McCLURG COURT TWO TOWERS • 1,061 UNITS • 43,000 SF COMMERCIAL VALUE-ADD MULTIFAMILY INVESTMENT OPPORTUNITY STREETERVILLE • DOWNTOWN CHICAGO ILLINOIS MEDICAL 55 DISTRICT 290 WILLIS OHIO / ONTARIO 90/94 TOWER SPUR RAMP 90/94 WEST LOOP RIVER NORTH JOHN AON HANCOCK CENTER LOOP CENTER 110 MILLION SF OFFICE WATER 610,000 JOBS TOWER GALTER PLACE PAVILION ANN & ROBERT NW HOSPITAL H. LURIE VISTA TOWER OUTPATIENT CHILDREN’S OLSON HOSPITAL PAVILION FEINBERG PAVILION GOLD COAST UNDER CONSTRUCTION / 2020 PAVILION PRENTICE WOMEN’S McCLURG COURT HOSPITAL SHERLEY RYAN NEW EAST SIDE ABILITYLAB SIMPSON QUERREY E. PEARSON STREET ONE BENNETT PARK FUTURE NW BIOMEDICAL COMPLETED / 2019 MEMORIAL RESEARCH CENTER E. CHICAGO AVENUE HOSPITAL OPENING JUNE 2019 DEV. SITE WACKER DRIVE LAKE SHORE PARK STREETERVILLE 680 N. E. ONTARIO STREET ONTARIO E. E. ERIE STREET LAKE SHORE DRIVE ABBOT NORTHWESTERN HALL CHICAGO CAMPUS CHICAGO LAKEFRONT TRAIL FEINBERG SCHOOL OF MEDICINE CHICAGO RIVER NORTHWESTERN PRITZKER FORMER SCHOOL OF LAW SPIRE SITE KELLOGG SCHOOL OF MANAGEMENT LAKE SHORE DRIVE E. ILLINOIS STREET E. OHIO STREET E. GRAND AVENUE LAKE SHORE DRIVE LAKE MICHIGAN DUSABLE PARK OHIO STREET BEACH McCLURG COURT DEAL POINTS A WORLD-CLASS VALUE-ADD OPPORTUNITY • WORKFORCE HOUSING IN A CLASS A LOCATION Moran & Company is pleased to present an exclusive listing for the sale of McClurg Court. McClurg Court consists of two towers with ground level • IDEAL FOR BUYERS LOOKING FOR EFFICIENCIES retail located in the affluent Streeterville neighborhood in downtown CREATED THROUGH CRITICAL MASS Chicago. This world-class location is surrounded by The Magnificent Mile, the Chicago River, the Gold Coast, Lake Michigan and Navy Pier. • SUPPLY IS VIRTUALLY NON-EXISTENT WHILE The Property is adjacent to the ever expanding Northwestern Memorial DEMAND DRIVERS ARE ACCELERATING Hospital Campus, Shirley Ryan AbilityLab®, the new Simpson Querry Biomedical Research Center, the downtown campuses of both • LOW BASIS AT 50% OF REPRODUCTION COST Northwestern University, The University of Chicago, multiple grocery stores including Whole Foods, the city’s best restaurants, and the most • DIRECT ACCESS TO THE ALMOST 20,000 exciting new hotels and retailers in the city. EMPLOYEES, STAFF AND STUDENTS AT THE NEIGHBORING NORTHWESTERN MEMORIAL McClurg Court is available for purchase for the first time since MEDICAL CAMPUS 2006. For the past 13 years, the Property has benefited from • BENEFITS FROM DOWNTOWN CHICAGO’S institutional ownership and professional management, resulting in STRONG JOB MARKET, WHICH HAS GROWN a very well-maintained physical asset with a significantly upgraded ALMOST 25% OVER THE PAST 5 YEARS and expanded amenity package including improvements to all common areas, installation of a sprinkler system, and a new exterior • “WALKER’S PARADISE” WITH A WALK SCORE® curtain wall at the podium structure. All units are available for OF 99 AND TRANSIT SCORE® OF 100 upgrade, making McClurg Court among the most attractive value- add opportunities in the country today. 2 McCLURG McCLURG COURT COURT THE OPPORTUNITY McCLURG COURT’S COMPETITIVE POSITION The downtown Chicago housing market has been under-supplied for the past 10 years because household deliveries fell below the prior 10-year trend while job growth flourished like never before. Developers could not meet demand for new household formation even as market fundamentals, capital flow, and municipal support for rental housing were more favorable than ever. This lack of housing has resulted in record-setting demand easily absorbing peak apartment deliveries in 2017. Approximately 40% of the rental market is upper income and 55% of the market is in the affordable and workforce housing range. With a majority of new rental product targeting the upper end, it is clear the shortage of affordable and workforce housing is expanding the fastest PROPERTY SUMMARY with little hope of new development meeting this massive under-supply. PROPERTY NAME McCLURG COURT Given its rent structure, McClurg Court is well positioned to meet the SITE ADDRESS 333 E. Ontario Street Chicago, Illinois 60610 demand from the largest and fastest growing segment of renters who earn 70% to 100% of area median income. Foreseeable supply COUNTY Cook in downtown Chicago is mostly limited to the South Loop and to SUBMARKET Streeterville (Chicago) extravagant developments catering to the highest wage earners with LAND AREA 103,365 SF (2.37 Acres) rents setting new heights, further enhancing McClurg Court’s strong 26,193 SF (0.60 Acres) (25%) competitive position as the best workforce housing option in downtown FEE SIMPLE Chicago. LEASEHOLD 77,172 SF (1.77 Acres) (75%) NUMBER OF BUILDINGS 2 High-Rise Towers w/ Podium Amenities STORIES 45 each YEAR BUILT 1972 UNIT SUMMARY APARTMENT UNITS 1,061 AVERAGE UNIT SIZE (SF) 739 TOTAL SIZE (SF) 784,020 COMMERCIAL SUMMARY NUMBER OF COMMERCIAL SPACES 15 TOTAL COMMERCIAL SF 42,910 COMMERCIAL OCCUPANCY 94% PARKING SUMMARY PARKING - RESIDENTIAL GARAGE 174 (0.16 per unit) PARKING - COMMERCIAL GARAGE 223 PARKING - TOTAL 397 UNIT MIX UNIT MIX UNIT % AVG TOTAL SUMMARY COUNT UNIT SF SF STUDIO 251 24% 545 136,773 CONVERTIBLE 258 24% 619 159,573 1BD/1BA 459 43% 801 367,769 2BD/2BA 84 8% 1,243 104,412 2BD/2BA+DEN 2 0% 1,905 3,810 PENTHOUSE 7 1% 1,669 11,683 TOTALS / AVGS 1,061 100% 739 784,020 3 VALUE-ADD OPPORTUNITIES OVERVIEW Current ownership has spent over $30 million on capital expenditures at McClurg Court over the past five years. This amount was spent on physical improvements and common area upgrades, not on unit interior upgrades. While all units have been upgraded in some form over the past 20 years, including approximately 271 units upgraded with stainless steel appliances and granite countertops approximately 5-7 years ago, it can be assumed that all units at McClurg Court are viable upgrade candidates. With the recently renovated amenities and common areas, McClurg Court’s 1,061 units available for revenue-generating interior unit upgrades, makes it a generational value-add opportunity in one of Chicago’s premier neighborhoods. OPPORTUNITIES TO UPGRADE UNIT INTERIORS NEW COUNTERTOPS TILE BACKSPLASH NEW APPLIANCES Upgrade with quartz Add new tile backsplash Upgrade appliance countertops package to stainless steel NEW CABINETS NEW HARDWARE Upgrade with 42” Upgrade hardware designer cabinets NEW FLOORING Add designer plank flooring throughout the unit KITCHEN NEW FLOORING Add designer plank flooring throughout the unit NEW CABINETS Upgrade cabinets, NEW SHOWER countertops, Upgrade shower/bath lighting and fixtures and tile BEDROOM BATHROOM 4 McCLURG McCLURG COURT COURT VALUE-ADD OPPORTUNITIES McCLURG’S WALL-TO-WALL GLASS AND SKIM COAT CEILINGS PROVIDE A MODERN CANVAS ON WHICH TO UPGRADE AND MODERNIZE WITH PREMIUM FINISHES NEW FLOORING Add designer plank flooring throughout the unit LIVING ROOM OPPORTUNITIES TO UPGRADE AMENITIES The current owner renovated all residential hallways, refinished the residential entrances and lobbies, renovated the leasing center, created a new entertainment room and clubroom, added a large bike storage area, created a sports lounge and yoga studio adjacent to the fitness center, created dynamic laundry rooms, and completely redesigned the outdoor amenity deck. With all of these improvements, opportunities still exist for additional upgrades, including repurposing a portion of or all of three regulation indoor tennis courts and the Property’s large storage rooms on the second floor. With an exceptional location and a large mixed- use space with which to work, the market will reward investors for additional improvements throughout McClurg Court. INDOOR PAVILION WITH THREE REGULATION TENNIS COURTS 5 MARKET-LEADING AMENITY PACKAGE INDOOR SWIMMING POOL YOGA STUDIO / INTEGRATED FITNESS ON DEMAND RENOVATED LOCKER ROOMS UPGRADED FITNESS CENTER OUTSTANDING AMENITIES OUTSTANDING AMENITIES SPORTS LOUNGE FIRST FLOOR CLUBROOM/WORKROOM THREE FULL-SIZE INDOOR TENNIS COURTS ENTERTAINMENT ROOM WITH KITCHEN AND TVS 6 McCLURG McCLURG COURT COURT 15,000SF SUNDECK WITH LOUNGE AREAS, PERGOLA, AND NEW FIRE PIT NEW PERGOLA WITH KITCHENETTE, TV, AND SEATING BRAND NEW GRILLING STATIONS NEW BOCCE BALL COURT NEW FIRE PIT OUTSTANDING AMENITIES OUTSTANDING AMENITIES NEW PACKAGE LOCKERS ON-SITE BOCKWINKELS OPEN 7 DAYS/WEEK RESIDENTIAL HEATED GARAGE ON-SITE BIKE STORAGE AND MAINTENANCE 7 McCLURG COURT IS COMPETITIVELY POSITIONED FOR STRONG RENT GROWTH COMPETITIVE POSITION IN STREETERVILLE FAVORS RENT GROWTH Since 2013, seven luxury apartment buildings delivered 2,920 new BY THE units in the Streeterville submarket. These projects include One Bennett Park, Moment, 465 N Park, Optima Chicago Center, North NUMBERS Water, 500 Lake Shore Drive, and Optima Signature. All properties MAY 2019 except One Bennett Park and 465 N Park are stabilized. McClurg Court enjoys a favorable competitive position within the Streeterville rental market. As a vintage apartment building with LEASED over 1,000 units, McClurg Court offers an affordable, amenity rich living experience in a neighborhood dominated by newer luxury RENT $1,852 high-rise towers. McClurg Court could not be better positioned to meet the demand from the largest and fastest growing segment of renters with rents affordable to those earning 70% to 100% of area median income. McClurg Court serves a dire need while also being opportunistic, given the exceptional unit layouts with prominent LEASED wall-to-wall windows, the world-class Streeterville location and RENT PSF $2.51 exceptional