HERC RENTALS SINGLE TENANT OPPORTUNITY SOUTH LOOP 2424 S. WABASH 2424 S. WABASH AVENUE CHICAGO, IL 60610 Tim Franz Senior Advisor 312.676.1874 tim.franz@svn.com John Livaditis Senior Advisor 312.676.1864 jlivaditis@svn.com SVN CHICAGO COMMERCIAL 940 WEST ADAMS STREET, SUITE 200, CHICAGO, IL 60607 OFFERING MEMORANDUM
PROPERTY INFORMATION Property Summary Complete Highlights Tenant Profile Zoning Information Property Photos Additional Photos LOCATION INFORMATION Regional Map Location Maps Market Aerial FINANCIAL ANALYSIS Rent Roll Income & Expenses DEMOGRAPHICS Demographics Report Demographics Map 1 2 3 4 SVN CHICAGO COMMERCIAL 940 WEST ADAMS STREET, SUITE 200, CHICAGO, IL 60607 OFFERING MEMORANDUM
1 PROPERTY INFORMATION 2424 S. Wabash Avenue Chicago, IL 60610 HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 940 WEST ADAMS STREET, SUITE 200, CHICA SVN Chicago Commercial Page 3
Property Summary OFFERING SUMMARY Pricing: Subject to Offer Lease Expiration: December 31, 2025 PROPERTY OVERVIEW SVN is pleased to offer 2424 S. Wabash in the South Loop neighborhood of Chicago, IL. The site is currently leased to Herc Rentals (Herc Holdings Inc. / NYSE: HRI) in a 10 year modified gross lease that runs through December of 2025 with numerous attractive rental increases during the base term and option periods. The parcel is zoned DS-3 which opens up the opportunity to develop the site further. This site offers investors an asset with exceptional upside in addition to a strong lease with an investment grade tenant. Herc rentals is a subsidiary of Hertz Global Holdings, a public company which is also listed on the NYSE. Lease Type: Building Size: Lot Size: Modified Gross 25,000 SF ±1.49 Acres LOCATION OVERVIEW The subject property has an excellent location in the city's South Loop area which is a bustling mix high-end residential and commercial business which surround Chicago's McCormick Place, the largest convention space in North America. The site is also a few blocks away from the brand new Wintrust Arena, the home for DePaul University's home basketball games in addition to other events and concerts which will serve as a further catalyst for economic development of the historic Motor Row along South Michigan Avenue and the surrounding neighborhood. The South Loop neighborhood of Chicago also boasts Soldier Field (home of the Chicago Bears) and The Field Museum, a natural history museum that is one of the largest in the world. Zoning: DS-3 HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 2424 S. WABASH AVENUE, CHICAGO, IL 6061 SVN Chicago Commercial Page 4
Complete Highlights SALE HIGHLIGHTS Strong Lease to Herc Rentals with Rental Increases Herc Holdings Inc. is a Publicly Traded Company NYSE: HRI DS-3 Zoning - No Height Restrictions with Numerous Allowed Uses for Future Redevelopment Close Proximity to McCormick Place and Wintrust Arena Opportunity to Own Nearly a Whole Block in the Bustling South Loop of Chicago HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 2424 S. WABASH AVENUE, CHICAGO, IL 6061 SVN Chicago Commercial Page 5
Tenant Profile OVERVIEW Company: Symbol: Herc Holdings Inc. NYSE: HRI PROFILE Herc Rentals Inc. is a premier, full-service equipment rental firm - providing their customers the equipment, services and solutions they need to achieve optimal performance safely, efficiently, and effectively. Founded: 1965 $1.6 Billion (2016) Locations: 275 Employees: 4,800 Headquarters: Bonita Springs, FL Website: www.hercrentals.com TENANT HIGHLIGHTS 275 Rental Facilities in North America Over $1.6 Billion in Total Revenue in 2016 Third Largest Equipment Rental Firm in the World Based on Revenue (Rental Equipment Register) Own Approximately $3.6 Billion in Fleet Publicly Traded on the NYSE: HZI (1.377B Market Cap) With more than 50 years of equipment rental expertise, approximately 4,800 employees and approximately 275 company-operated locations primarily in the United States and Canada, Herc Rentals serves a broad range of customer markets, including large and small companies in construction; industrial customers such as large industrial manufacturing plants, refineries and petrochemical operation; and other customers such as governmental entities and government contractors, disaster recovery and remediation firms, infrastructure, railroads, utility operators, individual homeowners, entertainment production companies, agricultural producers, special event management and facility management firms. A pioneer of the equipment rental industry, Herc Rentals continues to evolve and grow through technological innovations, expanded product offerings and value-added services and consultative solutions to support its customers' projects They strive to have the best and broadest selection of premium rental equipment available and ready when their customers need it, ensuring it performs as promised and providing unsurpassed customer service at every opportunity. They continuously seek to create a supportive, inclusive and collaborative work environment that offers excellent career opportunities, along with training and tools to enable their employees' success. HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 2424 S. WABASH AVENUE, CHICAGO, IL 6061 SVN Chicago Commercial Page 6
Zoning Information OFFERING SUMMARY Zoning: DS-3 DS - DOWNTOWN SERVICE DISTRICT The DS, Downtown Service district is primarily intended to accommodate commercial and service uses that are essential for the livelihood of businesses and residents of the downtown are and surrounding neighborhoods. The district regulations allow a mix of small-scale office, commercial services, public uses, transportation and communication services, and industrial uses. Floor To Area Ratio: 3.0 The district can be combined with the dash 3 or dash 5 bulk and density designations. There are no maximum building height limits in the "D" districts. Maximum Buildable: Approx. 200,000 SF HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 2424 S. WABASH AVENUE, CHICAGO, IL 6061 SVN Chicago Commercial Page 7
Property Photos HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 2424 S. WABASH AVENUE, CHICAGO, IL 6061 SVN Chicago Commercial Page 8
Additional Photos HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 2424 S. WABASH AVENUE, CHICAGO, IL 6061 SVN Chicago Commercial Page 9
2 LOCATION INFORMATION 2424 S. Wabash Avenue Chicago, IL 60610 HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 940 WEST ADAMS STREET, SUITE 200, CHICA SVN Chicago Commercial Page 10
Regional Map Herc Rental (Hertz) - Investment Grade Single Tenant - South Loop HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 2424 S. WABASH AVENUE, CHICAGO, IL 6061 SVN Chicago Commercial Page 11
Location Maps HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 2424 S. WABASH AVENUE, CHICAGO, IL 6061 SVN Chicago Commercial Page 12
Market Aerial HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 2424 S. WABASH AVENUE, CHICAGO, IL 6061 SVN Chicago Commercial Page 13
3 FINANCIAL ANALYSIS 2424 S. Wabash Avenue Chicago, IL 60610 HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 940 WEST ADAMS STREET, SUITE 200, CHICA SVN Chicago Commercial Page 14
Herc Rentals (Hertz Global Holdings) 2424 South Wabash Avenue - Chicago, IL 60610 Annual Expense LEASE TERM RENT Reimbursements TENANT NAME Square Feet % Share Begins Ends PSF Annual Monthly Annual PSF Herc Rentals 25,000 100.00% December 24, 2015 December 23, 2025 CAM/TAX/INS: MG MG (Hertz Global Holdings - NYSE: HTZ) Total: MG MG *Modified Gross Lease December 24, 2015 December 23, 2016 $25.00 625,000 52,083 December 24, 2016 December 23, 2017 $25.00 625,000 52,083 Current December 24, 2017 December 23, 2018 $25.00 625,000 52,083 December 24, 2018 December 23, 2019 $25.00 625,000 52,083 December 24, 2019 December 23, 2020 $25.00 625,000 52,083 December 24, 2020 December 23, 2021 $26.00 650,000 54,167 December 24, 2021 December 23, 2022 $26.00 650,000 54,167 Tenant Kickout Option After Year 7 December 24, 2022 December 23, 2023 $26.00 650,000 54,167 December 24, 2023 December 23, 2024 $26.00 650,000 54,167 December 24, 2024 December 23, 2025 $26.00 650,000 54,167 Option 1 December 24, 2025 December 23, 2026 $27.04 676,000 56,333 December 24, 2026 December 23, 2027 $27.45 686,140 57,178 December 24, 2027 December 23, 2028 $27.86 696,432 58,036 December 24, 2028 December 23, 2029 $28.28 706,879 58,907 December 24, 2029 December 23, 2030 $28.70 717,482 59,790 Option 2 December 24, 2030 December 23, 2031 $29.85 746,181 62,182 December 24, 2031 December 23, 2032 $30.29 757,374 63,114 December 24, 2032 December 23, 2033 $30.75 768,734 64,061 December 24, 2033 December 23, 2034 $31.21 780,265 65,022 December 24, 2034 December 23, 2035 $31.68 791,960 65,997 Occupied SF 25,000 100.00% Total 625,000 52,083 CAM/TAX/INS: MG MG Vacant SF 0 0.00% Total: MG MG Total SF 25,000 100.00%
Herc Rentals (Hertz Global Holdings) 2424 South Wabash Avenue - Chicago, IL 60610 Property Summary Total % Leased SF 25,000 100.00% Vacant SF - 0.00% Total 25,000 100.00% Operating Income Total PSF Scheduled Rental Income 625,000 25.00 Expense Reimbursements: CAM / RE Taxes / Insurance: MG MG Potential Gross Income 625,000 25.00 Vacancy Factor (0%): 0% - - Effective Gross Income 625,000 25.00 Recoverable Operating Expense: Total Recoverable Operating Expenses - - Non-Recoverable Operating Expense: Real Estate Taxes: 49,380 1.98 Insurance: 4,136 0.17 Structural Reserve ($0.15 PSF): 3,750 0.15 Total Non-Recoverable Operating Expenses 57,266 2.29 Net Operating Income 567,734 22.71
4 DEMOGRAPHICS 2424 S. Wabash Avenue Chicago, IL 60610 HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 940 WEST ADAMS STREET, SUITE 200, CHICA SVN Chicago Commercial Page 17
Demographics Report 1 MILE 3 MILES 5 MILES Total population 33,883 229,010 640,890 Median age 37.0 34.7 33.3 Median age (male) 35.7 33.5 32.7 Median age (female) 37.9 35.6 33.9 1 MILE 3 MILES 5 MILES Total households 14,492 103,242 276,656 Total persons per HH 2.3 2.2 2.3 Average HH income $69,798 $74,858 $82,079 Average house value $399,344 $367,587 $415,823 * Demographic data derived from 2010 US Census HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 2424 S. WABASH AVENUE, CHICAGO, IL 6061 SVN Chicago Commercial Page 18
Demographics Map POPULATION 1 MILE 3 MILES 5 MILES Total population 33,883 229,010 640,890 Median age 37.0 34.7 33.3 Median age (male) 35.7 33.5 32.7 Median age (Female) 37.9 35.6 33.9 HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 14,492 103,242 276,656 # of persons per HH 2.3 2.2 2.3 Average HH income $69,798 $74,858 $82,079 Average house value $399,344 $367,587 $415,823 * Demographic data derived from 2010 US Census HERC RENTAL (HERTZ) - INVESTMENT GRADE SINGLE TENANT - SOUTH LOOP 2424 S. WABASH AVENUE, CHICAGO, IL 6061 SVN Chicago Commercial Page 19