Ameritus Real Estate Fund Webinar

OFFERING

MEMORANDUMby

Ameritus Real Estate Fund

Chicago, IL

An Office Property Fundacquisitions by Ameritus LLC

www.askameritus.com

DISCLAIMER


The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended

to be reviewed only by the party receiving it from PeerRealty, LLC and should not be made available to any other

person or entity without the written consent of PeerRealty, LLC. This Marketing Brochure 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. PeerRealty, LLC 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, PCB’s or asbestos, the compliance with 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

Marketing Brochure has been obtained from sources we believe to be reliable; however, PeerRealty, LLC has not

verified, and will not verify, any of the information contained herein, nor has PeerRealty, LLC 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.

This information is proprietary and strictly confidential, and is intended to be reviewed only by the party receiving it from Peer Realty, LLC. It should

not be made available to any other person or entity without the written consent of Peer Realty, LLC. This presentation has been prepared to provide

summary information to prospective investors, and the information contained herein is not a substitute for a thorough due diligence investigation.


8PROPERTIESACQUIRED

In Chicago’s River North,

West Loop and North

Shore market.

14-16% PROJECTED

IRR

$10-$50MTARGETED

COSTof each additional property

to be acquired by Fund.





This is an opportunity to invest in a sponsor co-invest fund that currently holds

over a half-dozen office properties in Chicago’s River North, West Loop and North

Shore markets. The fund is managed by a highly sophisticated institutional group,

and offers significant value-add upside.

Executive summary





Ameritus, LLC (“Ameritus” or the “Firm”) is seeking equity commitments from investors to capitalize Ameritus

Real Estate Fund, LP (the “Fund”). The Fund offers investors the opportunity to co-invest through the Fund with

institutional and other capital partners (the “Joint Venture Partners”). The Fund intends to co-invest with Joint

Venture Partners to make investments in office, industrial, market-rate apartment, and retail properties located

in greater Chicago and Southeast Wisconsin.

The Fund intends to employ a value add strategy of investing in cash-flowing assets that are not stabilized and

which offer significant upside through re-tenanting, physical enhancements, repositioning in the market, and/or

financial restructuring. Targeted assets are expected to include:

• Urban office buildings with an opportunity to provide creative office space with the addition of amenities

and improvement of the tenant environment.

• Suburban office buildings that can be purchased at a discount to replacement cost and repositioned to

have a competitive advantage over similar properties in their submarket.

• Urban and transit-oriented retail located in densely populated locations which may require additional

leasing or renovation.

• Urban industrial assets in submarkets with limited supply or are positioned to be converted to a higher and

better use due to neighborhood gentrification.

• Suburban industrial assets, located in established markets with limited new supply available and require

capital to re-tenant, expand, or renovate.

• On a limited and opportunistic basis, for-lease, market rate, multi-family assets which require capital to

renovate, complete, or convert and are located in densely populated neighborhoods.

Investment Summary





As of July 31st, 2015 the fund has acquired the following assets:

213 W. Institute Place -a 150,000 SF creative loft office building in Chicago’s River North Sub-

Market

549 W. Randolph - a 100,000 SF creative loft office building in Chicago's West Loop Sub-

Market

Chicago Avenue Parking - bolt-on acquisition of a 30-car parking lot adjacent to 213 W.

Institute Place

North Shore Office Portfolio - a 340,000 SF portfolio of six single story office and flex

industrial assets along Chicago’s North Shore

• 2201-2231 Lakeside Dr., Bannockburn, IL

• 666 Dundee Rd., Bldgs. 300, 700, 1100, 1300, 1500-1900, Northbrook, IL

• 778 Frontage Rd., Northfield, IL

• 1221-1311 Rand Rd., Des Plaines, IL

• 3330 Old Glenview Rd., Wilmette, IL

• 5225 Old Orchard Rd., Skokie, IL

Property Summary





Ameritus is a Chicago based investment and management firm that has focused on commercial real

estate services for third parties and its own account. Founded in 1999, the Firm is a full service real

estate investor and operator with experience in leasing, asset and property management, acquisitions,

construction management, and capital markets. The principals of Ameritus are Jeb Scherb, Bert Scherb,

Benjamin Nummy, and Bob Budington (the “Principals”), who have significant institutional real estate

experience, having held key positions at firms such as Grubb & Ellis, Morgan Stanley, and Jones Lang

LaSalle.

Because of its in-house operational capabilities and the experience of its Principals, Ameritus believes

that the Fund is positioned as an ideal joint venture partner to institutional investment partners and

private equity firms seeking to invest in commercial real estate in the Midwest.

Sponsor Summary





All four Principals have deep relationships in and knowledge

of the greater Chicago and Southeast Wisconsin markets.

Historically, Ameritus has focused on development and

redevelopment of projects in the Chicago central business

district and the Chicago suburbs. The Firm’s expertise in

repositioning complex real estate assets has been

recognized by Building Owners and Managers Association

(BOMA), which awarded Ameritus a “TOBY” Award for its

management and renovation of 211 West Wacker Drive in

2007. Further, the Firm’s sustainability efforts led the building

to obtain Silver LEED status, at the time the oldest building in

the State of Illinois to achieve the designation.

Sponsor Summary





A strategic focus of the Fund has been to acquire Class B loft office space and

upgrade it into Class A creative office space, as demonstrated by the Fund’s

acquisition of 213 W. Institute Place. This strategy is driven by the strong demand of

technology users to locate into unique and collaborative urban office environments.

More traditional businesses are now joining these high growth users in following this

trend. As such, the River North submarket in Chicago continues to lead market

occupancy at 91%. Class A buildings in this submarket have less than 3.5% vacancy

according to CBRE. The creation of a technology corridor in the West Loop has also

prompted CBRE to recognize the area as a new submarket, as older manufacturing

buildings are being converted to creative office space.

The North Shore properties are extremely well located at various interchanges along

the Edens Expressway (I-94/Rt. 41) approximately 25 miles north of Chicago, IL. This

stretch of roadway is the closest highway system to the Lake Michigan shoreline in the

area and services affluent and densely populated suburbs such as Wilmette,

Winnetka, Highland Park, Deerfield, and Lake Forest. In a 7-mile radius of the

Northbrook Office Court, there is a population of 325,769 with a median household

income in excess of $87,500. The population within a 10-mile radius is 746,535.

Market Summary





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