TABLE OF CONTENTS

01 The Offering

02 Investment Highlights

03 Location Overview

04 Market Overview

05 Property Overview

06 Financial Overview

07 Offering Process THE OFFERING

CBRE Limited (“CBRE”) is pleased to offer for sale a 100% freehold interest in 110 – 112 Avenue Road (the “Property” or the “Site”), an irreplaceable and highly distinguished asset located steps from the affluent neighbouhood of Yorkville, Canada’s most exciting and dynamic fashion retail submarket. Occupying the northwest corner of Avenue Road and Tranby Avenue, the Property features ~50 feet of prime frontage providing exposure along Avenue Road resulting in unmatched consumer traffic. The Property provides an investor with the opportunity to acquire one of the very few uniquely striking exposed brick assets located steps from Yorkville, one of the most prosperous neighbourhoods in Canada with unrivaled demographic characteristics.

4 | 110 & 112 Avenue Road CBRE Limited | 5 INVESTMENT HIGHLIGHTS

Prime opportunity to acquire a landmark building situated in Canada’s most prestigious neighbourhood

110 – 112 Avenue Road occupies a highly-renowned position situated steps from Yorkville, Canada’s most prominent neighbourhood. The property’s specific position featuring a highly visible corner location off of Avenue Road results in unmatched consumer traffic – an invaluable asset for retail tenants.

Exceptional market fundamentals for retail and residential uses Yorkville is world-renowned for its luxury shopping with sub-5% retail vacancy and among the highest net rents in Canada. As Canada’s most affluent neighbourhood Yorkville features an eclectic mix of luxury shopping, designer boutiques, distinguished restaurants, cafes, and art galleries in conjunction with its highly sought after multi-residential market all of which lead to a diverse consumer base.

Highly attractive and striking Victorian building The Property features exceptional physical characteristics including exposed brick from its original construction in 1890, one of the few unique landmark assets for purchase in . The Property is highly attractive to small and medium sized firms seeking the many benefits of a prominent location in a prosperous neighbourhood drawing from the surrounding base of highly educated and affluent residents.

Available free and clear financing The Property is being offered free and clear of existing financing allowing an investor the opportunity to take advantage of current historic financing rates to maximize returns.

6 | 110 & 112 Avenue Road CBRE Limited | 7 LOCATION

OVERVIEW YONGELINE UNIVERSITY AND

110 – 112 Avenue Road occupies a marquee position along the northwest corner of Avenue Road and Tranby Avenue situated steps from the westerly boundary of Yorkville, Toronto’s most affluent and preeminent mixed-use neighbourhood. E

Immediately south of the Property is Yorkville Village, a distinguished variety of contemporary brands and unique boutiques in a vibrant and beautifully designed environment B anchored by Whole Foods and Equinox Fitness Club. Travelling further towards is the prominent neighbourhood of Yorkville, world renowned for its luxury BLOOR STREET BLOOR-DANFORTH LINE high-end shopping and tourist appeal also featuring a burgeoning condominium market. Stretching along the YORKVILLE AVENUE entire Bloor-Yorkville submarket are world renowned high-

CLB BUS ROAD AVENUE 5 end fashion retailers including Holt Renfrew, Louis Vuitton, CLB Tiffany & Co, Gucci, Chanel, Brooks Brothers, and Prada.

Further to the high end collection of institutional fashion retailers, Yorkville is also comprised of an eclectic mix of designer boutiques carrying the latest fashion trends to high end galleries and antique shops highlighting its diverse and unique locational characteristics. As such, market rental rates reflect a premium in this surrounding neighbourhood and in particular along Bloor Avenue with BEDFORD ROAD rental rates being the highest along this strip in Canada. TRANBY AVENUE

In addition to enormousness retail and shopping variety, AVENUE ROAD AVENUE Yorkville is renowned for hosting Toronto’s most high-end and highly proclaimed restaurants including Cibo Wine Bar, 6 BAY BUS STK Toronto, Buca Osteria & Bar, La Société, Planta, and HAZELTON AVENUE Kasa Moto. The Yorkville neighourhood continuously draws from a wide consumer base given its proximity to countless amenities that generate significant daily pedestrian volumes. The Property’s exemplary locational characteristics provides Toronto residents not only an invigorating retail experience but also an environment where families and young professionals can live and work given countless amenities and its proximity to the Financial Core.

8 | 110 & 112 Avenue Road YONGELINE UNIVERSITY AND

E

B

BLOOR STREET BLOOR-DANFORTH LINE YORKVILLE AVENUE

CLB BUS ROAD AVENUE 5 CLB

110 & 112 AVENUE ROAD BEDFORD ROAD

TRANBY AVENUE AVENUE ROAD AVENUE

6 BAY BUS

HAZELTON AVENUE

DAVENPORT ROAD

CBRE Limited | 9 Prominent Public Transit Infrastructure BLOOR-DANFORTH LINE

Toronto features the best public transit infrastructure in Canada supported by an extensive network of surface, subway, and rail transportation. The Property YONGE AND UNIVERSITY LINE is well serviced by the existing public transportation ERE SPADINA ROAD network providing easy access to surface, subway, and rail transportation. 110 – 112 Avenue Road features exceptional public transit access serviced by a number of existing TTC subway stations including St. George, Bay, STREET DUPONT ST. GEORGE STREET and Museum stations providing excellent access to the Financial Core. In addition, the surface route of 5 Avenue BLOOR STREET WEST E BLOOR-DANFORTH LINE services residents along Avenue Road.

6 BAY BUS DAVENPORT ROAD

DISTANCE TO ST. GEORGE, BAY OR MUSEUM 5 AVENUE ROAD BUS BEDFORD ROAD TTC SUBWAY STATION

APPROXIMATELY 750M TRANBY AVENUE 9 MINUTE WALK AVENUE ROAD

TTC BUS ACCESS 5 AVENUE ROAD | 6 BAY CUMBERLAND STREET

DAVENPORT ROAD

6 BAY BUS 10 | 110 & 112 Avenue Road BLOOR-DANFORTH LINE

YONGE AND UNIVERSITY LINE ERE SPADINA ROAD

DUPONT STREET DUPONT ST. GEORGE STREET BLOOR STREET WEST E BLOOR-DANFORTH LINE

6 BAY BUS DAVENPORT ROAD

110 & 112 AVENUE ROAD 5 AVENUE ROAD BUS BEDFORD ROAD

TRANBY AVENUE

AVENUE ROAD

CUMBERLAND STREET

DAVENPORT ROAD

6 BAY BUS CBRE Limited | 11 29.4 $194,584 21.7 POPULATION GROWTH AVERAGE ANNUAL HOUSEHOLD INCOME GROWTH 2011-2016 INCOME AS OF 2016 INCREASE BY 2021

Best-in-Class Demographic Profile

Toronto is experiencing significant growth through urbanization and immigration. It is the largest city in Canada and the fifth most populous city in North America supporting a total population of 6.17M as of 2016.

Toronto’s Bloor-Yorkville area exhibits among the best figures in terms of economic prosperity and growth in the GTA. Population growth and intensification of land use in Bloor-Yorkville reveals a dramatic shift towards urbanization. Most of the recent growth has been in the millennial age cohort (20 – 34 year olds), which now represent 35% of the total population in the radius surrounding Bloor-Yonge. Within a 1KM radius of the Property an expected increase of 10.2% in population growth is expected from 2016 – 2021. Further, a

12 | 110 & 112 Avenue Road population growth of 21.4% is expected for the same time period within Yorkville neighbourhood, 17% greater than the Toronto average. In addition, household income within the Property’s immediate area was $176,661, 71% greater than that of the Toronto’s average. As such, the area continues to attract young professionals and affluent families with high levels disposable income who are attracted to the wide variety of amenities offered and close proximity to the Financial Core.

CBRE Limited | 13 MARKET OVERVIEW

Retail Market Overview

The Property is surrounded by an abundant of retailers of both institutional caliber and boutique designers. Steps from the Property is Yorkville Village a shopping destination of distinguished variety comprised of contemporary brands and unique boutiques in a vibrant and beautifully designed environment anchored by Whole Foods and Equinox Fitness Club.

Yorkville represents the pinnacle of Canadian high-street fashion retail recognized internationally as one of the top ten shopping destinations in the world with high-end fashion uses dominating street front along Bloor Street. Directly north of Bloor Street, a similar style of retailing continues in the Yorkville area, where smaller boutiques, art galleries, restaurants, and lifestyle uses are prevalent. The area, being an integral part of Toronto’s vibrant cultural and entertainment district ensures steady flow of both daytime and evening traffic seven days a week. The area encompassing Bay / Bloor / Yorkville generates an estimated $1.8 billion in retail sales from just over 600 outlets. Retailing in Bloor is characterized as uniformly high-end, including a strong concentration of flagship stores or both global and luxury brands and Canadian retail icons such as Holt Renfrew and Davids shoes. The area boasts 2.3 million square feet of retail space, 1.5 million of which is street front. Retail sales performance along Bloor Street corridor between and Avenue Road often exceeds $2,500 per sq. ft. Bloor Street West is often compared to areas such as 5th Avenue in New York and Rodeo Drive in Los Angeles. While rents reach $3,500 per sq, ft. along New York’s 5th Avenue, Bloor Street West remains relatively much lower and represents an exceptional opportunity.

14 | 110 & 112 Avenue Road CBRE Limited | 15 Intensification of Avenue Road

The Property is situated steps from the westerly boundary of the neighbourhood of Yorkville along Avenue Road. The Property’s immediate current land use context along Avenue Road between Davenport Road and Bloor Street West is comprised of a mix between highly prosperous low density residences in conjunction with a diverse A R A AA assortment of retailers catering to the surrounding A residents. Steps from the Property strolling along Avenue SPADINA ROAD Road area is a collective mix of restaurants and boutique retail shops along with convenience based uses. Of YONGE AND UNIVERSITY LINE these include Yorkville Village, a distinguished variety of BLOOR-DANFORTH LINE contemporary brands and unique boutiques in a vibrant and beautifully designed environment anchoredBLOOR by Whole STREET BEDFORD ROAD Foods and Equinox Fitness Club resulting towards increase in pedestrian traffic along Avenue Road. In addition, adjacent to the Property is Sotto Sotto, a highly renowned 5 AVENUE ROAD BUS upscale restaurant known to be frequented by celebrities, trademarking itself as one of the most prominent and YORKVILLE AVENUE ST. GEORGE STREET everlasting trendy spots in Toronto. Collectively these wide array of complementary uses provides its surrounding residents with a trendy neighbourhood feel and setting.

Intensification amongst the Property’s immediate HAZELTON AVENUE surrounding land uses presents a compelling opportunity to invest in a transitioning and progressively growing retail landscape. Immediately north of the Property is the planned condominium development of 151 Avenue set to AVENUE ROAD redefine the corner of Avenue Road and Davenport Road. In addition, directly across the Property is 89 Avenue Road currently home to the Howard Johnson Hotel, with potential TRANBY AVENUE redevelopment of a new mixed-use commercial, hotel, and residential building set to re-define the landscape of Avenue Road. Further within a 1KM radius of the Property projected population is expected to increase by 10.2% along with favourable household income characteristics. Compelling demographics combined with intensification of the Property’s surrounding area will attract younger families and professionals seeking sophistication and JONG YOUNG FLOWER MARKET luxury creating a sense of vibrancy in the node leading to KEN’S FLOWERS ON AVENUE YANG’S FLOWER & FRUIT MARKET an opportunity to invest in a DAVENPORTtransforming landscape. ROAD DAVENPORT ROAD

6 BAY BUS 16 | 110 & 112 Avenue Road A R A AA A SPADINA ROAD

YONGE AND UNIVERSITY LINE BLOOR-DANFORTH LINE

BLOOR STREET BEDFORD ROAD

5 AVENUE ROAD BUS

YORKVILLE AVENUE ST. GEORGE STREET

HAZELTON AVENUE

AVENUE ROAD

TRANBY AVENUE 110 & 112 AVENUE ROAD

JONG YOUNG FLOWER MARKET KEN’S FLOWERS ON AVENUE YANG’S FLOWER & FRUIT MARKET DAVENPORT ROAD DAVENPORT ROAD

6 BAY BUS CBRE Limited | 17 1

3

110 & 112 AVENUE ROAD 2

4

8

6 7

5

Canada’s Most Active Condominium Market

The Bloor-Yorkville submarket of the Greater Toronto BLOOR-YORKVILLE GTA Area is the most prosperous condominium market in Canada with strong demand for dwellings driven by Active Projects 14 369 continued growth reflected in condominium values. Total Units 4,607 91,675

Exceptional demand from both residents and investors is Sum of Total Sales 4,107 80,146 driving outstanding absorption of new units with active Current Month 23 1,199 projects 89% sold and featuring an impressive average sale price of $775,217 ($942 per sq. ft.). There are an Remaining Inventory 500 11,529 additional 21 development applications active in the area. The 21 speculative projects represent an additional 6,127 Average $/PSF $942 $646 units. With minimal standing inventory, the pipeline remains Average SF 823 823 stable for new developments with potential for new projects to come online. Average $ $775,217 $531,708

18 | 110 & 112 Avenue Road Notable Active Projects

1 346 DAVENPORT 6 CUMBERLAND AT YORKVILLE PLAZA Developer Freed Developments Ltd. Developer Unit Sold 65% Camrost Felcorp Inc. Total Units 34 Unit Sold 83% Sold 22 Total Units 303 PSF $1,243 Sold 252 Absorption 9 months (65%) PSF $955 Absorption 20 months

2 AVENUE 151 5 ONE BLOOR

Developer Developer Dash Developments Inc. Great Gulf Homes Unit Sold 48% Unit Sold 99% Total Units 71 Total Units 788 Sold 34 Sold 783 PSF $1,286 PSF $1,366 Absorption 3 months (48%) Absorption 12 months

3 AYC 181 BEDFORD 7 EXHIBIT RESIDENCES

Developer Developer Metropia and Diamond Corp. Bazis International Inc. Unit Sold 90% Unit Sold 99% Total Units 237 Total Units 206 Sold 214 Sold 204 PSF $889 PSF $1,775 Absorption 1 month Absorption 1 month

4 89 AVENUE ROAD 8 NEW RESIDENCES OF YORKVILLE PLAZA Developer Freed Developments Ltd. Developer Unit Sold - Camrost Felcorp Inc. Total Units - Unit Sold 98% Sold - Total Units 489 PSF - Sold 480 Absorption - PSF $1,060 *Potential Development Site (Howard Johnson) Absorption 4 months

CBRE Limited | 19 PROPERTY OVERVIEW

Originally constructed in 1890, 110 - 112 Avenue Road is situated on the highly visible northwest corner of Avenue Road and Tranby Avenue. The Properties are comprised of separate semidetached houses featuring original exterior brick façade showcasing ~50 feet of frontage along Avenue Road.

As per the City of Toronto, the Properties are located within the East Annex Heritage Conservation District representing its historical significance within Toronto through its cultural heritage value and characteristics. Its use overtime has been converted to serve small to medium sized commercial firms. Currently 110 Avenue Road is utilized as amixed- use property with the ground floor retail occupied by 143 Avenue Road LP (1,761 sq. ft.) used as a presentation centre for a condominium development just north of the Site. Above grade space has been converted to accompany three separate multi-residential units consisting of a bachelor (487 sq. ft.), one bedroom (607 sq. ft.), and a two bedroom unit (1,152 sq. ft.). 112 Avenue Road is entirely leased to Hair on the Avenue (3,587 sq. ft.), a prominent hair spa beauty salon. Collectively the buildings are rich of historical significance with original brick masonry along its exterior façade adding to the existing distinctive character in the Property’s neighbourhood. The Properties are of well-known landmark buildings and structures well served as private homes and commercial uses.

20 | 110 & 112 Avenue Road 110 & 112 AVENUE ROAD

CBRE Limited | 21 Development Overview Zoning: CR 1.5 (c1.0; r1.0) SS2 (x1923) Permitted uses include but are not limited to: Retail Store, Financial Institution, Art Gallery, Office, Apartment Building, Mixed Use Building, Townhouse

110 Avenue Road consists of parking area to the rear of the building on the north side of Tranby Avenue used to support eight tandem parking spots. Potential may exist to convert current use by means of intensifying site through additional excess density. However, the Property is located in area that is highly scrutinized by residents and staff for aggressive planning as the Property is located within heritage designation district over full site areas. Nonetheless, the CR zoning designation (CR .1.5) allows for additional density to be applied through conscientious planning.

Property Survey

22 | 110 & 112 Avenue Road Rent Roll

SIZE RATE CHANGES TO TENANT UNIT TERM CHANGES ON NOTES (SQ. FT.) (PER ANNUM) (PER ANNUM)

110 AVENUE ROAD

Renewal Option: Ground Jan-2007 to 1 x 1 years at 143 AVENUE ROAD LP 1,761 $72,000 - - Floor Retail Nov-2017 fair market rent (cash flow reflects one year extension)

RENTAL UNIT - Jun-2017 to Unit B 487 $16,200 - - - BACHELOR May-2018

RENTAL UNIT - Feb-2017 to Unit C 607 $22,800 - - - ONE BEDROOM Aug-2017

RENTAL UNIT - May-2017 to Unit A 1,152 $27,600 - - TWO BEDROOM Apr-2018

Basement space used by BASEMENT - - 1,318 - - - retail tenant for storage

TOTAL 4,007

112 AVENUE ROAD

May-2015 to May-2018 $150,000 Renewal Option: HAIR ON THE AVENUE Retail 3,587 $144,000 1 x 5 years at Apr-2020 May-2019 $156,000 fair market rent

Basement space used by BASEMENT - - 998 - - - retail tenant for storage

TOTAL 3,587

110 & 112 AVENUE ROAD 7,594

*Rentable area excludes basement space

CBRE Limited | 23 Floor Plans

110 Avenue Road

23'2" X 9'7"

UNIT B LIVING ROOM LIVING ROOM 20'0" X 11'8" DN 17'11" X 14'4" FIREPLACE UP FIREPLACE

UP 17'11" X 14'4" KITCHEN DN 9'4" X 8'11" 22'1" X 12'11" WR

KITCHEN B-IN

COMMON DN BEDROOM DN HALLWAY 10'10" X 7'5" UP 16'1" X 8'9" UP UNIT C 18'11" X 13'5" LIVING ROOM 15'6" X 12'2" BEDROOM 16'0" X 10'8" 13'8" X 13'3" FIREPLACE UNIT A KITCHEN

17'9" X B-IN 5'1" 18'11" X 12'9" WR UP BEDROOM 15'10" X 8'3" WR 14'3" X 13'2"

STEP UP

UP LEGEND STEP UP DN 7'9" X 5'9" WR Limited Access 18'6" X 14'10" No Access DN AREA SQUARE FOOTAGE 0 10' 20' WR COMMONDN AREA 98 AUTHORISED BY THE ASSOCIATION OF Drawings are to be used for preliminaryBUILT-IN planning purposes only and are not to be used for quantity estimates or PROFESSIONAL ENGINEERS OF construction. Dimensions must be site verified prior to using for any other purpose. No warranty is made or LEGEND TO OFFER PROFESSIONAL ENGINEERING AREA SQUARE FOOTAGE implied as to the accuracy of dimensions. Measurements and slopes for inaccessible areas are obtained using DN SERVICES. best estimates. This drawing is subject to additionalSTAIRWELL terms and conditions as outlined in the contract. 24 ADDRESS: EXTERIOR GROSS AREA: LOCATION PLAN: DRAWING DATE: DATE MEASURED: No Access 110 AVENUE ROAD, TORONTO, ON 1,318 SQ.FT.COMMON AREA 45 April 6, 2017 March 30,2017 AVENUE RD. STAIRWELL FOR UP SCALE: 29 0 10' 20' DRAWING TITLE: 3RD FLOOR UNIT A 1,761 BASEMENT LEVEL FLOOR PLAN GROSS LEASABLE AREA: 1" = 10'-0" 1,318 SQ.FT. DRAWN BY: CHKD BY:UNIT B 487 AUTHORISED BY THE ASSOCIATION OF LEGEND Drawings are to be used for preliminary planning purposes only and are not to be used for quantity estimates or 8' 16' PROFESSIONAL ENGINEERS OF ONTARIO construction. Dimensions must be site verified prior to using for any other purpose. No warranty is made or PREPARED FOR: BERNARD AVE. 0 ES IF TO OFFER PROFESSIONAL ENGINEERING implied as to the accuracy of dimensions. Measurements and slopes for inaccessible areas are obtained using ALTO LTD SERVICES. best estimates. This drawing is subject to additional terms and conditions as outlined in the contract. PREPARED BY: UNIT C 607 Limited Access 10 GLEN EDYTH DRIVE, TORONTO, ON MEZZANINE: AUTHORISED BY THE ASSOCIATION OF Drawings are to be used for preliminary planning purposes only and are not to be used for quantity estimates or PLANiT MEASURING® ADDRESS: EXTERIOR GROSS AREA: LOCATION PLAN: DRAWING DATE: DATE MEASURED: PROFESSIONAL ENGINEERS OF ONTARIO construction. Dimensions must be site verified prior to using for any other purpose. No warranty110 is madeAVENUE or ROAD, TORONTO, ON MEASURED ACCORDING TO: N/A TO OFFER PROFESSIONAL ENGINEERING 1-800-933-5136 implied as to the accuracy of dimensions. Measurements and slopes for inaccessible areas are obtained using 1,152 SQ.FT. April 6, 2017 March 30,2017 SERVICES. best estimates. This drawing is0 subject to additional terms and conditions as outlined10' in the contract. 20' ANSI/BOMA Z65.5 - 2010 (INCLUDED IN GLA) AVENUE RD. TRANBY AVE. [email protected] SCALE: ADDRESS: EXTERIOR GROSS AREA: LOCATION PLAN: DRAWING DATE:DRAWINGDATE TITLE: MEASURED: ANSI A - 8.5 X 11 110 AVENUE ROAD, TORONTO, ON © 2017 PLANiT MEASURING® 1,806 SQ.FT. AUTHORISED BY THE ASSOCIATION OF April 6, 2017 March 30,2017 THIRD FLOOR PLAN GROSSDrawings areLEASABLE to be used for preliminary AREA: planning purposes only and are not to be used for quantity estimates or 1" = 10'-0" PROFESSIONAL ENGINEERS OFAVENUE ONTARIO RD. construction. Dimensions must be site verified prior to using for any other purpose. No warranty is made or TO OFFER PROFESSIONAL ENGINEERING SCALE: implied as to the accuracy 1,152of dimensions. SQ.FT. Measurements and slopes for inaccessible areas are obtained using DRAWN BY: CHKD BY: DRAWING TITLE: SERVICES. best estimates. This drawing is subject to additional terms and conditions as outlined in the contract. FIRST FLOOR PLAN 3/32"PREPARED = 1'-0" FOR: BERNARD AVE. ES IF BASEMENT GROSS LEASABLE1ST AREA:ADDRESS: FLOOR EXTERIOR GROSS2ND AREA: FLOORLOCATION PLAN: ALTO LTD DRAWING3RD DATE: DATEFLOOR MEASURED: 1,761 SQ.FT 110 AVENUE ROAD, TORONTO, ON DRAWN BY: CHKD BY: PREPARED BY: 1,245 SQ.FT. 10 GLEN EDYTH DRIVE, TORONTO, ON MEZZANINE: April 6, 2017 March 30,2017 PREPARED FOR: BERNARD AVE. ES IF AVENUE RD. PLANiT MEASURING® ALTO LTD MEASURED ACCORDING TO: N/A 1,318 sq. ft. 1,761 sq. ft. PREPARED BY:1,094 sq. ft. SCALE: 1,152sq. ft. 1-800-933-5136 10 GLEN EDYTH DRIVE, TORONTO, ON MEZZANINE: DRAWING TITLE: ANSI/BOMA Z65.5 - 2010 (INCLUDED IN GLA) SECOND FLOOR PLAN GROSSPLANiT LEASABLE MEASURING ®AREA: 1"= 10'-0" TRANBY AVE. [email protected] MEASURED ACCORDING TO: N/A 1-800-933-5136ANSI1,094 A - 8.5 SQ.FT. X 11 DRAWN BY: CHKD BY: © 2017 PLANiT MEASURING® ANSI/BOMA Z65.5 - 2010 (INCLUDED IN GLA) [email protected] PREPARED FOR: TRANBY AVE. BERNARD AVE. ES IF ANSI A - 8.5 X 11 ALTO LTD © 2017 PLANiT MEASURING® PREPARED BY: 10 GLEN EDYTH DRIVE, TORONTO, ON MEZZANINE: PLANiT MEASURING® MEASURED ACCORDING TO: N/A 1-800-933-5136 ANSI/BOMA Z65.5 - 2010 (INCLUDED IN GLA) TRANBY AVE. [email protected] ANSI A - 8.5 X 11 © 2017 PLANiT MEASURING®

24 | 110 & 112 Avenue Road 112 Avenue Road

UP

9'5" X 8'5"

17'6" X 13'2" UP 15'9" X 11'9" FIREPLACE

18'6" X 4'3"

ELECTRICAL PANELS

18'6" X 18'4" FIREPLACE 18'0" X 6'3" 5'8"X4'11" WR

11'10" X 9'2" 11'5" X 8'8" UP DN UP

DN DN DN

18'3" X 13'4" 21'0" X 11'11" 14'6" X 10'10"

WR STEP UP 15'2" X 12'9"

13'8" X 12'0"

5'8" 18'3" X 13'7" UP X3'11"

WR WR

10'7" X 14'1" LEGEND DN Limited Access

No Access WR BUILT-IN 0 8' 16' 9'1" X 13'2"

AUTHORISED BY THE ASSOCIATION OF Drawings are to be used for preliminary planning purposes only and are not to be used for quantity estimates or PROFESSIONAL ENGINEERS OF ONTARIO construction. Dimensions must be site verified prior to using for any other purpose. No warranty is made or TO OFFER PROFESSIONAL ENGINEERING implied as to the accuracy of dimensions. Measurements and slopes for inaccessible areas are obtained using SERVICES. best estimates. This drawing is subject to additional terms and conditions as outlined in the contract. ADDRESS: EXTERIOR GROSS AREA: LOCATION PLAN: DRAWING DATE: DATE MEASURED: 112 AVENUE ROAD, TORONTO, ON 998 SQ.FT. April 6, 2017 March 30,2017 AVENUE RD. SCALE: DRAWING TITLE: BASEMENT LEVEL FLOOR PLAN GROSS LEASABLE AREA: 0 1/8" = 1'-0"10'LEGEND 20' 998 SQ.FT. DRAWN BY: CHKD BY: PREPARED FOR: BERNARDAUTHORISED AVE. BY THE ASSOCIATION OF ES IF Drawings are to be used for preliminary planning purposes only and are not to be used for quantity estimates or 0 8' 16' ALTO LTD PROFESSIONAL ENGINEERS OF ONTARIO No Access construction. Dimensions must be site verified prior to using for any other purpose. No warranty is made or TO OFFER PROFESSIONAL ENGINEERING PREPARED BY: implied as to the accuracy of dimensions. Measurements and slopes for inaccessible areas are obtained using 10 GLEN EDYTH DRIVE, TORONTO, ON MEZZANINE: SERVICES. best estimates. This drawing is subject to additional terms and conditions as outlined in the contract. PLANiT MEASURING® AUTHORISED BY THE ASSOCIATION OF Drawings are to be used for preliminary planning purposes only and are not to be used for quantity estimates or MEASURED ACCORDING TO: ADDRESS:N/A EXTERIOR GROSS1-800-933-5136 AREA: LOCATION PLAN: DRAWING0 DATE: DATE MEASURED:8' PROFESSIONAL16' ENGINEERS OF ONTARIO construction. Dimensions must be site verified prior to using for any other purpose. No warranty is made or 112 AVENUE ROAD, TORONTO, ON TO OFFER PROFESSIONAL ENGINEERING implied as to the accuracy of dimensions. Measurements and slopes for inaccessible areas are obtained using ANSI/BOMA Z65.5 - 2010 (INCLUDED IN GLA) [email protected],364 SQ.FT. April 6, 2017 March 30,2017 SERVICES. best estimates. This drawing is subject to additional terms and conditions as outlined in the contract. TRANBY AVE. AVENUE RD. ANSI A - 8.5 X 11 © 2017 PLANiT MEASURINGAUTHORISED® BY THE ASSOCIATION OF SCALE: Drawings are to be used for preliminary planning purposes only and are not to be used for quantity estimates or DRAWING TITLE: PROFESSIONAL ENGINEERS OF ONTARIO ADDRESS: construction.EXTERIOR Dimensions must beGROSS site verified prior AREA: to using for any other purpose.LOCATION No warranty is madePLAN: or DRAWING DATE: DATE MEASURED: BASEMENTFIRST FLOOR PLAN GROSS LEASABLE1ST AREA: FLOORTO OFFER PROFESSIONAL ENGINEERING 2ND1" = 10'-0" FLOOR112 AVENUE ROAD, TORONTO, ONimplied as to the accuracy of dimensions. Measurements3RD and slopes for inaccessible FLOOR areas are obtained using April 6, 2017 March 30,2017 SERVICES. best estimates. This drawing is subject 1,045 to additional SQ.FT. terms and conditions as outlined in the contract. DRAWN BY: CHKD BY: AVENUE RD. 1,364 SQ.FT. SCALE: PREPARED FOR: ADDRESS: BERNARD AVE. EXTERIOR GROSSES AREA:DRAWINGIF LOCATION TITLE: PLAN: DRAWING DATE: DATE MEASURED: ALTO LTD 112 AVENUE ROAD, TORONTO, ON THIRD FLOOR PLAN March 30,2017 1/8" = 1'-0" 998 sq. ft. 1,364 sq. ft. PREPARED 1,178 BY:1,178 SQ.FT. sq. ft. GROSS LEASABLEApril 6, AREA:20171,045sq. ft. 10 GLEN EDYTH DRIVE, TORONTO, ON MEZZANINE: AVENUE RD. PLANiT MEASURING® SCALE: 1,045 SQ.FT. DRAWN BY: CHKD BY: DRAWING TITLE: MEASURED ACCORDING TO: N/A 1-800-933-5136 PREPARED FOR: BERNARD AVE. ES IF ANSI/BOMA Z65.5 - 2010 (INCLUDED IN GLA) SECOND FLOOR PLAN GROSS LEASABLE AREA: ALTO LTD 1/8" = 1'-0" TRANBY AVE. [email protected] PREPARED BY: 1,178 SQ.FT. 10 GLEN EDYTH DRIVE, TORONTO, ON MEZZANINE:DRAWN BY: CHKD BY: ANSI A - 8.5 X 11 © 2017 PLANiT MEASURING® PLANiT MEASURING® PREPARED FOR: BERNARD AVE. ES IF ALTO LTD MEASURED ACCORDING TO: N/A 1-800-933-5136 ANSI/BOMA Z65.5 - 2010 PREPARED(INCLUDED BY: IN GLA) 10 GLEN EDYTH DRIVE, TORONTO, ON MEZZANINE: TRANBY AVE. [email protected] PLANiT MEASURING® ANSI A - 8.5 X 11 © 2017 PLANiT MEASURING® MEASURED ACCORDING TO: N/A 1-800-933-5136 ANSI/BOMA Z65.5 - 2010 (INCLUDED IN GLA) TRANBY AVE. [email protected] ANSI A - 8.5 X 11 © 2017 PLANiT MEASURING®

CBRE Limited | 25 FINANCIAL OVERVIEW Set out below are financial projection assumptions for the 10-year period commencing July 1, 2017 and ending on June 30, 2027 (the “Projection” or “Projection Period”).

The reader is reminded that statements with respect to the Renewal Term anticipated future performance of the Property, as well as financial information and projections into the future, reflect 110 Avenue Road – A market renewal term of 5 years has various subjective assumptions concerning anticipated been applied towards retail component of 110 Avenue Road. results, which may or may not prove to be correct. No A renewal term of 1 year has been applied towards above representation or warranties, expressed or implied, are made grade rental units at 110 Avenue Road excluding downtime as to the accuracy of such statements, financial information of renewals. and projections. Future results will vary and variance may 112 Avenue Road – A market renewal term of 5 years has be material. The financial model was prepared using Argus been applied towards 112 Avenue Road. Financial Software and includes details of key assumptions for the Projection. The Argus rent rolls should be reviewed for Probability of Renewal tenant-specific notes and updated to reflect any information provided after the initial distribution of the materials. A 75% renewal probability has been applied towards retail tenants in 110 - 112 Avenue Road.

Current Market Rental Rates Above grade rental units located in 110 Avenue Road are not 110 Avenue Road - Current market rental rates for the retail subject to downtime upon expiration of leases. component of 110 Avenue Road (ground floor) have been inflated at 2.5% per annum throughout the Projection Period. Expense Reimbursement Market rents for above grade rental units have been forecasted Reimbursement for expense recoveries have been modeled at 1.5% per annum throughout the Projection Period. based on 2016 statement of expenses provided by the Vendor 112 Avenue Road - Current market rental rates for Hair on the grown at inflation of 2.5% as 2017 budgeted expenses were Avenue of 112 Avenue Road have been inflated at 2.5% per not provided. Commercial leases are fully net as per the annum throughout the Projection Period. lease. Individual rental units in 110 Avenue Road pay rent on a monthly gross basis. Renewal Options Vacancy and Bad Debt Allowance 110 Avenue Road – 141 Avenue Road LP contains a right to A vacancy and bad debt allowance of 2.0% of Potential Gross renew for 1 x 1 years at fair market rent with no less than nine Revenue has been applied towards the Property. months of written notice. For the purposes of our analysis, we've assumed 141 Avenue Road LP to extend their term for one additional year to November 2018 (original expiration November 2017).

112 Avenue Road – Hair on the Avenue consists of a right to renew for 1 x 5 years at fair market rent with no less than nine months of written notice.

26 | 110 & 112 Avenue Road Operating Expenses and Realty Taxes Tenant Improvement Allowances Operating expenses and realty taxes for the Property have been and Commissions estimated based on the statement of expenses for the 2016 Tenant Improvement Allowances of $15.00 per sq. ft. for year inflated at 2.5% as a budget was not made available for new deals and $5.00 per sq. ft. for renewal deals have been projected 2017 expenses. assumed for the retail components of 110 – 112 Avenue Miscellaneous Revenue Road. In addition, leasing Commissions of 8.0%/4.0% for new deals and 4.0%/2.0% for renewals have been assumed Miscellaneous revenue at the Property is collected through for the retail components of 110 – 112 Avenue Road. tandem parking spots located on the north side of Tranby Avenue. In total there are eight tandem spots, of which two are leased to Hair on the Avenue rent free as per the tenant’s lease. Remaining parking spots are leased to tenants on an annual basis at $1,800 per annum. Below is a breakdown of the parking roster.

TENANT REVENUE Hair on the Avenue - Hair on the Avenue - Metaphysics $1,800 per annum Metaphysics $1,800 per annum Individual Personnel $1,800 per annum Dash Property Management $1,800 per annum Fred Litwin $1,800 per annum Fred Litwin $1,800 per annum

$10,800 per annum

CBRE Limited | 27 110 - 112 Avenue Road Projected Cash Flow

Year 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For The Year Ending PSF Jun-2018 Jun-2019 Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027

INCOME PROJECTION

BASE RENTAL REVENUE $37.47 $284,541 $303,584 $318,100 $317,909 $318,972 $320,053 $326,213 $334,414 $355,848 $356,995

ABSORPTION & TURNOVER VACANCY $0.00 $0 ($15,230) ($25,752) $0 $0 $0 ($17,444) $0 ($29,136) $0

SCHEDULED BASE RENTAL REVENUE $37.47 $284,541 $288,354 $292,348 $317,909 $318,972 $320,053 $308,769 $334,414 $326,712 $356,995

OPERATING RECOVERY $3.62 $27,495 $27,242 $24,985 $29,610 $30,348 $31,100 $30,813 $32,680 $29,086 $34,335

REALTY TAX RECOVERY $8.32 $63,207 $61,615 $58,495 $68,067 $69,768 $71,512 $69,667 $75,135 $68,057 $78,936

TOTAL REIMBURSEMENT REVENUE $11.94 $90,702 $88,857 $83,480 $97,677 $100,116 $102,612 $100,480 $107,815 $97,143 $113,271

POTENTIAL GROSS REVENUE $49.41 $375,243 $377,211 $375,828 $415,586 $419,088 $422,665 $409,249 $442,229 $423,855 $470,266

MISCELLANEOUS REVENUE $1.44 $10,908 $11,126 $11,348 $11,576 $11,808 $12,043 $12,284 $12,529 $12,782 $13,035

GENERAL VACANCY -$1.02 ($7,725) ($4,385) ($3,980) ($8,543) ($8,617) ($8,695) ($4,635) ($9,095) ($4,464) ($9,664)

EFFECTIVE GROSS REVENUE $49.83 $378,426 $383,952 $383,196 $418,619 $422,279 $426,013 $416,898 $445,663 $432,173 $473,637

EXPENSE PROJECTION

OPERATING COST $4.54 $34,502 $35,365 $36,250 $37,155 $38,087 $39,034 $40,011 $41,016 $42,034 $43,092

REALTY TAX $11.44 $86,887 $89,057 $91,284 $93,567 $95,904 $98,303 $100,761 $103,280 $105,862 $108,507

TOTAL OPERATING COSTS $15.98 $121,389 $124,422 $127,534 $130,722 $133,991 $137,337 $140,772 $144,296 $147,896 $151,599

NET OPERATING INCOME $33.85 $257,037 $259,530 $255,662 $287,897 $288,288 $288,676 $276,126 $301,367 $284,277 $322,038

CAPITAL COSTS

LEASING COMMISSIONS $0.00 $0 $1,927 $3,663 $10,038 $6,176 $6,176 $6,520 $8,442 $9,900 $7,716

TENANT INDUCEMENTS $0.00 $0 $13,876 $0 $28,971 $0 $0 $15,700 $0 $32,778 $0

TOTAL CAPITAL COSTS $0.00 $0 $15,803 $3,663 $39,009 $6,176 $6,176 $22,220 $8,442 $42,678 $7,716

CASH FLOW BEFORE DEBT SERVICE $33.85 $257,037 $243,727 $251,999 $248,888 $282,112 $282,500 $253,906 $292,925 $241,599 $314,322

28 | 110 & 112 Avenue Road Year 1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For The Year Ending PSF Jun-2018 Jun-2019 Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027

INCOME PROJECTION

BASE RENTAL REVENUE $37.47 $284,541 $303,584 $318,100 $317,909 $318,972 $320,053 $326,213 $334,414 $355,848 $356,995

ABSORPTION & TURNOVER VACANCY $0.00 $0 ($15,230) ($25,752) $0 $0 $0 ($17,444) $0 ($29,136) $0

SCHEDULED BASE RENTAL REVENUE $37.47 $284,541 $288,354 $292,348 $317,909 $318,972 $320,053 $308,769 $334,414 $326,712 $356,995

OPERATING RECOVERY $3.62 $27,495 $27,242 $24,985 $29,610 $30,348 $31,100 $30,813 $32,680 $29,086 $34,335

REALTY TAX RECOVERY $8.32 $63,207 $61,615 $58,495 $68,067 $69,768 $71,512 $69,667 $75,135 $68,057 $78,936

TOTAL REIMBURSEMENT REVENUE $11.94 $90,702 $88,857 $83,480 $97,677 $100,116 $102,612 $100,480 $107,815 $97,143 $113,271

POTENTIAL GROSS REVENUE $49.41 $375,243 $377,211 $375,828 $415,586 $419,088 $422,665 $409,249 $442,229 $423,855 $470,266

MISCELLANEOUS REVENUE $1.44 $10,908 $11,126 $11,348 $11,576 $11,808 $12,043 $12,284 $12,529 $12,782 $13,035

GENERAL VACANCY -$1.02 ($7,725) ($4,385) ($3,980) ($8,543) ($8,617) ($8,695) ($4,635) ($9,095) ($4,464) ($9,664)

EFFECTIVE GROSS REVENUE $49.83 $378,426 $383,952 $383,196 $418,619 $422,279 $426,013 $416,898 $445,663 $432,173 $473,637

EXPENSE PROJECTION

OPERATING COST $4.54 $34,502 $35,365 $36,250 $37,155 $38,087 $39,034 $40,011 $41,016 $42,034 $43,092

REALTY TAX $11.44 $86,887 $89,057 $91,284 $93,567 $95,904 $98,303 $100,761 $103,280 $105,862 $108,507

TOTAL OPERATING COSTS $15.98 $121,389 $124,422 $127,534 $130,722 $133,991 $137,337 $140,772 $144,296 $147,896 $151,599

NET OPERATING INCOME $33.85 $257,037 $259,530 $255,662 $287,897 $288,288 $288,676 $276,126 $301,367 $284,277 $322,038

CAPITAL COSTS

LEASING COMMISSIONS $0.00 $0 $1,927 $3,663 $10,038 $6,176 $6,176 $6,520 $8,442 $9,900 $7,716

TENANT INDUCEMENTS $0.00 $0 $13,876 $0 $28,971 $0 $0 $15,700 $0 $32,778 $0

TOTAL CAPITAL COSTS $0.00 $0 $15,803 $3,663 $39,009 $6,176 $6,176 $22,220 $8,442 $42,678 $7,716

CASH FLOW BEFORE DEBT SERVICE $33.85 $257,037 $243,727 $251,999 $248,888 $282,112 $282,500 $253,906 $292,925 $241,599 $314,322

CBRE Limited | 29 OFFERING PROCESS Memorandum Contents This Confidential Information Memorandum (“CIM”) has in a form provided and approved by the Vendor. Prospective been prepared by the Advisor and is being delivered to purchasers will not use or permit this CIM to be used in prospective purchasers to assist them in deciding whether any manner detrimental to the interests of the Vendor, the they wish to acquire the Property. Advisor or their respective affiliates or for any other purpose This CIM does not purport to be all-inclusive or to contain than a proposed purchase of the Property. The recipient of all the information that a prospective purchaser may require this CIM agrees to provide the Advisor with a list of those in deciding whether or not to purchase the Property. This persons to whom this CIM or any information contained CIM is for information and discussion purposes only and herein is provided. does not constitute an offer to sell or the solicitation of any The terms and conditions in this section with respect to offer to buy the Property. The CIM provides information confidentiality and the disclaimer contained under the relating to certain of the physical, locational and financial heading “Memorandum Contents” relate to all Sections of characteristics of the Property. the CIM as if stated independently therein. The information in this CIM has been obtained from various The CIM shall not be copied, reproduced or distributed, sources considered reliable. Neither the Vendor nor the in whole or in part, to other parties at any time without the Advisor make any representations, declarations or warranties, prior written consent of the Vendor. It is made available express or implied, as to the accuracy or completeness of the to prospective purchasers for information purposes only information or statements contained herein or otherwise and and upon the express understanding that such prospective such information or statements should not be relied upon purchasers will use it only for the purposes set forth herein by prospective purchasers without independent investigation and upon and subject to the terms of the Confidentiality and verification. The Vendor and Advisor expressly disclaim Agreement. Upon request, the recipient will promptly return any and all liability for any errors or omissions in the CIM all material received from the Vendor and the Advisor or any other written or oral communication transmitted or (including the CIM) without retaining any copies thereof. In made available to prospective purchasers. furnishing the CIM, the Vendor and the Advisor undertake If any information relating to the Property, in addition to no obligation to provide the recipient with access to the information provided in this CIM, is provided at any additional information. time, orally or otherwise, by the Vendor or the Advisor, The division of the CIM into sections, paragraphs, sub- such information is provided as a convenience only without paragraphs and the insertion or use of titles and headings representation or warranty as to its accuracy or completeness are for convenience of reference only and shall not affect the and such information should not be relied upon by construction or interpretation of this CIM. prospective purchasers without independent investigation and verification. Offering Process The Vendor has adopted a negotiated sale process. Based on Confidentiality information contained in this CIM and other information that Upon receipt of this CIM, prospective purchasers will have may be made available upon request, interested parties are executed a confidentiality agreement (the “Confidentiality invited to submit a proposal that addresses the requirements Agreement”) under which they have agreed to hold and outlined under “Submission Guidelines”. treat this CIM and its contents in the strictest confidence. Prospective purchasers will not, directly or indirectly, Submissions should be directed electronically to: disclose or communicate or permit anyone else to disclose or communicate this CIM or any of its contents or any part c/o CBRE Limited, Brokerage thereof to any person, firm or entity without the prior written 145 West, Suite 1100 consent of the Vendor and without first obtaining from such Toronto, Ontario, M5H 1J8 person, firm or entity a separate Confidentiality Agreement

30 | 110 & 112 Avenue Road Attention: Any information related to the Property which has been or Peter D. Senst, Hillel L. Abergel, will be obtained from the Vendor or the Advisor or any other Arlin J. Markowitz , Jackson Turner person, by a prospective purchaser, has been prepared CC: Melissa Nowak and provided solely for the convenience of the prospective purchaser and will not be warranted to be accurate or The bid deadline is projected to be during the complete and will not form part of the terms of an agreement week of May 22nd, 2017 and will be communicated of purchase and sale. by the Advisor in advance. Advisor Submission Guideline The Advisor is acting solely as agent for the Vendor and not as Proposals for the Property will be evaluated primarily agent for the purchaser. All inquiries regarding the Property or on the consideration offered, the method of payment of any information contained in this CIM should be directed to the consideration, the prospective purchaser’s ability to CBRE Limited, Brokerage, as Advisor for the Vendor: complete the transaction, and the proposed date and conditions of closing. CBRE Limited, Brokerage Toronto Downtown Office A proposal should outline the terms for the purchase of the 145 King Street West Property and should include, at a minimum, the following Suite 1100 information and items: Toronto, Ontario M5H 1J8 • Purchase price; Peter D. Senst* • Name of the ultimate beneficial owners of the purchaser; President Canadian Capital Markets • Evidence of the purchaser’s financial ability to 416 815 2355 complete the transaction, including the method of [email protected] financing the purchase; Hillel L. Abergel* • Terms and conditions, including a timeline for APS Senior Vice President negotiation, due diligence period and closing; 416 815 2324 • Prospective purchasers should note that the Vendor is [email protected] under no obligation to respond to or accept any proposal. Arlin J. Markowitz* • The Vendor reserves the right to remove the Offering from Senior Vice President the market and to alter the offering process described 416 815 2374 above and timing thereof, at its sole discretion. [email protected]

Sale conditions Jackson Turner* The proposal should be in the Purchaser’s form of Sales Representative Letter of Intent. The Property and all fixtures included are 416 815 2394 to be purchased on an “as is, where is” basis and there [email protected] is no warranty, express or implied, as to title, description, *Sales Representative condition, cost, size, merchantability, fitness for purpose, quantity or quality thereof and without limiting the foregoing, any and all conditions or warranties expressed or implied will not apply and are to be waived by the purchaser.

CBRE Limited | 31 SPADINA ROAD

BLOOR STREET BEDFORD ROAD

YORKVILLE AVENUE ST. GEORGE STREET

HAZELTON AVENUE

AVENUE ROAD

TRANBY AVENUE

110 & 112 AVENUE ROAD

JONG YOUNG FLOWER MARKET KEN’S FLOWERS ON AVENUE YANG’S FLOWER & FRUIT MARKET DAVENPORT ROAD DAVENPORT ROAD

CBRE Limited, Real Estate Brokerage 145 King Street West, Suite 1100 Toronto, Ontario M5H 1J8

Peter D. Senst* Hillel L. Abergel* President Canadian Capital Markets Senior Vice President 416 815 2355 416 815 2324 [email protected] [email protected]

Arlin J. Markowitz* Jackson Turner* Senior Vice President Sales Representative 416 815 2374 416 815 2394 [email protected] [email protected]

*Sales Representative

This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or con- sequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved.