EXCLUSIVE INVESTMENT SUMMARY

SINGLE TENANT, NNN TCF BANK IN LINCOLN PARK NEIGHBORHOOD OF , IL

ACTUAL PHOTO – CHICAGO, IL

1400 W FULLERTON AVENUE | CHICAGO, ILLINOIS MARKETING ADVISORS FINANCING ADVISORS

MARC MANDEL STEVE SCHRENK CLINTON MITCHELL AMY SANDS NICHOLAS KANICH ALEX SHARRIN DANNY KAUFMAN LUCAS BORGES Managing Director Director Senior Director Senior Director Senior Vice President Senior Vice President Senior Managing Director Director 484.532.4212 484.532.4213 312.980.3619 312.980.3613 312.228.2093 312.228.3197 469.232.1906 312.300.7303 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

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© 2019 Deal represented was secured by Holliday Fenoglio Fowler, L.P. (“HFF”) prior to being acquired by JLL. HFF is now a JLL company. Jones Lang LaSalle Americas, Inc. or Jones Lang LaSalle Americas (IL) LP for Illinois listings are providing co-brokerage services for HFF listings, and licensees may hold licenses with either HFF or such JLL entities. This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representationthatno change in the business or affairs of the property or the Owner has occurredsince the date of the preparationof the OfferingMemorandum.All analysis andverificationof the informationcontained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this OfferingMemorandum.

Additional informationand an opportunity to inspect the property will be made available upon written request tointerestedandqualifiedprospective investors.

Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed,deliveredandapprovedby Owner and its legal counsel, and any obligations setby Owner thereunder have been satisfiedor waived.

The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose setforthabove. If the Recipient has no interest inthe property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will returnthis OfferingMemorandumto HFF. INVESTMENT SUMMARY

T C F B A N K | CHICAGO, ILLINOIS INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW INVESTMENT SUMMARY Holliday Fenoglio Fowler, L.P. (“HFF”) Net Lease Advisory is pleased to exclusively offer a net lease opportunity to acquire a single tenant, NNN ground lease corner property leased to TCF Bank (the “Property”) in the Lincoln Park neighborhood of Chicago, IL, one of the most affluent and desirable sections of Chicago. TCF Bank is currently in year 16 of its 30 year, NNN ground lease with zero landlord responsibilities, which includes 10% rental increases every five years, inclusive of the four, 5-year option periods. TCF Bank is a wholly owned banking subsidiary of TCF Financial Corporation and through its subsidiaries, conducts commercial leasing, equipment finance and commercial inventory finance business in all 50 states. TCF Financial Corporation is publicly traded on the NYSE using the “TCF” symbol and is rated an investment grade of BBB from S&P. As of March 31, 2019, TCF had $24.4 billion in total assets among their 312 bank branches. Despite some bank acquisitions such as Great Lakes Bancorp, Standard Financial and Chemical Bank, TCF Bank has grown primarily through natural expansion.

The property, situated with four drive-thru service lanes, is positioned on a 0.43 acre, heavily trafficked corner, 24,000 VPD, complete with a fully signalized intersection along W Fullerton Avenue and N Southport Avenue. The property is zoned B3-2, allowing for multiple residential and commercial uses, permitted by-right, should there be an opportunity for redevelopment in the future. The property is three blocks from DePaul University, the 13th largest private, not-for- profit university in the nation and the largest private, not-for-profit university in the Midwest with over 22,000 students enrolled. Some of the surrounding national tenants include , Burger King, Starbucks, Taco Bell, McDonald’s and Wendy’s.

For six straight years, Site Selection magazine has named Chicago as the “top metro area in the nation for corporate relocation and investment.” 2018 alone saw 68 corporate relocations or expansions, resulting in the creation and retention of over 15,000 jobs. A handful of the 36 Fortune 500 companies who either recently relocated to or expanded their presence in Chicago include; McDonald’s, Facebook, Salesforce, Google, C.H. Robinson, Walgreens, and Ferrara Candy Company. Centrally located Chicago serves as a hub for six of the nation’s seven Class I North American railroads, six major U.S. Interstates and 1,400+ daily flights to more than 230 cities worldwide from the Midway and O’Hare airports.

$7,320,500 ASKING PRICE 5.00% CAP RATE $366,025 NOI 14 Years* REMAINING LEASE TERM

4 TCF BANK | CHICAGO, ILLINOIS INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

INVESTMENT HIGHLIGHTS

Strong demographics, as the property is The property has excellent visibility TCF Bank signed a 30-year absolute in one of Chicago’s most affluent and and is located on a busy retail NNN Ground Lease with zero Landlord desirable neighborhoods, Lincoln Park, corner with a fully signalized responsibilities, showing commitment with a population of 499,762 within a 3- intersection, located in the Lincoln to the area, and allowing for a true mile radius and a median household Park neighborhood of Chicago, with passive income investment value of $647,686 within a 1-mile radius, 24,000 vehicles per day as well as an average household income of $178,098 within one mile

Located just blocks from DePaul TCF Bank’s footprint in Chicago continues to be strong, as the bank’s The property is situated on a 0.43 University, the 13th largest private, not- 2018 total deposits climbed 19% to $19.0 acre corner lot in Lincoln Park, for-profit university in the nation and billion from $16.0 billion in 2015, making the site a strong candidate largest private, not-for-profit university including $6.3 billion in the Chicago for future mixed use or residential in the Midwest with 22,437 students market, making TCF the 13th largest redevelopment enrolled deposit holder in the market.

5 TCF BANK | CHICAGO, ILLINOIS TENANT OVERVIEW● T C F B A N K | CHICAGO, ILLINOIS

REPRESENTATIVE PHOTO INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

TENANT OVERVIEW

Corporate Overview TCF Bank was founded in Minneapolis in 1923, and was aptly named Twin City Building and Loan Association. In 1936 TCF Bank Headquarters Wayzata, Minnesota changed its name to Twin City Federal Savings and Loan Association. The company went public in 1986 chartered under the Locations 333 name TCF Banking and Savings, F.A. (TCF Bank). Employees 5,544 TCF Bank is a wholly owned banking subsidiary of TCF Financial Founded 1923 Corporation. TCF Financial Corporation is publicly traded on the Ownership TCF (NYSE) using the symbol “TCF”. It is an investment grade rated company with a Standard & Poor’s rating of Standard & Poor’s Rating BBB (Investment Grade) “BBB” Assets $24.4 billion Despite some bank acquisitions such as Great Lakes Bancorp, Website tcfbank.com Standard Financial and Chemical Bank, TCF Bank has grown primarily through natural expansion. During 2017, TCF Bank expanded their number of ATMs by 28% through the addition of more than 200 ATMs in targeted retail locations throughout Minnesota, Chicago and Michigan. Assessing TCF Bank’s 2018 Annual Report, net interest income rose over 7% in the past year with Net Income gaining an explosive 25.7%. In January 2019, it was announced that Detroit-based Chemical Bank was purchasing TCF Bank, creating the 27th largest in the country with 526 branches across 9 states. The newly formatted company would maintain their combined HQ in Detroit pending regulatory approval. As of March 31, 2019, TCF had $24.4 billion in total assets and 333 bank branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona, Indiana and South Dakota providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in all 50 states and Canada.

7 TCF BANK | CHICAGO, ILLINOIS FINANCIAL ANALYSIS ●

T C F B A N K | CHICAGO, ILLINOIS INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

LEASE ABSTRACT $7,320,500 5.00% $366,025 ASKING PRICE CAP RATE NOI

LEASE DETAIL TENANT RESPONSIBILITY DETAIL Tenant TCF Bank Tenant shall take good care of the Premises, including the Building, all equipment, roofs, foundations and appurtenances Address 1400 W Fullerton Avenue, Chicago, IL Maintenance & thereto, all sidewalks in front of or adjacent to the Premises, and Building Size 7,902 SF Repairs Year Built 2003 all other items described in the Lease; Tenant shall keep and maintain the Building in good condition Parcel Size 0.43 AC Annual Rent $366,025 Lease Type Absolute NNN Ground Lease Tenant shall keep the Building insured by the usual "all risk" Roof & Structure Tenant’s Responsibility Insurance insurance, as well as all other insurance coverages described in Lease Commencement 8/1/2003 the Lease Lease Expiration 7/31/2033* Remaining Lease Term 14 Years Remaining Options Four (4), Five (5) Year Options Tenant shall pay all real property taxes and assessments, Taxes including special assessments, personal property taxes, occupancy and rent taxes

RENT SCHEDULE

Description Dates Annual Rent % Increase Tenant shall pay all water and sewer charges, and all other Base Term (Years 16-20) 8/1/2018 - 7/31/2023 $366,025 10.00% charges for utilities, communications, and other services Utilities Base Term (Years 21-25) 8/1/2023 - 7/31/2028 $402,628 10.00% rendered or used about the Premises Base Term (Years 26-30) 8/1/2028 - 7/31/2033 $442,890 10.00% Option Term 1 (Years 31-35) 8/1/2033 - 7/31/2038 $487,179 10.00% Option Term 2 (Years 36-40) 8/1/2038 - 7/31/2043 $535,897 10.00% Option Term 3 (Years 41-45) 8/1/2043 - 7/31/2048 $589,487 10.00% Option Term 4 (Years 46-50) 8/1/2048 - 7/31/2053 $648,436 10.00% LANDLORD RESPONSIBILITY DETAIL *Tenant shall have a termination right during the period occurring after the first (20) None years of the Term and prior to the commencement of the 22nd year of the term, along with a payment of an amount equal to one year's rent

9 TCF BANK | CHICAGO, ILLINOIS INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

ZONING AND POTENTIAL REDEVELOPMENT

1412 W. Fullerton Ave 1410 W. Fullerton Ave 1408 W. Fullerton Ave 1406 W. Fullerton Ave 1400 W. Fullerton Ave

APN: 14-29-320-038-0000 APN: 14-29-320-039-0000 APN: 14-29-320-040-0000 APN: 14-29-320-041-0000 APN: 14-29-320-042-0000

Lot Area SF: 2,888 Lot Area SF: 2,889 Lot Area SF: 3,031 Lot Area SF: 3,557 Lot Area SF: 7,902

Lot Area Acres: 0.07 Lot Area Acres: 0.07 Lot Area Acres: 0.07 Lot Area Acres: 0.08 Lot Area Acres: 0.14

Zoning District: B3-2 Zoning District: B3-2 Zoning District: B3-2 Zoning District: B3-2 Zoning District: B3-2

- The entire parcel size is 0.43 acres and zoned B3-2.

- TCF sits between two of Chicago’s largest infill developments in recent history; Lincoln Yards and Lincoln Commons.

- Should there be an opportunity to redevelop the parcel, the maximum FAR (Floor Area Ratio) of 2.2 would allow for a 41,200 SF building to be built on the parcel.

- Some of the commercial and residential uses permitted by-right include: dwelling units located above the ground floor, artist live/work space located above the ground floor, restaurant with a maximum capacity of 999 persons and medical services to name a few.

10 TCF BANK | CHICAGO, ILLINOIS INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

SITE PLAN

11 TCF BANK | CHICAGO, ILLINOIS MARKET OVERVIEW T C F B A N K | CHICAGO, ILLINOIS INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

CHICAGO, ILLINOIS OVERVIEW ECONOMIC OVERVIEW

Chicago has one of the world’s largest and most diversified economies and is top-ranked for economic potential amongst major cities across the world. Chicago’s diverse industry mix has no single industry employing more than 13% of the workforce. The city boasts impressive employment base that compromises more than four million employees who generate an annual gross regional product of over $609 billion. Chicago ranks as a top city for economic potential among major cities internationally. According to the World Business Chicago’s report on economic growth and jobs, if Chicago was a country, it would rank as the world’s 21st largest economy. According to IBM’s Global Location Trends Report, Chicago ranks as the No. 1 U.S. city for Foreign Direct Investments (FDI) and projects No. 6 globally.

CORPORATION & HEADQUARTERS OVERVIEW

Chicago has become increasingly attractive to foreign markets as a headquarters location that allows central access to customers and suppliers. Companies from big to small and international to domestic have been establishing or deepening roots in Chicago to a significant degree. In 2018 alone, 68 corporate relocations or expansions, resulting in the creation and retention of over 15,000 jobs occurred. All together, more than 400 major corporations, including 36 Fortune 500 companies, are headquartered in the Chicago area. Some of the Chicago region’s largest employers include Advocate Health Care, McDonald’s, C.H. Robinson, Walgreen’s, AT&T, United Airlines, , J.P. Morgan Chase, All State Corp., and the University of Chicago.

EDUCATION OVERVIEW

Greater Chicago is home to over 60 major public and private colleges, with nearly 60,000 students located in the downtown area. In addition, an estimated 140,000 new college graduates enter Chicago’s workforce annually, providing an important source of replenishment for Chicago’s impressive talent base. The University of Chicago is home to over 16,000 undergraduates. The University of Illinois at Chicago has approximately 30,000 students, and ranks as one of the top research-funded institutions in the nation. DePaul University, located three blocks from TCF Bank, represents one of the nation’s largest private universities with more than 24,000 students. DePaul benefits tremendously from having the Fullerton L, 3.83 million riders in 2018 and the 8th busiest CTA in the Chicago land area, a block away.

DePaul University – Chicago, IL O’Hare Airport – Chicago, IL

INSERT CHICAGO PICTURES

Chicago, IL

13 TCF BANK | CHICAGO, ILLINOIS INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

CHICAGO, ILLINOIS OVERVIEW

Ranked by Site Selection magazine No. 1 Top 5 3rd 6 Class I as the #1 Metro for Corporate Investments in the U.S., Chicago thrives on a combination of mature LARGEST US METROFOR METRO STAR LARGEST CITY IN THE SIX OF SEVEN CLASS I (manufacturing and transportation/ ECONOMIC DIVERSITY US: RATING NORTH AMERICAN distribution) and emerging (info-tech, Moody's Investor Services With over 8.6M Residence RAILROADS R&D, and green energy) industries. in the greater SERVE CHICAGO The city remains a global financial metropolitan area center and accounts for approximately 18% of the global derivatives trading market, more than New York (14%); and nearly as much As the third (3rd) largest city in the United States, Chicago is home to nearly three (3) million as all exchanges in Europe (20%). city residents and over 9.6 million people within the broader metropolitan area. Anchored by Chicago banks hold 40% of the total assets in the Midwest, making its central location, extensive talent pipeline and overall quality of life, Chicago represents Chicago the financial center for the one of the world’s largest and most diversified economies. More than 400 major central region of the United States. corporations, including 35 Fortune 500 companies are headquartered in Chicago. Situated in the heart of the country, Chicago is easily accessible from all Furthermore, the city boasts an impressive employment base that comprises more than 4.6 regions of the U.S., as well as million employees who generate an annual gross domestic product over $581 billion. hundreds of international locations. The city enjoys one of the finest transportation systems in the country, anchored by O’Hare Airport: among the top ten of the world’s busiest airports and a vital conduit for the region’s corporate base. 42% 130+ $581+ B 141+

OF THE AMERICAN MAJOR PUBLIC & ANNUAL GDP GENERATED HOSPITALS IN THE POPLUATION PRIVATE BY MSA Within 750 miles of Chicago COLLEGES OVER 4.6M EMPLOYEES

14 TCF BANK | CHICAGO, ILLINOIS INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

ECONOMIC DRIVERS & EMPLOYMENT

Chicago has one of the world’s largest economies, generating over $581 billion in gross domestic product (GDP). The city boasts an impressive employment base comprised of more than 4.6 million employees. Unemployment decreased to 4.4% in June, 2018. This is made possible for a variety of reasons, including being named the most diversified of all the major cities in the country. More than 400 major corporations, including 36 Fortune 500 companies are headquartered in the Chicago MSA. Even more rank on the Fortune 1000 list, and many are some of the region’s largest employers, as shown in the table below.

FORTUNE 500 COMPANIES 2017 Revenues Description Fortune 500 Rank Location ($Millions) 1 , Inc 19 Deerfield, IL $118,214 2 27 Chicago, IL $93,392 3 Archer Daniels Midland 48 Chicago, IL $60,828 4 Caterpillar 65 Deerfield, IL $45,462 5 79 Northbrook, IL $38,524 6 United Continental Holdings 81 Chicago, IL $37,736 7 Corporation 92 Chicago, IL $33,531 8 AbbVie 110 North Chicago, IL $28,216 9 Abbott Laboratories 111 Abbott Park, IL $27,390 10 117 Chicago, IL $25,896

EMPLOYMENT BY INDUSTRY

24.0% 19.0% 10.0% 10.0% 7.0% 7.0% Education & Professional Financial Leisure & Retail Transportation Health Services Services Activities Hospitality & Utilities 5.0% 5.0% 5.0% 5.0% 3.0% 2.0% Manufacturing Government Other Wholesale Information Construction

15 TCF BANK | CHICAGO, ILLINOIS INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

16 TCF BANK | CHICAGO, ILLINOIS INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

SURROUNDING RETAIL AND AMENITIES

17 TCF BANK | CHICAGO, ILLINOIS INVESTMENT SUMMARY · TENANT OVERVIEW · FINANCIAL ANALYSIS · MARKET OVERVIEW

DEMOGRAPHICS: 1400 W FULLERTON AVENUE, CHICAGO, ILLINOIS

POPULATION

1 MILE 2 MILES 3 MILES

2010 Census 55,884 256,450 499,762 3 MILES

2019 Estimate 55,348 260,254 513,030 2 MILES 2024 Projection 55,185 261,890 517,975 1 MILE

HOUSEHOLD INCOME

2019 Average Household Income $178,098 $130,948 $112,900

2019 Median Household Income $129,769 $89,849 $74,865

HOUSEHOLD VALUE

2019 Median Household Value $647,686 $504,619 $459,399

HOUSEHOLDS

2010 Census 9,366 43,389 89,636

2019 Estimate 9,298 44,489 93,203

2024 Projection 9,278 44,919 94,509

(Environics Analytics) *Rings may not be drawn to scale

18 TCF BANK | CHICAGO, ILLINOIS MARKETING ADVISORS FINANCING ADVISORS MARC MANDEL STEVE SCHRENK CLINTON MITCHELL AMY SANDS NICHOLAS KANICH ALEX SHARRIN DANNY KAUFMAN LUCAS BORGES Managing Director Director Senior Director Senior Director Senior Vice President Senior Vice President Senior Managing Director Director 484.532.4212 484.532.4213 312.980.3619 312.980.3613 312.228.2093 312.228.3197 469.232.1906 312.300.7303 HFFLP.COM [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]