NET LEASE INVESTMENT OFFERING Rendering BANK OF AMERICA (Ground Lease) 1160 Shermer Road Northbrook, Illinois (Chicago MSA) TABLE OF CONTENTS TABLE OF CONTENTS I. Executive Profile II. Location Overview III. Market & Tenant Overview Executive Summary Photographs Demographic Report Investment Highlights Aerial Market Overview Property Overview Site Plan Tenant Overview Corporate Map Location Map NET LEASE INVESTMENT OFFERING DISCLAIMER STATEMENT DISCLAIMER The information contained in the following Offering Memorandum is proprietary and strictly confidential. STATEMENT: It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NET LEASE INVESTMENT OFFERING EXECUTIVE SUMMARY EXECUTIVE The Boulder Group is pleased to exclusively market for sale a single tenant Bank of America ground lease located SUMMARY: within an affluent suburb of Chicago’s North Shore. The property is currently being constructed as a retail location adjacent to a Bank of America Financial Center and office building. The ground lease will commence in the second quarter of 2020 and have a fifteen-year lease. The ground lease will also feature 10% rental escalations every five years and four 5-year renewal options. The new branch is a relocation of the adjacent Bank of America office building. The location exhibits exceptionally high deposits of approximately $937,000,000. This is the second highest deposits for any Bank of America in all of Illinois. The 4,200 square foot property is located in an affluent North Chicago suburb. There are over 66,000 people living within three miles of the property with an average household income of $182,734. The bank is located near corporate headquarters including Allstate, Crate & Barrel, Discover, Astellas Pharma, Walgreens, Barilla and Medline. The property is also located near Northbrook Court (1,012,000 SF mall anchored by Macy’s), Whole Foods, Target, Lowe’s, Home Depot and Lifetime Fitness. Additionally, the property is nearby New Trier Township High School (4,000+ students), Glenbrook North High School (2,000+ students) and numerous country clubs. Immediately across from the bank, there are 68 new luxury townhomes being built. These new developments will further draw customers and traffic to downtown Northbrook. Bank of America is a multinational banking and financial services corporation headquartered in Charlotte, North Carolina. It is the second largest bank holding company in the U.S. by assets. Bank of America is publicly traded on the New York Stock Exchange using the symbol “BAC”. In addition, it is an investment grade rated tenant with a Standard & Poor’s rating of “A-”. NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS • Located in an affluent suburb of Chicago’s North Shore INVESTMENT • Well positioned in downtown Northbrook HIGHLIGHTS: • Investment grade rated tenant (S&P: A-) • Over 66,000 people living within three miles of the property with an average household income of $182,734 • 10% rental escalations every five years • Ground lease with zero landlord responsibilities • Relocation of the adjacent Bank of America office building • Exceptionally high deposits of approximately $937,000,000 which is the second highest deposits for any Bank of America in all of Illinois • New construction • 15 year lease • 10% rental escalations every five years • Located near corporate headquarters including Allstate, Walgreens, Crate & Barrel, Discover, Astellas Pharma, Barilla and Medline • Positioned in a retail corridor near Northbrook Court (1,012,000 SF mall anchored by Macy’s), Whole Foods, Target, Lowe’s, Home Depot and Lifetime Fitness NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW PROPERTY Price: $4,736,842 OVERVIEW: Cap Rate: 4.75% Net Operating Income: $225,000 Tenant: Bank of America Credit Rating (S&P): A- (Investment Grade) Rent Commencement: 3/7/2020 (Estimate) Lease Term: 15 Years Renewal Options: Four 5-Year Rental Escalations: 10% every five years Year Built: 2020 Lease Type: Ground Lease 4,200 Building Size: 4,200 SF Land Size: 1.12 Acres NET LEASE INVESTMENT OFFERING PHOTOGRAPHS NET LEASE INVESTMENT OFFERING AERIAL NET LEASE INVESTMENT OFFERING SITE PLAN NET LEASE INVESTMENT OFFERING CORPORATE MAP Lake Michigan NET LEASE INVESTMENT OFFERING MAP Lake Michigan NET LEASE INVESTMENT OFFERING MAP Lake Michigan NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT DEMOGRAPHIC Population 1-Mile 3-Mile 5-Mile REPORT: Total Population 8,448 66,750 187,168 Total Households 3,137 26,066 70,716 Income 1-Mile 3-Mile 5-Mile Average Household Income $182,050 $182,734 $167,380 NET LEASE INVESTMENT OFFERING MARKET OVERVIEW MARKET Northbrook, Illinois OVERVIEW: Northbrook is a village on Chicago’s North Shore, located at the northern edge of Cook County, Illinois. Northbrook is connected to downtown Chicago by Metra’s Milwaukee District/North Line, which has two stations: one at Shermer Road and another at Lake Cook Road. Pace buses also serves Northbrook. Interstate 94 links Northbrook and the surrounding suburbs Northbrook’s location between the Edens Expressway (I-94) and the Tri-State Tollway (I-294) provides industrial and commercial companies an advantage in terms of access to labor and to markets. Through the development of the remaining vacant commercial land and redevelopment of existing industrial and commercial areas, Northbrook has positioned itself for future new and existing business growth. The corporate headquarters of Underwriters Laboratories and Crate & Barrel are located in Northbrook, as are the North American headquarters of Barilla (an Italian based food company), Astellas (a Japanese pharmaceutical company), and Bell Flavors & Fragrances (an international flavor and fragrance company). Allstate’s headquarters are in a nearby area in Northfield Township. In addition to a significant office and industrial base, Northbrook has a large retail base anchored by the 1+ million square foot regional mall, Northbrook Court. NET LEASE INVESTMENT OFFERING MARKET OVERVIEW MARKET Chicago, Illinois OVERVIEW: Chicago is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. Chicago has many nicknames, the best-known being the Windy City. The Chicago metropolitan area is home to the corporate headquarters of 66 Fortune 1000 companies, including Boeing, McDonald’s, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O’Hare International Airport is the second busiest airport in the world in terms of traffic movement. The metro is a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness. As of 2016, Chicago had the third largest gross metropolitan product in the United States at $640 billion. The city of Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims two Dow 30 company: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001 and McDonald’s, who’s in the process of moving there headquarters from the Chicago suburbs to the Chicago West Loop. One additional Dow 30 companies, Kraft Foods is in the Chicago suburbs, as are Sears Holdings Corporation and the technology spin-offs of Motorola. The headquarters of United Continental Holdings, are in the United Building and its operations center and its United Airlines subsidiary are in the Willis Tower in Chicago. Chicago attracts over 50 million domestic leisure travelers, 11 million domestic business travelers and 1.5 million overseas visitors. These visitors contributed more than $14 billion to Chicago’s economy. Upscale shopping along the Magnificent Mile and State Street, thousands of restaurants, as well as Chicago’s eminent architecture, continue to draw tourists. The city is the United States’ third-largest convention destination. A 2011 study by Walk Score ranked Chicago the fourth most walkable of the fifty largest cities in the United States. www.cityofchicago.org