Signature Bank 7292 w devon chicago

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1 Offering Memorandum Signature Bank 7292 w devon chicago 10-Year Net Bank Lease Sales Price $2,899,000 Avg Cap Rate of 6.52% John Roberson Dino Geroulis john.roberson@ axis-realty.com dino@axis-realty.com

2 Site Photos

3 Lease Abstract & Deal Summary Deal Summary 1 Sale Price $2,899,000 2 Avg Cap Rate 6.52% 3 Building Size Approximately 4,000 sq.ft 4 Site Size Approximately 12,500 sq.ft Lease Abstract 1. Initial Lease Term 10 Years 2. Lease Commencement Ocotber 1, Size 4,000 sf building on an approximately 12,500 sf. site 4. Options Two 5-year options with 120 days notice 5. Minimum Rent Primary Term Years 1-5: $15,000 per month (Annual total: $180,000) Years 6-10:,500 per month (Annual total: $198,000) 6. Minimum Rent 1st Option Term Years 11-15: $18,150 per month (Annual total: $217,800) 7. Minimum Rent 2nd Option Term Years 16-20: $19,965 per month (Annual total: $239,580) 8. Real Estate Taxes Tenant pays 100% of taxes and protest costs via monthly estimates to Landlord Tenant may elect to self-perform and direct pay CAM/Tax expenses 9. Operating & Insurance Expenses Tenant pays 100% of expenses via monthly estimates to Landlord Tenant may elect to self-perform and direct pay CAM/Tax expenses 10. Landlord Responsiblities Landlord may maintain, subject to Tenant CAM reimbursements with 15% administration fee Tenant may elect to self-perform and direct pay CAM/Tax expenses Landlord maintains only capital structure, roof, ext wall at Landlord s expense NOTE: Tenant has elected to selfperform CAM/Tax 11. Lease Transfer Only to related entity or entity of equal financial strength, otherwise Landlord s written consent needed. 12. Holdover Minimum Rent 150% 13. Subordination Lease will subordinate to mortgage with executed SNDA 14. Estoppel Certificate Tenant to provide within 10 business days Axis Realty, Inc. makes no warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

4 Site Plan +/-20,000 VPD on Devon Demographics 2017 Demographics 1 Mile 3 Mile 5 Mile Population: 26, , ,277 Median Household Income: $82,574 $73,237 $65,468 Median Home Value: $346,928 $311,908 $282,149

5 Market Chicago s Vacancy at 6.8% Net Absorption Positive 970,247 SF in the Quarter The Chicago retail market experienced a slight improvement in market conditions in the second quarter The vacancy rate went from 7% in the previous quarter to 6.8% in the current quarter. Net absorption was positive 970,247 square feet, and vacant sublease space increased by 35,445 square feet. Quoted rental rates increased from first quarter 2017 levels, ending at $15.78 per square foot per year. A total of 39 retail buildings with 643,025 square feet of retail space were delivered to the market in the quarter, with 2,303,946 square feet still under construction at the end of the quarter. Net Absorption Retail net absorption was moderate in Chicago second quarter 2017, with positive 970,247 square feet absorbed in the quarter. In first quarter 2017, net absorption was positive 1,338,831 square feet, while in fourth quarter 2016, absorption came in at positive 1,152,013 square feet. In third quarter 2016, positive 1,447,294 square feet was absorbed in the market. Tenants moving out of large blocks of space in 2017 include Ultra Foods, part of the Strack & Van Til supermarket chain owned by Central Grocers, moving out of 92,424 square feet after closing a location at The Landings shopping center in Lansing. This closure is one of nine closures across Illinois and Indiana occurring in the second quarter accounting for more than (397,000) square feet in negative absorption within the Chicago market. Additional tenants moving out of large blocks of space in 2017 include: Ashley Furniture HomeStore moving out of 61,612 square feet at Marketplace at Vernon Hills and relocating to another building within the center; Gordmans moving out of 50,079 square feet after filing for bankruptcy and closing a location at the Shops on Main in Schererville, Indiana; and Whole Foods Market moving out of 40,000 square feet at Rice Lake Square in Wheaton relocating to Danada Square East. Tenants moving into large blocks of space in 2017 include: At Home moving into 100,000 square feet at 101 W Lincoln Highway in the Broadway Center in Merrillville; Fletcher Jones Audi expanding into 95,032 square feet in their newly delivered building located at 1521 W North Avenue; Whole Foods Market relocating from 3300 N Ashland Avenue and moving into 75,000 square feet in the newly delivered building located at 3201 N Ashland Avenue; and Mariano s Fresh Market opening two new locations, moving into 73,317 square feet in the newly delivered building located at 10 E Golf Road in Des Plaines and moving into 69,246 square feet at Stratford Crossing in Bloomingdale. Vacancy Chicago s retail vacancy rate decreased in the second quarter 2017, ending the quarter at 6.8%. Over the past four quarters, the market has seen an overall decrease in the vacancy rate, with the rate going from 7.2% in the third quarter 2016, to 7.1% at the end of the fourth quarter 2016, 7% at the end of the first quarter 2017, to 6.8% in the current quarter. The amount of vacant sublease space in the Chicago market has trended up over the past four quarters. At the end of the third quarter 2016, there were 1,582,127 square feet of vacant sublease space. Currently, there are 1,720,988 square feet vacant in the market. Vacancy Rates by Building Type % Power Center Specialty Center General Retail Shopping Center Mall Total Market 14% 12% 10% 8% 6% 4% 2% 0% q q q q q q q q q q q q Source: CoStar Property

6 Market Largest Lease Signings The largest lease signings occurring in 2017 included: the 98,500-square-foot-lease signed by HOBO-Home Owners Bargain Outlet at 7600 Roosevelt Road in the Forest Park Plaza; the sale leaseback sighed for 89,188 square feet by Cermak Produce at 1250 N Lake Street in Aurora; the 50,000- square-foot-lease signed by Cinemas Entertainment at 3330 W Roosevelt Road in the Douglas Park Plaza; and the 50,000 square-foot-renewal signed by Ashley Furniture HomeStore at 2451 S Randall Road in Algonquin. Rental Rates Average quoted asking rental rates in the Chicago retail market are up over previous quarter levels, and up from their levels four quarters ago. Quoted rents ended the second quarter 2017 at $15.78 per square foot per year. That compares to $15.66 per square foot in the first quarter 2017, and $15.70 per square foot at the end of the third quarter This represents a 0.8% increase in rental rates in the current quarter, and a 0.51% increase from four quarters ago. Inventory & Construction During the second quarter 2017, 39 buildings totaling 643,025 square feet were completed in the Chicago retail market. Over the past four quarters, a total of 3,208,899 square feet of retail space has been built in Chicago. In addition to the current quarter, 44 buildings with 735,500 square feet were completed in first quarter 2017, 71 buildings totaling 855,405 square feet completed in fourth quarter 2016, and 974,969 square feet in 43 buildings completed in third quarter There were 2,303,946 square feet of retail space under construction at the end of the second quarter Some of the notable 2017 deliveries include: Kildeer Village Square, an approximately 200,000-square-foot shopping center located at Rand Road that delivered in second quarter 2017, and Fletcher Jones Audi, a 95,032-square-foot building Vacancy & Rent Past 8 Quarters Price in Dollars per Unit $15 Average Rental Rate Vacancy Rate q q q q 8.0% 7.8% 7.6% 7.4% 7.2% 7.0% 6.8% 6.6% 6.4% 6.2% Vacancy Rate Percentage that delivered in first quarter 2017 and is owner occupied, and the ARC (Athletic Recreations Center) building, an 80,000- square-foot facility that delivered in first quarter 2017 located at 8201 Janes Avenue in Woodridge. Total retail inventory in the Chicago market area amounted to 540,905,634 square feet in 42,255 buildings and 4,019 centers as of the end of the second quarter Shopping Center The Shopping Center market in Chicago currently consists of 3,876 projects with 161,276,183 square feet of retail space in 5,938 buildings. In this report the Shopping Center market is comprised of all Community Centers, Neighborhood Centers, and Strip Centers. After absorbing 442,731 square feet and delivering 156,710 square feet in the current quarter, the Shopping Center sector saw the vacancy rate go from 11.2% at the end of the first quarter 2017 to 11% this quarter. Over the past four quarters, the Shopping Center vacancy rate has gone from 11.6% at the end of the third quarter 2016, to 11.4% at the end of the fourth quarter 2016, to 11.2% at the end of the first quarter 2017, and finally to 11% at the end of the current quarter. Rental rates ended the second quarter 2017 at $14.54 per square foot, up from the $14.33 they were at the end of first quarter Rental rates have trended up over the past year, going from $14.48 per square foot a year ago to their current levels. Net absorption in the Shopping Center sector has totaled 1,537,165 square feet over the past four quarters. In addition to the positive 442,731 square feet absorbed this quarter, positive 455,979 square feet was absorbed in the first quarter 2017, positive 458,049 square feet was absorbed in the fourth quarter 2016, and positive 180,406 square feet was absorbed in the third quarter Power Centers The Power Center average vacancy rate was 7.6% in the second quarter With negative (235,652) square feet of net absorption and no new deliveries, the vacancy rate went from 7.1% at the end of last quarter to 7.6% at the end of the second quarter. In the first quarter 2017, Power Centers absorbed negative (3,462) square feet, delivered no new space, and the vacancy rate remained constant at 7.1% over the course of the quarter. Rental rates started the quarter at $15.50 per square foot and ended the quarter at $15.10 per square foot. A year ago, in second quarter 2016, the vacancy rate was 7%. Over the past four quarters, Power Centers have absorbed a cumulative (191,057) square feet of space and delivered cumulative 64,055 square feet of space. Vacant sublease space has gone from 253,660 square feet to 244,989 square Source: CoStar Property

7 Market feet over that time period, and rental rates have gone from $15.47 to $ At the end of the second quarter 2017, there were 9,600 square feet under construction in the Chicago market. The total stock of Power Center space in Chicago currently sits at 39,893,006 square feet in 88 centers comprised of 691 buildings. A total of 9,600 square feet of space was under construction at the end of the second quarter General Retail Properties The General Retail sector of the market, which includes all freestanding retail buildings, except those contained within a center, reported a vacancy rate of 4.8% at the end of second quarter There was a total of 14,332,123 square feet vacant at that time. The General Retail sector in Chicago currently has average rental rates of $17.67 per square foot per year. There are 1,779,620 square feet of space under construction in this sector, with 486,315 square feet having been completed in the second quarter. In all, there are a total of 35,330 buildings with 299,852,417 square feet of General Retail space in Chicago. Specialty Centers There are currently 13 Specialty Centers in the Chicago market, making up 3,083,320 square feet of retail space. In this report the Specialty Center market is comprised of Outlet Centers, Airport Retail and Theme/Festival Centers. Specialty Centers in the Chicago market have experienced negative (3,030) square feet of net absorption in The vacancy rate currently stands at 3.8%, with rental rates averaging $8.27 per square foot. Malls Malls recorded net absorption of positive 5,899 square feet in the second quarter This net absorption number, combined with no new space that was built in the quarter, caused the vacancy rate to remain constant at 4.1% at the end of the second quarter Rental rates went from $15.76 per square foot to $15.73 per square foot during that time. In this report the Mall market is comprised of 42 Lifestyle Centers, Regional Malls and Super Regional Malls. Sales Activity Tallying retail building sales of 15,000 square feet or larger, Chicago retail sales figures rose during the first quarter 2017 in terms of dollar volume compared to the fourth quarter of Absorption & Deliveries Past 8 Quarters Millions SF Source: CoStar Property Net Absorption In the first quarter, 60 retail transactions closed with a total volume of $726,024,111. The 60 buildings totaled 3,107,659 square feet and the average price per square foot equated to $ per square foot. That compares to 60 transactions totaling $721,845,730 in the fourth quarter The total square footage in the fourth quarter was 3,278,949 square feet for an average price per square foot of $ Total retail center sales activity in 2017 was up compared to In the first three months of 2017, the market saw 60 retail sales transactions with a total volume of $726,024,111. The price per square foot averaged $ In the same first three months of 2016, the market posted 58 transactions with a total volume of $351,207,044. The price per square foot averaged $ Cap rates have been lower in 2017, averaging 7.51% compared to the same period in 2016 when they averaged 7.92%. One of the largest transactions that has occurred within the last four quarters in the Chicago market is the sale of Blackhawk On Halsted in Chicago. This 224,204 square foot retail center sold for $130,000,000, or $ per square foot at a 5.50% cap rate. Reports compiled by: Brandi Moore and JB Sramek, CoStar Group Research Managers Deliveries q q q q

8 Chicago s Edison Park Demographics According to a 2016 analysis by the Chicago Metropolitan Agency for Planning, there were 11,208 people and 4,400 households in Edison Park. The racial makeup of the area was 87.3% White, 1.1% African American, 1.5% Asian, and 0.7% from other races. Hispanic or Latino residents of any race were 9.5% of the population. In the area, the population was spread out with 21.9% under the age of 19, 19.5% from 20 to 34, 23.7% from 35 to 49, 19.6% from 50 to 64, and 15.2% who were 65 years of age or older. The median age was 39 years. The median household income was $86,300 compared to a median income of $47,831 for Chicago at-large. The area had an Income distribution in which 8.2% of households earned less than $25,000 annually; 19.7% of households earned between $25,000 and $49,999; 14.7% of households earned between $50,000 and $74,999; 16.4% of households earned between $75,000 and $99,999; 16.6% of households earned between $100,000 and $149,999 and 24.4% of households earned more than $150,000. This is compared to a distribution of 28.8%, 22.8%, 16.1%, 10.7%, 11.3% and 10.3% for Chicago at large. Edison Park has the lowest violent crime rate of any Chicago neighborhood. Ranked as one of the best neighborhoods in Chicago, Edison Park also boasts a variety of restaurants and bars

9 Chicago s Edison Park History Neighborhood After World War I ended, Edison Park experienced its second major expansion. Blocks of bungalows joined four-squares and Dutch Colonials, filling in south of Touhy Avenue to Devon Avenue. Edison Park s four-room school (now Edison Park Field House) added mobile units, and in , Ebinger School was built to relieve the overcrowding. World War II also brought the Douglas Aircraft factory to the old Orchard Field, a relatively small airport near Higgins and Mannheim. Douglas would be building aircraft for the war and was hiring thousands of workers a week (and creating the base for the future O Hare International Airport). There was suddenly a demand for housing near the plant, which prompted construction of many blocks of housing along the Higgins corridor, in the southern ends of Edison Park and Park Ridge and the northern end of Oriole Park. By the end of the war, these areas had filled with blocks and blocks of new starter houses. Returning G.I.s were looking for places where they could start their own families Some couples lived in temporary public housing near Touhy Avenue. North of Touhy, more starter houses went up and school officials, anticipating large families of future children, built and soon expanded Stock School as a K-6th grade branch of Ebinger School. The combination of the various transit systems into the Chicago Transit Authority merged the streetcars, trolley buses, elevated trains and regular buses, and over the next 20 years a better network of public transportation finally emerged. The nearest elevated (rapid transit) line connections were at Logan Square on the Milwaukee bus or at Broadway and Berwyn, at the east end of a Foster-Northwest Highway connection. The construction of the Northwest Expressway (later Kennedy Expressway) was part of a larger network of expressway construction through the city. Although proposed for years as the Avondale Superhighway, it was rerouted away from the Avondale Avenue corridor at Bryn Mawr Avenue due to efforts of Northwest Side communities. That saved the cores of Norwood Park and Edison Park s residential neighborhoods from being chopped into shreds, because the final route went straight west instead of following the railroad (Avondale Avenue) corridor as it did further in the city. In the end, only a block s width of homes were destroyed to build the expressway, although Bryn Mawr and Higgins were both re-routed from their original intersection. A new Brook Park Field House along Harlem Avenue opened a decade later, replacing a tiny junior field house near Octavia and Estes. The Edison Park Field House, used for park activities after Ebinger School opened, has most recently focused its programming on arts programs. Public transportation opportunities expanded in 1970 with the opening of the Jefferson Park station, which became a hub for CTA and suburban buses, rapid transit and commuter trains. Thomas Edison School s neighborhood students were sent to Ebinger and Oriole Park schools. The Beard Classical School moved into the building in the early 1980s, and, now known as Edison Regional Gifted Center, is one of the top scoring schools in the state. Ebinger School has undergone several phases of renovation and recently had a campus park installed on the east end of its property. One tradition in the community since 1972 is the Edison Park Fest, an end-of-summer weekend sponsored by the Edison Park Chamber of Commerce, combining merchant sidewalk sales, entertainment, a parade, Taste of Chicago and arts and crafts. It is an opportunity to introduce visitors to the benefits which the community has to offer.

10 Tenant Overview

11 Tenant Overview