaneous Debris None Observed Wells None Observed Pits, Ponds, or Lagoons None Observed Wastewater Discharge None Observed Stressed Vegetation None Observed Septic System None Observed Odors None Observed Pools of Liquid None Observed Other The northern portion of the building was utilized to charge the forklifts on‐site. A small mechanical repair area was present within the central portion of the building. The repair area was utilized to repair the on‐site forklifts. EGSL did not observe any 55 gallon drums or significant staining.

3.6 Adjacent Properties

West Fulton Market followed by El Cubano Wholesale Meats (926 West Fulton North Market) and Old Fashioned Meat Co. (920 West Fulton Market).

Page 9 Phase I Environmental Site Assessment EGSL Project# 1410793: 911‐923 West Fulton Market, Chicago, Illinois 60607

East Siam Meats Inc. (905 West Fulton Market), L. Frankel Packing Co. (230 North Peoria Street), and John Morreale, Inc. (222 North Peoria Street) followed by North Peoria Street. South An asphalt paved parking lot associated with Lake Street Lofts followed by West Lake Street. West North Sangamon Street followed by a multi‐tenant commercial building NM Ltd. Building (212 North Sangamon Street) and Economy Packing (939 West Fulton Market).

3.7 Topography

Site Elevation 594 ft. Site Topography Generally flat. Local Topography Gradient General southeast. Soil Survey (USDA) The United States Department of Agriculture Web Soil Survey describes the subsurface geology as “Urban Land”, which is commonly described as areas that are filled with crushed rock or other material resistant to weathering and includes most of what normally would be considered developed land. Urban Land is mostly covered by streets, parking lots, buildings, and other structures of urban areas. Groundwater Depth Unknown. Groundwater Flow Direction Unknown.

4. SITE HISTORY

Emphasis was placed on identifying on‐site and off‐site environmental conditions most likely to:

4.1 Sanborn Fire Insurance Maps

Page 10 Phase I Environmental Site Assessment EGSL Project# 1410793: 911‐923 West Fulton Market, Chicago, Illinois 60607

Year Subject Property 1916 An irregular shaped building representative of a portion of the current Subject Building is present. Building is identified as Peters Trimming Co. and Bromann Bro’s. Mfg. of Cooling Boxes and Refrigerators. No structures are present on the southern portion of the property. 1950 An irregular shaped building representative of a portion of the current Subject Building is present. Building is identified as having five storefronts. No structures are present on the southern portion of the property. 1975 An irregular shaped building representative of the northern portion of the current Subject Building is present. Building is identified as a meat wholesaler. 1988 An irregular shaped building representative of the northern portion of the current Subject Building is present. Building is identified as a meat wholesaler. 1991 An irregular shaped building representative of the northern portion of the current Subject Building is present. Building is identified as a meat wholesaler. 1993 An irregular shaped building representative of the northern portion of the current Subject Building is present. Building is identified as a meat wholesaler. 2002 An irregular shaped building representative of the northern portion of the current Subject Building is present. Building is identified as a meat wholesaler. 2004 An irregular shaped building representative of the current Subject Building is present and identified as a meat wholesaler.

4.2 Aerial Photographs

Year Subject Property 1938 A rectangular shaped building is present and representative of the northern portion of the current Subject Building. The northwest corner of the property contains the four‐story building that is no longer present. The southern portion of the property appears to be utilized for parking. 1952 A rectangular shaped building is present and representative of the northern portion of the current Subject Building. The northwest corner of the property contains the four‐story building that is no longer present. The southern portion of the property appears to be utilized for parking. 1962 A rectangular shaped building is present and representative of the northern portion of the current Subject Building. The northwest corner of the property contains the four‐story building that is no longer present. The southern portion of the property appears to be utilized for parking. 1978 A rectangular shaped building is present and representative of the northern portion of the current Subject Building. Poor photographic quality. 1980 A rectangular shaped building is present and representative of the northern portion of the current Subject Building. Poor photographic quality. 1988 A rectangular shaped building is present and representative of the northern portion of the current Subject Building. Poor photographic quality. 1994 A rectangular shaped building is present and representative of the northern portion of the current Subject Building. Poor photographic quality. 1999 An irregular shaped building is present and representative of the current Subject Building.

Page 11 Phase I Environmental Site Assessment EGSL Project# 1410793: 911‐923 West Fulton Market, Chicago, Illinois 60607

Year Subject Property 2005 An irregular shaped building is present and representative of the current Subject Building. 2007 An irregular shaped building is present and representative of the current Subject Building. 2009 An irregular shaped building is present and representative of the current Subject Building. 2010 An irregular shaped building is present and representative of the current Subject Building. 2011 An irregular shaped building is present and representative of the current Subject Building. 2012 An irregular shaped building is present and representative of the current Subject Building.

4.3 Historical Topographic Maps

4.4 City Directory

City Directories are used as a tool for locating individuals and/or businesses in a particular urban or suburban area.

1941: Klein Louis C Wholesale Poultry 1966: Shane DR and Co.

4.5 Freedom of Information Act Requests (FOIA)

Page 12 Phase I Environmental Site Assessment EGSL Project# 1410793: 911‐923 West Fulton Market, Chicago, Illinois 60607

IEMA The Subject Property was not identified on the database. OSFM The Subject Property was not identified on the database. City of Chicago Permitting in 1997 for the installation of three furnaces and permitting regarding asbestos pipe insulation removal in 2002.

4.6 ASTM Questionnaire

EGSL was not provided with a signed ASTM Questionnaire by the client.

4.7 Previous Environmental Reporting

EGSL was not provided with any previous environmental reporting for the Subject Property by the client.

4.8 Data Gaps

40 CFR 312 (AAI Rule) defines a data gap as:

EGSL did not identify any significant data gaps during this Phase I Environmental Site Assessment.

5. GOVERNMENT REGULATORY DATABASES

Page 13 Roof Report

HVAC & Elevator Contact information HVAC & ELEVATOR REPORT

HVAC

George Bish

773.230.6715 General maintenance for a long period of time. Independent contractor. No contract

ELEVATOR

Paul Reilly Company

800. 236.0234

No contract. Service as needed. 1 small elevator

Alderman

Zoning Zoning

900-914 W. Fulton Market: Current Zoning C1-1

911-923 W. Fulton Market: Current Zoning C1-1

Confidentiality Agreement

TO: COLLIERS INTERNATIONAL

Colliers International Principal Confidentiality Agreement

Colliers International (“Sales Agent”), has available for study certain information (“Evaluation Materials”) regarding 900-914 W. Fulton Market / 911-923 W. Fulton Market, Chicago, IL (“Property”). We are prepared to furnish the Evaluation Materials to you in connection with discussions concerning your possible investment in the Property only on the condition that you agree to treat the Evaluation Materials confidentially and agree specifically as follows:

1. The Evaluation materials furnished to you will not be used for any purpose other than to evaluate a possible investment in the Property by you as a Principal exclusively for your own account; 2. You will not make any of the Evaluation Materials available, or disclose or distribute, either orally or in writing, any of the contents of the Evaluation Materials, to any person other than your counsel, analyst(s), equity partner(s), or potential lender(s) (hereinafter “Excluded Persons”); 3. You will not disclose to any person, other than Excluded Persons, either the fact that discussions or negotiations are taking place concerning a possible investment in the Property by you or any of the terms, conditions or other facts with respect to any such possible investment, including the status thereof; 4. You agree that you will not contact the tenants or property management staff of the Property in connection with your review of the Evaluation Materials. Any and all questions related to the Evaluation Materials must be directed solely to Mike Senner or Vern Schultz at Colliers International; 5. You acknowledge that neither the Seller, nor Colliers International, nor any affiliate of either of such persons, nor any partner, director, officer, employee, agent of or consultant to any such persons (collectively, “Seller Agent”) has made any representation or warranty as to the completeness or accuracy of the Evaluation Materials, and any representation or warranty in connection therewith is hereby expressly excluded. The Evaluation Materials provided to you are subject to, change of price or terms, withdrawal from market without notice, and prior sale. You agree that the Seller/Agent shall have no liability to you resulting from the delivery to, or use by you of the Evaluation Materials or otherwise with respect thereto, and you agree to defend, indemnify and hold the Seller/Agent harmless from and against all loss, damage or expense sustained or incurred by Seller/Agent by reason of any unauthorized distribution or disclosure of the Evaluation Materials by you; 6. We may elect at any time to terminate access to the Evaluation materials, and you agree that you will, following any request by us or if you do not wish to invest in the Property, promptly redeliver to us all written Evaluation Materials and any other written material (and agree to delete any analyses contained in a database or spreadsheet type format) containing information in the Evaluation Materials and will not retain copies of such written material; and 7. You acknowledge that you have not dealt with any broker other than Colliers International concerning investment in the Property. 8. You will not rely solely on the materials provided and acknowledge you have had an opportunity to conduct your own investigation(s). 9. You will provide required certificate of insurance with Seller named as additional insured prior to entering the property(ies).

Please acknowledge your agreement to and acceptance of the foregoing by signing where indicated below and returning one (1) executed copy of the Agreement via email ([email protected] ) to our attention.

ACCEPTED AND AGREED TO THIS DAY OF , 2016

Company:

By:

Signature:

Its

PLEASE SEND OFFERING MEMORANDUM TO:

Name:

Title:

Company:

Address:

E-Mail Address:

Phone: Fax: Purchase & Sale Agreement