p. 1OFFERING MEMORANDUM nrc.com/1717

STERLING PARK Two Large Buildings, Parking Structure and 3.4 Acre Development SiteBuy One or All!

TO OWN A CHICAGO HISTORIC CORPORATE CAMPUSRARE OPPORTUNITY

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CONFIDENTIALITY & CONDITIONS

NRC Realty & Capital Advisors, LLC (“NRC”, also the “Agent”) has been engaged as the broker for the sale of the fee simple interest in the properties located on the 3000 block of West Arthington Street, Chicago, Illinois (the ”Properties”). NRC is working in conjunction with Theodore S. Prillaman.

The Properties are being offered for sale in an “as-is, where-is” condition, and the Seller and the Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include confidential information and are being furnished solely for the purpose of review by prospective purchasers (“Purchasers”) of the interest described herein for which it shall be fully and solely responsible. Neither the enclosed materials, nor any information contained herein, are to be used for any other purpose, or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed information, should be registered with the Agent as a “Registered Potential Investor”. The use of this Offering Memorandum, and the information provided herein, and subsequent information submitted by an agent on the Properties, is subject to the terms, provisions and limitations of any Confidentiality Agreement which may be furnished by the Agent prior to delivery of this Offering Memorandum.

The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by the Agent or the Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners, and directors, as to its accuracy or completeness. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Seller nor the Agent shall have any liability whatsoever for any other written or oral communication or information transmitted, or made available, or any action taken, or decision made by the recipient with respect to the Property.

The Seller reserves the right, at its sole and absolute discretion, to withdraw the Properties from the market for sale at any time and for any reason without notice, to reject any and all expressions of interest or offers regarding the Property, and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. The Agent is not authorized to make any representations or agreements on behalf of the Seller. The Seller shall have no legal commitment or obligation to any recipient reviewing the enclosed materials, performing additional investigation, and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions required under the contract for title to pass from the Seller to the buyer have been satisfied or waived.

By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents will be held and treated in the strictest of confidence; and (b) the recipient shall not contact employees, contractors, sub-contractors or lien-holders of the Properties directly or indirectly regarding any aspect of the enclosed materials or the Properties without the prior written approval of the Seller or the Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of the Seller or the Agent or as otherwise provided in any Confidentiality Agreement executed and delivered by the recipient(s) to Agent.

Sterling Park Portfolio

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1010 N. HOOKER STREET

THE OFFERING 4

LOCATION 6

PROPERTY DESCRIPTION 8

FLOOR PLANS 14

MARKET HIGHLIGHTS 16

TAX BENEFITS & INCENTIVES 19

TABLE OF CONTENTS

O F F E R I N G M E M O R A N D U M

Sterling Park Portfolio Chicago, IL

PRIMARY CONTACT

DAVID LEVYNRC Realty & Capital Advisors

350 W Ontario, Fourth FloorChicago, Illinois 60654

312.278.6870 directdavid.levy@nrc.com

THEODORE S. PRILLAMANBroker

312.213.6601 direct1031chicago@gmail.com

in conjuction with:

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OFFER PROCESSTHE OFFERING

NATIONAL TENANT DEMANDRecent Goose Island lease transactions include Amazon’s 52,000 SF and Trunk Club’s 170,000

SF warehouse spaces

Major anchor tenants on teh island include candy giant Mars, Inc. and the Wrigley Company’s Global Innovation Center

NRC Realty & Capital Advisors (“NRC”) has been retained, on behalf of Ownership, as the exclusive broker relating to the sale of Sterling Park (the “Properties”), located on the 3000 block of West Arthington Street, Chicago, Illinois. The offering consists of two large redevelopment properties (total of approximately 604,705 GSF), an enormous decked parking structure (1,150+ spaces), and a massive, adjacent development site (approximately 3.42 acres). Investors in Sterling Park may receive substantial tax benefits as one of the buildings (The Administration Building) has a historic designation, the other building (Westgate Tower) could receive a historic designation as well, and the Properties are situated in a City of Chicago TIF District and an Enterprise Zone. Sterling Park is located in the Homan Square neighborhood in the North Lawndale submarket of Chicago. Sterling Park represents a tremendous development and value-add opportunity west of the Chicago CBD, in the path of progress of Chicago’s tech, office, medical, residential, hotel, and retail sectors.

STERLING PARKSnapshot

604,705Rentable SF

1,150Parking Spaces

3.42Acre Lot

Located just off of the Eisenhower Expressway (I-290) and proximate to CTA train and bus lines, United Center, the Illinois Medical District, Chicago’s CBD and several of Chicago’s

most vibrant and growing neighborhoods.

In The PaTh of ProgressThe tremendous development potential of this enormous campus in a continually

burgeoning market allows great potential for a strategic developer.

greaT ChICago LoCaTIon near DownTown

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OFFER PROCESS

NRC requests that initial bids be submitted in writing to David Levy and/or Ted Prillaman. The Properties are being offered on an all cash, “as is” basis to a select group of qualified investors. The prospective purchaser will be selected by Ownership in consultation with NRC on the basis of (i) price, (ii) track record of successfully closing large transactions, (iii) financial strength and (iv) level of discretion to invest funds. See the sale website nrc.com/1717 for more information about the sale process. Ownership reserves the right to change the timing or other terms of the offering or to sell the Property Properties at any time without notice. Additional information can be obtained and tours arranged through the contact information provided herein:

PRIMARY CONTACT

DAVID LEVYNRC Realty & Capital Advisors

350 W Ontario, Fourth FloorChicago, Illinois 60654

312.278.6870 directdavid.levy@nrc.com

THEODORE S. PRILLAMANBroker

312.213.6601 direct1031chicago@gmail.com

in conjuction with:

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Chicago O’Hare International Airport

Chicago Midway International Airport

UnitedCenter Google

Headquarters

Sterling Park Portfolio

S

W

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Sterling Park is located in the Homan Square neighborhood of the North Lawndale Submarket in the City of Chicago. The city is in the midst of a renaissance as college graduates and suburban professionals craving the culture and diversity that Chicago offers have been moving into the city in droves. Businesses of all types have followed by migrating from the suburbs and secondary MSAs to the Chicago CBD, and more recently to outlying neighborhoods. Sterling Park is close to Downtown Chicago, Bucktown, Wicker Park, University Village, Museum Campus, the near Western Suburbs, and both Chicago Midway International and Chicago O’Hare International airports. Sterling Park is within 1.5 miles of the Illinois Medical District, and immediately proximate to the Eisenhower expressway (I-290), the CTA Green Line train and several CTA bus routes. The transformation of Sterling Park has begun in earnest. The three closest commercial properties are either currently being redeveloped or have completed their redevelopment and are fully occupied. Large scale residential and commercial projects in the area have been announced, putting Sterling Park in the path of progress for all real estate sectors.

THE LOCATION

Sterling Park Portfolio

290

290

290

New Community Center

Newly Redeveloped Original Sears Tower

New ChicagoPolice Department

New Powerhouse Charter School

Sterling Park Apartments,Currently Under Renovation

Illinois Medical District (current improvement projects total over 1 billion)

Douglas Park

New Housing

New Private Elementary School, New YMCA / Day Care

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PROPERTY DESCRIPTION ADMINISTRATION BUILDING

SEARS, ROEBUCK & COMPANY (DESIGNATED A HISTORICAL MONUMENT)

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PROPERTY DESCRIPTION

ADDRESS 3333 W. Arthington Street Chicago, IL 60624

BUILDING SIZE 280,558 SF

FLOOR PLATE

Floor 5: 44,993 SFFloor 4: 44,993 SFFloor 3: 44,993 SFFloor 2: 46,410 SFFloor 1: 46,425 SFLower Level: 52,744 SF

YEAR BUILT 1905 / 1914

PARCEL NUMBER 16-14-417-007-000

ELEVATORS Two (2) passenger & one (1) freight

CEILING HEIGHTS 10' - 15’6”

FOOTPRINT 437’ x 145’

CONSTRUCTION TYPE Reinforced concrete with a brick facade (and terra-cotta detailing)

ADMINISTRATION BUILDING

This property features high ceilings on all floors, oversized windows, escalators to every floor, building naming rights, and great natural light throughout.

PROPERTY DESCRIPTIONWESTGATE TOWER

ALLSTATE INSURANCE

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PROPERTY DESCRIPTION

ADDRESS 3245 W. Arthington StreetChicago, IL 60624

BUILDING SIZE 324,147 SF

FLOOR PLATE

Floor 11: 10,738 SFFloors 3-10: 26,609 SFFloor 2: 28,853 SFFloor 1: 29,866 SFLower Level: 31,012 SF

YEAR BUILT 1949

PARCEL NUMBER 16-14-417-004-0000

ELEVATORS Four (4) passenger & one (1) freight

CEILING HEIGHTS 10'11th Floor: 15’

FOOTPRINT 218’ x 158’

CONSTRUCTION TYPE Reinforced concrete with a brick facade

WESTGATE TOWER

This property features prominent building naming rights, breathtaking views of Downtown Chicago and Lake Michigan, and a penthouse space with soaring ceiling heights. It is truly a blank canvas with unlimited potential for redevelopment.

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PROPERTY DESCRIPTIONPARKING STRUCTURE | DEVELOPMENT SITE

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PROPERTY DESCRIPTIONPARKING STRUCTURE | DEVELOPMENT SITE

On the northeastern portion of Sterling Park lies a 1,150 space decked parking garage. The 3-story, 338,332 square foot garage was built of reinforced concrete. The slab is a two-way system with the drop panels at each column. The site is level and has a rectangular shape with the following dimensions: 368’ x 266’.

PARKING STRUCTURE

Adjacent to Westgate Tower on the south and east is a 3.42 acre developable site that is currently a giant paved parking lot. The site is level and consists of two adjoining rectangular segments, the dimensions of the southern rectangle are 120’ x 249’ and the eastern rectangle is 346’ x 338’.

DEVELOPMENT SITE

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3333 W. ARTHINGTON AVENUE

3245 W. ARTHINGTON AVENUE

FLOOR PLANS

ADMINISTRATION BUILDING | TYPICAL FLOOR PLAN

WESTGATE TOWER | TYPICAL FLOOR PLAN

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FLOOR PLANS

ADMINISTRATION BUILDING | TYPICAL FLOOR PLAN

WESTGATE TOWER | TYPICAL FLOOR PLAN

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GREATER CHICAGO AREAOVERVIEWChicago is the most influential economic region between the East and West Coasts. Situated at the geographical heart of the nation, Chicago’s locational advantages have fostered its development into an international center for banking, securities, high technology, air transportation, business services, wholesale and retail trade and manufacturing. Chicago’s economic structure is similar to that of the nation as a whole, with comparable distributions of employment across industries. Chicago’s economy tends to be neither more nor less volatile than the national economy. As such, Chicago is less vulnerable to fluctuations in individual industries than most other large urban regions. Chicago’s strategic location, critical infrastructure, leading academic institutions, and talented workforce have created one of the world’s largest and most formidable economies. In fact, if Greater Chicago were its own country, it would have been ranked 22nd largest in the world. Metropolitan Chicago is a key player in virtually every sector of the American economy and is a dominant or leading player in a dozen industries. Chicago has continued to invest at the rate of nearly a billion dollars a year in infrastructure, schools, roads, parks and public transportation. Chicago’s two (2) city-operated airports serve more destinations with more flights than any single city’s airport in the world. The private sector and the federal government have likewise transformed America’s traditional telecommunications hub into the world’s fastest, highest capacity and most redundant digital infrastructure. This makes Chicago the data recovery capital of North America and allows its financial exchanges to connect to Asian and European financial capitals in real time. These factors all contribute to Chicago’s reputation as one of the world’s premier metropolitan area and economic center.

TRANSPORTATIONLocated along the southwestern shore of Lake Michigan and within one (1) day’s truck drive of 50% of the North American economy, Chicago is the geographical center of the nation. It is unique in its transportation predominance. Chicago began as the water hub of the west with its strategic location between two watershed systems – the Mississippi River and the Great Lakes, subsequently becoming the railroad hub of the continent, one of the highway hubs of the continent and the aviation hub of the continent.

Two (2) primary airports serve Chicago, Chicago O’Hare International Airport, one of the world’s busiest airports serving over 200,000 daily domestic and international passengers and Chicago Midway International Airport. Together the city’s airports generate 500,000 jobs and $45 billion a year for the local economy. Chicago O’Hare International Airport is currently undergoing a $6.6 billion expansion and Midway recently completed an $800 million expansion and renovation project.

MARKET HIGHLIGHTS

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MARKET HIGHLIGHTSTen (10) interstate highways service the area, more than in any other U.S. metropolitan area, and trucks driving those roads move $572 billion a year in goods. These important transportation arteries provide access to and from all areas of the country as well as travel within Metropolitan Chicago. Chicago is the nation’s largest trucking center with over 200 truck terminals.

In addition to the extensive road system, Chicago serves as the country’s primary railroad hub. Chicago is home to the six (6) largest railroads on the continent, which, in conjunction with fourteen (14) smaller railroads, move $350 billion in goods through Chicago, annually. Nearly $1 trillion in freight passes through the region each year and the railroads jointly generate $8 billion in gross economic activity. Shipping access from Lake Michigan to other Great Lake ports, the Atlantic Ocean and the Gulf of Mexico further enhances access to Metropolitan Chicago. This unique highway, rail and shipping access contributes to Chicago’s role as an undisputed economic center of the Midwest.

As a rail center, Chicago not only has an excellent distribution network for its industrial commodities, but has an extensive commuter rail system and is the hub for Amtrak intercity train service. Chicago’s integrated mass transit system is considered to be one of the most elaborate in the nation. Central to this system are ten (10) heavy-rail commuter lines that radiate from four (4) downtown terminals.

POPULATIONWith a population of 9.6 million people, the Chicago metropolitan area is the third largest in the United States, trailing New York and Los Angeles. The Chicago MSA is comprised of the counties of Cook, DuPage, Kane, Lake, Will and Lake County in Indiana. Claritas Inc. reports an 18% or 1.4 million increase in population since 1990 and anticipates a 2.1% increase over the next five (5) years.

INCOMEChicago’s relatively low cost of doing business serves as an additional attraction for corporate relocation and expansion. Chicago’s cost of living index is significantly below that of its largest competitors such as New York, Los Angeles, Boston and San Francisco. In addition, Greater Chicago reports income levels that are among the highest of any region in the country. In 2013, the Chicago median household income was $47,270, with the Central Loop census tract median household income measuring $75,457.

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EMPLOYMENTAs the undisputed economic capital of the Midwest, Chicago is home to the headquarters of thirty-one (31) Fortune 500 corporations, second to New York. Historically, Chicago’s employment was centered upon manufacturing, retail and wholesale trade industries. As recently as twenty-five (25) years ago, these industries accounted for more than half of all jobs in Chicago. Today, no single sector accounts for more than a 20% share.

Many corporations are headquartered in Chicago in order to take advantage of the benefits of being near transportation, suppliers, customers and similar businesses. Other benefits include access to a skilled educated labor force and the benefits associated with having an established urban infrastructure.

Company Name City Fortune 500 Ranking Sales USD (MIL)Archer-Daniel-Midland Company Chicago 27 $89,804Boeing Company Chicago 30 $86,623Walgreens Company Deerfield 37 $76,392United Continental Holdings, Inc Chicago 78 $38,279Sears Holding Corporation Hoffman Estates 87 $36,188Mondelez International Inc Deerfield 89 $35,299Allstate Corporation Northbrook 92 $34,714McDonald’s Corporation Oak Brook 106 $28,106Exelon Corporation Chicago 119 $24,888US Foods Rosemont 133 $22,297Abbott Laboratories Abbott Park 136 $21,848AbbVie Inc North Chicago 152 $18,790Kraft Foods Inc. Northfield 156 $18,218Baxter International Inc Deerfield 189 $15,259Illinois Tool Works Inc Glenview 171 $14,135Navistar International Corporation Lisle 259 $10,806CDW Corporation Vernon Hills 265 $10,769RR Donnelley & Sons Corporation Chicago 268 $10,480W W Grainger Inc Lake Forest 295 $9,438Dover Corporation Downers Grove 301 $8,730Motorola Solutions Inc Schaumburg 312 $8,696Discover Financial Services Riverwoods 296 $8,224Tenneco Inc Lake Forest 338 $7,964Ingredion Inc Westchester 412 $6,328Anixter International Inc Glenview 420 $6,227NiSource Inc Merrillville 448 $5,657Integrys Energy Group Inc Chicago 450 $5,635CF Industries Holdings Inc Deerfield 463 $5,475Old Republic International Corporation Chicago 465 $5,443United Stationers Inc Deerfield 488 $5,058LKQ Corporation Chicago 490 $5,063

TAX BENEFITS & INCENTIVES

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TAX BENEFITS & INCENTIVESTAX BENEFITS & INCENTIVES The Administration Building is one of the 2,500 historic places to have been placed on the National Register of Historic Places. The property earned this honor due to its significance as the headquarters for Sears, Roebuck & Company for 68 years and because of its prominent architect, George C. Nimmons. Additionally, Preservation Chicago has placed Westgate Tower (former headquarters of Allstate Insurance) on its most endangered list. The building has tentative approval to be placed on the National Register of Historic Places if an owner wishes to pursue the benefits associated with that status, but it also can be razed, if an owner has alternative plans for that property site.

Sterling Park resides within the boundaries of an Illinois Enterprise Zone and a City of Chicago TIF District, providing numerous tax credits and incentives. The following bullets below are a list of tax benefits and incentives that we advise can and should be explored for the Properties:

• Federal Tax Incentives for the preservation of historic buildings;

• The Administration Building is currently eligible for Historic Tax Credits. Historic Tax Credits for developers who preserve historic structures;

• Tax deductions resulting from a façade easement contribution to a charitable 501(c)(3) non-profit organization;

• All of the Properties are encompassed within a City of Chicago enterprise zone, which provides tax incentives for qualified businesses to stimulate private investment and create jobs within the community;

• The Properties reside within an Illinois Enterprise Zone, which offers various tax incentives to qualified properties that stimulate economic activity and neighborhood revitalization;

• The Administration Building has been designated a Chicago landmark, and Westgate Tower could be considered for this same designation, which offers owners who rehabilitate the properties a reduced tax rate for 12 years, and permit fee waivers;

• Sterling Park resides within the boundaries of the Homan Arthington Tax Increment Financing (TIF) District, with significant potential tax benefits to owners.

DAVID LEVYNRC Realty & Capital Advisors 350 W Ontario, Fourth Floor

Chicago, Illinois 60654312.278.6870 directdavid.levy@nrc.com

THEODORE S. PRILLAMANBroker

312.213.6601 direct1031chicago@gmail.com

in conjuction with:

nrc.com/1717