548 Unit Luxury High-Rise Apartment Community in Downtown Chicago

EXECUTIVE SUMMARY

Holliday Fenoglio Fowler, L.P. (“HFF”) an Illinois licensed real estate broker. is pleased to present The Shoreham, a 548-unit 47-story Class A luxury apartment tower built in 2005 and located HFF in downtown Chicago’s prestigious Lakeshore East neighborhood. The Shoreham offers residents superb apartment and community amenities including views of Lake Michigan, the Chicago River and downtown as well as exceptional access major employers, North Michigan Avenue and top cultural attractions including Millennium Park, the new Maggie Daley Park and Navy Pier.

2 EXECUTIVE SUMMARY With its walk to work location, fantastic demographics, outstanding transportation options, a short walk to lakefront beaches and paths, proximity to unrivaled retail and entertainment amenities on and near Chicago’s famous Magnificent Mile, residents of The Shoreham live in one of the most enviable neighborhoods in the country.

INVESTMENT HIGHLIGHTS PRESTIGIOUS LAKESHORE EAST DEVELOPMENT – The APARTMENT AMENITIES

Shoreham is located within the impressive Lakeshore East ■■ Luna Pearl or Uba Tuba granite islands Development, a 28-acre master-planned, mixed-use development ■■ In-home laundry with full size stackable washer and dryer of prime lakefront and river front property in the heart of ■■ Expansive glass paneled balconies with panoramic views downtown Chicago. Upon full completion the development will ■ Floor to Ceiling Windows include: ■

■■ 40% open space including a 6-acre botanical park ■■ Spacious closets, including walk-ins

■■ 4,950 residences

■■ 2.2 million gross square feet of commercial space COMMUNITY AMENITIES

■■ 1,500 hotel rooms ■■ Sky Garden with Lounge

■■ Up to 770,000 square feet of retail, including a 100,000 ■■ Sauna and Steam Rooms square foot Village Market Center ■■ Spa and Hot Tubs ■■ GEMs World Academy (grades K-12) ■■ Outdoor sundeck and sparkling pool

LUXURY LIVING – The Shoreham offers its residents upscale ■■ 24-hour door service and maintenance living with panoramic views of the downtown Chicago skyline ■■ Business Center that can be viewed through the property’s studio, one or two ■■ On-site dry cleaner – drop off/pick up only bedroom apartment units.

UNIT MIX UNIT SQ. MANAGER'S ACHIEVED TYPE COUNT FT. ASK RENT PSF RENT PSF 0x1 35 553 $1,579 $2.86 $1,599 $2.89 1x1 416 690 $2,011 $2.92 $1,938 $2.81 2x2 97 1,194 $3,146 $2.64 $3,110 $2.61 Total 548 770 $2,185 $2.84 $2,122 $2.76

LOUNGE

EXECUTIVE SUMMARY 3 KITCHEN

RENOVATION OPPORTUNITY – effective rents at The Shoreham With this in mind, a new investor has the ability to implement are currently $2.76 psf, below the Class A Loop/New East Side a renovation program including new flooring, kitchen and bath submarket average of $2.91 psf. As seen in the table below, upgrades as well as community amenity improvements as multiple New Class A properties near The Shoreham are detailed in the financial overview. Through this program, the currently obtaining rents well above $3.00 psf representing the rents at The Shoreham have the ability to increase significantly, submarket’s ability to withstand significantly higher rents. but would still be below those of newer Class A communities.

ASPIRATIONAL RENT COMPS - EFFECTIVE RENTS PSF $4.00

$3.50 $3.64 $ $ $ 3.43 3.49 $3.00 3.38

$ $2.50 2.76

$2.00 THE SHOREHAM COAST OPTIMA CHICAGO CENTER 500 LAKESHORE DR. AQUA Source: ARC

4 EXECUTIVE SUMMARY WALK TO WORK LOCATION – With its Lakeshore East location, SUPERB DEMOGRAPHICS – The Lakeshore East neighborhood residents of The Shoreham enjoy a walk-to-work lifestyle. has exceptional demographics with the immediate 1/2 mile Supported by the city’s strong diversified economy and deep labor vicinity disclosing the following: pool, more than 400 major corporations, including 30 Fortune ■■ Average household income is above $125,000 500 companies, are headquartered in Chicago. Whether it be ■■ Over one-third of residents have obtained a Master’s degree nearby high end retail employers on North Michigan Avenue, the ■■ Median occupied housing value is above $454,000 with many Northwestern Memorial Hospital campus or professional jobs homes valued well in excess of one million of dollars located in downtown Chicago’s Loop, residents of The Shoreham are only a short walk to employment. Residents at the Shoreham also boast impressive demographics with an average annual income of $150,936 for YTD accepted

UNRIVALED TRANSPORTATION OPTIONS – The Shoreham applicants. is located just off of Lakeshore Drive and is also only a short drive from the Kennedy Expressway (I-90/94) and I-290 which WORLD FAMOUS SHOPPING – situated just steps off Michigan provide access to areas throughout the greater Chicago metro. Avenue, residents of The Shoreham have unrivaled access to Additionally, The Shoreham is a short walk to the CTA’s Brown, the world famous Magnificent Mile. Currently Chicago’s largest Green, Orange, Pink and Purple Lines and has excellent access to shopping district, various high-end shops line the avenue and buses and Divvy bike stations. approximately 3,100,000 sf is currently occupied by retail stores, restaurants, museums and hotels.

EXECUTIVE SUMMARY 5 LAKE MICHIGAN

THE SHOREHAM Unbeatable Lakeshore East Downtown Chicago Location

EAST RANDOLPH STREET

6 EXECUTIVE SUMMARY THE RAHM EFFECT – since taking office in May 2011, Mayor Rahm Emanuel has announced over 25,000 new jobs for Chicago NAVY PIER with the majority of these for locations in the downtown area. These commitments have been nothing less than impressive and include such firms as Google, W.W. Grainger, Chase, Accenture, Dow Chemical, Ernst & Young, Motorola Solutions, GE Capital ConAgra Foods, and Kraft Heinz.

NEARBY TOP ENTERTAINMENT DISTRICTS – The Shoreham is surrounded by top entertainment and restaurant venues. Whether it be a night out in the dynamic River North neighborhood, the Gold Coast, the always popular Rush and Division or nearby Old Town and West Loop neighborhoods, residents of The Shoreham are a short walk or taxi from some of the top entertainment areas in the city.

NUMEROUS CULTURAL ATTRACTIONS – The Shoreham benefits from easy access to some of the top cultural attractions in the city including Navy Pier, Millennium Park, the new Maggie Daley Park, The Art Institute of Chicago, the downtown theatre district and numerous other attractions including Museum Campus and Grant Park.

LAKEFRONT LIFESTYLE – with its location nearby Chicago’s popular Lake Michigan lakefront, residents of The Shoreham have access to multiple attractions including beaches, the LAKE SHORE DRIVE incredible 18+ mile lakefront jogging/bike path, eateries as well as cultural attractions including the Lincoln Park Zoo. Additionally, Chicago’s expanding river front path is literally in the shaddow of The Shoreham.

STRONG MARKET PERFORMANCE – The Loop/New East Side apartment submarket has experienced significant rent growth over the past few years. ARC reports that current effective rent for 1Q 2015 is at $2.91 psf which is up 8.6% from a year ago and has grown an average of 6.3% per year over the past 5 years.

FINANCING – Investors may purchase the property assuming the existing debt or on an all-cash basis. Please contact Steve Skok for questions related to financing. Existing debt summary can be found in the Financial Overview section.

Sean Fogarty Managing Director 312.528.3675 [email protected]

Marty O’Connell Managing Director 312.528.3653 [email protected]

Matthew Lawton Executive Managing Director 312.528.3656 [email protected]

Wick Kirby Associate Director 312.980.3611 [email protected]

Matt Maney Real Estate Analyst 312.980.3616 [email protected]

DEBT CONTACT

Steve Skok Managing Director 312.528.3681 [email protected]

HFF CHICAGO 181 West Madison Street Suite 3900 HFF has been engaged by the owner of the property [properties] to market it [them] for Chicago, IL 60602 sale. Information concerning the property [properties] described herein has been obtained 312.528.3650 from sources other than HFF, and neither Owner nor HFF, nor their respective equity hold- ers, officers, employees and agents makes any representations or warranties, express or hfflp.com implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation .and rely on those results. The information contained herein is subject to change