Twp TransAm Plaza

Offering Memorandum

Two TransAm plazaOakbrook Terrace, IL

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality Agreement

exclusively listedExclusively listed by:

OFFICES NATIONWIDE

www.marcusmillichap.com

John R. Abuja, CCIM, SIOR, NAIOPVice President InvestmentsSenior Director, National Office and Industrial Properties GroupCHICAGO DOWNTOWN OFFICETel: (312) 327-5412Fax: (312) [email protected] License: IL: 471.007675

EXECUTIVE SUMMARYOffering Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Executive Summary of Terms and Bidding Procedures . . . . . . . . . . . 6

PROPERTY DESCRIPTIONRegional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Local Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Aerial Photograph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Property Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Interior Photos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-18

FINANCIAL ANALYSIS Schedule of Prospective Cash Flow . . . . . . . . . . . . . . . . . . . . . 21-22

Expense Reimbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23-24Loan and Debt Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Sources and Uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Assumptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27-28Rent Roll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30-31

COMPETITIVE PROPERTY SETRecent Sales - Add-Value Comparables . . . . . . . . . . . . . . . . . . 34-35Recent Sales - Stabilized Comparables . . . . . . . . . . . . . . . . . . . 36-38Lease Comparables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40-41

MARKET OVERVIEWLocation Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Oakbrook Terrace Market Overview . . . . . . . . . . . . . . . . . . . . 46-57Demographic Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59-61

Table of Contents

summaryE X E C U T I V E S U M M A R Y

EXECUTIVE SUMMARY

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2012 Marcus & Millichap ACT ID U0000000

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TWO TRANSAM PLAZA2 TransAm Plaza

Oakbrook Terrace, IL 60061

OFFERING SUMMARYPrice Subject to Offer

Current Occupancy 46%

Gross Leasable Area (GLA) 117,717 SF

Year Built 1983

Lot Size 5.72 Acres

VITAL DATANet Operating Income - Year 1 $390,728

Net Operating Income - Year 2 $718,959

Financing New

Major Employers Local Employees

Recycle America Alliance LLC 5,500

McDonalds 4,077

Coventry Health Care Workers 4,000

Trinity Hospital 4,000

McDonalds USA LLC 3,000

Hinsdale Hospital 2,470

Elmhurst Memorial Hospital 2,454

MAJOR EMPLOYERS DEMOGRAPHICS

1-Mile 3-Miles 5-Miles

2013 Population 9,765 89,250 261,837

2018 Population 10,022 90,179 264,054

2013 Households 3,985 36,183 99,916

2018 Households 4,186 37145 101,662

Median HH Income $63,185 $72,567 $77,740

Per Capita HH Income $37,929 $41,494 $43,691

Average HH Income $92,751 $101,895 $114,074

Major Employers Local Employees

Employco USA 2 Inc 2,000

Allied Domestic Forwarding LLC 1,938

Advocate Health Care Network 1,925

Ford 1,676

Highway Technologies Inc 1,564

MAJOR EMPLOYERS (CONTINUED)


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EXECUTIVE SUMMARY

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Two TransAm Plaza

Investors should be excited to take advantage of this add-value opportunity in Metropolitan Chicago’s most dynamic suburban office market . This is truly an institutional-class building with promising upside potential in income and cash flow attainable through more focused attention to leasing and operations . Timing is ideal as the Oak Brook and Oakbrook Terrace submarkets are showing positive signs of increased tenant demand and gradually diminishing supply metrics .

Through a strategy of both increasing occupancy from the current 46 percent to the market average of near 87 percent, the leveraged internal rate of return is north of 21 percent . The low current occupancy is due to a confluence of poor timing from expiring leases and the historical downturn . Now that the market is improving, current ownership has decided to allow the next owner the opportunity to restabilize and realize the benefits inherent from doing so in the improving office market . The opportunity is being offered without a list price, and the sale will occur subject to an acceptable bid on or before the call-for-offers date of October 8th, 2014 .

Two TransAm Plaza was originally designed by Solomon, Cordwell, Buenz & Associates and was completed in 1983 . The building has undergone substantial renovations since 2001 which include HVAC, restroom and corridor upgrades, as well as the installation of a new roof . The building has 117,717 of rentable square feet . The building has a central full-height atrium, is accented with three full-service, glass, passenger elevators overlooking the atrium, and is fully sprinklered . This is a Class A/B asset in a Class A market .

Common area improvements include patterned terrazzo flooring on the first floor, a polished-marble elevator bank, and carpeting throughout the remainder of the tenant corridors . The elevator lobbies on floors one through four were remodeled in 2001 with new wall coverings and carpeting . Tenant restrooms have ceramic tile flooring, double sink (men’s)and triple sink (women’s) vanities . Tenant finishes vary, but generally include attractive finishes with carpeted floors, painted and vinyl covered walls, and acoustical drop ceilings with recessed lighting .

Two TransAm Plaza is located in the east/west corridor in the city of Oakbrook Terrace . Oakbrook Terrace is an upscale village in DuPage County in Illinois and the second most significant office submarket in the Chicago metropolitan MSA, second in size and stature only to the Chicago CBD itself . The village ranks among the wealthiest in Illinois and within the United States . Located 19 miles west of the Chicago Loop, Oakbrook

Terrace is served by a network of major federal, state, and county roads, including the Tri-State Tollway (Interstate 294), East-West Tollway (Interstate 88), and the Eisenhower Expressway (Interstate 290) . The village is home to the headquarters of several notable companies and organizations including McDonald’s, Ace Hardware, Blistex, Federal Signal, CenterPoint Properties, Sanford L .P ., and Lions Clubs International .

Investment Highlights■■ Five-Story Atrium with Interior Glass, Glass Elevator Cabs, Covered Drive-Up

Entry

■■ Value-Add Opportunity with Strong Upside Potential. By Increasing Occupancy and Sourcing the Market Rate Debt, buyers can anticipate achieving a 21% Leveraged Internal Rate of Return over a five year holding period.

■■ Available for purchase at a Substantial Discount to Replacement Cost. TransAm Plaza provides Potential Buyers the opportunity to acquire a High Quality Asset at a Substantial Discount Rate, which is estimated to exceed $175.00 per square foot!

■■ On-Site Property Management and Food Service

■■ Energy Star Label in 2010, Key Card Entry, Underground Mechanical Systems

■■ Ample Parking

Investment Overview

EXECUTIVE SUMMARY


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Interest Offered

Leased fee interest in Two Trans Am Plaza, a 117,717-square foot office building located at Two TransAm Plaza, Oakbrook Terrace, IL, 60181 .

Terms of the Sale

Two TransAm Plaza is subject to offers on or before the call For offers date, which is Wednesday October 8th, 2014 . Historic operating documentation, third party reports, and Argus model can be found in the on-line document data portal and is pending signature of a confidentiality agreement .

Property Tours

Prospective purchasers are encouraged to visit the subject property prior to submitting offers . However, all property tours must be arranged with the listing agent, John R . Abuja, of Marcus & Millichap . Please do not contact the tenants, on-site management, or staff without prior approval .

Summary of Terms

Offering Procedure Timeline

TWO TRANSAM TIMELINE

Offer Price The property is being offered subject to an acceptable offer.

General Ownership will be selling the property in an “As-Is-Where-Is” condition.

Due Diligence Due Diligence period shall be thirty (30) days.

Closing Costs Seller will pay for County and State transfer taxes, a basic ALTA title insurance policy, an updated survey, and half of any escrow fees. Buyer will pay for any requested endorsements to the title policy and half of any escrow fees.

Real Estate Taxes Real Estate taxes will be prorated on an accrual basis with Seller responsibility for 2013 taxes payable 2014, and 2014 taxes through day of closing.

Offer Due Date Initial offer bid date will be on October 8th, 2014 with an expected closing by year end 2014.

descriptionP R O P E R T Y D E S C R I P T I O N

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Regional Map

2 TransAm Plaza


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Local Map

2 TransAm Plaza


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THE OFFERING

Property Two TransAm Plaza

Property Address 2 TransAm Plaza Drive

SITE DESCRIPTION

Gross Leasable Area 117,717

Ownership Fee-Simple

Year Built 1983

Number of Stories Five

Parking 454 Surface Spaces

Parking Ratio 4.11 per 1,00 sq ft

TOP

PARCELS

The property consist of 1 tax parcel

APN 06-21-401-008-0000

Acres 5.72

CONSTRUCTION

Foundation Reinforced Concrete

Construction Type Steel

Exterior Walls Double Pane glass and Polished Aluminum Frame

Parking Surface Asphalt, 4.11 per 1,000 sq ft ratio

MECHANICAL

HVAC Mitco Space Gain System

Fire Protection Fully Wet Sprinklered

Elevator Three

Plumbing Copper piping

Walls Drywall with paint or vinyl covering

Ceiling Acoustic Tile

ACCESS POINTS

Highway Access Minutes from I-88, 294 and 355

Property Details

analysisF I N A N C I A L A N A LY S I S

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FINANCIAL ANALYSIS

Scheduled Prospective Cash Flow

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10NOV-2015 NOV-2016 NOV-2017 NOV-2018 NOV-2019 NOV-2020 NOV-2021 NOV-2022 NOV-2023 NOV-2024

Potential Gross Revenue Base Rental Revenue $2,161,679 $2,293,786 $2,332,418 $2,396,226 $2,483,165 $2,633,089 $2,779,062 $2,921,811 $3,025,324 $3,121,294

Absorption & Turnover Vacancy (894,546) (689,977) (297,967) (56,641) (217,774) (115,985) (240,406) (31,922) (42,504)

Base Rent Abatements (24,605) (17,449) (106,024) (27,536) (35,597) (156,001) (146,230) (181,341) (53,358) (63,757)

Scheduled Base Rental Revenue 1,242,528 1,586,360 1,928,427 2,312,049 2,447,568 2,259,314 2,516,847 2,500,064 2,940,044 3,015,033

Expense Reimbursement Revenue

Management Fees 1,129 1,834 2,737 4,175 6,020 6,055 5,751 4,704 5,016 6,414

Compensation 931 1,512 2,259 3,445 4,970 4,998 4,749 3,881 4,141 5,297

Supplies 75 127 188 286 410 411 388 319 343 432

Janitorial 2,899 4,706 7,027 10,723 15,464 15,548 14,775 12,082 12,880 16,481

Contract Services 2,381 3,867 5,773 8,809 12,702 12,773 12,136 9,924 10,580 13,538

Repairs/Maintenance 2,275 3,698 5,520 8,423 12,145 12,217 11,605 9,491 10,117 12,946

Electricity 2,512 4,083 6,093 9,297 13,407 13,484 12,809 10,476 11,170 14,291

Water/Sewer 686 1,114 1,660 2,534 3,658 3,674 3,492 2,856 3,045 3,896

Administrative 346 562 840 1,281 1,846 1,859 1,764 1,444 1,539 1,968

Insurance 141 232 346 527 756 760 723 592 629 808

Real Estate Taxes 3,194 5,188 7,744 11,822 17,045 17,141 16,285 13,320 14,203 18,167

Tax protest 156 252 378 576 830 834 795 650 692 886

Taxes- Licensing & Fees 3 7 7 12 26 22 19 13 18 27

Total Reimbursement Revenue 16,728 27,182 40,572 61,910 89,279 89,776 85,291 69,752 74,373 95,151 Storage 4,560 4,697 4,838 4,983 5,132 5,286 5,445 5,608 5,776 5,950 Parking 48,000 49,440 50,923 Special Assessments 11,604 11,952 12,311 12,680 13,060 13,452 13,856 14,271 14,700 15,141 Total Potential Gross Revenue 1,323,420 1,679,631 2,037,071 2,391,622 2,555,039 2,367,828 2,621,439 2,589,695 3,034,893 3,131,275

General Vacancy (126,979) (191,628) (89,322) (198,089) (195,529)Effective Gross Revenue 1,323,420 1,679,631 2,037,071 2,264,643 2,363,411 2,367,828 2,532,117 2,589,695 2,836,804 2,935,746

Operating Expenses Management Fees 62,895 64,782 66,725 68,727 70,789 72,913 75,100 77,353 79,674 82,064

Compensation 51,912 53,469 55,073 56,726 58,427 60,180 61,986 63,845 65,761 67,733

Supplies 4,264 4,392 4,524 4,659 4,799 4,943 5,091 5,244 5,402 5,564

Janitorial 161,542 166,388 171,380 176,521 181,817 187,271 192,890 198,676 204,637 210,776

Contract Services 132,707 136,688 140,789 145,013 149,363 153,844 158,459 163,213 168,109 173,153

Repairs/Maintenance 126,894 130,701 134,622 138,660 142,820 147,105 151,518 156,064 160,746 165,568 Electricity 140,079 144,281 148,610 153,068 157,660 162,390 167,262 172,280 177,448 182,771 Water/Sewer 38,184 39,330 40,509 41,725 42,976 44,266 45,594 46,962 48,370 49,821

Administrative 19,297 19,876 20,472 21,086 21,719 22,371 23,042 23,733 24,445 25,178

Insurance 7,911 8,148 8,393 8,645 8,904 9,171 9,446 9,730 10,021 10,322

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FINANCIAL ANALYSIS

Scheduled Prospective Cash Flow

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10NOV-2015 NOV-2016 NOV-2017 NOV-2018 NOV-2019 NOV-2020 NOV-2021 NOV-2022 NOV-2023 NOV-2024

Operating Expenses (continued)


Tax protest 8,685 8,946 9,214 9,490 9,775 10,068 10,370 10,681 11,002 11,332


Total Operating Expenses 932,692 960,672 989,493 1,019,177 1,049,752 1,081,246 1,113,684 1,147,094 1,181,508 1,216,952

Net Operating Income 390,728 718,959 1,047,578 1,245,466 1,313,659 1,286,582 1,418,433 1,442,601 1,655,296 1,718,794

Debt Service

Interest Payments 264,955 258,688 252,150 245,329 238,211 230,786 223,038 214,955 206,522

Principal Payments 144,599 150,866 157,404 164,225 171,343 178,768 186,516 194,599 203,032

Total Debt Service 409,554 409,554 409,554 409,554 409,554 409,554 409,554 409,554 409,554

Leasing & Capital Costs

Tenant Improvements 563,250 443,901 1,293,003 183,526 474,577 404,000 1,223,590 110,407 185,339

Leasing Commissions 196,640 155,030 323,331 63,133 163,254 138,977 321,206 37,980 63,757

Total Leasing & Capital Costs 759,890 598,931 1,616,334 246,659 637,831 542,977 1,544,796 148,387 249,096

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Two TransAM Plaza


FINANCIAL ANALYSIS

Expense Reimbursements

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10FOR THE YEARS ENDING NOV-2015 NOV-2016 NOV-2017 NOV-2018 NOV-2019 NOV-2020 NOV-2021 NOV-2022 NOV-2023 NOV-2024

Reimbursable Expenses Management Fees $62,895 $64,782 $66,725 $68,727 $70,789 $72,913 $75,100 $77,353 $79,674 $82,064

Compensation 51,912 53,469 55,073 56,726 58,427 60,180 61,986 63,845 65,761 67,733

Supplies 4,264 4,392 4,524 4,659 4,799 4,943 5,091 5,244 5,402 5,564

Janitorial 161,542 166,388 171,380 176,521 181,817 187,271 192,890 198,676 204,637 210,776 Contract Services 132,707 136,688 140,789 145,013 149,363 153,844 158,459 163,213 168,109 173,153


Electricity 140,079 144,281 148,610 153,068 157,660 162,390 167,262 172,280 177,448 182,771

Water/Sewer 38,184 39,330 40,509 41,725 42,976 44,266 45,594 46,962 48,370 49,821

Administrative 19,297 19,876 20,472 21,086 21,719 22,371 23,042 23,733 24,445 25,178

Insurance 7,911 8,148 8,393 8,645 8,904 9,171 9,446 9,730 10,021 10,322


Tax protest 8,685 8,946 9,214 9,490 9,775 10,068 10,370 10,681 11,002 11,332


Total Reimbursable Expenses $932,692 $960,672 $989,493 $1,019,177 $1,049,752 $1,081,246 $1,113,684 $1,147,094 $1,181,508 $1,216,952

Calendar Year Reimbursable Operating Expenses used for Reimbursement Calculations

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10FOR THE YEARS ENDING DEC-2014 DEC-2015 DEC-2016 DEC-2017 DEC-2018 DEC-2019 DEC-2020 DEC-2021 DEC-2022 DEC-2023

Reimbursable Expenses Management Fees $61,216 $63,052 $64,944 $66,892 $68,899 $70,966 $73,095 $75,288 $77,546 $79,873 Compensation 50,526 52,042 53,603 55,211 56,867 58,573 60,331 62,141 64,005 65,925 Supplies 4,150 4,275 4,403 4,535 4,671 4,811 4,956 5,104 5,257 5,415 Janitorial 157,229 161,946 166,804 171,808 176,963 182,271 187,740 193,372 199,173 205,148 Contract Services 129,164 133,039 137,030 141,141 145,375 149,736 154,228 158,855 163,621 168,530

Repairs/Maintenance 123,506 127,211 131,028 134,958 139,007 143,177 147,473 151,897 156,454 161,147 Electricity 136,339 140,429 144,642 148,981 153,451 158,054 162,796 167,680 172,710 177,892 Water/Sewer 37,165 38,279 39,428 40,611 41,829 43,084 44,376 45,708 47,079 48,491 Administrative 18,782 19,345 19,926 20,523 21,139 21,773 22,426 23,099 23,792 24,506 Insurance 7,700 7,931 8,169 8,414 8,666 8,926 9,194 9,470 9,754 10,046 Real Estate Taxes 173,327 178,527 183,883 189,400 195,081 200,934 206,962 213,171 219,566 226,153 Tax protest 8,453 8,707 8,968 9,237 9,514 9,799 10,093 10,396 10,708 11,029 Taxes- Licensing & Fees 234 241 248 255 263 271 279 287 296 305 Total Reimbursable Expenses $907,791 $935,024 $963,076 $991,966 $1,021,725 $1,052,375 $1,083,949 $1,116,468 $1,149,961 $1,184,460

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FINANCIAL ANALYSIS

Expense Reimbursements


Resulting Fiscal Year Property Expense Reimbursement RevenueReimbursable Expenses

Management Fees $1,129 $1,834 $2,737 $4,175 $6,020 $6,055 $5,751 $4,704 $5,016 $6,414

Compensation 931 1,512 2,259 3,445 4,970 4,998 4,749 3,881 4,141 5,297

Supplies 75 127 188 286 410 411 388 319 343 432

Janitorial 2,899 4,706 7,027 10,723 15,464 15,548 14,775 12,082 12,880 16,481 Contract Services 2,381 3,867 5,773 8,809 12,702 12,773 12,136 9,924 10,580 13,538


Electricity 2,512 4,083 6,093 9,297 13,407 13,484 12,809 10,476 11,170 14,291

Water/Sewer 686 1,114 1,660 2,534 3,658 3,674 3,492 2,856 3,045 3,896

Administrative 346 562 840 1,281 1,846 1,859 1,764 1,444 1,539 1,968

Insurance 141 232 346 527 756 760 723 592 629 808


Tax protest 156 252 378 576 830 834 795 650 692 886


Total Reimbursable Expenses $16,728 $27,182 $40,572 $61,910 $89,279 $89,776 $85,291 $69,752 $74,373 $95,151

Percentage of Reimbursable Expenses Collected as Expense Reimbursement


Reimbursable Expenses Management Fees 1.80% 2.83% 4.10% 6.07% 8.50% 8.30% 7.66% 6.08% 6.30% 7.82%

Compensation 1.79% 2.83% 4.10% 6.07% 8.51% 8.31% 7.66% 6.08% 6.30% 7.82%

Supplies 1.76% 2.89% 4.16% 6.14% 8.54% 8.31% 7.62% 6.08% 6.35% 7.76%

Janitorial 1.79% 2.83% 4.10% 6.07% 8.51% 8.30% 7.66% 6.08% 6.29% 7.82% Contract Services 1.79% 2.83% 4.10% 6.07% 8.50% 8.30% 7.66% 6.08% 6.29% 7.82%

Repairs/Maintenance 1.79% 2.83% 4.10% 6.07% 8.50% 8.30% 7.66% 6.08% 6.29% 7.82%

Electricity 1.79% 2.83% 4.10% 6.07% 8.50% 8.30% 7.66% 6.08% 6.29% 7.82%

Water/Sewer 1.80% 2.83% 4.10% 6.07% 8.51% 8.30% 7.66% 6.08% 6.30% 7.82%

Administrative 1.79% 2.83% 4.10% 6.08% 8.50% 8.31% 7.66% 6.08% 6.30% 7.82%

Insurance 1.78% 2.85% 4.12% 6.10% 8.49% 8.29% 7.65% 6.08% 6.28% 7.83%

Real Estate Taxes 1.79% 2.83% 4.10% 6.08% 8.50% 8.30% 7.66% 6.08% 6.30% 7.82%

Tax protest 1.80% 2.82% 4.10% 6.07% 8.49% 8.28% 7.67% 6.09% 6.29% 7.82%

Taxes- Licensing & Fees 1.25% 2.83% 2.75% 4.58% 9.63% 7.91% 6.62% 4.41% 5.92% 8.63%

Total Reimbursable Expenses 1.79% 2.83% 4.10% 6.07% 8.50% 8.30% 7.66% 6.08% 6.29% 7.82%

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Two TransAM Plaza


FINANCIAL ANALYSIS

Individual Loan and Debt Service Summary

Loan No. 1 – New Debt

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9FOR THE YEARS ENDING NOV-2015 NOV-2016 NOV-2017 NOV-2018 NOV-2019 NOV-2020 NOV-2021 NOV-2022 NOV-2023

Minimum Debt Service Interest Payments $264,955 $258,688 $252,150 $245,329 $238,211 $230,786 $223,038 $214,955 $206,522

Principal Payments 144,599 150,866 157,404 164,225 171,343 178,768 186,516 194,599 203,032

Total Minimum Debt Service 409,554 409,554 409,554 409,554 409,554 409,554 409,554 409,554 409,554

Reductions & Retirement

Principal Balloon or Call 4,748,649

Total Reductions & Retirement 4,748,649

Total Cash Flow Paid To Lender $409,554 $409,554 $409,554 $409,554 $409,554 $409,554 $409,554 $409,554 $5,158,203

Principal Balance Summary

Beginning Principal Balance $6,300,000 $6,155,401 $6,004,535 $5,847,131 $5,682,906 $5,511,563 $5,332,795 $5,146,280 $4,951,681

Periodic Principal Reductions (144,599) (150,866) (157,404) (164,225) (171,343) (178,768) (186,516) (194,599) (203,032)

Principal Balloon Payments (4,748,649)

Ending Principal Balance $6,155,401 $6,004,535 $5,847,131 $5,682,906 $5,511,563 $5,332,795 $5,146,279 $4,951,681

Interest Rates

Interest Rate on Principal 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25%

Cash Flow Coverage Ratios

Cash to Total Interest Charged 147.47% 277.93% 415.46% 507.67% 551.47% 557.48% 635.96% 671.12% 801.51%Cash to Minimum Debt Service 95.40% 175.55% 255.79% 304.10% 320.75% 314.14% 346.34% 352.24% 404.17%

Loan To Value Ratios

Loan to Purchase Price 70.00% 68.39% 66.72% 64.97% 63.14% 61.24% 59.25% 57.18% 55.02% Loan to Capitalized Value 124.96% 66.35% 44.42% 36.38% 33.53% 33.20% 29.14% 27.65% 23.18% Loan to Lowest Present Value 73.67% 71.98% 70.22% 68.38% 66.46% 64.45% 62.36% 60.18% 57.91%

Loan to Highest Present Value 54.09% 52.85% 51.56% 50.20% 48.79% 47.32% 45.79% 44.19% 42.52%

Lenders Yields (IRR)

Base Yield to Maturity 4.25%

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FINANCIAL ANALYSIS

Sources and Uses

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9FOR THE YEARS ENDING NOV-2015 NOV-2016 NOV-2017 NOV-2018 NOV-2019 NOV-2020 NOV-2021 NOV-2022 NOV-2023

Sources Of Capital Net Operating Gains $390,728 $718,959 $1,047,578 $1,245,466 $1,313,659 $1,286,582 $1,418,433 $1,442,601 $1,655,296

Debt Funding Proceeds 6,300,000

Initial Equity Contribution 2,700,000 Net Proceeds from Sale 22,177,987

Defined Sources Of Capital 9,390,728 718,959 1,047,578 1,245,466 1,313,659 1,286,582 1,418,433 1,442,601 23,833,283

Required Equity Contributions 778,716 289,526 978,310 511,749

Total Sources Of Capital $10,169,444 $1,008,485 $2,025,888 $1,245,466 $1,313,659 $1,286,582 $1,418,433 $1,954,350 $23,833,283

Uses Of Capital

Property Purchase Price $9,000,000 Total Debt Service 409,554 409,554 409,554 409,554 409,554 409,554 409,554 409,554 409,554

Tenant Improvements 563,250 443,901 1,293,003 183,526 474,577 404,000 1,223,590 110,407

Leasing Commissions 196,640 155,030 323,331 63,133 163,254 138,977 321,206 37,980

Retirement & Penalties 4,748,649

Defined Uses Of Capital 10,169,444 1,008,485 2,025,888 656,213 409,554 1,047,385 952,531 1,954,350 5,306,590

Cash Flow Distributions 589,253 904,105 239,197 465,902 18,526,693

Total Uses Of Capital $10,169,444 $1,008,485 $2,025,888 $1,245,466 $1,313,659 $1,286,582 $1,418,433 $1,954,350 $23,833,283

Unleveraged Cash On Cash Return Cash to Purchase Price -4.10% 1.33% -6.32% 11.10% 14.60% 7.21% 9.73% -1.14% 16.74%

NOI to Book Value 4.00% 6.94% 8.75% 10.19% 10.75% 10.00% 10.58% 9.65% 10.97%Cash to Purchase Price & Costs -4.10% 1.33% -6.32% 11.10% 14.60% 7.21% 9.73% -1.14% 16.74%

Leveraged Cash On Cash Return -28.84% -10.72% -36.23% 21.82% 33.49% 8.86% 17.26% -18.95% 40.64%

Cash to Initial Equity

Unleveraged Annual IRR 13.33%Leveraged Annual IRR 20.80%

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FINANCIAL ANALYSIS

Assumptions

Property Timing

Property Operating Parameters

Start of Analysis December 2014

End of Analysis November 2023

Analysis Period Nine Years

MARKET RENTS

Square Feet Per Year $18.50

Lease Type Base Years

GROWTH RATES:

New Rents $18.50 per Sq Ft

Year 1 $18.50 per Sq Ft



Year 4 3% Annual Increases

Operating Expenses 3.00%

Real Estate Taxes 3.00%

OPERATING EXPENSES (YEAR 1):

Real Estate Taxes $178,082

Insurance $7,911

CAM 683,804

Management Fee $62,895

Total Operating Expenses $932,692

Amount Reimbursed by Tenants $16,948

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FINANCIAL ANALYSIS

Assumptions

MARKET LEASING ASSUMPTIONS NEW TENANTS RENEWAL TENANTS

Renewal Probability 75% 75%

Market Rent (SF/YR) $18.50 per square foot $18.50 per square foot

Downtime 6 months 6 months

Tenant Improvements $25.00 per square foot $12.50 per square foot

Leasing Commissions $8.75 per square foot $4.25 per square foot

Rent Escalation 50 cents per year 50 cents per year

Lease Term 5 years 5 years

Lease Type Base Stop Base Stop

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FINANCIAL ANALYSIS

Rent Roll - Confidentiality Agreement

This will serve to confirm our agreement concerning cer-tain material, data and information (herein “Evaluation Material”) which we will make available to you for study in connection with a possible purchase.

We are prepared to furnish you with the Evaluation Material in connection with discussions and negotiations concerning a possible transaction involving the Property only on the condition that you treat such Evaluation Material confidentially as detailed below and confirm cer-tain representations to us. Therefore, as a prerequisite to us furnishing to you the Evaluation Material, you hereby represent and agree as follows:

1. The Evaluation Material furnished to you will be used by you solely for the evaluating a possible transaction exclusively for your own account as a principal in this transaction. Therefore, you agree to keep all Evaluation Material strictly confidential; provided, however, that any such Evaluation Material may be disclosed to your direc-tors, officers, employees, lawyers, accountants and lenders (“Representatives”) who need to know such information for the purpose of assisting you with your possible purchase of the Property. Such Representatives shall be informed by you of the confidential nature of such information, shall be directed by you to treat such information with strict confidence and shall agree to be bound by the provisions of this agreement. You are liable for any Representatives breach of this agreement.

You will not, and will cause your Representatives to not, copy or duplicate the Evaluation Material (except that you may copy Evaluation Material for your Representatives). You will return, and will cause your Representatives to re-turn, the Evaluation Material to us promptly if you decide not to go forward with discussions or if return is requested by us. You agree that we have no adequate remedy at law if you violate any terms of this agreement. In such event, we will have the right, in addition to any other right we may have, to seek injunctive relief to restrain any breach or threatened breach by you or your Representatives of this agreement.

Although we have endeavored, for your convenience, to include in the Evaluation Material information which we

believe to be relevant for the purpose of helping you in your evaluation of the Property for possible purchase, you understand and acknowledge that we make and have made no representation or warranty to you as to the accuracy or completeness of the Evaluation Material and have made no attempt to verify the data contained therein. You agree that we will not have any liability to you as a result of your use of the Evaluation Material and it is understood that you are expected to perform your own studies and are re-sponsible for such diligence investigations and inspections of the Property, including investigation of any environ-mental conditions, as you deem necessary of desirable and as permitted by agreement with us.

2. Your obligations to keep the Evaluation Material confi-dential shall not include information that: (i) is or becomes publicly available other than as a result of acts by you or your Representatives in breach of this agreement; or (ii) your counsel’s advise must be disclosed pursuant to a sub-poena or other court order, but only to the extent specified in such subpoena or court order; provided prior to comply-ing with any such order you shall give written notice to us that such demand has been made upon you and to the extent not legally prohibited you shall provide us with an opportunity to contest any such direction or order. 3. That Seller expressly reserves the right, at their sole discretion, to withdraw property from the market, modify seller’s marketing plan or to reject any and all expressions of interest or offers to purchase the Property and/or to terminate discussions with any entity at any time with or without notice. Seller has no legal commitment or obli-gation to any entity reviewing the Evaluation Material or making any offer to purchase unless and until a written purchase and sales agreement has been executed and all obligations thereunder satisfied or waived.

4. Broker shall assist in presenting any offer to acquire such property and in negotiating the terms of any such acquisi-tion. Buyer understands that Agent may have presented the subject property to multiple buyers. Broker shall not, however, have authority to bind you to any contract or agreement. Additionally, Broker shall not be responsible for performing any due diligence or other investigation

of any property, or for providing professional advice with respect to any legal, tax, engineering, construction or haz-ardous materials issues. Except for information regarding your personal financial condition and the negotiations of the terms of a purchase agreement between you and Seller, you agree that the relationship with the Broker is at arm’s length and is neither confidential nor fiduciary in nature. Both you and Broker agree not to take any action which would deny the other the benefits of this Agreement.

5. It is expressly understood that any contact with any ten-ants of the subject property; or with property management is prohibited. Property showings are by appointment only. This agreement expresses the entire agreement of the par-ties and supersedes any and all previous agreements between the parties with regard to the subject matter hereof. There are no other understandings, oral or written, which in any way alter or enlarge its terms, and there are no warranties or representations of any nature whatsoever, either expressed or implied, except as set forth herein. Any future modification of this Agreement will be effective only if it is in writing and signed by the party to be charged.

ACCEPTED AND AGREED to this ___ Day of _____________, 2014

________________________________________(Signature of Principal)

By: ______________________ Title:___________Company:__________________________________Address:____________________________________City: __________________ State: ___ Zip:_______Phone: ______________ Fax:____________________Email: _____________________________________

__________________________________________(Signature of Broker)By: John R. Abuja Title: Vice President InvestmentsCompany: Marcus & MillichapAddress: 333 West Wacker Drive, Suite #100City: Chicago State: IL Zip: 60606Phone: 312.327.5412 (direct) Fax: 312.327.5410Email: [email protected]

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Two TransAM Plaza


FINANCIAL ANALYSIS

Rent Roll

Rent Roll, Stacking Plan and Floor Plans Available Upon Submission of Executed Confidentiality Agreement

competitiveC O M P E T I T I V E P R O P E R T Y S E T

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COMPETITIVE PROPERTY SET

1 2000 Clearwater Drive 2000 Clearwater Drive, Oak Brook, IL, 60523

COMMENTS:

2 1717 Park Street 1717 Park Street, Naperville, IL, 60563

COMMENTS:

Recent Sales - Unstabilized Assets

Two TransAm Plaza (Subject Property) 2 TransAm Plaza Drive, Oak Brook Terrace, IL 60181

COMMENTS: Subject Property

Sales Price: Undisclosed

Percent Down: 30%

Gross Leasable Area (GLA): 117,717

Occupancy: 46%

Year Built: 1983

Close of Escrow: 1/30/2012

Sales Price: $10,000,000

Percent Down: n/a

Cap Rate: Vacant

Price/SF: $50.44


Occupancy: 0%

Year Built: 1971



Percent Down: 30%

Cap Rate: 10.9%

Price/SF: 50.19


Occupancy: 70%

Year Built: 1986

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Two TransAm Plaza




3 Woodland Corporate Tower - Woodlake Corporate Park 1333 Butterfield Road, Downers Grove, IL, 60515

COMMENTS:

Recent Sales - Unstabilized Assets



Percent Down: 100%

Cap Rate: 8.5%

Price/SF: $62.63


Occupancy: 39%

Year Built: 1984

4 711 Jorie Boulevard 711 Jorie Boulevard, Oak Brook, IL, 60523

COMMENTS: Class B building. Seller vacated 50% of the building at closing.


Percent Down: n/a

Cap Rate: Undisclosed

Price/SF: $61.08


Sales Occupancy: 96%

Year Built: 1980

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1 Corporate Lakes IV 2275 Cabot Drive, Lisle, IL, 605

COMMENTS: Class A Construction

2 750 Commons Drive 750 Commons Drive, Aurora, IL, 60504

COMMENTS: Net leased to Westell through September 2017

Recent Sales - Stabilized Assets



Sales Price: Subject to Bid

Percent Down: 30%


Occupancy: 46%

Year Built: 1983


Percent Down: n/a

Cap Rate: 7.9%

Price/SF: $187.55


Occupancy: 100%

Year Built: 1996


Percent Down: n/a

Cap Rate: 14.0%

Price/SF: $140.69


Occupancy: 100%

Year Built: 1996

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Two TransAm Plaza




3 Allstate Building 9022 Heritage Parkway, Woodridge, IL, 60517

COMMENTS: 16,330 Square Feet available for sublease at $16.00 per square foot (gross)

4

Recent Sales Map - Stabilized Assets


Percent Down: n/a

Cap Rate: 7.2%

Price/SF: $141.76


Occupancy: 100%

Year Built: 2002

1818 Swift Drive 1818 Swift Drive, Oak Brook, IL, 60523

COMMENTS: Class B building


Percent Down: n/a

Cap Rate: User Sale

Price/SF: $91.45


Occupancy: 100%

Year Built: 1974

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5 300-310 Windsor Drive 300-310 Windsor Drive, Oak Brook, IL, 60523

COMMENTS: Buyer was the major tenant of the building

6 Westings Corporate Center 2056 Westings Center, Naperville, IL, 60563

COMMENTS: Arms-length investment sale

Recent Sales Map - Stabilized Assets


Percent Down: n/a

Cap Rate: User Sale

Price/SF: $104.93


Occupancy: 100%

Year Built: 1969


Percent Down: n/a

Cap Rate: 9.6%

Price/SF: $154.28

Gross Leasable Area (GLA): 176.631

Occupancy: 95%

Year Built: 154.28

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Two TransAm Plaza




4

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Rent Comparables

2 TransAm Plaza (Subject)

1 Oakbrook Office Center

2 600 Enterprise Drive

3 915 Harger

4 Oak Creek Center

5 Oakmont Corporate Center I

Rent Comparables

2 TransAm Plaza

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1 Oak Brook Office Center 2805 Butterfield Road, Oak Brook, IL 60523

2 600 Enterprise Drive 600 Enterprise Drive, Oak Brook, IL 60523

Rent Comparables

Date Surveyed: 9/5/2014

Occupancy: 46%

Rent/SF: $18.50


Available SF: 55,493

Year Built: 1983

Lot Size: Will fill this out

Lease Type: Modified Gross


Occupancy: 95%

Rent/SF: $20.00


Available SF: 2,256

Year Built: 1980



Occupancy: 91%

Rent/SF: $20.00


Available SF: 3,571

Year Built: 1970


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Two TransAm Plaza




3 915 Harger 915 Harger, Oak Brook, IL 60523

4 Oak Creek Center 1000-1070 Oak Creek Drive, Lombard, IL 60148

5 Oakmont Corporate Center I 900 Oakmont Lane, Westmont, IL 60559

Rent Comparables


Occupancy: 64%

Rent/SF: $20.00



Year Built: 1973/1994



Occupancy: 42%

Rent/SF: $18.75



Year Built: 1998



Occupancy: 42%

Rent/SF: $18.50



Year Built: 1985


overviewM A R K E T O V E R V I E W

MARKET OVERVIEW

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Oakbrook Terrace Overview

Oakbrook Terrace, Illinois is located in central DuPage County approximately 17 miles west of Chicago . For the business community, it boasts easy access to four major interstate highways, (I-55, I-88, I-290, I-294 and I-355), providing convenient access to downtown Chicago, O’Hare International and Midway Airports, and to the sur-rounding region .

Prestigious residential areas, sophisticated shopping, and a distinctive commercial district make this location one of the most desirable in the country . Oakbrook Terrace is the home to over 4,000,000 square feet of Office Development . Oakbrook Terrace is one of the premier addresses for corporations and families within the Chicago metropolitan area . The corporate headquarters for several high-profile corporations such as McDonald’s, Ace Hardware, Federal Signal Corporation, Blistex, Lions Club International, and the Radiology Society of North America take residence in Oakbrook Terrace . The city is also the location for The Chicago Automobile Trade Association, the largest Automobile Trade Association in America and the thirty-one story Oakbrook Terrace Tower, the tallest office building west of downtown Chicago to the Rocky Mountains . Residents benefit from having world-class medical care and some of the best schools in Illinois nearby .

MARKET OVERVIEW

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MARKET OVERVIEW

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Forest Square



Chicago

LakeMichigan

LakeCalumet

Sanit

ary an

d Ship

LittleCalumet

River

Chicago O'HareInternational Airport

Chicago Meigs Field

Chicago MidwayAirport

LansingMunicipal

Airport

JolietPark

DistrictAirport

Clow Airport

GlenviewNaval

Air Station

Pal-WaukeeAirport

Fermi NationalAcceleratorLaboratory

Fort SheridanUSMR

DycheStadium

Chicago Historical Society

Navy Pier

Lincoln Park Zoo

WrigleyField

ArgonneNational

Laboratory

Univ. ofChicago

Chicago Stadium

HawthorneRace Course

Brook�eldZoo

CampbellAirport

GaltAirport

Lake in theHills Airport

MARQUETTEPARK

HUMBOLDTPARK

GRANTPARK

BURNHAMPARK

JACKSONPARK

LINCOLNPARK

EvergreenPark

Oak Lawn

Orland Park

Frankfort

TinleyPark

Burbank

Summit

Riverdale

LockportPlainfield

Montgomery

NorthAurora

Geneva

St.Charles

WestChicago

Romeoville

Woodridge

WheatonWinfield

Warrenville Lisle

GlenEllyn

DownersGrove

Algonquin

Lake inthe Hills

IslandLake

PrairieGrove

Wauconda LakeForest

HighlandPark

Winnetka

Wilmette

Buffalo Grove

Northbrook

GlenviewEvanston

ChicagoHeights

CountryClubHills

Markham

RoundLake

Round LakePark

GagesLake

Hainesville

GreenOaksLibertyville Lake

Bluff

VernonHills

WonderLake

Lakemoor

BullValley

Cicero

Naperville

SouthElgin

Schaumburg

ArlingtonHeights

Mount ProspectDes

Plaines Skokie

Joliet

Mchenry

CrystalLake

Grayslake

Mundelein

NorthChicago

CHICAGO

WILL CO

CO

OK

CO

DU PAGE CO

COOK CODU PAGE CO

KANE CO

MC HENRY CO

ILLI

NO

IS

IND

IAN

A

94

94

9090

90

55

55

55

80

80

80

88355

88

294

80294 80

94

294

9457

90

90

90/94

290

290

290

294

294

Forest SquARE

Market Highlights

Third Largest Metropolitan Area in the Nation

■■ The Chicago metro population trails only New York City and Los Angeles in size .

Wealth of Intellectual Capital

■■ The number of corporate headquarters in Chicago is second only to New York City .

Large, Diverse Employment Base

■■ Chicago’s workforce of more than 4 .3 million individuals is employed in an array of industries .

GeographyThe greater Chicagoland area, bounded to the east by Lake Michigan, expands over a 5,000-square- mile region in northeastern Illinois . The city of Chicago is generally flat, with the Chicago and Calumet rivers running through the municipality . North of the city are steep bluffs and ravines traversing along Lake Michigan . Along the lake south of the city and into Indiana are sand dunes . The greatest growth in the Chicago metro over the past 20 years occurred in the western region . This area, with its flat terrain and fertile soil, has historically been dominated by agricultural uses . Year after year, developers continue to acquire farmland and convert it to commercial and residential uses .

MARKET OVERVIEW

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MARKET OVERVIEWE

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Chicago

MetroThe Chicago metro encompasses a 13-county region with more than 300 incorporated municipalities and a population of more than 9 .5 million . While the CBD provides amenities common in large cities, the suburbs offer family-oriented neighborhoods . As a result, more than 40 percent of Illinois residents live in the suburbs of Chicago .

InfrastructureChicago’s transportation and technology infrastructures rank among the largest and most efficient in the world . These systems connect the region to global markets . An extensive interstate and highway network helps make the area a leading intermodal distribution point . Most major rail freight carriers pass through the city, with some connecting to the Port of Chicago . Several Amtrak passenger routes originate from Union Station located in the downtown area .

Metra provides commuter-rail service throughout the area, and the Chicago Transit Authority operates the bus network and the Chicago L, the elevated light rail . PACE is the suburban bus system .

The region has three international airports - O’Hare, one of the world’s busiest airports; Midway; and Gary/Chicago - as well as seven smaller general aviation facilities, that provide air service .

AIRPORT

■■ O’Hare International Airport

■■ Midway International Airport

■■ Gary/Chicago International Airport

MAJOR ROADWAYS

■■ Interstates 43, 55, 57, 80, 88, 90, 94, 190, 290, 294 and 355

RAIL

■■ Freight - BNSF, Union Pacific, CSX, Norfolk Southern

■■ Passenger - Amtrak, Metra

■■ Commuter - Chicago L

CITY IS:

■■ 86 miles from Milwaukee

■■ 238 miles from Detroit

■■ 409 miles from Minneapolis

■■ 790 miles from New York City

LARGEST COUNTIES: CITYChicago 2,717,100

Aurora 200,700

Joliet 148,300

Naperville 143,000

Elgin 109,700

Kenosha 100,100

2011 Estimate Sources: Marcus & Millichap Research Services, AGS

MARKET OVERVIEW

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MARKET OVERVIEW

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Forest Square



EconomyThe Chicago metro’s economy is one of the largest in the nation, and is growing 1 .8 percent per year . Although its economy bowed under pressures of the recession, GMP and retail sales are rising again as local conditions improve, though lag the national rate .

The region’s greatest strength lies in its diversification, which helps the area weather downturns in specific industries as other sectors counterbalance their impact .

Chicago’s centralized location, educated work force and relatively affordable cost of living, compared to the coasts, attract many businesses . Today, 29 Fortune 500 companies are headquartered in the metro in industries ranging from finance to manufacturing .

Chicago maintains a large concentration of financial companies, given its status as the headquarters of the seventh district of the Federal Reserve, the Chicago Board of Trade and the Chicago Mercantile Exchange .

The city also is a major global convention destination, as McCormick Place is one of the largest meeting facilities in the world, attracting a variety of trade shows and exhibitions .

Chicago has a bright, long-term outlook underpinned by its exports, streamlined manufacturing operations and growing high-tech sector .

Chicago

MARKET OVERVIEW

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MARKET OVERVIEW

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technology and biotech components of the region’s economy .

The greatest driver of diversification, however, is a surge in the local business services sector . Throughout the 1990s, Chicago was one of the nation’s leaders in business-services job growth . The professional and business services sector now comprises 17 percent of total metro employment and will expand by 2 percent annually through the next five years .

Chicago has long been a trade and transportation center of the Midwest . It contains three international airports, major port facilities with access to the Great Lakes, a large rail hub, and a network of roadways, all of which make transportation of goods economical . Trade, transportation and utilities is the largest job sector, with 20 percent of the work force . Growth of 1 .2 percent annually is projected over the next five years .

LaborChicago boasts a nearly 4 .5 million person work force that is considered one of the most diverse and well-trained of any U .S . city . A vast array of highly ranked educational institutions will provide a constant pool of talented employees to the local work force . The labor pool will increase at an annual rate of 1 .8 percent over the next five years with the addition of more than 400,000 jobs . Over the past 30 years, Chicago successfully decreased its reliance on manufacturing; traditional manufacturers accounted for nearly 30 percent of the work force in 1970 but account for only 10 percent today . The movement from traditional manufacturing toward high-tech industries bolstered the

Chicago

CHANGE IN EMPLOYMENT MAP

MARKET OVERVIEW

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MARKET OVERVIEW

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EmployersChicago’s deep labor pool, intellectual capabilities, access to capital markets, and mature infrastructure have attracted and retained some of the most revered corporations in the world . Chicago serves as the headquarters for 29 Fortune 500 companies .

The trade, transportation and utilities sector is the largest employer in Chicago, with United Continental Holdings, Exelon and Walgreens all based locally .

Chicago’s financial services segment is buoyed by a large commercial banking industry that contains more than 300 banks, including the headquarters of several large financial institutions . The presence of the Chicago Mercantile Exchange, Chicago Board of Trade, Chicago Stock Exchange and Chicago Board Options Exchange underscores the city’s financial stature .

While major corporations abound, Chicago’s entrepreneurial and small-company community accounts for most of its economic makeup . Chicago is home to one of the nation’s largest biotech incubators and several scientific institutions . The metro’s technical infrastructure, access to venture capital, and presence of major firms such as Motorola and Abbott Labs provide fertile ground for this rapidly expanding industry .

City

EMPLOYMENT PIE CHART

Abbott Labs

Advocate Healthcare

Walmart

Motorola Inc.

United Continental Holdings,

Inc.

Allstate Corp.

Walgreens

Target

J.P. Morgan Chase & Co.

AT&T

MAJOR EMPLOYERS

MARKET OVERVIEW

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DemographicsMore than 9 .5 million people live in the Chicago area, making it the third most populous metropolitan area in the country . Like many other Midwestern and Northeastern metros, the ongoing population shift from north to south continues to challenge the metro . As a result, population growth over the next five years in Chicago will lag the national average . Looking ahead, increased job creation will attract new residents to the region, boosting population . Over the past decade, the western suburbs recorded the largest population gains, particularly in Aurora, Naperville and Joliet . Renewed urbanism is playing a major role in growth within the city of Chicago, as young professionals and empty-nesters return to the urban core . An influx of young workers and an exodus of retirees have lowered the median age in the metro to less than the national rate .

Job opportunities attract and retain highly educated people in the area . More than 33 percent of residents over the age of 25 have attained at least a bachelor’s degree, compared with less than 28 percent nationwide . In addition, 13 percent have gone on to receive a graduate or professional degree . Top-ranked institutions, such as the University of Chicago, Northwestern University, Loyola University and DePaul, will continue to supply a skilled labor pool .

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The educated work force has pushed up the median household income in the region to about $62,000 per year, with an average annual rise of more than 2 percent projected through the next five years . High incomes have afforded 59 percent of residents to own their homes .

Quality of LifeChicago, dubbed the “Second City,” has something to offer to every one of its residents and visitors, whether it is legendary blues and jazz music, cultural and educational venues, professional sports, dining, entertainment, shopping, or recreational amenities .

Chicago’s relative affordability is largely due to its lower home prices . The median home price of $180,000 is significantly less than prices in other cities of its size and is below that of many smaller cities, including Seattle and Denver .

Cultural activities and venues underpin the city’s cosmopolitan lifestyle . Chicago is home to 70 museums, including the world-class Field Museum, Shedd Aquarium, Art Institute of Chicago and Adler Planetarium . The theater scene rivals the world’s best, with many troupes, dance companies, symphony orchestras, and music venues are abundant .

With Chicago’s four-season climate, the outdoor enthusiast can still enjoy an abundance of activities year round . Chicago’s amenities include numerous beaches along its 29-mile shoreline, the nation’s largest harbor system, and an elaborate lakefront and neighborhood park system perfect for jogging and biking .

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Demographic Summary

Income 1-Mile 5-Miles 10-Miles$ 0 - $ 14,999 7.1% 6.4% 6.0%$ 15,000 - $24,999 7.8% 8.2% 7.4%$ 25,000 - $34,999 10.7% 7.6% 7.4%$ 35,000 - $49,999 14.4% 10.7% 10.3%$ 50,000 - $74,999 21.0% 18.8% 17.2%$ 75,000 - $99,999 10.4% 14.4% 13.8%$100,000 - $124,999 12.4% 12.2% 11.9%$125,000 - $149,999 6.0% 7.5% 7.7%$150,000 - $200,000 3.1% 6.3% 7.5%$200,000 to $249,999 2.4% 2.7% 3.8%$250,000 + 4.8% 5.2% 7.0%2013 Median HH Income $63,185 $72,567 $77,7402013 Per Capita Income $37,929 $41,494 $43,6912013 Average HH Income $92,751 $101,895 $114,074

Population 1-Mile 3-Miles 5-Miles2000 Population 9,875 89,599 258,2332010 Population 9,504 87,562 257,8232013 Population 9,764 89,250 261,8372018 Population 10,022 90,179 264,054

Households 1-Mile 5-Miles 10-Miles2000 Households 3,673 34,373 97,1232010 Households 3,883 35,443 98,2132013 Households 3,985 36,183 99,9162018 Households 4,186 37,145 101,6622013 Average HH Size 2.38 2.44 2.592013 Daytime Population 15,510 108,243 205,1552000 Median Housing Value $168,848 $169,400 $198,9092000 Owner Occupied Housing Units 68.65% 73.69% 76.30%2000 Renter Occupied Housing Units 28.97% 22.48% 20.85%2000 Vacant 4.62% 3.51% 3.16%2013 Owner Occupied Housing Units 60.96% 71.74% 75.43%2013 Renter Occupied Housing Units 39.04% 28.26% 24.57%2013 Vacant 9.14% 5.59% 4.82%2018 Owner Occupied Housing Units 60.35% 70.92% 74.92%2018 Renter Occupied Housing Units 39.65% 29.08% 25.08%2018 Vacant 9.78% 6.00% 5.13%

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Demographic Summary

PopulationIn 2013, the population in your selected geography was 261,837 . The population has changed by 1 .39% since 2000 . It is estimated that the population in your area will be 264,054 five years from now, which represents a change of 0 .84% from the current year . The current population is 48 .4% male and 51 .5% female . The median age of the population in your area is 40 .9, compare this to the U .S . average which is 37 . The population density in your area is 3,404 .26 people per square mile .

Households There are currently 99,916 households in your selected geography . The number of households has changed by 2 .87% since 2000 . It is estimated that the number of households in your area will be 101,662 five years from now, which represents a change of 1 .74% from the current year . The average household size in your area is 2 .58 persons .

Income $53,535 . The median household income for your area has changed by 17 .28% since 2000 . It is estimated that the median household income in your area will be $93,477 five years from now, which represents a change of 20 .24% from the current year . The current year per capita income in your area is $43,691, compare this to the U .S . average, which is $28,888 . The current year average household income in your area is $114,074, compare this to the U .S . average which is $75,373 .

Race and Ethnicity The current year racial makeup of your selected area is as follows: 82 .28% White, 5 .00% African American, 0 .18% Native American and 7 .34% Asian/Pacific Islander . Compare these to U .S . averages which are: 72 .20% White, 12 .65% African American, 0 .96% Native American and 5 .01% Asian/Pacific Islander . People of Hispanic origin are counted independently of race . People of Hispanic origin make up 10 .01% of the current year population in your selected area . Compare this to the U .S . average of 16 .55% .

Housing The median housing value in your area was $198,909 in 2000, compare this to the U .S . average of $110,781 for the same year . In 2000, there were 76,507 owner occupied housing units in your area and there were 20,908 renter occupied housing units in your area . The median rent at the time was $741 .

Employment In 2013, there are 205,155 employees in your selected area, this is also known as the daytime population . The 2000 Census revealed that 76 .1% of employees are employed in white-collar occupations in this geography, and 23 .8% are employed in blue-collar occupations . In 2013, unemployment in this area is 4 .26% . In 2000, the median time traveled to work was 24 .3 minutes .

Geography: --- 5 Miles

Demographic data © 2010 by Experian/Applied Geographic Solutions.

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John R. Abuja, CCIM, SIOR, NAIOPVice President InvestmentsSenior Director, National Office and Industrial Properties GroupCHICAGO DOWNTOWN OFFICETel: (312) 327-5412Fax: (312) [email protected] License: IL: 471.007675

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