A core, newly constructed Whole Foods-anchored shopping center located in the dynamic, urban Chicago neighborhood of Hyde Park – home to the University of Chicago OFFERING SUMMARY Whole Foods Opening Day Holliday Fenoglio Fowler, L.P. (“HFF”) an Illinois licensed real estate broker The Opportunity In 2005, Antheus Capital (the “Developer”) acquired a neighborhood retail center situated on a two acre site which the Developer envisioned to be a prime redevelopment opportunity in one of Chicago’s most dynamic and diverse neighborhoods, Hyde Park. The University of Chicago and the Southeast Chicago Commission (SECC), in tandem with the city, spent an extensive period of time sponsoring focus groups to determine neighborhoods residents’ needs which included high quality retail and housing. In 2014, construction began on City Hyde Park (the “Property” or the “Offering”), a mixed-use development consisting of 110,063 square feet of rentable retail space accompanied by 180 apartments (not included in offering). Whole Foods, the nation’s leading specialty grocery store, Marshalls, Michaels, and Regus have all executed leases to anchor the retail component. Holliday Fenoglio Fowler, L.P. (“HFF”) has been retained on an exclusive basis to offer qualified investors the opportunity to acquire the retail portion of the Property. City Hyde Park is a transformative project for Hyde Park and the surrounding communities. It will offer great retail options that the community wants while also providing a much needed infusion of new housing stock. City Hyde Park adds an architecturally significant building to Hyde Park's skyline. 2 OFFERING SUMMARY – Alderman William D Burns, Fourth Ward, City of Chicago LIVE WORK City Hyde Park contains 180 City Hyde Park is strategically new luxury multi-housing units located within close proximity (not included in offering) that to Harper Court & The provide a built-in consumer University of Chicago’s over base to the Property. This is the 15,000 employees. Regus first new construction, ADA will provide flexible and compliant building built in the economical office space for neighborhood since 1990. businesses and entrepreneurs of Hyde Park. PLAY SHOP City Hyde Park is located within walking distance to The Property features a the neighborhood’s revamped synergistic mix of shopping 53rd Street corridor, providing options including a specialty a number of entertainment grocer, discount apparel, craft, options, award-winning dining, service, and restaurant uses. and an energetic atmosphere for students, creatives, and local residents. OFFERING SUMMARY 3 “THE WHOLE FOODS EFFECT” RENTAL BUILDINGS WITH A WHOLE FOODS ON THE GROUND Dominant Specialty Grocer Anchor FLOOR ENJOY, ON AVERAGE A RENTAL PREMIUM OF 3-4% ABOVE THEIR NEAREST COMPETITORS Source: RCLCO.com 2016 Whole Foods is the world’s leading natural and organic foods supermarket operating 431 stores in the United States, Canada, and the United Kingdom. Whole Foods has not anchored a new development in the city of Chicago since 2009, further supporting the site’s strength and pent up demand for a specialty grocer in Hyde Park. • Investment-grade credit rating of BBB- (Standard & Poor’s) • Whole Foods base rent increases every 5 years by the lesser of (1) 10%, or (2) the CPI during such period • 20 year lease term provides income stability • Whole Foods national sales average is $990 per square foot. At City Hyde Park that would equate to $29.8 million in total sales and a 2.63% health ratio • At the end of FY 2015, Whole Foods had 431 stores with $15.4 billion in sales, an 8.5% increase in sales from FY 2014. Institutional Quality Asset with High Barriers to Entry City Hyde Park is an irreplaceable grocery-anchored retail center located in the heart of Chicago’s dynamic Hyde Park Neighborhood. The Offering is a rare and incomparable opportunity to acquire a core-quality retail center with new, best-in-class construction in a dense and infill Chicago location. Hyde Park’s multi-use desirability and proximity to downtown has made it one of the most difficult submarkets within which to develop from both a land assemblage and 4 OFFERING SUMMARY entitlement standpoint. RETAIL PROPERTY OVERVIEW LOCATION: SWC of 51st Street & Lake Park Ave Chicago, IL SQUARE FOOTAGE: 110,063 MAJOR TENANTS: Whole Foods, Marshalls, Michaels, Regus OCCUPANCY: 88% DELIVERED: June 2016 NUMBER OF STORIES (RETAIL): 2 LAND AREA: +/- 2.08 acres PARKING AREA: 377 parking spaces; 2 levels LEED: Submitted for LEED Certified Status MULTIFAMILY PROPERTY OVERVIEW (NOT INCLUDED) MULTI-HOUSING UNIT OVERVIEW: Apartment Homes (Market Rate): 144 TENANT OVERVIEW Apartment Homes (Affordable): 36 TENANT SQUARE FEET % OF TOTAL AVG. REMAINING LEASE TERM Total Apartment Homes: 180 Whole Foods 30,234 27% 19.9 Years PROPERTY WEBSITE: www.cityhydepark.com Marshalls 26,020 24% 10.0 Years ARCHITECT: Jeanne Gang of Studio Gang Architects Michaels 18,141 16% 9.7 Years Regus 16,614 15% 9.7 Years One Fish, 2 Fish 2,939 3% 10.0 Years Athletico 2,863 3% 9.7 Years Available 13,252 12% 110,063 100% 12.9 Years OFFERING SUMMARY 5 LEED Certified Jeanne Gang Design Completed in 2016, the Property features a high quality, attractive, and modern design with substantial curb appeal. The LEED certified project is designed by renowned architect Jeanne Gang of Studio Gang Architects. In addition to reducing operating costs and energy usage, City Hyde Park’s construction will significantly decrease future capital outlays. • Jeanne Gang’s Aqua Tower in Chicago was named the 2009 Emporis Skyscraper of the Year. • Jeanne Gang’s work has been honored and exhibited widely in the Art Institute of Chicago, International Venice Biennale, MoMA, and the National Building Museum. • Since founding Studio Gang in 1997, Jeanne Gang has won numerous honors including a MacArthur Fellowship, an Academy Award in Architecture, and the 2013 National Design Award. • In December 2014, Jeanne Gang was selected to design the expansion of New York City’s renowned American Museum of Natural History. • Jeanne Gang is a distinguished graduate of Harvard University, and has taught at Harvard, Yale, Princeton and IIT, where her studios have focused on cities, ecologies, Located across from the elevated commuter train, the project becomes a materials, and technologies. front door to Hyde Park. With Hyde Park at an important crossroads in its development, the project—in its outward orientation and embrace of the city—is designed to make a strong case for the neighborhood’s urban evolution. – Jeanne Gang, Founder and Principal 6 OFFERING SUMMARY of Studio Gang Architects CHICAGO CBD LAKE MICHIGAN NAVY PIER SOLDIER FIELD ADLER PLANETARIUM NORTHERLY ISLAND HARPER COURT MCCORMICK PLACE CONVENTION CENTER BURNHAM PARK LAKE SHORE DRIVE 53RD STREET SHOPS & RESTAURANTS METRA COMMUTER LINE JA’ GRILL MELLOW YELLOW RED SNAPPER A10 AMY’S CANDY BAR CLARKE’S DINER WINGER’S CHANT VALOIS REGENTS PARK RAJUN CAJUN YUSHO LUXURY APARTMENTS CAFE 53 CORNELL VILLAGE KENWOOD ACADEMY WASHINGTON PARK APARTMENTS HYDE PARK PRODUCE CHASE BANK HARPER THEATER HYATT PLACE HOTEL 53RD STREET HAROLD WASHINGTON PLAYLOT PARK THE PROMONTORY 53RD STREET METRA STATION UNIVERSITY OF CHICAGO MEDICAL CENTER COREPOWER YOGA UNIVERSITY OF CHICAGO MUSEUM OF SCIENCE HARPER FOODS BOOTH SCHOOL OF BUSINESS AND INDUSTRY D’ANGELO LAW LIBRARY MIDWAY PLAISANCE PARK JACKSON PARK UNIVERSITY OF CHICAGO LAW SCHOOL MIDWAY MARKET HYDE PARK ACADEMY Vibrant Hyde Park Demographics Located just six miles south of downtown, Hyde Park is one of Chicago’s most diverse and highly- educated neighborhoods in Chicago known for its cultural, historical, and educational richness. • Anchored economically by the University of Chicago • Placed #4 on U.S. News & World Report’s ranking of National Universities. • Owns over 220 buildings encompassing 18.7 million square feet in the submarket • Over 15,000 students • Over 23,000 faculty members and employees • $4.5 billion annual operating budget • Home to the Museum of Science and Industry, Frank Lloyd Wright’s Robie House, Promontory Point, and Jackson Park home of the new Barack Obama Presidential Library. • An estimated $320 million in combined university, public and private investments has gone toward the revitalization of Hyde Park, which in turn is expected to create 1,320 jobs. • In the last four years, 28 new businesses have opened along the 53rd Street corridor. • 53rd Street has been revitalized in recent years and today is mostly known for its collection of quality, sit-down restaurants and charming boutiques. • According to the Illinois Department of Revenue, retail sales generated by the 60615 zip code (Hyde Park), jumped from $136 million in 2012, to $444 million in 2013, a 226% increase. 8 OFFERING SUMMARY HYDE PARK Transportation Oriented Development LEGEND with Strong Consumer Traffic Metra Electric Line The site’s outstanding location is in close proximity to multiple CTA Bus Routes Hyde Park Express (2,913 daily riders) forms of public transportation including CTA Green line trains Jackson Park Express (10,990 daily riders) Museum of Science & Industry (1,313 daily riders) combined with Metra (suburban) access just south of the Property Jeffery Local (5,822 daily riders) Stony Island (5,130 daily riders) at 53rd Street and Lake Park Avenue. The location also offers Garfield (13,188 daily riders) University of Chicago-Hyde Park (1,780 daily riders) unique arterial highway access including CTA bus lines, I-90/94 University of Chciago-Kenwood (2,671 daily riders) 111,600 vehicles pass City Hyde Park on and Lake Shore Drive. 51st/53rd St (Hyde Park) Lake Shore Drive each day 36,400 passengers ride the DEMOGRAPHICS OVERVIEW Metra Electric Line each day 0.5-MILE 1-MILE 2-MILE 20,600 Vehicles on RADIUS RADIUS RADIUS Lake Park Ave. each day 2016 Population 19,441 41,366 96,707 Projected Growth 2016-2021 4.70% 2.64% 2.68% 2016 Est.