EXECUTIVE SUMMARY Holliday Fenoglio Fowler, L.P

EXECUTIVE SUMMARY Holliday Fenoglio Fowler, L.P. (“HFF”) is an Illinois licensed real estate broker

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Site

Development Holliday Fenoglio Fowler, L.P. (“HFF”)Holliday Fenoglio L.P. Fowler, is pleased present the to unique investment opportunity obtain to simple a fee interest in 1007 Church Street (the “Property” or “1007 Church”), RSF a 155,652 Helmut Jahn designed Class A office building located in downtown Evanston within the prestigious North Shore. The 79.0% leased property a diverse features tenant roster with a The Property’sbalanced rollover. location within the Evanston CBD, just one block from the highly-trafficked Davis StreetMetra stations,and CTA the adjacent space surface 45 parking lot an (included in the offering) provide a competitive advantage that no office building inmatch. the can market This unrivaled access allows businesses the ability tap the to into various labor pools of the Chicago CBD, the surrounding suburban markets and the North Shore. In addition, the extraordinary number of retail offerings in the immediate area, includingrestaurants, 80 contrib to the Property’s superior amenity base. An investor will beneﬁtthe rising rental environment rate in Evanston quickly to value from upon maximize stabilization. With a targeted cosmetic the capital p tremendous recent leasing success at 1007 Church and and a comp set that leased, is 95% a clear path stabilization to exists. Further, the adjacent parking lot represents an outsta development opportunity a future for investor who can highly capitalize on the desirable site’s (Downtown D3 Core Development District) classiﬁcation. zoning

8 79.0% 1.84 Acres 1.84 1984 / 2010 20,000 RSF 20,000 155,652 RSF Helmut Jahn 351 total351 spaces 45 surface spaces; 1007 Church Street Church 1007 (2.25 spaces / 1,000 RSF ratio) plus 306 covered garage spaces garage 306 covered plus D3 Downtown Core Development District KEY PROPERTY STATISTICS BUILDING ADDRESS BUILDING AREA RENTABLE SITE LAND ZONING PERCENT OFFICE LEASED STORIES AVERAGE FLOOR PLATE COMPLETED/RENOVATED ARCHITECT PARKING 2 Investment Highlights

WALKABLE URBAN ENVIRONMENT EVANSTON ACCOLADES

The Year 2015 was a prominent year for Evanston Over 80 restaurants, 10 coffee shops, 10 banks, 5 which won a variety of accolades including books stores, a Whole Foods, Century 12 Movie being ranked in the “Top 10 Best Downtowns” Theater, and a plethora of other retail offerings by Livability.com; NorthShore University are in the immediate vicinity of the Property, 96 HealthSystem Evanston Hospital being named affirming 1007’s Walkscore of 96. one of the “100 Great Hospitals in America” by Beckers Hospital Review; among many others.

DIVERSIFIED TENANCY WITH ANCHOR TENANT RECENT LEASING SUCCESS WITH UPSIDE

1007 Church is anchored by Accuity (a subsidiary 51.0% 79.0% 95.2% | $36.66 PSF of RELX Group; NYSE: RELX and RENX) which leases 35,841 RSF (23.2% of the Property) 2014 2016 Comp Set through 2026, and the quality and diversity of the Property’s remaining tenant base will insulate an 16.1% Above 1007 Market Rents investor from future market ﬂuctuations.

MULTIFAMILY BOOM NORTHWESTERN UNIVERSITY

2,323 Luxury Units U.S. News and World Report ranked Northwestern Developed Since 2000 University #12 nationally in 2016, and its Kellogg School of Management consistently ranks within (260 luxury units currently the Top 5 Business Schools. under construction)

3 Evanston: The Extension of the Chicago CBD Evanston Accolades Ideally located just 13.5 miles north of the Chicago CBD, Evanston has recently emerged as the new urban center just outside Chicago. Bordering Chicago on the shores of Lake Michigan, Evanston is the city where Chicago and the North Shore meet. This 24/7 Wall St. ranked Evanston #5 means Evanston is accessible to decision makers who live in the North Shore and can access the Property from Sheridan Road or in “America’s Best Cities to Live In” in 2014 Ridge Avenue within minutes of leaving their driveways. This also means that Evanston is accessible to millennial labor from the CBD via the CTA Purple Line or Metra, which both stop at the Davis Station less than a block away from 1007 Church. Evanston’s

reputation also goes beyond just its relative location. It is also known for its walkable urbanity, phenomenal restaurants and Ranked “Top 10 Best Downtowns” retail stores; access to public transportation; pro-business attitude; strong commitment towards public parks and recreation; by Livability.com in 2015 cultural offerings such as museums, theaters and galleries; and for being home to world-renowned Northwestern University. For these reasons, Evanston is the destination for millennials and baby boomers alike who want to live in the best of both the urban and suburban worlds. Although Listed #19 out of 100 in “2015 Best Towns in America” by Niche.com many residents commute to the Chicago CBD or surrounding Lake Michigan

suburbs for work, approximately Evanston Township High School Church Street Plaza 45% of the employed residents ranked 15th top school in Illinois and 456th in the country by US News Uncle Dan’s live within Evanston. Evanston Terra & Vine

Peeled Juice Bar Elgin Road is truly the urban suburban Red Robin Burger Works CTA PURPLE LINE Optima In 2015, NorthShore University destination that is the extension Horizons HealthSystem Evanston Hospital named Purple Line of Chicago’s downtown area Davis Station “100 Great Hospitals in America” by Beckers Hospital Review and CBD as evidenced by the CTA PURPLE LINE METRA LINE Property’s Walk Score of 96. METRA LINE Development For the second year in a row, Evanston Site Maple Avenue was the only U.S. city to receive Public Union Paciﬁc Technology Institute’s special designation North Line Station as a Tech Savvy award winner Church Street Oak Avenue vis Street Da

4 Lake Michigan West Evanston Transformation Shops at Sherman Plaza Akin to Chicago’s West Loop 1007 Church further beneﬁts from its location on the western side of Evanston’s CBD not only because of its proximity to the Davis Street Station but also because of its direct

Church Street Plaza access to Ridge Avenue one block west of the Property. Ridge Avenue is one of the major Uncle Dan’s Terra & Vine north-south arteries of the city, intersecting Peeled Juice Bar Purple Line Red Robin Davis Station Burger Works all major east-west corridors in Evanston, eventually connecting to Lake Shore Drive and the Chicago CBD. This ease of access to Ridge Avenue truly differentiates 1007 Church from its competition which is often subject to vehicular traffic in the CBD. In addition, because of the Union Paciﬁc North Line Station new restaurants and retailers that have opened in the immediate area such as Smylie Brothers That Little Mexican Cafe Brewing Co., Boltwood, Freshii, Table to Stix Keﬁ Greek Tavern and the many other upcoming establishments, 1007 Church is in the path of progress as a new “Restaurant Row” has surrounded it. Development Site

5 RESTAURANTS HOUSING . 27 Live Clarke's Freshii Naf Naf Grill Smylie Brothers Brewery . Evanston Place 3 800 Degrees Neapolitan Pizzeria Cold Stone Creamery Gigio's Pizzeria Noodles & Company Snow Dragon Shavery & Yogurt 3 Park Evanston $ Andy's Frozen Custard Cosi Golden Olympic Old Dixie Café Soulwich $ The Reserve at Evanston / Bangers & Lace Cozy Noodles Jimmy John's Olive Mountain Starbucks / 1717 1 Bar Louie Delbe's Corner Café Kafein Other Brother Coffee House Subway 1 E2 4 Bat 17 Dream About Tea Kansaku Panera Bread Table to Stix Ramen 4 BJB Evanston 2 Bennison's Bakery Dunkin' Donuts Keﬁ Greek Tavern Papa John's Taco Bell 2 Maple Grove Apartments ( Bistro Bordeaux Edzo's Burger Shop Koi Asian Cuisine and Lounge Patisserie Coralie Tapas Barcelona ( 1571 Maple , Blaze Pizza Einstein Bagels Kung Fu Tea Peeled Juice Bar Thai Sookdee , Church Street Station Boltwood Epic Burger La Macchina Café Peet's Coffe & Tea That Little Mexican Café Optima Tower Buffalo Joe's eTown Bistro Lao Sze Chuan Pete Miller's The Funky Monk Optima Views Burger King Evanston Chicken Shack Las Palmas Mexican Restaurant & Bar Phoenix Inn The Stained Glass Bistro Optima Horizons Celtic Knot Farmhouse Le Peep Potbelly Tommy Nevin's Pub Sherman Plaza Cheesie's Pub and Grub Five Guys Burger Lou Malnati's Prairie Moon Trattoria Demi Sienna Court I & II Chef's Station Flat Top Grill Lyfe Kitchen Red Robin's Burger Works Unicorn Café Grand Bend at Green Bay Chili's Grill & Bar Forever Yogurt Mt. Everest Sashimi Sashimi World of Beer Winthrop Club Chipotle Found Kitchen and Social House Mumbai Indian Grill Siam Splendor Zoba Noodle Bar North Shore Residences RETAIL PUBLIC HOTELS . 711 Bookends and Beginnings First Bank & Trust Market Fresh Books . City of Evanston Police Department . Hilton Garden Inn Chicago North Shore 3 ACE Hardware Bramer Animal Hospital First Northern Credit Union North Face 3 Evanston Farmers Market 3 Hilton Orrington/Evanston $ Amaranth Books Bright Horizon Flowers Flowers Oak Cleaners $ Evanston Fire Department $ The Merion / American Apparel Century 12 Evanston/Cinearts 6 & XD francesca's Pure Barre / Evanston Public Library / The Homestead 1 Asha Chase Bank Gadgetworks Repair Center RadioShack 1 Fountain Square 1 Hyatt House Chicago/Evanston 4 Asinamali Citibank Gap Salon Lotus 4 Illinois Technology Enterprise Center 4 Margarita European Inn 2 AT&T CVS Pharmacy GNC Sleepy's 2 US Post Office ( ATM (Fifth Third Bank) Davis St Shoe & Luggage Repair Grateful Yoga Spotless Cleaners , Audio Consultants Edible Arrangements H&R Block Uncle Dan's The Great Outdoor Store Barnes & Noble Enterprise CarShare Illinois Currency Exchange Urban Outﬁtters Beck's Bookstore Enterprise Rent a Car Jay's Barber Shop Western Union Blick Art Materials Evanston 1st Liquors LA Fitness Williams Shoes BMO Harris Bank First Bank & Trust Levi's Store Evanston World Market

6 15

RIDGE AVE CHURCH ST CHURCH 4

GROVE ST 1720 OAK 1720

DAVIS ST PARKING

LAKELAL ST GARAGE 3 AKEAAK KE 14 73 47 29 ST 29 T 34 7 68 6 22

OAK ST 42 69 6 77 EMERSON ST 2 41 21 1 25 9 78 9 74 13 23 22 2 11 21 5 STATION 7 1 24 8 66 DAVIS MAPLE AVE 36 50 36 37 4

8 MAPLE AVE 16 7 60 15 52 49 12 16 53 6 17 48 18 1 43 3 24 STATION DAVIS 47 35 23 3 58

1 BENSON AVE 6 27 31 26 12 80 54 46 2 19 10 33 11 13 32 70 39 4 14 65 10 72 51 45 81 27 5 46 41 10 20 57 5 35 48 6 38 40 30 15 38 33 75 62 25 56 3 5 83 44 SHERMAN AVE 26 64 28 31 84

9 82 ST ELGIN 51 43 71 32 17 85 20 42 40 18 30 45 52 11 14 28 49 67 16

ORRINGTON AVE2

NORTHWESTERN 12 50 63 79

UNIVERSITY 13 52 4 59

7 GROVE ST GROVE 8 37 61 5 2

17 DAVIS ST DAVIS 76 39 3

34 CHICAGO AVE CHURCH ST CHURCH

1 CLARK ST CLARK

SHERI DA serve the surrounding area as well as the CBD. area the wellas as surrounding the serve lineswhich bus various wellas linesas Metra CTA the both and services which away a block only Station Davis to the proximity the is location ofthe desirability to the Adding Property. the from away steps are just that Foods Whole theater and a offices, movie clinical and shops, salons offerings includingdaycares, boutique retail other and stores, 5books banks, 10 coffee shops, 10 including over restaurants, 80 of plethora amenities, the without possible Thiswouldnotbe Property. surrounding the environment urban the highlights which 96 aWalk of Score boasts Street Church 1007 Retail andRestaurants Heart ofDowntown Evanston /

Diversified Tenancy with Anchor Tenant 1007 Church features a diverse tenant roster with users in different industries such as medical and professional services, education, financial and technology. Accuity, a subsidiary of RELX (NYSE: RELX and RENX; Fitch: BBB; Moody’s: Baa1), anchors the Property with 35,841 RSF or 23.2% of the net rentable area of the building through 2026. Other notable tenants in the building include Northwestern University (Fitch: AAA; Moody’s: Aaa), NorthShore University HealthSystems (Moody’s: Aa2), Ornua (formerly known as Irish Dairy Board), Aginity and Ansys. The quality and diversity of the existing tenant base, along with the average remaining lease term of 4.9 years, will insulate an investor from future market fluctuations, especially when located in a market dominated by recession-proof industries such as healthcare and higher education. Approximately 50% of the net rentable area of the Property rolls during the initial five years, and combined with the fact that contract rents are currently 15.9% below market upon lease expiration, this presents an investor the opportunity to mark these rents to market upon rollover.

8 Recent Leasing Success at the Property & Upside Through Capital Improvement The Property has exhibited tremendous leasing velocity since current ownership acquired the Property in 2014. At acquisition, the Property was 51.0% leased but has since increased occupancy to 79.0%. Aginity relocated to the building in 2015, from nearby 1603 Orrington and Accuity relocated its headquarters from nearby Skokie in 2016, highlighting the desirability of this location within Evanston. Even more remarkable is that this nearly 30% lease up occurred with ownership spending limited capital on cosmetic improvements to the lobby and multi- tenant corridors enhancing just the natural bones of the building. Through strategic capital improvements to the Property, an investor will be able to make 1007 Church the top building in the Evanston, continue this leasing success to stabilize the Property, while pushing rents in an already tight office market and rolling below market rents to market.

Rare Availability of Large Block of Class A Space Additionally, within the tight Class A Evanston CBD office market, 1007 Church offers the ability to consolidate nearly 15,000 RSF of contiguous space on the 4th floor. Only one other comparable building in the area, 909 Davis, can accommodate a prospective tenant of this size which is indicative of the scarcity of large blocks of space in Evanston’s CBD. By relocating two smaller sized tenants to other vacant space in the building, an investor can capitalize on this lack of large contiguous space in Evanston and execute a long term lease for this 4th floor space. By collapsing the corridors and recapturing the interior corridors, a new owner will also increase the Property’s rentable area by 1,573 RSF. As the Evanston market continues to tighten, it will become even less likely for larger tenants to lease or consolidate space in the CBD, which is truly a reflection of the market’s strength.

9 Multifamily Boom and Transit-Oriented Developments The luxury residential pipeline in Evanston further demonstrates the city’s strength as a destination for residents and businesses, DELIVERED MULTIFAMILY DEVELOPMENTS and veriﬁes the city’s desire to encourage less vehicular use. Over 2,300 high-end residential units have been constructed RESIDENTIAL # OF ADDRESS DELIVERY since 2000 which command some of the highest per square foot rents for multi-family buildings within the North Shore and rival PROJECT UNITS 1 Church Street 1640 Maple Ave 103 2002 downtown CBD rates. Station 2 Optima Tower 1580 Sherman Ave 109 2002

A P CampusDr

UNION PACIFIC NORTH LINE ratt Ct

Additionally, there are currently Ashland Ave 3 Optima Views 1720 Maple Ave 205 2003 Hamlin St Leon Pl Library Pl

three (3) luxury, transit-oriented 3 4 Optima Horizons 800 Elgin 248 2004 Jackson Ave Foster St FOSTER STATION residential developments currently 5 5 The Reserve 1930 Ridge Ave 193 2004 Garnett Pl under construction, each within 1, 6 Sherman Plaza 807 Davis 250 2006 9494 3.5 miles Emerson St Wesely Ave Asbury Ave Ashland Ave 12 2 or 3 blocks of an Evanston CTA/ 8 7 Sienna Court I & II 1720-1740 Oak St 120 2006 ir NorthwesternNorrthwwesstern University Pl Metra transit stop. One of these ResearchRResseaarrchhP Parkaarkk Arts C E Railroad 8 Grand Bend at 1228 Emerson St 49 2007 Maple Ave Lyons St 4 Green Bay

developments is 1571 Maple, located Ave Ave Clark St Ave Chicago Ave e 7 9 Winthrop Club 1567 Maple Ave 96 2008

Benson Ave EVANSTON CBD Elgin Rd Sherman Pl Sherman 3 Pl Sherman two blocks from the Property. These Ri Hinman 11 10 AMLI Evanston 737 Chicago Ave. 214 2013 on Ave developments will collectively offer Church St 1 t Orring Church St 11 1717 1717 Ridge 175 2015 Mason DAVIS STATION an additional 260 modern apartments Park 1/2 Mile DAVIS STATION Radius 6 Davis St 12 E2 1890 Maple Ave & 356 2015 Oak Ave with best-in-class amenities, and also 9 CTA PURPLE LINE 2 1881 Oak St Davi 13 Elinor Pl s St 2 13 North Shore 1611 Chicago Ave 205 2016 highlight the highest and best use for Grove St

Judson Ave Residences

Evanston land which mitigates the METRA UNION PACIFIC NORTH LIN Raymond Total 2,323 Lake St Lake St Park risk of future office development in Sher MULTIFAMILY DEVELOPMENTS UNDER CONSTRUCTION

m the area. an Pl Chicago City Limits 2 miles 1 The Main 847 Chicago Avenue 112 Fall 2016 Chicago CBD 10 miles Greenwood St 1 2 1571 Maple 1571 Maple 101 Early 2017 = Public Parking Garage 10 15 Dawe Par 3 1620 Central 1620 Central 47 Summer 2017 Dempster St DEMPSTER STATION Total 260 Bh Pl

10 Upside Development Opportunity with Highly Desirable D3 Zoning The surface parking lot adjacent to 1007 Church is a rare development opportunity given its proximity to the Davis Street Station, LUXURY MULTIFAMILY DEVELOPMENTS IN EVANSTON CBD the lack of development sites in downtown Evanston, and primarily due to the site’s highly desirable zoning classiﬁcation. The # OF AVERAGE RENT PROJECT ADDRESS 33,180 SF parcel, zoned as the D3 Downtown Core Development District, provides for the highest density of development in UNITS UNIT SIZE PSF E2 1890 Maple 356 799 $2.96 downtown Evanston, encouraging a mix of office, retail and residential uses. Given the zoning’s base Floor Area Ratio (FAR) Evanston Place 1715 Chicago Ave 190 864 $2.79 maximum of 4.5x, an investor can develop a structure with a gross building area of 149,310 SF.

Park Evanston 1630 Chicago 283 923 $2.63

1717 1717 Ridge 175 835 $2.68 An investor can capitalize on the strong multifamily demand in Evanston through a transit-oriented residential development. Total / Average 1,004 855 $2.77 Existing luxury multifamily buildings in the immediate area have an average unit size of 855 SF and an average rate of $2.77 PSF. Base zoning allows for approximately 150 units to be constructed on the development site. Land sales for the comparable multi-family developments currently underway in Evanston have traded between $25 to $50 PSF of buildable FAR square foot.

It is also noteworthy that Evanston’s Plan Commission Additionally, given the lack of large blocks of space in Evanston, granted several zoning exceptions for recent transit- an investor could also consider a built-to-suit building for an oriented developments. Each development was permitted office tenant. Other potential uses for the site include a hotel, Surface Lot / Development Site greater allowances for the height limit, FAR or dwelling unit restaurant or retail goods establishment. Regardless of the 1720 Oak Street (Parking on 2.5 Floors) maximum as well as a lower parking requirement and smaller ﬁnal product, this land site represents one of the last remaining setback requirements. development opportunities in downtown Evanston. Oak Avenue

It would be especially lucrative for an investor to pursue a Proposed upside development opportunities are speculative. It decreased parking requirement, given that the under-utilized is recommended that a prospective investor contact a qualiﬁed parking garage at 1720 Oak Street would satisfy any parking land-use attorney to discuss the redevelopment potential. Church Street requirement. A decreased parking requirement would decrease

development costs, cause more affordable rents, add to building

Map efficiencies, and allow for a more aesthetic building design. 11 Institutional Investors in Evanston Evanston is a target market for many institutional investors, evidenced by the range of groups that have invested in real estate in Evanston in the past and present. A number of these investors include Carlyle, Cornerstone, Inland, Invesco, Investcorp, Northwestern Mutual, RREEF, TIAA-CREF and WP Carey. This roster of institutional equity is a testament to Evanston’s value by these prominent, large-scale investors. The prevalence of institutional investment in Evanston also speaks to the quality of the real estate, as well as the standards to which they have been maintained.

LOBBY

12 Despite Increasing Demand, No New Office Development In Sight Evanston is a unique micromarket that has consistently outperformed the overall North Suburban submarket with higher gross rental rates, smaller concession packages and lower vacancy rates. The overall vacancy rate for Class A buildings that are competitive to 1007 Church is an outstanding 4.85% which outpaces the Chicago CBD Class A vacancy of 10.7%, a true reﬂection of the demand for Class A office space in Evanston. Additionally, Evanston far outpaces the neighboring North Suburban market’s Class A vacancy of 20.1%. Although Evanston has experienced unprecedented development and redevelopment over the last ten years, much of this was focused in the residential sector and with no new delivery of Class A office space during the same time period. Given the lack of new construction and the increasing number of businesses that target Evanston for its superior location, integrated transit system, and deep labor pool, this creates the ideal environment for increasing rental rates.

This also adds to the value of the development site adjacent to 1007 Church. Because of the D3 Downtown Core Development District zoning, an investor could choose to develop a build-to-suit office building of up to 149,310 SF for a large office user targeting Evanston as its new home.

13 Contact Information Investment Contacts Debt Contacts

HFF Chicago Jeffrey M. Bramson Mark B. Katz Christopher S. Carroll 181 West Madison | Suite 3900 Senior Managing Director/Managing Broker Managing Director Managing Director Chicago, IL 60602 312.528.3687 312.980.3604 312.980.3609 Telephone: 312.528.3650 [email protected] [email protected] [email protected] Fax: 312.528.3651 Jaime M. Fink Yoonjin Choo Christopher N. Knight Senior Managing Director Real Estate Analyst Associate Director 312.528.3683 312.980.3606 312.980.3603 jﬁ[email protected] [email protected] [email protected]

Bryan D. Rosenberg Associate Director 312.300.7282 [email protected]

©2016 HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter at twitter.com/hff.

HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references 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 buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.