32 west randolph investment book

INVESTMENT UPDATE

32 WEST RANDOLPH

Chicago, Illinois

1. Executive and Descriptive Summaries

2. Locational Information & Maps

• Location

• Public Transportation / Subway Lines

• Neighboring Residential

• Recreation / Entertainment / Restaurants

3. Chicago Overview & Market Update

4. Proposed Amenities

5. Proforma

6. Market Rent Comps

7. Tax Credit Supporting Information

8. Market Cap Rate Data

TABLE OF CONTENTS

SECTION 1

EXECUTIVE AND DESCRIPTIVE SUMMARIES

Executive and Descriptive Summaries

Summary 32 West Randolph is a proposed apartment unit rehabilitation of an existing twenty- two

story building, originally constructed in 1926, in the heart of downtown Chicago. The

property is located on the North side of Randolph Street, East of Dearborn Avenue and

west of State Street. The building is situated in the heart of the Theatre District within the

Central Loop submarket, and just west of the prestigious LaSalle Street Financial District.

Directly to the east lies the East Loop submarket, one of the most dynamic areas in

Downtown Chicago. This area is experiencing a rebirth via its transformation into a world

renowned residential, cultural and recreational center, which includes Millennium Park,

the Art Institute, the Chicago Theatre and the Lakeshore East.

Proposed Development 32 West Randolph is a proposed 220 apartment unit rehabilitation within a vertical

subdivision, housing the famous 2,253- seat Oriental Theater on the majority of the first

seven floors, and the proposed 220 apartments on the upper floors. The apartments will

occupy approximately 175,000 square feet of space on portions of floors 3 - 22 in the

Tower, and Floors 8 - 15 above the Theater. The high ceilings of the existing structure will

allow spacious "loft" style residences, some with two levels.

Executive Summary

The 220-unit property will be comprised a mix of studios, convertibles, one and two bedroom units averaging approximately 799 sf. The clubhouse/amenity areas will be positioned over the center portions of the floors above the Theater area. These areas will present a special opportunity to provide unique recreational and community spaces, in perfect concert with active urban lifestyles - a major multipurpose sports, meeting and entertainment area within the 20' high space of the 14th floor, a full health club on the 12th floor, and office, theater, study, music practice and storage spaces on three more core areas on floors 8, 9 and 10.

Property History Historically known as the Oriental Theatre Building, construction of 32 West Randolph

was completed in 1926. Designed by Chicago’s famed architects, Rapp and Rapp,

32

West Randolph was originally constructed as a theatre and Masonic Temple and was

built on the same location as the former Iroquois Theatre (later the Colonial Theatre).

Although the outer facade looks identical, the Property did not retain anything from

the original building that once stood here.

The theatre, occupying the majority of the first 7 stories of the building, was originally

designed as a 3,250-seat theatre presenting popular first-run movies and lavish stage

shows. The surrounding space was occupied by the Masonic Temple, which originally

included 11 separate Masonic halls.

The current owner of The Property acquired title to the entire building, including the

theatre and Masonic Temple in 1978. In 1996, a vertical subdivision of the building

was completed with the building ownership being separated between the theatre

space and the former Masonic Temple space. At the same time, the ownership of

the theatre space completed a full renovation and restoration of the Oriental

Theatre. The theatre was reopened in 1998 and now hosts the visiting companies of

Broadway shows.


The Property is no longer used by any Masonic organizations and all of the rentable

space is used as office space. The State of Illinois and its related entities have occupied

the majority of the building since the 1990s. The State has recently started vacating the

premises with full vacancy expected in 2nd quarter 2013.

Location

32 West Randolph is located on the north side of Randolph Street, approximately 60 feet

east of the northeast corner of Randolph Street and Dearborn Street. The common

address is 32 West Randolph Street. The building is situated at an irreplaceable location

at the convergence of the Loop's financial, governmental, retail, residential and theatre

districts and it is located directly across the street from the new Block 37 development, a

mixed-use development comprised of 277,000 SF of retail space, 440,000 of office space and a transportation center.


The property has tremendous access to the Downtown Chicago's public transportation

system. Every CTA train line has a stop within one block of the property and State Street,

the first street east of the property, is a main artery for numerous major CTA bus lines. In

addition, all of the major Metro commuter rail stations are within walking distance to the property.

Existing Structure

The building is situated on an L-shaped land parcel containing 27,837 square feet. The

building has approximately 140 feet of frontage along the north side of Randolph Street

and approximately 162 feet of frontage along the south side of Couch Place. The

property is approximately 181 feet in depth. The site is currently zoned DX-16, Downtown

Mixed-Use District.

The Property is comprised of 226,666-SF of office space on Floors 1, 3 through 22 plus an

elevator penthouse and portions of the two basement levels that are all part of a vertical

subdivision, with the remaining space in the building being separately owned and

utilized as the 2,253-seat Oriental Theatre/Ford Center for the Performing Arts.

The total gross building of The Property is 237,188 square feet. The main entrance to the

building is on Randolph Street. The ground floor space is comprised of the main lobby

area, six elevators, and stairwells.


There is no rentable space on the 2nd floor. The rentable space on Floors 3 through 7

share floors with the theatre and is located along the south side of the building with

frontage along Randolph Street.

Floors 8 through 22 are all located above the theatre. Floors 8 through 15 approximately

comprise the footprint of the site and have floorplates ranging from 20,260 SF to 23,573

SF, with the exception of the 13th Floor which contains 13,111 SF. Floors 16 through 22 are

located on the tower portion of the site and range in size from 5,372 SF to 7,598 SF.

Interior Finish: The lobby area is finished with travertine panel walls, granite tile floors and

painted drywall ceilings.

The upper floor tenant spaces and common areas finishes vary from floor to floor but

generally consist of carpeted floors, painted drywall walls and acoustical droptile

ceilings. Finished ceiling heights in the upper floor office spaces are approximately 8.0 to

8.5 feet.

The restrooms are typically finished with acoustical droptile ceilings, ceramic tile floors

and painted drywall walls with ceramic tile wainscoting.

Exterior: Terra cotta on south elevation and common brick on majority of remaining

elevations with some terra cotta accents.

Structure: Steel beams and columns encased in clay tile. Floors are reinforced concrete.

HVAC Systems: Heating is provided via four boilers located on the 17th floor that provide

steam heat which is distributed in risers to baseboard radiators along the perimeter of the

floors. In addition, heat is also distributed via steam coils and air handlers that provide

heat to the central portions of the floors.

Cooling is provided via package units. The majority of the water-cooled package units

are located on the respective floors with some located on the roof. The cooled water is

provided via a cooling tower located on the roof.

Electrical: Three-phase, three-wire system, 480-volt service into the building.

Roof: Flat concrete deck covered with two-ply modified bitumen roofing system. All

rooves were installed in 2001.

Windows: Aluminum-framed, double-pane, double-hung

Elevators: There are six passenger elevators and two freight elevators. The passenger

elevators service Floors 1 through 22. One freight elevator services the two basements up

to Floor 22. The other freight elevator services the 1st Floor and the first basement.

All of the elevators have 2,500-lb. capacity.

Plumbing: Floors 3 through 22 all contain at least one restroom with most containing one

men’s and one women’s restroom, all equipped with adequate fixtures. Each men’s

and women’s restroom has at least one 5-gallon electric hot water heater. There is a 40-gallon gas hot water heater that services the 14th floor.


Life Safety: There is a standpipe system with fire hose connections on every floor.

Approximately 35%- 40% of the building is sprinklered. All risers have been installed for the

building’s sprinkler system and fully operational sprinklers have been installed in the

basement and Floors 1, 3, 4, 8, 9, 13, 21 and 22.

Emergency lighting is backed up by a natural-gas fired emergency generator. Smoke

alarms, horn strobes and pull stations that are connected to the fire panel are provided

on every floor.

Loading: There is a grade level loading dock on the north side of the building which is

accessible via Couch Place.


TOTAL UNITS: 220 TOTAL RENTABLE SQUARE FEET: 175,730 Square Feet

AVERAGE UNIT SIZE: 799 Square Feet

STRUCTURE: 22-Story Existing Building

PARKING: Existing Parking Garage located behind building

ANTICIPATED START:

ANTICIPATED COMPLETION:

1st Quarter, 2014

2nd Quarter, 2015

DESIGNER STYLE KITCHEN: The contemporary styled kitchen include attractive espresso

finish, Wood cabinets with abundant storage, wood flooring, expansive pass through

entertainment bar with stainless steel double bowl sink, and decorator selected granite

countertops. A separate full-size pantry closet is provided for extra kitchen storage in all

units.

The kitchen is equipped with a designer stainless electric appliance package including

energy saving refrigerator with automatic icemaker, built in microwave, glass top range

/self-cleaning oven combo, and energy saving sound conditioned multi-cycle

dishwasher and disposal.


Descriptive Summary

DESIGNER STYLE BATHROOM: The bathrooms will include elegantly styled marble

countertops, vessel sinks, vanities with abundant storage space, mirrored wall with

theatrical lighting, ceramic tile flooring throughout with matching ceramic tile tub surrounds.

FLOORS: All units will have wood flooring through the living areas. Bathrooms will have

designer style ceramic tile.

WALLS & CEILINGS: Units will be painted in Designer Custom decorator colors.


ADDITIONAL CUSTOM FEATURES: Each apartment includes horizontal 2” faux wood blinds,

walk-in closets with abundant storage space; decorator track lighting in dining rooms,

ceiling fans in master bedrooms and solid wood trim.

LAUNDRY: Each apartment includes a washer and dryer.


AMENITIES: The amenity areas will feature a full-circuit fitness center, bar area, multi-

purpose room with media center, bar and kitchen area, cyber café, and a children’s fun

and study center.

Typical Amenity Area


Meeting Room and Fitness Center


SECTION 2

LOCATIONAL INFORMATION & MAPS

• Location

• Public Transportation / Subway Lines

• Neighboring Residential

• Recreation / Entertainment / Restaurants

• Comparables


Location

32 West Randolph is located on the north side of Randolph Street, approximately 60 feet east of the northeast corner of Randolph Street and Dearborn Street. The common address is 32 West Randolph Street. The building is situated at an irreplaceable location at the convergence of the Loop's financial, governmental, retail, residential and theatre districts. It is located directly across the street from the new Transportation Center in the lower level of Block 37. 32 West Randolph has a very central location for work, shopping, transportation, entertainment, dining, nightlife and education, and conveniently located to Depaul, Roosevelt University, School of the Art Institute, Columbia College, University of Chicago grad school, Robert Morris, Illinois Institute of Art, and the Chicago School (Industrial Design).

Location


Location / Subject Property


Block 37

The property has tremendous access to the Downtown Chicago's public transportation system. Every CTA train line has a stop within one block of the property and State Street, the first street east of the property, is a main artery for numerous major CTA bus lines. In addition, all of the major Metro commuter rail stations are within walking distance to the property.

Public Transportation / Subway Lines


Neighboring Residential


Neighboring Residential

329 Units (Including 120 furnished corporate extended-stay units). Completed in October, 2010. 42 floors, 549 parking spaces. The majority of the units are studios, convertibles or one bedroom units. The staff indicated they are 98% occupied. The sales manager quoted a 554 sf studio unit at $1,668, for occupancy in September ($3.01).

2 Oakwood Apartments

NW Corner of Lake and Wells (1 Block north of Randolph Tower)

Mid-Block, south side of Washington Street, between Wells Franklin Street. (One block south, one half block west from Randolph Tower)

389 Units, 50 floors, 600 parking spaces Opened in 2010. 93.8% occupied 18% Studios, 18% Convertibles (662 sf with alcove) Typical floor has: 18% 2 Bedroom, 18% 1 bedroom/Den, 28% 1 Bedroom. $2.97 average rent per CBRE.

215 West Washington 3

At the NE corner of Randolph and Wells Streets, in the Loop, adjacent to the “EL” tracks (Three blocks west of the 32 West Randolph property)

312 units . Renovation of a 45-story, 1929 office building by Village Green. Completed in late 2012. Very rapid lease-up, despite the ragged condition of the exterior during the lease-up period. Leasing at 98% as of July, 2013. A typical floor contains: a One Bedroom with 675 sf, two One Bedroom units with Den of 750 sf and 800 sf, a Two Bedroom of 975 sf, five Studios averaging 525 sf and four Convertibles averaging 625 sf. There are 26 Two Bedroom Penthouses that typically range from 1080 sf to 1138 sf, plus one 1337 sf Penthouse and one 2008 sf Penthouse. Effective rents average $2.94/sf.

1 Randolph Tower


111 West Wacker Apartments 5

SW corner of Clark Street and Wacker Drive. (One block west and two blocks north of 32 West Randolph) 504 units, 59 stories, 439 parking spaces. A revision of the Waterview condominium/hotel building begun on the site in early 2006 by Related Midwest. Completion is anticipated for 2014. The building is to include a mix of studio, convertible, one bedroom, one bedroom with den, two bedroom, three bedroom and penthouse units.

249 units, 28 floors, 213 parking spaces Opened in 2010. 95.2% occupied Typical floor has: 17% studios, 50% 1 Bedroom, 8% 1 Bedroom/Den, 25% 2 Bedroom $3.01 average rent per CBRE.

4 EnV Chicago

SE corner of Wells and Kinzie – adjacent to the Merchandise Mart

(Three blocks plus the River north of Randolph Tower)

NE Corner of Wells and Lake Streets (One block north of Randolph Tower)

293 Units - 1930 Office Building, converted in 2006 Variety of sizes. Sales prices generally from $100,000 to $300,000; $137/sf - $190/sf.

Century Tower Condominiums 6


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Mid-block on the north side of West Washington Street, between Wells and Franklin. (One block south and one half-block west of Randolph Tower – immediately adjacent to the east of 212 West Washington, and across the street from 215 West Washington)

214 Units. Converted from office to Condominium in 2001. 45% One Bedroom, 45% Tow Bedroom. 10% Penthouse. There appear to be three Units on the market – 1,165 sf Two Bedroom at $285,000 - $244/sf; 1,080 sf Two Bedroom at $299,000 - $277/sf; 910 sf One Bedroom at $175,000 -$192/sf.

City Centre Condominiums – 208 West Washington 8

North side of Lake Street, one half-block east of Wabash Avenue (former Enterprise Rental Car garage site) (One block north and two Block east of 32 West Randolph)

332 Units. Delivery stated as Spring 2014. 42 floors, 183 parking spaces. Contemporary design. 36% Studios, 28% One Bedroom, 36% Two Bedroom. No stated rents yet. Developer is RMK, who built the Parc-Huron in west River North.

73 East Lake Street Apartments 9

Mid-block on the north side of West Washington Street, between Wells and Franklin. (One block south and one half-block west of Randolph Tower – across the street from 215 West Washington)

183 units. Converted from office to condominium in 1999. Very attractive millwork lobby. Building built in 1910. Approximately 5% Studios, 45% One Bedrooms, 45% Two Bedrooms, 5% Three Bedrooms. The Manager confirms there are only two units on the market – an 823 sf One Bedroom is listed for $250,000 - $303/sf, and a 1,120 sf Two Bedroom listed for $299,000 - $267/sf.

212 West Washington Condominiums 7


12 Park Millennium Condos

South side of Randolph Street (2 blocks east of 32 West Randolph) 480 units. 57 stories, 500 parking spaces. Completed in 2002 as a rental, converted to condos in 2005. Mix of units, from studios to penthouses. Example units for sale: 1,120 sf Two Bedroom at $395,000 - $352/sf; 1,850 sf Three Bedroom at $829,000 - $448/sf; 835 sf One Bedroom at $300,000 - $359/sf.

NE corner of State Street and Randolph Street, across the Street from Macy’s (One half-block from 32 West Randolph) 184 units. 32 stories. Completed in 2008. Striking modern design. Houses the home of the Joffrey Ballet – offices and practice studios. One and two bedroom units. There seem to be few units on the market: a Two Bedroom of 1,460 sf is listed at $469,000 - $321/sf; a 850 sf One Bedroom is listed at $250,000 - $294/sf.

Joffrey Tower Condos 10

NW corner of Dearborn and Lake Streets (One half-block east and one block north of 32 West Randolph) 310 Units. 47 Stories. Conversion from rental began in 2008. 7 Studios, 32 Convertibles, 193 One Bedrooms, 77 Two Bedrooms, One Penthouse. Only three remain – a 1,165 sf Two Bedroom listed at $515,000 -$442/sf; a 1,535 sf Three Bedroom at $485,000 - $316/sf (used to be the shop & back-of-house space); and an unfinished Penthouse of 2,875 sf at $1,300,000 - $452/sf.

200 North Dearborn Condos 11


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Recreation / Entertainment / Restaurants

Shown here are the many restaurants and bars in close proximity to 32 West Randolph. There are popular lunch locations for Loop workers, and for evening and weekend dining. The area includes large, very popular bars with good food, like Moe’s Cantina, John Barleycorn, Rockit, Public House, and Bull & Bear; great innovative, upscale dining venues like Epic, Mercadito, NAHA, Frontera Grill, Piccolo Sogno Due; upscale club-style places like the Paris Club and Gilt Bar; more traditional good restaurants like Keefer’s, Chicago Cut Steakhouse, Fulton’s, and Shaw’s. This is one of the key areas for the young market in Chicago, and for all ages for fun, innovative and fashionable dining and nightlife.


Comparables


SECTION 3

CHICAGO OVERVIEW & MARKET UPDATE

51cHIcAGO mArKET OvErvIEw

CHICAGO MARKET OVERVIEW

52 ALTA AT K STATION

Chicago is the third-largest metropolitan area in the United

States and the primary commercial services center in

the Midwest. Twenty-eight Fortune 500 companies are

based in the Chicagoland area, and according to World

Business Chicago, 96 major publicly traded companies

have headquarters in Chicago.

The City maintains an outstanding transportation and

distribution system that allows corporations and other

organizations to do business effectively on a global,

national, state and local level. It is served by an extensive

highway system, four major commuter rail stations and

one of the Nation’s most elaborate and convenient rapid-

transit systems.

With its diversified business platform, the City of Chicago

has begun to recover quickly from the recent economic

downturn faster than most cities.

Premier Global Business CenterA global city can be defined as one that manages the global

economy and influences its direction. It is a place where

business is conducted, great art can be seen, wonderful

orchestras can be heard, latest styles are embraced and

the best cuisine can be consumed.

According to A.T. Kearney, The Chicago Council on Global

Affairs and Foreign Policy magazine, the Global Cities Index

2010, which includes business activity, human capital,

information exchange, cultural experience and political

engagement, has ranked Chicago as sixth in the world.

Additionally, the city has been cited as #1 in Top Foreign

Direct Investment Strategy among major cities around

the world. Of the U.S. cities considered to be the prime

office investment markets - Boston, Chicago, New York,

Washington D.C., San Francisco, and Los Angeles.

CHICAGO


Population

With a population of more than 9.6 million people, the

Chicago metropolitan area is the third most populous in the

United States. In the past twenty years, the metropolitan

area has grown by more than 1.6 million people.

Current and historical population figures for the fourteen

counties comprising the Chicago MSA are summarized in

the following table:

cHIcAGO ArEA POPuLATION STATISTIcS

1990 CENSUS

8,167,725TOTAL

2000 CENSUS

9,078,390TOTAL

2010 CENSUS

9,627,784TOTAL

2015 ESTIMATE

9,832,083TOTAL

5,239,879COOK COUNTY (CHICAGO)

4,592,204REMAINING 13 COUNTIES







Source: CBRE Fast Report

Global GatewayCurrently, Chicago’s metropolitan area has the 4th largest

Gross Domestic Product (GDP) of all metropolitan areas in

the world. Chicago is the hub of the Midwestern United

States. It is located along Lake Michigan. Approximately 17

percent of the national population lives within 500 miles

of Chicago, making the city the focal point of the Midwest

markets.

Chicago retains its status as a major hub for industry,

telecommunications and infrastructure as well as one of

the world’s top ten Global Financial Centers for business

and finance.

The city has maintained this stature by remaining the

third largest and most significant transportation hub in the

United States and top five in the world. Chicago provides

local firms access to both national and international

markets and suppliers, as well as provides travelers with

convenient traveling alternatives.

AirportsChicago is home to O’Hare International Airport, which

is the second busiest airport in the world, and is a major

airport serving numerous domestic and international

destinations with 2,900 daily flights with direct and

nonstop airline service to more than 220 cities worldwide.

Chicago is within a four hour flight, of all major North

American destinations. It is a non-stop global gateway to

60 international and 142 domestic business centers. It is a

major hub for United Airlines and American Airlines.

Chicago Midway International Airport serves primarily

domestic destinations. It is a major hub for Southwest

Airlines, as well as a focus city for AirTran Airways. It is

considered the second airport in the Chicago metropolitan

area.

The O’Hare Modernization Program (OMP) will reconfigure

O’Hare International Airport’s intersecting runways into

a more modern, parallel layout. The $6.6 billion Program


will substantially reduce delays in all weather conditions

and increase capacity at the airport, allowing O’Hare

to meet the region’s aviation needs well into the future.

O’Hare already generates 450,000 jobs and $38 billion

in economic activity for the Chicago region and State

of Illinois. A modernized O’Hare means the creation of

195,000 additional jobs and another $18 billion in annual

economic activity.

Chicago is one of the few cities in the United States

that provides rapid transit service to two major airports.

From the downtown area the CTA’s Blue Line takes riders

to O’Hare International Airport in about 40 minutes and

the Orange Line takes customers to Chicago Midway

International Airport in about 30 minutes from the Loop.

CTA/MetraThe expansive network of Chicago’s public transportation

system enables Chicago businesses access to attract

the top-talented employees who would otherwise be

encumbered by commute distance or time. Similarly,

the public transportation system provides Chicago-area

residents access to Chicago’s wide-ranging cultural and

business opportunities.

CTAThe Chicago Transit Authority or “CTA” operates the second

largest public transportation system – the elevated train

system (commonly referred to as the ‘EL’) - in the United

States (with the largest being New York’s Metropolitan

Transportation Authority). It covers the City of Chicago

and the 40 surrounding suburbs. The CTA operates 24

hours a day and, on an average weekday, 1.6 million rides

are taken on the CTA system. CTA trains provide about

650,000 customer trips each day and serve 144 stations

in Chicago, Evanston, Skokie, Wilmette, Rosemont, Forest

Park, Oak Park and Cicero. CTA has approximately 2,000

buses that operate over 152 routes and 2,273 route miles,

which provide about 1 million passenger trips a day and

serve more than 12,000 posted bus stops.

RailChicago has an extensive regional and national passenger

system as well as an extraordinary freight rail transportation

network, where all six Class-One North American railroads

can interchange traffic, making it one of the largest and

most active rail hubs in the world. Additionally, regional

and national Amtrak trains connect via Union Station, the

fourth busiest Amtrak station.

The largest commuter rail system in the United States,

the Northeastern Illinois Regional Commuter Railroad

Corporation, under its trademark Metra, operates eleven

commuter rail lines that serve 200+ stations across the

RTA’s six-county service area. In addition, being mainly a

commuter rail service, frequent service is generally only

provided during rush hours, although Metra is known for

its speed and reliability. The eleven lines connect into one

of four different downtown stations: Union Pacific North,

West and Northwest arrive in the Ogilvie Transportation

Center (located two blocks from the subject); Milwaukee

District North and West, North Central Service, Southwest

Service, Burlington Northern and Heritage Corridor

converge in Union Station (along with being the nexus of

Amtrak); the Rock Island Line arrives in the LaSalle Street

Station; and the Metra Electric arrives in Millennium

Station.

Roads and Interstate HighwaysChicago is a significant hub for the logistics industry

through its main interstate roadways. The city has a

convergence of seven major interstate highways crossing

through it. Commonly referred to as “expressways,” each

roadway is typically known by their various given names

rather than their Interstate numbers. The Ronald Reagan

Memorial Tollway (I-88) and the Eisenhower Expressway

(I-290) are the main east-west routes, providing access to

the Central Business District [CBD] to the east and the

Quad Cities to the west.


Access to the south and southwestern suburban areas and

ultimately the city of St. Louis is the Stevenson Expressway

(I-55). Additional south access is available via the Dan

Ryan Expressway (I-90/I-94) which continues south and

splits into the Chicago Skyway (I-90) and the Bishop Ford

Freeway also known as the Calumet Expressway (I-94) and

Interstate 57 (I-57).

Communities to the north and northwest are accessed

via the Jane Addams Memorial Tollway (I-90), the Kennedy

Expressway (I-90/I-94) and the Edens Expressway (I-94).

The Tri-State Tollway (I-294) and the Veterans Memorial

Tollway (I-355) facilitate travel between the north and the

south skirting the city congestion. Additionally, there are

numerous other major U.S. Interstate highways crossing

the state, including the historic Route 66. Its central

location is the reason that Illinois carries the distinction of

having the most primary (2-digit) Interstates pass through

it among the 50 states.

The downtown road system is referred to as being a “grid

system” which continually rates Chicago as one of the top

ten most walkable cities in the nation.

WaterwaysThe city is linked to the Atlantic Ocean via the St. Lawrence

Seaway and to the Gulf of Mexico via the Mississippi River,

offering two ports capable of handling ocean-going ships

and barges. According to World Business Chicago, Chicago

is in the top five Container Ports in the World, handling over

13 million TEU’s (Twenty-foot equivalent unit).


Economic OverviewThe Chicago metropolitan area has a large and well-

diversified economic structure. Due to this economic

diversification, the Chicago metropolitan area tends to

experience fewer seasonal and cyclical peaks and valleys.

According to World Business Chicago, Chicago has one of

the world’s largest and most diversified economies, with

nearly 4.3 million employees and a gross regional product

(GRP) of more than $480 billion. It is an efficient economic

powerhouse that is home to more than 400 major corporate

headquarters, including 28 Fortune 500 Headquarters.

Rated the #1 Large US Metro for Economic Diversity by

Moody’s Investor Services, Chicago is a key participant in

every economic sector from risk management innovation

to manufacturing to information technology to health

services.

Businesses in the Chicago area benefit greatly from a

sizable and concentrated pool of specialized services.

Prominent companies in advertising, management

consulting, finance, human resources, accounting, law and

logistics all serve to promote businesses in Chicago and

around the world.

cHIcAGO mETrO ArEA’S EcONOmIc INDIcATOrS

2006 2007 2008 2009 2010 2011 2012 2013 2014

Gross Metro Product(C$B) 339.3 345.2 331 336.8 336.8 347.7 367.1 382.9 389.6

Total Employment 3,843 3,873 3,845 3,645 3,753 3,584 3,684 3,781 3,861

Unemployment Rate 4.5 4.9 6.2 10 10.4 9 8.8 7.4 5

Personal Income Growth 7.2 5.5 3.2 -3 2.4 3.2 5.1 6.2 5.9

Source: Precis Metro at Economy.com, 2010

Metropolitan Leading EmployersMetropolitan Chicago is appealing to expanding companies,

such as Pepsi, Wrigley and Motorola, who are utilizing

the available office space to build new development and

research centers. The following are the largest employers

in Metropolitan Chicago:

NUMBER OF FULL TIME

EMPLOYEES

U.S. Government 49,573

Chicago Public Schools 40,883

City of Chicago 35,237

State of Illinois 25,700

Cook County 23,083

Wal-Mart Stores 21,329

Advocate Health Care 14,873

J.P. Morgan Chase & Co. 13,639

Walgreen Co. 13,122

Abbott Laboratories 13,000

United Continental Holdings 13,000

AT&T Inc. 12,200

Motorola Inc. 10,000

American Airlines 9,766

Allstate Corp. 8,100

Comcast Corp. 8,632

Jewel-Osco 8,000

Bank of America 7,800


Chicago is top-ranked for economic potential among

major cities across the world, and in 2010, World Business

Chicago identified more than 230 medium-sized new &

expanding facilities announced, under development or

completed in the metro area, representing a total of more

than 14 million square feet and nearly $2 billion in economic

development activity. Chicago (City) companies had 101

companies listed on Inc. Magazine’s List of the 5,000

Fastest Growing Companies for 2010 and 23 companies

were listed on Crain’s List of the Fast 50 in 2010.

cHIcAGO FOrTuNE 500 cOmPANIES

LOCATION

SALES- WORLDWIDE

($ MIL) EMPLOYEES-

CHICAGO MSA

Abbott Laboratories* Abbott Park $30,765 13,000

Allstate Corp., The* Northbrook $32,013 8,706

Anixter International Inc. Glenview $4,982 28 (HQ)

Aon Corp.* Chicago $7,595 1,200 (HQ)

Baxter International Inc.* Deerfield $12,562 1,500 (HQ)

Boeing Company, The* Chicago $68,281 400 (HQ)

Discover Financial Services Riverwoods $7,986 2,500 (HQ)

Exelon Corp.* Chicago $17,318 6,435

Fortune Brands, Inc. Deerfield $6,695 95 (HQ)

Illinois Tool Works Inc.* Glenview $13,877 250 (HQ)

Integrys Energy Group, Inc. Chicago $7,500 900 (HQ)

Kraft Foods Inc.* Northfield $40,386 1,300 (HQ)

McDonald’s Corp.* Oak Brook $22,745 2,200 (HQ)

Motorola, Inc. Schaumburg $22,044 10,300

Navistar International Corp. Warrenville $11,569 1,400 (HQ)

NiSource Inc. Merrillville $6,649 700 (HQ)

Northern Trust Corp.* Chicago $4,193 1,234

OfficeMax Incorporated Naperville $7,212 1,500 (HQ)

R.R. Donnelley Chicago $9,857 1,000

Sara Lee Corp. Downers Grove $12,881 280 (HQ)

Sears Holdings Corp. Hoffman Estates $44,043 4,800 (HQ)

Smurfit-Stone Container Corp. Chicago $5,574 400 (HQ)

Telephone and Data Systems Chicago $5,021 35 (HQ)

Tenneco Inc. Lake Forest $4,649 135 (HQ)

UAL Corp. Chicago $16,335 13,000

United Stationers Inc. Deerfield $4,710 800 (HQ)

W.W. Grainger, Inc. Lake Forest $6,222 1,200 (HQ)

Walgreen Co.* Deerfield $63,335 13,281

*Also a FT Global 500 company

(HQ) Headquarters employment

Source: Fortune, May 3, 2010, Hoover’s, Inc., Crain’s Chicago Business, MNI


Trade and CommerceChicago is also home to four major exchanges (Chicago

Mercantile Exchange, Chicago Board Options Exchange,

Mid-America Commodity Exchange and Midwest Stock

Exchange) representing over 80% of the world’s trade in

commodities. The Chicago Board of Trade and Mercantile

Exchange merged companies in July 2007, creating the

largest derivatives market ever.

The Chicago Board of Trade is a leading futures/options

exchange with more than 3,600 members trading over

50 different products. The Chicago Mercantile Exchange

is the largest futures exchange in the United States, and

operates the largest futures clearing house in the world,

while the CBOE is the world’s largest options market. The

Chicago Stock Exchange provides for the trading of over

3,500 NYSE, AMEX, NASDAQ and CHX-exclusive issues.

Conventions and TourismChicago’s many cultural and entertainment attractions

draw over 45 million visitors per year. Due to Chicago’s

central location, it attracts more than nine million

attendees and exhibitors to over 30,000 annual events

at some of the nation’s largest and best convention and

trade show facilities, such as McCormick Place and Navy

Pier. McCormick Place is Chicago’s premier convention

location and now features four state-of-the-art buildings:

McCormick Place North, McCormick Place South, Lakeside

Center and The West Building. McCormick Place has 2.7

million square feet of exhibit halls and meeting rooms.

HotelsChicago’s hospitality industry is one of the largest and most

competitively priced markets for major business centers

in the country. The City’s CBD alone offers more than

35,000 rooms, and more than 100,000 rooms are located

throughout the metropolitan area. Several luxury hotels are

located within proximate distance of the CBD, including 5

five-star hotels and more than 18 four-star hotels. While

more upscale offerings are certainly available, a large

inventory exists of hotel offerings from boutique venues

and limited services hotels to ones that are designed for

budget travel.

The City’s hotels are constantly upgrading their

accommodations to stay on top of traveling needs. The

City’s popularity as a convention destination is due in

part to the high quality and accessibility of its hospitality

industry. More than 20,000 rooms are located within

three miles of McCormick Place and more than 17,000 are

located within one mile of Navy Pier. Many hotels offer

shuttle and bus systems that provide easy access to these

and other popular locations.

Chicago is home to 4 Condé Nast Gold List 2011 Hotels,

plus Travel & Leisure’s 2010 pick for the #1 Large City Hotel

in North America. Additionally, Chicago is home to 4 of

the Top 10 Large City Hotels according to the U.S. Travel +

Leisure: Trump International Hotel & Tower, The Peninsula,

Sutton Place Hotel and the Four Seasons Hotel.

NUMBER OF GUEST ROOMS

AVERAGEROOM

RATE

Hyatt Regency Chicago 2,019 $189-$215

Palmer House Hilton 1,639 $129-$459

Hilton Chicago 1,544 $129-$459

Sheraton Chicago Hotel 1,209 $169-$259

Chicago Marriott Downtown 1,198 $169-$469

cHIcAGO’S LArGEST HOTELS

Source: Crain’s


Cost of Doing Business

Wage RatesAccording to KPMG’s 2010 Guide to Competitive

Alternatives, Chicago was ranked one of the most cost-

effective cities in the world for doing business - ahead of

London, New York and Boston.

PricewaterhouseCoopers, in a recent study comparing

“Cities of Opportunity,” measured average costs of living

and business occupancy against a city’s purchasing power.

Chicago proved to be among the better deals, scoring

higher than a host of global cities including Paris, Tokyo,

New York, Shanghai, London and Singapore.

Of the major markets for office investment, Chicago has

by far the lowest wage rates. This means comparable work

achieved in the other markets will be done less expensively

in Chicago. The cost-effectiveness of Chicago’s labor pool

is attractive to businesses looking to maximize their labor-

to-revenue ratios, an important factor for businesses and

other organizations to consider when opening or relocating

their operations, particularly in the current market cycle.

Chicago’s comparatively low wage rates undoubtedly

played a factor in the decisions of many corporations

and other organizations that have recently moved their

operations to Chicago.

GLOBAL cITy rANKING

Chicago#6New York

#1

Los Angeles

#7WashingtonD.C.#13

Boston#19

cBD OFFIcE OccuPANcy cOST

LOS ANGELES

CHICAGO

NEW YORK - DOWNTOWN

BOSTON

WASHINGTON D.C.

NEW YORK - MIDTOWN $66.59

$53.03

$43.42

$39.96

$33.89

$28.80

Source: A.T. Kearney, The Chicago Council on Global Affairs and Foreign Policy magazine, the Global Cities Index 2010

Cost of LivingIn addition to being a more cost-efficient market in wage

rates and occupancy costs, Chicago also maintains a lower

cost of living when compared to the other major investment

markets. Grocery items, housing and other miscellaneous

goods and services are all less expensive in Chicago than

they are in the other leading cities including New York, San

Francisco, Los Angeles, Washington, D.C., Boston and

Philadelphia. The following chart is issued quarterly by the

Council for Community and Economic Research and tracks

six major expense categories.

cOST OF LIvING

N E W Y O R KM A N H AT TA N 217.2

U . S . A V E R A G E

S A N F R A N C I S C O

L O S A N G E L E S

W A S H I N G T O N , D . C .

B O S T O N

P H I L A D E L P H I A

C H I C A G O

100.0

162.9

141.6

138.6

130.9

123.9

113.2

*Note: All figures are for the primary urbanized area within each MSA, not for entire MSASource: ACCRA Cost of Living Index, 2009 Annual Average

Source: Crain’s


DemographicsChicago has a higher proportion of its population in each

age group under the age of 24 than the other selected

metro areas. By 2013, Chicago, continuing its growth

trend, is projected to have a higher percentage of its

population in every age group below 35 years old than

the other 5 metros. Similarly, Chicago’s median age is

the youngest of all the selected metro areas - more than

three years younger than that of San Francisco. Chicago’s

comparatively younger population is a good sign for

businesses and other organizations that will rely on the

area as a major source of labor into the future. The area’s

prime working aged residents (aged 21-64) is projected to

increase by more than 113,000 people by 2013.

Academics and EducationTop universities attract top global talent as an educated

workforce is a prime attractor for global businesses and

usually a driver of affluence in all sectors. Five prestigious

institutions anchor Chicago’s higher education community:

• University of Chicago

• Northwestern University

• DePaul University

• Loyola University

• University of Illinois

Among the leading institutions granting graduate &

professional degrees in the Chicago area are two of the

top MBA programs in the world according to the Financial

Times / The Economist 2010 MBA Global Rankings:

Booth School of Business, University of Chicago (#12/#1)

Kellogg School of Management, Northwestern University

(#21/#16)

SustainabilityChicago’s position as a leader in sustainable business

is underscored by former Mayor Richard M. Daley’s

commitment to making Chicago the greenest city in

America.

Chicago continuously ranks as one of the most sustainable

cities in the country, with more LEED registered and

certified buildings than any other city, 18 wind energy

companies (and growing), a Top 5 Metro rating for the

number of Energy Star rated buildings, and an incomparable

workforce - including more than 2,600 LEED credentialed

employees.

• Chicago is an ideal location for sustainable businesses

to locate and grow.

• Chicago is rated, according to Sustain Lane Media, a

leader in the promotion of sustainable practices as:

• #1 City in Green Innovation

• Leader in Metro Transit Ridership, City Commuting,

Water Supply and Solid Waste Diversion Advanced in

Green Economy, Green (LEED) Building, Planning &

Land Use and Knowledge Base & Communication

In an era where Western states are experiencing water

shortages, Chicago has the nation’s greatest water

supply. In an era when hurricanes have devastated

major cities and earthquakes rumble beneath others,

Chicago is relatively impervious to natural disasters. And

in an age of oil dependency, Chicago has high public

transportation ridership and is among the most innovative

cities in adopting sustainable practices. Given the recent

heightened public awareness of environmental issues and

the increasing importance of sustainable design in both

business and government circles, Chicago’s receptiveness

to the adoption of sustainable practices suggests its

willingness to improve the health of its inhabitants and

the environmental impact on its environment which are

viewed positively by people and organizations.

HealthcareChicago hospitals are credited with being among the

leading health care facilities in the country as well as some

of the nation’s best teaching and children’s hospitals. Within

the Chicago metropolitan area, there are 106 hospitals

with over 24,700 beds. The Chicago healthcare market

has been drastically changing in the past few years due

to hospital system acquisitions, mergers and partnerships.

In order to satisfy newly generated demand caused by an

expanding population, Chicago’s primary hospital systems

are expanding considerably.


In Chicago there are nearing 500,000 people employed

in healthcare & life science occupations with over 5,000

medical and dental residents (second only to New York

City). There are 47 teaching hospitals and 6 medical

schools to offer the most cutting-edge medicine to Chicago

residents.

Culture and RecreationChicago is a sophisticated, dynamic city that offers a

quality of life unparalleled by any other major metropolis,

providing a true community with world class amenities for

businesses and people. The city’s extraordinary character

can be attributed to its people, its location/infrastructure, its

collaborative business and government community, and an

unprecedented array of cultural activities and destinations.

Chicago may be the only city that is both global and middle-

class. Global in that it is one of the great cities of the world

with all the finer things life can offer. Middle-class in that

people of varying means and tastes not only live, but thrive

here with a real neighborhood for everybody.

“Urbus en Horto” which translates to “City in a Garden”

is the Chicago Latin motto. This motto captures the natural

beauty of the city and its abundant green spaces.

Natural Terrain• 68,000 acres of Forest Preserve

• 31 beaches

• 29 miles of lakefront, waterways

Parks & Playgrounds• 570 parks spanning 7600+ acres of parkland

• 534 baseball fields

• 518 playgrounds

Nature Education & Gardens• Adler Planetarium

• Brookfield Zoo

• Chicago Botanic Garden

• Garfield & Lincoln Park Conservatories

• Lincoln Park Zoo (2nd most visited city park in the

country, attracting 20 million visitors annually)

• Millennium Park (25-acre park in the heart of downtown,

attracting 4 million visitors annually)

• 90 gardens, including 50 community gardens

The City of Chicago also has pledged that in five years, at

least 20% of the electricity it uses will be from renewable

sources. One of the items that the City implemented to

reduce area temperatures, lower demand for electricity

and improve water run-off was the implementation of

rooftop gardens. City Hall now boasts the biggest roof

top garden and the city as a whole has one of the largest

quantity of green roofs in the nation.

Civic Activities & FestivalsThe wide-ranging, bustling festivals held throughout the

Chicago Metro Area embody the City’s civic vitality. More

than 400 neighborhood festivals are produced every year

in celebration of various local traditions, holidays and other

cultural customs, many of which are free to attendees.

MusicChicago is the birth place of urban blues and house

music. It is the home of one of the nation’s top symphony

orchestras and the hometown of many famous musicians,

including: Muddy Waters, Buddy Guy, Sir George Solti,

Sam Cooke, Bo Diddley, R. Kelly, Common, Smashing

Pumpkins, Kanye West, Liz Phair and Fall Out Boy.

THE mOST vISITED cITy PArKS (# OF vISITOrS)

#1#2#3#4#5

#31

Central Park N E W Y O R K2 5 M I L L I O N

Lincoln Park C H I C A G O2 0 M I L L I O N

Mission BayPark

S A N D I E G O1 6 M I L L I O N

Balboa Park S A N D I E G O1 4 M I L L I O N

Golden Gate Park

S A N F R A N .1 3 M I L L I O N

Millennium C H I C A G O2 0 M I L L I O N

Source: The Trust for Public Land


LiteratureWith 79 libraries throughout the city, and hundreds more

in the suburbs, all Chicagoans have ample access to

public libraries. Additionally, the Harold Washington Library

Center, located in the CBD, consists of 10 floors, and

70.85 miles of shelving, making it one of the largest public

libraries in the world.

TheaterThe City of Chicago is home to over 200 theater companies,

including the legendary Second City (Members include:

John Belushi, Steve Carell, Bill Murray, Stephen Colbert,

Dan Akroyd, Mike Myers, Chris Farley, Gilda Radner, Joan

Rivers, Martin Short, John Candy), Steppenwolf (Members

include: Gary Sinise, Joan Allen, John Malkovich), Chicago

Shakespeare Theater and Broadway in Chicago (which

attracts an annual audience of nearly 2 million people). It

is the only city with 4 Tony Award-winning regional theater

companies. Furthermore, the city is home to the Gene

Siskel Film Center, the Chicago Symphony, Lyric Opera

and the Joffrey Ballet rounding out the full arts stage

experience.

MuseumsThere are over 35 museums in the city including the

renowned Art Institute, Museum of Science & Industry,

John G. Shedd Aquarium and Oceanarium and the Field

Museum of Natural History — each attracting more than 1

million visitors annually.

ATTENDANCEBUDGET

(IN MILLIONS)

John G. Shedd Aquarium 1,964,791 $46.90

Museum of Science and Industry 1,605,020 $43.30

Art Institute of Chicago 1,527,000 $194.50

Field Museum of Natural History 1,325,007 $64.30

Chicago Cultural Center 808,000 $17.30

cHIcAGO’S LArGEST TOurIST ATTrAcTIONS

Source: Crain’s

TEAM VENUE ATTENDANCE

CubsMLB Baseball Wrigley Field 3,062,973

White SoxMLB Baseball U.S. Cellular Field 2,194,378

BullsNBA Basketball United Center 849,760

BlackhawksNHL Hockey United Center 854,267

BearsNFL Football Solider Field 497,561

WolvesAHL Hockey Allstate Arena 318,514

FireMLS Soccer Toyota Park 247,793

SkyWNBA Basketball Allstate Arena 4,292

cHIcAGO’S PrOFESSIONAL SPOrTS TEAmS

Source: ESPN 2010, TheAHL.com, WomensBasketballOnline.Com

Pho

to C

redi

t: G

iant

s27

Professional SportsChicago is one of the premier professional sporting cities

in the United States. It is one of few cities where major

professional sports teams in baseball (2 teams), basketball,

football and hockey all play within the city limits. Chicago

sports teams enjoy strong followings that are typically

among the most numerous in their respective sports.

CHICAGO MARKET OVERVIEW UPDATE

Downtown Chicago outperforms its suburbs, in a role reversal - In Other News - Crain's Chicago Business

http://www.chicagobusiness.com/article/20130302/ISSUE01/303029987/the-hottest-urban-center-in-the-u-s-chicagos-mega-loop[8/6/2013 1:26:06 PM]

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The hottest urban center in the U.S. —Chicago's mega-LoopBy Greg Hinz March 04, 2013

It's late afternoon on a winterweekend and the KerasotesShowPlace Icon movie theaters inthe South Loop are packed, nevermind that tickets go for as muchas $17.50 a pop. The 14-screencomplex is doing “very well,” saysTony Kerasotes, owner ofChicago-based KerasotesShowPlace Theatres LLC. Withmore than 1 million admissionslast year, in fact, “it's the best-grossing theater in the Midwest,”he claims.

Barely a decade ago, the site at Roosevelt Road and Clark Street was a forsaken railroad yard.Today, it's part of a 1.3 million-square-foot complex of shops, restaurants and apartments. This isthe new Chicago, a skyscraper-studded expanse that stretches well beyond the traditional Loopto cover 10 square miles roughly from Cermak Road to North Avenue and from the lakefront toAshland Avenue.

This is the new economic engine of the metropolitan area and, increasingly, the rest of Illinois.And it has reached a critical mass, data suggest, enabling its growth to be self-perpetuating, asmore jobs downtown attract more residents to move nearby, which, in turn, becomes a magnet formore employers to join the inward migration.

The Chicago Loop long has been one of the world's greatest job centers, of course. For much ofits history, though, downtown emptied out after office hours. And as the city aged and itspopulation declined, the suburbs rose to become the preferred home to generations of youngfamilies and the tollways became employment corridors of their own.

In recent years, those trends have reversed. After decades of watching the suburbs boom (oftenat the city's expense), Chicago now is outperforming the surrounding area by almost anymeasure—jobs, income, retail sales and residential property values, to name a few—despite theloss of 200,000 people in the 2010 census.

The city is so hot that this expanded downtown is adding residents faster than any other urbancore in America, according to U.S. Census Bureau data.

“In the year 2020, no matter how many condos are built or sold, Chicago is likely to be a nest ofcenter-city affluence unequaled in size—or even approached—by anyplace in America,” journalistAlan Ehrenhalt writes in “The Great Inversion and the Future of the American City.”

15

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This isn't to claim that Chicago has it made. Beyond the glitz of the mega-Loop, the city hasominous problems, from a gang-fueled murder wave to the seemingly unending cycle of poverty,abysmal education, broken families and joblessness, particularly in minority neighborhoods on theSouth and West sides. Unpaid pension bills and hefty public payrolls could drive out business.The middle-class exodus to the suburbs could resume if Chicago schools don't improve beforetoday's 20-somethings start having children.

Just as worrisome, the city center often looks good only because the region generally is doing sopoorly, lagging many others in recovering from even the 2001 recession. The millstone now isolder suburbs, with shrinking economic bases, aging populations and many of the social ills oflong-struggling city wards.

If for decades after World War II we asked whether the area could prosper with rich suburbs but adying inner city, the question now is whether the area can prosper with a thriving core but sinkingneighborhoods and inner-ring suburbs around it. “We're creating this paradox of prosperity anddespair at the same time,” says Joe Schwieterman, director of DePaul University's ChaddickInstitute for Metropolitan Development.

INTERACTIVE: From taxes to building permits, take a closer look at the numbers

There's no question, however, that the mega-Loop is benefiting from a back-to-the-city movementthat is reviving urban centers elsewhere in the U.S. In Chicago, the trend appears to besustainable. “This is a pattern that has developed for the last 30 years, and it has onlystrengthened,” says Columbia University sociologist Saskia Sassen, author of “The Global City.”

What's occurring is “an inversion” of the post-World War II paradigm, and it's happening more inmetropolitan Chicago than just about any other city in the country, says Mr. Ehrenhalt, whorecently left the Washington-based Pew Center on the States to return to Governing magazine,where he was longtime editor. “The city is rearranging itself.”

For Mayor Rahm Emanuel, the rise of downtown Chicago presents a rare opportunity. “We're notjust riding the wave—we're trying to accelerate ahead of it,” he says. He points to his emphasison education, at Chicago Public Schools and City Colleges of Chicago, and to increasedmunicipal investment in the South and West Loop. He also calls out every business relocation tothe city, which since he became mayor almost two years ago comes to a promise of 25,000 jobsnew to the city.

“For many years, the suburbs became the siren song, the place where everybody wanted to go,”says J. Paul Beitler, president of Chicago-based Beitler Real Estate Services LLC and a veterancommercial developer. Then the suburbs began to choke on their own traffic and city amenitiesblossomed. Now the young workforce “wants to be downtown,” he says. “The city of Chicago isbecoming truly a 24/7 place like New York.”

FOLLOWING THE MONEY

The numbers are unequivocal, both on the fact that the metropolitan area has lagged nationalgrowth rates for at least a decade and that the city is thriving, relatively speaking, from State andMadison streets outward.

On sales tax receipts, for instance, Chicago consistently trailed suburban Cook County and thefive collar counties, according to the Regional Transportation Authority, which imposes a sales taxfor transit. But that changed early in the last decade. From 2001 to 2011, collections in the city

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http://www.chicagobusiness.com/article/20130302/ISSUE01/130229715/graphic-in-the-greater-loop



grew 19.3 percent, almost twice the 10.2 percent increase across the region, with the trendcontinuing into 2012.

Similar data on retail activity come from the Chicago Metropolitan Agency for Planning. Between2000 and 2011 in the seven-county region, sales increased 19.7 percent in the city and 13.9percent in the region. The figures were significantly higher in the exurban boom towns of the pre-recession 2000s, in Kendall and Will counties. But closer in, suburbs badly trailed the city, withretail sales inching up just 3.4 percent in suburban Cook and a miniscule 1.8 percent in DuPageCounty.

“We're much more similar to suburban Cook County now than the collar counties,” DuPageCounty Board Chairman Dan Cronin says in an acknowledgment of how the economicmomentum has shifted. (See “DuPage at middle age.”)

Some of the city's gain undoubtedly is due to the change in the retail landscape. Target Corp.had no locations in Chicago until 1994, while Wal-Mart Stores Inc. didn't open its first big box inthe city until 2006. Discount shoppers had little choice but to drive to the suburbs for bargains.Today Wal-Mart has eight city stores and Target soon will open its 13th. With each Targetgrossing an estimated average of $40 million in annual sales, that's more than $500 million in cityspending that might have gone elsewhere.

But there's more to it than that. Overall, Chicago residents have more money to spend than theyused to. Census data analyzed by World Business Chicago indicate that the city, especially thecentral area, is gaining upper-end households and losing poor households faster than thesuburbs. The number of households with annual income of more than $200,000 grew 81.8percent in the region between 1999 and 2011. But that number rose 94.6 percent across the cityand 113.1 percent in the central district.

POPULATION BOOM

The number of people living downtown is soaring, too. According to Richard Greene, a NorthernIllinois University geographer and urban researcher, Chicago's central population leaped 114percent from 1990 to 2010, hitting 141,511. If it were counted separately, the greater Loop wouldbe the sixth-largest municipality in the state, with just a few thousand fewer people than Jolietand Naperville.

In fact, the Census Bureau reported in 2012 that Chicago gained more people within two miles ofCity Hall—48,288, or 36.2 percent—than any other American city, including New York, in theprevious decade, in both absolute and percentage terms. An outsize share of these newcomersare young, ages 25 to 34. By the city's estimate, 38,000 full-time college students attend classesin the greater Loop.

DePaul University awarded more master's degrees in computing and information sciences at itsLoop campus—442 last year—than all but three schools in the U.S. “We've been showing strongdemand here,” with students drawn by the proximity to big employers that need information-technology help, says David Miller, dean of DePaul's College of Computing and Digital Media.

Becky Carroll, 41, a former Barack Obama campaign staffer, and her husband, Jon Friend, 33,moved to the West Loop in 2007. She's communications chief at Chicago Public Schools andhe's chief technology officer for the city clerk; both had lived in outlying neighborhoods before.

“It's more convenient,” Ms. Carroll says, especially since creature comforts like restaurants andfull-line grocery stores have arrived. ”Taking taxi cabs all the time was more than my wallet couldhandle. Moving downtown made economic sense.”

The central business district also stands out when it comes to job growth. According to employer-provided information tallied by the Illinois Department of Employment Security, private-sectoremployment slid 1.3 percent in Chicago from 1993 to 2012, while it rose 8 percent in the six-county region. Downtown outdid that overall figure, however, with payrolls up 13.2 percent.

Even more significant is the value of those jobs. Bill Testa, director of regional programs and avice president at the Federal Reserve Bank of Chicago, has computed both the number of jobsand what they pay to chart total annual earnings by location. Between 1994 and 2008, adjustedfor inflation, gross payroll in the central area grew 71.4 percent, according to Mr. Testa, well

http://www.chicagobusiness.com/article/20130302/ISSUE01/303029986/dupage-loses-in-chicago-rivalry



above the national increase of 41.95 percent.

That means the area in 2008 produced roughly 70 cents of every dollar earned in all of Chicago.It also means that the workers in the city center produced 148 percent of the total earnings of allof DuPage County, up from 124 percent in 1994.

Since the recession hit in late 2007, the Loop gave up some of its lead, Mr. Testa says. But itappears to have regained all of the 3.8 percent of jobs it lost during the downturn, and that's evenbefore the recently announced downtown moves of such big companies as Google Inc.'sMotorola Mobility subsidiary, United Continental Holdings Inc. and Hillshire Brands Co. Bycomparison, DuPage lost 12.3 percent of its jobs in the recession, according to Mr. Testa.

“Recruiting went up immensely” after Motorola Mobility said it would leave its corporate campus inLibertyville for space in the Merchandise Mart, says Jim Wicks, who oversees the company'sdesign teams. ”In Libertyville, you don't feel you're in the social mix.”

Other tech-sector employers say that to attract talent, they need to cluster within that two-mileradius of City Hall, too. “Seventy-five percent of our employees walk, bike or take publictransportation to work,” says Logan LaHive, CEO of Belly Inc., a digital customer-loyalty andrewards firm that announced last month that it's adding 150 jobs in what once was a desolatestretch near the Cabrini-Green housing project. “It really comes down to where talent is looking tobe.”

Then there's Groupon Inc. The daily-deal pioneer launched with five employees in 2009. Today ithas 2,300-plus at its riverfront headquarters (in the same converted, century-old warehouse that'shome to Belly on the Near North Side) and in leased space in Illinois Center.

Another measure of Chicago's changing fortune is property values. Though real estate data oftenare more subjective, the value of all real estate subject to property taxes grew 24.8 percent in thepast decade in the city, five times more than the 5.6 percent increase in suburban Cook County,according to the Civic Federation, a nonpartisan research center in Chicago.

Figures on mass transit ridership affirm the other data. Ridership on the Chicago TransitAuthority's Brown Line, which snakes through yuppie neighborhoods on the North Side and stopsnear Groupon's headquarters and at Motorola Mobility's new home in the Mart, has tripled since1970 and doubled since 1994.

STANDING ON BIG SHOULDERS

Some researchers argue that America's reverse diaspora away from the suburbs is exaggeratedand that fringe areas such as Will County will outgrow the city center once the housing marketstabilizes. They point to a collapse of Chicago's condominium market in the recession as a signthat the greater Loop is a house of cards.

But high-rise construction continues. Instead of condos, though, developers are buildingapartments. More than 5,200 new residential units are under development in the central area.

Tracy Cross, president of a namesake housing consultancy in Schaumburg, expects the city'sshare of new residential construction to hold at 35 to 40 percent of the metro area's total for theforeseeable future. That's less than the 45 percent of a few years ago but way ahead of 20percent or less in the 1980s and "90s, when the suburbs boomed. “The city becomes thedominant place for (new) construction,” he says.

The city's advantage often comes down to lifestyle. Like young adults, empty-nesters are movingdowntown for the cultural and entertainment options that suburbs lack. In addition, Chicago is a



changed place: The housing projects that ringed greater downtown are mostly gone. So are mostof the factories. Today trees, shrubbery and flowers grace boulevards. Bike lanes share citystreets. Millennium Park dazzles.

'KEPT SELLING'

Joel Carlins is founder of Magellan Development Group LLC, which since 2004 has opened 3,600residential units in the giant Lakeshore East development just east of Michigan Avenue at thenorth end of Grant Park. He plans 2,300 more. Even in the height of the recession, Chicago-based Magellan kept building. “We kept selling,” he explains, with most of the buyers in onetower paying in cash, even though units sold for an average of $715,000. “Who wants to drivetwo miles to get a gallon of milk?”

The center is expanding outward, too, as development moves north, west and south. “This hasbecome a self-sustaining process,” Chicago Plan Commissioner Andrew Mooney says. “Chicagohas become an attractor of talent, and that talent attracts jobs, which means there's a larger jobbase that attracts more talent.”

Still, there are reasons to worry that even a vibrant hub won't be enough to sustain metropolitanChicago. The region's edge cities never developed the amenities needed to keep a newgeneration of talented young adults living there, and those young adults now are moving, some toChicago and some to other states, Mr. Cross says. Left behind are suburbs and their agingpopulations, with minority residents with smaller incomes increasingly moving in.

The Federal Reserve's Mr. Testa counters that the departure of lower-income minorities for thesuburbs is a good thing—Chicago lost 200,000 African-Americans between 2000 and 2010. Forone, it means they're no longer as trapped by racial barriers. Also, it often reduces theircommuting time to jobs that have shifted to the suburbs. “African-Americans migrated in thesame way that prior immigrant groups did,” he says, “along the same byways.”

Unless the region's overall growth picks up, though, northeastern Illinois risks becoming a land ofa prosperous center, growing exurbs (where land is cheap) and a troubled inner ring, says RandyBlankenhorn, executive director of the Chicago Metropolitan Agency for Planning. It could turninto a sort of Paris on the prairie.

To make sure Chicago's oldest suburbs and outer neighborhoods aren't left behind, publicofficials and urban planners urge infrastructure projects that would reduce traffic congestion,making it easier for commuters to get to and from work. DePaul's Mr. Schwieterman says thesuburbs need better commuter-train access to the Loop and points to Berwyn as a close-insuburb that has rebranded itself for a new generation.

Frank Beale, executive director of Metropolis Strategies, an advocate for regional government inChicago, worries that on their own, suburbs will be overwhelmed. The city is so large that evenpoor areas get police and fire protection, paid for by wealthier wards. “But what if you live in asmall (poor) suburb?” he says. “You can't afford a police or fire department.”

Within the city, the debate rages over whether tax-increment financing and other municipalsubsidies should continue to go largely to downtown developments or be shifted toneighborhoods more in need of an economic boost. “The easiest, the smartest thing to do is tokeep and maintain what you have,” the plan commission's Mr. Mooney says.

The Emanuel administration also needs to halt violent crime, which traps residents of manyneighborhoods in their homes and threatens to make center-city denizens doubt their safety, too.In addition, it must find a way to meet the city's pension obligations without scaring off businessesand residents with tax hikes.

Ultimately, though, a new paradigm is being written. “Where people live is the most importantdriver” of economic development, Mr. Testa says. “Companies are following the talent.” And rightnow, for the good of Chicago, if not always the entire region, that leads downtown.

Read more from Greg Hinz on his blog.

From this week's In Other News

http://www.chicagobusiness.com/hinz

SECTION 4

PROPOSED AMENITIES

PROPOSED AMENITIES

• Faux Wood Floor in Living Room, Dining Room and Kitchen

• Bath Ceramic Tile • Burberry Carpet Bedrooms

• Pantry Closet

• Linen Closet

• Wine Rack Over Refrigerator

• Stainless Steel Back Splash/or Tile

• Washer/Dryer

• Moveable Island, Granite Top

• Bowed Shower Rod

• Adjustable Rain, Low Flow,

Showerhead

• Slide by Translucent

Bedroom/Sleeping Alcove Doors

• Fireplaces in Selected Units

• High Ceilings

• USB Outlet in Each Unit

• Pre‐wire for Surround

• 4 Pipe System HVAC

• Swimming Pool/Spa

• Club/Game Room

• Café – Party Room/Business Center

• Yoga, Pilates, Aerobics Room or

Area

• State of the Art Complete Fitness

Center with Boxing and Spinning

• Poker/Wine Tasting/Conference Room

• Outdoor Roof Garden

• Barbeque Area

• Pool, Pool Pavilion with Appliance Bar, etc.

• Movie Theatre

• Indoor Park/Dog Park /With Running

Track

• Pet Grooming Room

• Demonstration Kitchen

• Wi‐Fi in all Common Areas

• Indoor Basketball Court

Unit Amenities Building Amenities

SECTION 5

PROFORMA

32 W Randolph Financial Summary 08-22-13Pro Forma Summary

Page 1 of 88/22/201312:06 PM

DEVELOPMENT COSTS Total Per Unit Per SF

Land $13,495,000 61,341 $76.68Construction Hard Costs 40,203,106 182,741 $228.44Other Development Costs 17,281,668 78,553 98.20

Total Development Costs $70,979,774 $322,635 $403.32

CAPITALIZATION Total Per Unit Per SF

1st Mortgage $40,592,918 184,513 $230.65Bridge Loan (tax credits) $9,567,874 43,490 $54.372nd Mortgage $0 0 $0.00Deferred Development Fee $7,048,072 32,037 $40.05Upfront Tax Credits $2,391,969 10,873 $13.59Equity 11,378,941 51,722 $64.66

Total Sources $70,979,774 $322,635 $403.32

OPERATING RETURNS Total Per Unit/Month Per SF/Month

Gross Potential Rent $6,075,780 2,301 $2.88Unit Premiums 54,000 20 0.03Property Premiums 18,000 7 0.01Other Income 108,240 41 0.05Potential Income $6,256,020 $2,370 $2.96

Loss to Lease 0 0 0.00Vacancy (312,801) (118) (0.15)Total Income $5,943,219 $2,251 $2.81

Operating Expenses 2,247,907 851 1.06Reserves 44,000 17 0.02

Net Operating Income $3,651,312 $1,383 $1.73

Return on Fully Loaded Costs 5.1%Return on True Costs 7.0% (TDC less Def Dev Fee + tax credits)

OPERATING RETURNS Total Per Unit/Month Per SF/Month

Gross Potential Rent $6,347,385 2,404 $3.01Unit Premiums $54,000 20 0.03Property Premiums 18,000 7 0.01Other Income 108,240 41 0.05Potential Income $6,527,625 $2,473 $3.09

Loss to Lease (81,973) (31) (0.04)Vacancy (326,381) (124) (0.15)Total Income $6,119,270 $2,318 $2.90

Operating Expenses 2,348,160 889 1.11Reserves 44,000 17 0.02

Net Operating Income $3,727,111 $1,412 $1.76

Return on Fully Loaded Costs 5.3%Return on True Costs 7.2% (TDC less Def Dev Fee + tax credits)

32 W RandolphA 220-Unit Apartment Development Project

Pro Forma and Estimated Capitalization

ESTIMATED CAPITALIZATION

PRO FORMA - CURRENT

PRO FORMA - STABILIZED

32 W Randolph Financial Summary 08-22-13Tax CreditsPage 2 of 8

8/22/201312:06 PM

IN OUT

Land $13,495,000 0% 100% $0

Construction Hard Costs 40,203,106 100% 0% $40,203,106

Construction Soft Costs 831,594 100% 0% $831,594

Architectural / Engineering 1,780,000 100% 0% $1,780,000

Furniture, Fixtures & Equipment 875,000 0% 100% $0

Marketing Costs 400,000 0% 100% $0

Legal & Organizational 320,000 50% 50% $160,000

Property Taxes During Construction 520,000 60% 40% $312,000

Developer Fee 2,012,378 100% 0% $2,012,378

Deferred Developer Fee 7,048,072 100% 0% $7,048,072

Development Contingency 1,376,221 60% 40% $825,733

Points on Construction Loan 307,188 60% 40% $184,313

Construction Loan Closing Costs 400,000 60% 40% $240,000

Other Development Costs 135,000 0% 100% $0

Interest During Construction 876,215 60% 40% $525,729

Interest Reserve 400,000 60% 40% 240,000

Total Development Costs $70,979,774 $54,362,924

Capital Stack

Construction Loan 40,592,918 Deferred Development Fee 7,048,072 Tax Credits

Up Front 2,391,969 Bridge /Mezz Loan 9,567,875

Equity 11,959,843 Bridge Equity - Permanent 11,378,941

11,378,941 70,979,774

Credit Basis 54,362,924 Credit Rate 20%

Tax Credits 10,872,585 Purchase Price 110%Credit Sale Price 11,959,843

Credit Sale ProceedsClosing (20%) 2,391,969 C.O. (70%) 8,371,890 Part III (10%) 1,195,984 Deferred Credit Proceeds 9,567,875

11,959,843

Deferred Credit Sale Proceeds 9,567,875 Bridge / Mezz Loan Rate 100%Bridge Loan Proceeds 9,567,875

A 220-Unit Apartment Development Project32 W Randolph

Tax Credit Calculation / Development Budget

32 W Randolph Financial Summary 08-22-13Current proforma

Page 3 of 88/22/201312:06 PM

Income # units sq. ft. $ rent / month / year / unit / year / SF

Gross Potential RentS1 23 538 $1,550 $35,650 $427,800 $18,600 $2.88Convertible 22 659 $1,850 $40,700 $488,400 $22,200 $2.811 Bed / 1 Bath (A1) 137 794 $2,325 $318,525 $3,822,300 $27,900 $2.931 Bed / 1 Bath (A2) 6 940 $2,650 $15,900 $190,800 $31,800 $2.821 Bed / 1 Bath (A3) 22 992 $2,795 $61,490 $737,880 $33,540 $2.822 Bed / 2 Bath (C1) 4 1,136 $3,075 $12,300 $147,600 $36,900 $2.712 Bed / 2 Bath (C2) 4 1,331 $3,475 $13,900 $166,800 $41,700 $2.612 Bed / 2 Bath (C3) 2 1,504 $3,925 $7,850 $94,200 $47,100 $2.61

0 0 $0 $0 $0 $0 $0.000 0 $0 $0 $0 $0 $0.000 0 $0 $0 $0 $0 $0.000 0 $0 $0 $0 $0 $0.00

Totals / Averages 220 $506,315 $6,075,780 $27,617 $2.88

Unit PremiumsLoft & Vaulted Ceiling 40 $113 4,500 $54,000

0 $0 0 $00 $0 0 $00 $0 0 $00 $0 0 $00 $0 0 $0

Total / Averages $4,500 $54,000 $245 $0.03

Property PremiumsStorage Units 30 $50 1,500 $18,000

0 $0 0 $00 $0 0 $0

Total / Averages $1,500 $18,000 $82 $0.01

Other IncomeOther Income 220 $41 9,020 $108,240 $492 $0.05

0 $0 0 $0 $0 $0.00Total / Averages $108,240 $492 $0.05

Potential Income $6,256,020 $28,436 $2.96

Loss to Lease $0 $0 $0.00Vacancy ($312,801) ($1,421.82) ($0.15)

Total Income $5,943,219 $27,015 $2.81

Operating ExpensesManagement Fee (3% of collections) $175,948 $800 $0.08Payroll $654,810 $2,976 $0.31General & Administrative $71,175 $324 $0.03Marketing $217,029 $986 $0.10Utilities $213,525 $971 $0.10Turnover / Make-Ready $66,795 $304 $0.03Repair & Maintenance $104,025 $473 $0.05Nonroutine Maintenance $10,950 $50 $0.01Grounds / Snow Removal $27,375 $124 $0.01Taxes $558,450 $2,538 $0.26Insurance $147,825 $672 $0.07Association Dues $0 $0 $0.00Replacment Reserves $44,000 $200 $0.02Miscellaneous $0 $0 $0.00

Total Operating Expenses $2,291,907 $10,418 $1.09

NET OPERATING INCOME $3,651,312 $16,597 $1.73

32 W RandolphCurrent Operating Pro Forma

32 W Randolph Financial Summary 08-22-13Stabilized Proforma

Page 4 of 88/22/201312:06 PM



0 0 $0 $0 $0 $0 $0.000 0 $0 $0 $0 $0 $0.000 0 $0 $0 $0 $0 $0.000 0 $0 $0 $0 $0 $0.00

Totals / Averages 220 $528,949 $6,347,385 $28,852 $3.01


0 $0 0 $00 $0 0 $00 $0 0 $00 $0 0 $00 $0 0 $0

Total / Averages $4,500 $54,000 $245 $0.03


0 $0 0 $00 $0 0 $0

Total / Averages $1,500 $18,000 $82 $0.01


0 $0 0 $0 $0 $0.00Total / Averages $108,240 $492 $0.05


Loss to Lease ($81,973) ($373) ($0.04)Vacancy ($326,381) ($1,484) ($0.15)

Total Income $6,119,270 $27,815 $2.90

Operating ExpensesManagement Fee (3% of collections) $183,578 $834 $0.09Payroll $684,082 $3,109 $0.32General & Administrative $74,357 $338 $0.04Marketing $226,731 $1,031 $0.11Utilities $223,070 $1,014 $0.11Turnover / Make-Ready $69,781 $317 $0.03Repair & Maintenance $108,675 $494 $0.05Nonroutine Maintenance $11,439 $52 $0.01Grounds / Snow Removal $28,599 $130 $0.01Taxes $583,414 $2,652 $0.28Insurance $154,433 $702 $0.07Association Dues $0 $0 $0.00Replacment Reserves $44,000 $200 $0.02Miscellaneous $0 $0 $0.00



32 W RandolphStabilized Operating Pro Forma

08/01/2015 - 07/31/2016

32 W Randolph Financial Summary 08-22-13Sale Proforma

Page 5 of 88/22/201312:06 PM



0 0 $0 $0 $0 $0 $0.000 0 $0 $0 $0 $0 $0.000 0 $0 $0 $0 $0 $0.000 0 $0 $0 $0 $0 $0.00

Totals / Averages 220 $602,284 $7,227,410 $32,852 $3.42


0 $0 0 $00 $0 0 $00 $0 0 $00 $0 0 $00 $0 0 $0

Total / Averages $4,500 $54,000 $245 $0.03


0 $0 0 $00 $0 0 $0

Total / Averages $1,500 $18,000 $82 $0.01


0 $0 0 $0 $0 $0.00Total / Averages $108,240 $492 $0.05


Loss to Lease ($93,434) ($425) ($0.04)Vacancy ($370,382) ($1,684) ($0.18)

Total Income $6,943,833 $31,563 $3.29

Operating ExpensesManagement Fee (3% of collections) $208,315 $947 $0.10Payroll $778,926 $3,541 $0.37General & Administrative $84,666 $385 $0.04Marketing $258,166 $1,173 $0.12Utilities $253,997 $1,155 $0.12Turnover / Make-Ready $79,456 $361 $0.04Repair & Maintenance $123,742 $562 $0.06Nonroutine Maintenance $13,026 $59 $0.01Grounds / Snow Removal $32,564 $148 $0.02Taxes (Taxes Not Adjusted for Sale Price) $664,301 $3,020 $0.31Insurance $175,844 $799 $0.08Association Dues $0 $0 $0.00Replacment Reserves $44,000 $200 $0.02Miscellaneous $0 $0 $0.00



32 W RandolphSale Pro Forma

12/01/2019 - 11/30/2020

32 W Randolph Financial Summary 08-22-13Interest

Page 6 of 88/22/201312:06 PM

32 W Randolph - 220 Apartments 0.00% : Interest Rate FloorPro Forma Interest Calculations N/A : Interest Rate CapFutures as of : 6/3/2013 2.75% : Interest Rate Spread

Month Total Cost Rate Const. Loan

Interest Required Funding

Equity / Deferred Dev. Fee / Upfront Tax Credits

Bridge Loan Draw

Bridge Loan Balance

Bridge Loan Interest

Const. Loan Draw Loan Balance

1 Nov-13 24,279,288$ 2.97% -$ 24,279,288$ 20,818,981$ 3,460,307$ 3,460,307$ -$ -$ 2 Dec-13 1,018,286$ 2.98% -$ 1,018,286$ -$ 1,018,286$ 4,478,593$ 9,372$ -$ -$ 3 Jan-14 1,818,583$ 2.98% -$ 1,818,583$ -$ 1,818,583$ 6,297,176$ 12,130$ -$ -$ 4 Feb-14 2,189,831$ 3.00% -$ 2,189,831$ -$ 2,189,831$ 8,487,007$ 17,055$ -$ -$ 5 Mar-14 2,221,230$ 3.02% -$ 2,221,230$ -$ 1,080,868$ 9,567,874$ 22,986$ 1,140,363$ 1,140,363$ 6 Apr-14 2,597,857$ 3.04% 1,436$ 2,599,293$ -$ -$ 9,567,874$ 25,913$ 2,599,293$ 3,739,656$ 7 May-14 2,955,652$ 3.06% 6,181$ 2,961,833$ -$ -$ 9,567,874$ 25,913$ 2,961,833$ 6,701,490$ 8 Jun-14 4,062,813$ 3.09% 13,302$ 4,076,115$ -$ -$ 9,567,874$ 25,913$ 4,076,115$ 10,777,604$ 9 Jul-14 4,261,134$ 3.11% 22,486$ 4,283,620$ -$ -$ 9,567,874$ 25,913$ 4,283,620$ 15,061,224$ 10 Aug-14 4,158,080$ 3.24% 33,456$ 4,191,536$ -$ -$ 9,567,874$ 25,913$ 4,191,536$ 19,252,760$ 11 Sep-14 4,203,340$ 3.24% 46,288$ 4,249,628$ -$ -$ 9,567,874$ 25,913$ 4,249,628$ 23,502,388$ 12 Oct-14 4,013,499$ 3.28% 57,675$ 4,071,174$ -$ -$ 9,567,874$ 25,913$ 4,071,174$ 27,573,561$ 13 Nov-14 3,759,269$ 3.32% 69,697$ 3,828,966$ -$ -$ 9,567,874$ 25,913$ 3,828,966$ 31,402,528$ 14 Dec-14 3,622,098$ 3.32% 81,584$ 3,703,682$ -$ -$ 1,195,984$ 25,913$ 3,703,682$ 35,106,209$ 15 Jan-15 4,676,000$ 3.37% 92,004$ 4,768,004$ -$ -$ 1,195,984$ 3,239$ 4,768,004$ 39,874,213$ 16 Feb-15 133,078$ 3.42% 105,129$ 238,206$ -$ -$ 1,195,984$ 3,239$ 238,206$ 40,112,419$ 17 Mar-15 133,521$ 3.42% 114,148$ 247,669$ -$ -$ -$ 3,239$ 247,669$ 40,360,088$ 18 Apr-15 -$ 3.49% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 19 May-15 -$ 3.56% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 20 Jun-15 -$ 3.56% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 21 Jul-15 -$ 3.64% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 22 Aug-15 -$ 3.74% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 23 Sep-15 -$ 3.74% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 24 Oct-15 -$ 3.84% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 25 Nov-15 -$ 3.96% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 26 Dec-15 -$ 3.96% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 27 Jan-16 -$ 4.07% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 28 Feb-16 -$ 4.07% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 29 Mar-16 -$ 4.07% -$ -$ -$ -$ -$ -$ -$ 40,360,088$ 30 Apr-16 -$ 4.07% -$ -$ -$ -$ -$ -$ -$ 40,360,088$

70,103,559$ 643,385$ 70,746,944$ 20,818,981$ 9,567,874$ 304,476$ 40,360,088$ 40,360,088$

Interest Rate Cap Fee + Contingency: 232,830$

Total Projected Interest: 876,215$

32 W Randolph Financial Summary 08-22-13CF SummaryPage 7 of 8

8/22/201312:06 PM

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7Start: Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Nov-19End: Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20

Rental Revenue 2,029,061 6,206,338 6,395,110 6,589,623 6,790,053 6,996,579 592,566Unit Premiums 18,000 54,000 54,000 54,000 54,000 54,000 4,500Property Premiums 6,000 18,000 18,000 18,000 18,000 18,000 1,500Other Income 36,080 108,240 108,240 108,240 108,240 108,240 9,020

Total Potential Income

Loss to Lease -144 -50,584 -82,669 -85,183 -87,774 -90,444 -7,876Vacancy Loss / Non-Rev / Bad Debt -1,985,618 -1,976,115 -353,463 -338,493 -348,515 -358,841 -30,379Concessions -58,361 -458,647 0 0 0 0 0

Total Income 45,017 3,901,232 6,139,218 6,346,187 6,534,004 6,727,534 569,330

Management Fee (3% of collections) 25,000 140,666 184,177 190,386 196,020 201,826 17,080Payroll 157,890 695,984 689,225 710,189 731,790 754,048 63,863General & Administrative 17,838 72,704 74,916 77,194 79,542 81,962 6,942Marketing 54,393 221,693 228,436 235,384 242,543 249,920 21,167Utilities 22,849 279,126 225,791 231,583 238,627 245,885 20,825Turnover / Make-Ready 0 15,600 70,306 72,444 74,647 76,918 6,514Repair & Maintenance 2,790 80,877 109,060 112,823 116,254 119,790 10,145Nonroutine Maintenance 0 9,344 11,526 11,876 12,237 12,609 1,068Grounds / Snow Removal 1,687 27,451 28,814 29,690 30,593 31,524 2,670Taxes 0 380,644 576,809 605,679 624,102 643,084 54,465Insurance 0 113,674 155,594 160,327 165,203 170,228 14,417Association Dues 0 0 0 0 0 0 0Replacment Reserves 0 0 25,667 44,000 44,000 44,000 3,667Miscellaneous 0 0 0 0 0 0 0

Total Operating Expenses 282,448 2,037,764 2,380,318 2,481,575 2,555,560 2,631,795 222,823

NOI -237,431 1,863,468 3,758,900 3,864,612 3,978,444 4,095,739 346,507

Construction Loan Interest 0 628,184 0 0 0 0 0Bridge Loan Interest 0 0 0 0 0 0 0Permanent Loan Interest 0 367,468 2,185,916 2,152,333 2,117,031 2,079,924 171,593Permanent Loan Principal 0 106,252 656,407 689,990 725,291 762,399 65,267Other Financing Costs 0 545,177 239,197 239,197 239,197 239,197 0Total Debt Service 0 1,647,081 3,081,520 3,081,520 3,081,520 3,081,520 236,860

Net Cashflow available for Distribution -237,431 216,387 677,380 783,092 896,924 1,014,219 109,647

Beginning Cash 0 0 229,689 240,447 249,764 259,365 269,257

CO & Part III Tax Credits Received 0 9,567,874 0 0 0 0 0Bridge Loan Paydown 0 -9,567,874 0 0 0 0 0Construction Loan Paydown 0 -40,592,918 0 0 0 0 0Permanent Financing 0 44,122,708 0 0 0 0 0Financing Proceeds 0 3,529,790 0 0 0 0 0

Development Funding 237,431 42,860 0 0 0 0 0

Distribution 0 3,559,348 666,623 773,775 887,323 1,004,326 0

Ending Cash / Reserves 0 229,689 240,447 249,764 259,365 269,257 0

Distributable Sale Proceeds 0 0 0 0 0 0 27,504,056

TOTAL DISTRIBUTIONS -11,378,941 3,559,348 666,623 773,775 887,323 1,004,326 27,504,056

Construction Loan START Balance 0 27,573,561 0 0 0 0 0Construction Loan END Balance 27,573,561 0 0 0 0 0 0

Bridge Loan START Balance 3,460,307 9,567,874 0 0 0 0 0Bridge Loan END Balance 9,567,874 0 0 0 0 0 0

Mezzanine Loan START Balance 0 0 0 0 0 0 0Mezzanine Loan END Balance 0 0 0 0 0 0 0

Permanent Loan START Balance 0 0 44,016,456 43,360,049 42,670,058 41,944,767 41,182,368Permanent Loan END Balance 0 44,016,456 43,360,049 42,670,058 41,944,767 41,182,368 0

32 W Randolph Financial Summary 08-22-13Waterfall Summary

Page 8 of 88/22/201312:06 PM

Construction Start (Closing Date) 11/1/2013Term (# months) 73Sale Date 12/1/2019

Total Land Cost 13,495,000Total Land Cost / Unit 61,341

TDC 70,979,774

PROJECT CAPITALIZATIONConstruction DebtBridge LoanMezzanine DebtDeferred Development FeeUpfront Tax CreditsEquity

SALE INFORMATIONYeild at Time of Sale 5.95%Sale NOI 4,226,831Cap Rate 6.00%Sale Price 70,447,178Closing Costs (1.5% of sale price) (1,056,708)Put/Reversion Tax Credits (597,992)Construction Loan Repayment 0Permanent Loan Repayment (41,288,422) (5% fixed rate)Available for Equity at Sale 27,504,056

Total Cash Flow Distributions 6,891,395

Total Distributions 34,395,451

Total Distributions 34,395,451Project IRR 23.7%

57%

0%13%

10%

16%3%

9,567,874

7,048,0722,391,969

11,378,94170,979,774100%

32 W RandolphWaterfall Analysis

40,592,918

0

SECTION 6

MARKET RENT COMPS

MARKET RENT COMPS

Downtown Chicago Rental Market Highlights

The 2012 downtown Chicago market will surpass the record breaking year of 2006 in

occupancy and effective rental rates.

Current Occupancy for the overall Chicago apartment market is 95.4%

Overall effective rent of $2.57 PSF, 18% higher than 2006.

In 2012, rental demand continues to outpace supply.

Even with the delivery of approximately 1,200 units this year there will be an inventory shortage

by the end of the year.

Rental rates for renewals and new leases have been increasing 5%‐20% above previous rents.

Class A apartment occupancy is 96%.

Class A apartment effective rents in stabilized buildings are up to $2.57 PSF, up 5.76% from a

year ago.

Luxury effective rents averaged $2.78 PSF and the top 10 buildings are averaging $2.91 PSF.

Gross rents in the luxury buildings are exceeding $3.00 PSF for some units.

Rental buildings that have delivered this year have all met or exceeded their lease‐up and

effective rent projections.

2012 deliveries include: Randolph Tower 312 units, Lexington Park 333 units, SoNo East 324 units

and 1225 Old Town 250 units.

Improving job trends this year with approximately 24,000 jobs added in 2012 and another 68,000

in 2013 according to a CBRE report.

The long term trend of Condo conversions and the lack of new apartment development over

the last 20 years has constrained and even reduced the supply of A/B units in the downtown

area, currently there are 23,930 units in the downtown area compared to 27,374 in 1991.

There are currently 7 buildings totaling 3,018 units under construction; however the deliveries are staggered and within different submarkets and locations.

Condo conversion will eventually return and further deplete the apartment market.

The fear of buying a home and the difficulty to obtain a mortgage these days continues, which

further increases the rental population.

According to CBRE Multi‐housing Outlook Report, the Chicago Metropolitan area is projected to

add 235,000 jobs from 2012‐2017.

Only four projects have been delivered this year excluding the one in the South Loop the

average effective rent is $2.88.

Given the rent growth sustained in 2011 and 2012, cap rates have returned to between 4-5%.

MARKET RENT COMPS

1. Randolph Tower

Randolph Tower is a 313 unit development rehab completed by Village Green in 2012.

The Property is a 45 Story building, originally built in 1929. The property is located 3 blocks

west of 32 W. Randolph. The property opened in 2012 and has averaged 30+/- leases

per month in lease up. As of August 2013, the property was 94% occupied, averaging

$2.97 effective rents, on daily pricing. The property’s product and interior finishes are

comparable to 32 W. Randolph, while the location is inferior.

2. ENV

ENV is a 249 unit development built by Lynd Co in 2010. The property is located 1/2 mile

north of 32 W. Randolph. The property is on daily pricing and recently sold to Met Life for

$120.2M. As of August 2013, the property was 94% occupied and averaging $3.04

effective rents, on daily pricing. The property’s product is superior to 32 W. Randolph,

while interior finishes are comparable.

MARKET RENT COMPS

3. 215 West

215 West is a 50 Story 389 unit development built by Jupiter/Cornerstone in 2010. The

property is located 1 block south of 32 W. Randolph. The property opened in April of

2010. As of August 2013, the property was 94% occupied and averaging $2.91 effective

rents, on daily pricing. The property’s product is superior to 32 W. Randolph, while interior

finishes are inferior.

32 W Randolph Comparable Summary 08-05-13.xlsx

AltmanDevelopmentCorporation Comps 8/8/2013

Studio CON A1 A3 C1 C2 C3 TL/AVG

0 0 1 1 2 2 2 0.81 1 1 1 2 2 2 1.00 0 0 0 0 0 00 0 0 1 0 0 025 22 137 28 4 4 2 222

11.3% 9.9% 61.7% 12.6% 1.8% 1.8% 0.9% 100%538 659 794 992 1136 1331 1504 799

1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$ 3,475.00$ 3,925.00$ 22832.88$ 2.81$ 2.90$ 2.82$ 2.71$ 2.61$ 2.61$ 2.86

1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$ 3,475.00$ 3,925.00$ 2.88$ 2.81$ 2.90$ 2.82$ 2.71$ 2.61$ 2.61$

Randolph Towers188 W Randolph

Owner: Village Green313 Units

Altman Product Unit Type Studio CON A1 A3 C1 C2 Square Footage 538 659 794 992 1,136 1,331 Altman Base Market Rent 1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$ 3,475.00$

Altman Base Effective Rent 1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$ 3,475.00$ Comparative Data Unit Type Studio CON A8 A8 C4 - Pent C7 - Pent Number of Units Bedrooms 0 0 1 1 2 2 Bathrooms 1 1 1 1 2 2 DenFloor Location 17 7 12 12 34 39 Private Entry Square Footage 522 652 803 803 1136 1337 Market Base Monthly Rent 1,560.00$ 1,840.00$ 2,350.00$ 2,350.00$ 3,650.00$ 3,950.00$ Market Base Per SF Rent 2.99$ 2.82$ 2.93$ 2.93$ 3.21$ 2.95$ Effective Base Monthly Rent 1,560.00$ 1,840.00$ 2,350.00$ 2,350.00$ 3,650.00$ 3,950.00$ Effective Base Per SF Rent 2.99$ 2.82$ 2.93$ 2.93$ 3.21$ 2.95$ 2.97$ Adjustments: Unit Size Adjustment -$ -$ -$ 490.42$ -$ -$ Location Age & Condition Quality of Construction Design/StyleClub/Amenity Package Microwave $5Stainless Appliances $5 Water/Sewer $40 Trash $15 Cable $30 Security System $10 Security Guard $25 Entry Gate $25 Direct Access Garage $140 Other - Private Entry $25Other - School $10 Required Insurance $18Comp. Adjusted Market Base Rent 1,560.00$ 1,840.00$ 2,350.00$ 2,840.42$ 3,650.00$ 3,950.00$

Altman Base Market Rent 1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$ 3,475.00$

Comp. Adjusted Effective Base Rent 1,560.00$ 1,840.00$ 2,350.00$ 2,840.42$ 3,650.00$ 3,950.00$

Altman Base Effective Rent 1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$ 3,475.00$

Altman Premiums Notes:Updated 7/25/13 Year Built 2012 (Rehab) Security System No OTHER:Occupancy @ 94% Washer/Dryer Yes Entry GateCurrent concessions: Microwave Yes No Concessions Water/Sewer No COMP FY2012 SUBJECT FY2012 (On Daily Pricing) Trash No Elementary Schl

** Size Difference: None Avaiable Cable No Middle School Per SF 0.99 High School

Altman Unit TypeBuilding Location

Floor LocationUnit TypeBedroomsBathrooms

Square Footage

GarageDen

Number of Units% of Total

Effective Rent / SFProperty:

Market RentMarket Rent / SF

Effective Rent

Location:

Units:



Studio CON A1 A3 C1 C2 C3 TL/AVG 1 1 2 2 2 0.81 1 1 1 2 2 2 1.0 1

25 22 137 28 4 4 2 22211.3% 9.9% 61.7% 12.6% 1.8% 1.8% 0.9% 100%

538 659 794 992 1136 1331 1504 7991,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$ 3,475.00$ 3,925.00$

2.88$ 2.81$ 2.90$ 2.82$ 2.71$ 2.61$ 2.61$ 1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$ 3,475.00$ 3,925.00$

2.88$ 2.81$ 2.90$ 2.82$ 2.71$ 2.61$ 2.61$ ENV - Chicago 161 W. Kinzie (855) 571-9927

Owner: Lincoln (Management)249

Altman Product Unit Type Studio CON A1 C1 C1 Square Footage 538 659 794 1,136 1,136 Altman Base Market Rent 1,550.00$ 1,850.00$ 2,300.00$ 3,075.00$ 3,075.00$

Altman Base Effective Rent 1,550.00$ 1,850.00$ 2,300.00$ 3,075.00$ 3,075.00$ Comparative Data Unit Type S1 S1 A1 B1 B2 Number of Units Bedrooms 0 0 1 2 2 Bathrooms 1 1 1 2 2 DenFloor Location 12 12 13 21 10 Private Entry Square Footage 527 632 860 1145 1197

Market Base Monthly Rent 1,729.00$ 1,975.00$ 2,696.00$ 3,288.00$ 3,345.00$ Market Base Per SF Rent 3.28$ 3.13$ 3.13$ 2.87$ 2.79$ Effective Base Monthly Rent 1,729.00$ 1,975.00$ 2,696.00$ 3,288.00$ 3,345.00$ Effective Base Per SF Rent 3.28$ 3.13$ 3.13$ 2.87$ 2.79$ 3.04$ Adjustments: Unit Size Adjustment -$ 21.69$ (142.99)$ -$ (113.61)$ Location (100.00)$ (100.00)$ (125.00)$ (125.00)$ (125.00)$ Age & Condition Quality of Construction Design/StyleClub/Amenity Package Microwave $5Stainless Appliances $5 Water/Sewer $40 Trash $15 Cable $30 Security System $10 Security Guard $25 Entry Gate $25 Direct Access Garage $140 Other - Private Entry $25Other - Shower Stall $25 Required Insurance $18Comp. Adjusted Market Base Rent 1,629.00$ 1,896.69$ 2,428.01$ 3,163.00$ 3,106.39$

Altman Base Market Rent 1,550.00$ 1,850.00$ 2,300.00$ 3,075.00$ 3,075.00$

Comp. Adjusted Effective Base Rent 1,629.00$ 1,896.69$ 2,428.01$ 3,163.00$ 3,106.39$

Altman Base Effective Rent 1,550.00$ 1,850.00$ 2,300.00$ 3,075.00$ 3,075.00$

Altman Premiums Notes:Updated 7/25/13 Year Built 2010 Security System No OTHER:Occupancy @ Washer/Dryer Yes Entry Gate NoCurrent concessions: Microwave YesDaily Pricing Water/Sewer No COMP FY2012 SUBJECT FY2012

Trash No Elementary Schl 0 0** Size Difference: Cable No Middle School 0 0 Per SF 0.99 High School 0 0

Den

Units:

Number of Units

Garage

Floor LocationUnit TypeBedroomsBathrooms

Effective Rent / SF

% of TotalSquare Footage

Market RentMarket Rent / SF

Effective Rent

Property:Location:

Altman Unit TypeBuilding Location



Studio CON A1 A3 C1 C2 C3 TL/AVG 1 1 2 2 2 0.81 1 1 1 2 2 2 1.0 1

25 22 137 28 4 4 2 22211.3% 9.9% 61.7% 12.6% 1.8% 1.8% 0.9% 100%

538 659 794 992 1136 1331 1504 7991,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$ 3,475.00$ 3,925.00$

2.88$ 2.81$ 2.90$ 2.82$ 2.71$ 2.61$ 2.61$ 1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$ 3,475.00$ 3,925.00$

2.88$ 2.81$ 2.90$ 2.82$ 2.71$ 2.61$ 2.61$ 215 West 215 West Washington Street 877-215-9378

Owner: Lincoln (Management)389

Altman Product Unit Type Studio CON A1 A3 C1 Square Footage 538 659 794 992 1,136 Altman Base Market Rent 1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$

Altman Base Effective Rent 1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$ Comparative Data Unit Type S1 Con 1 1/1B 1/1C 2/2B Number of Units Bedrooms 0 0 1 1 2 Bathrooms 1 1 1 1 2 Den 1Floor Location Private Entry Square Footage 525 662 768 931 1108

Market Base Monthly Rent 1,698.00$ 1,950.00$ 2,247.00$ 2,350.00$ 3,244.00$ Market Base Per SF Rent 3.23$ 2.95$ 2.93$ 2.52$ 2.93$ Effective Base Monthly Rent 1,698.00$ 1,950.00$ 2,247.00$ 2,350.00$ 3,244.00$ Effective Base Per SF Rent 3.23$ 2.95$ 2.93$ 2.52$ 2.93$ 2.91$ Adjustments: Unit Size Adjustment -$ -$ 17.41$ 102.62$ 23.23$ Location Age & Condition Quality of Construction Design/StyleClub/Amenity Package $0 Microwave $5Stainless Appliances $5 Water/Sewer $40 Trash $15 Cable $30 Security System $10 Security Guard $25 Entry Gate $25 Direct Access Garage $140 Other - Private Entry $25Other - School $10 Required Insurance $18Comp. Adjusted Market Base Rent 1,698.00$ 1,950.00$ 2,264.41$ 2,452.62$ 3,267.23$

Altman Base Market Rent 1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$

Comp. Adjusted Effective Base Rent 1,698.00$ 1,950.00$ 2,264.41$ 2,452.62$ 3,267.23$

Altman Base Effective Rent 1,550.00$ 1,850.00$ 2,300.00$ 2,795.00$ 3,075.00$

Altman Premiums Notes:Updated 7/25/13 Year Built 2010 Security System No OTHER:Occupancy @ Washer/Dryer Yes Entry Gate NoCurrent concessions: Microwave YesDaily Pricing Water/Sewer No COMP FY2012 SUBJECT FY2012

Trash No Elementary Schl 0 A 0 0** Size Difference: Cable No Middle School 0 A 0 0 Per SF 0.99 High School 0 A 0 0

Building LocationAltman Unit Type

Floor LocationUnit TypeBedrooms

Effective Rent

Bathrooms

Units:

Square FootageMarket Rent

Effective Rent / SFProperty:

Market Rent / SF

Location:

GarageDen

Number of Units% of Total

SECTION 7

TAX CREDIT MEMORANDUM

SECTION 8

MARKET CAP RATE DATA

• HFF Chicago Multi-Housing Market Overview

• Moran & Company Comparable Sales Lists

CHICAGO MULTI-HOUSING

MARKET OVERVIEW

Matthew D. LawtonExecutive Managing Directort: [email protected]

Sean P. FogartyManaging Directort: [email protected]

Marty F. O’ConnellManaging Directort: [email protected]

Wickliffe B. KirbyAssociate Directort: [email protected]

HFF Chicago181 West Madison | Suite 3900Chicago, IL 60602t: 312.528.3650 f: 312.528.3651www.hfflp.com

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2Q09

4Q09

2Q10

4Q10

2Q11

4Q11

2Q12

4Q12

An

nu

al A

vera

ge O

ccu

pan

cy T

ren

ds

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Rent

al U

nits

605

1,01

71,

324

274

909

1,25

842

01,

974

1,29

62,

529

465

1,14

92,

895

2,33

0

0

500

1,00

0

1,50

0

2,00

0

2,50

0

3,00

0

3,50

0

New

Uni

t D

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erie

s 19

90-2

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$1

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$1

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$1

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$2

.10

$2

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$2

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$1.5

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0

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0

Net

Ren

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Downtown Chicago Multi-Housing sALES COMPARABLES

90

90

90

94

94

290

94

Randolph St

Illinois St

Ohio St

Huron St

Oak St

Division St

Sedgewick St

Kingsbury St

Fullerton Pkwy

Elston Ave

Clybourn Ave

Larrabee St

Burling St

Dayton St

Madison St

Adams St

Fulton Market

Washington Blvd

Jackson Blvd

Congress Parkway

18th St

Taylor St

Kinzie St

Van Buren St

Grand Avenue

Chicago Avenue

Lake Shore Dr

Chestnut St

Harrison Street

Roosevelt RoadRoosevelt Road

Balbo Avemue

S Columbus Drive

State Street

Ashland AveAshland Ave

Western Ave

California Ave

Kedzie Blvd

Halsted St

Halsted St

Michigan Ave

Division Street

Canal Street

Clinton Street

Jefferson Street

Clark StreetClark Street

LaSalle Drive

Wells St

Wells St

Franklin Street

41

41

Ontario StErie St

Superior St

Hubbard StKinzie St

Wabash Street

Lake St

Washington St

Monroe St

Jackson Blvd

Dearborn Street

Randolph St

Adams St

Ogden

Ave

Wacker Dr

Racine Ave

Des Plaines Ave

Milwaukee Ave

Lake St

Polk St

Lake Shore Dr

S Blue

Islan

d Ave

Racine Ave

Halsted St

Chicago Avenue

Grand Avenue

Lake St

Division St

Canal Street

Indiana Ave

Navy Pier

Grant Park

Lake Michigan

Chicago River

S

Hubbbb

reete

k Stk P

North Ave

ellsSt

e

Sales Comparables

1 1225 Old Town

2 Onterie Center

3 SoNo East

4 Alta at K Station

5 215 West Washington

6 1401 South State

7 Park Huron

8 Echelon

9 EnV

10 Flair Tower

11 1212 S. Michigan

12 77 West Huron

13 505 North State

14 Cityfront Place

15 Roosevelt Collection

16 One Superior Place

17 Mondial

18 Aqua

19 Astoria Tower

20 Trio

21 Burnham Pointe

Downtown Chicago Multi-Housing sALES COMPARABLES – Componentized

Gross Value Detail Closed Closed Closed Closed Closed Closed Closed Closed Closed Closed ClosedName 1225 Old Town Onterie Center SoNo East Alta at K Station 215 W. Washington 1401 South State Parc Huron Echelon EnV Flair Tower 1212 S. MichiganSubmarket Gold Coast Streeterville Lincoln Park West Loop Loop South Loop River North West Loop River North River North South LoopYear Built 2013 1986 June 2012 2010 2010 2008 2010 2010 2010 2010 1981Home Count 250 615 324 848 389 278 221 350 249 198 344Avg. Home Size 871 756 797 744 814 850 963 785 893 947 689Residential NRSF 217,747 464,657 258,194 630,912 316,788 236,398 212,823 274,750 222,399 187,429 237,410Retail SF 33,925 102,351 3,990 12,962 0 2,430 1,200 0 27,118 8,944 19,957Total SF 251,672 567,008 262,184 643,874 316,788 238,828 214,023 274,750 249,517 196,373 257,367Price $156,900,000 $188,000,000 $106,375,000 $302,000,000 $120,000,000 $70,500,000 $110,000,000 $104,250,000 $119,500,000 $85,000,000 $66,000,000Price/Home $627,600 $305,691 $328,318 $356,132 $308,483 $253,597 $497,738 $297,857 $479,920 $429,293 $191,860Price/SF $623 $332 $406 $469 $379 $295 $514 $379 $479 $433 $256Cap Rate N/A N/A 5.50% 4.90% 4.75% 4.60% 4.75% 4.50% 4.45%

Seller Hines / Northwestern Mutual/JDL

MetropolitanPropertiesof America Smith Partners Fifi eld Realty Corp. /

PacLifeJupiter Holdings/

CornerstoneEQR/

Lincoln Moran Fifi eld Lynd/L&B Canyon/McCaffery

DV Urban Realty Partners

Buyer Heitman LaSalleInvestmentManagement Prudential MorguardCorp. MetLife ARA/Hunt/

Marquette L&B Crescent Heights MetLife GID Crescent Heights

Date of Sale Jun-13 Feb-13 Dec-12 Dec-12 Dec-12 Sep-12 Mar-12 Feb-12 Dec-11 Dec-11 Dec-11Component DetailGross Price (All Components) $156,900,000 $188,000,000 $106,375,000 $302,000,000 $120,000,000 $70,500,000 $110,000,000 $104,250,000 $119,500,000 $85,000,000 $66,000,000Components:Residential ParkingResidential Parking Spaces 236 363 204 684 0 195 232 280 129 185 217Total Parking Value $8,260,000 $12,705,000 $4,080,000 $20,520,000 $0 $4,875,000 $8,120,000 $8,400,000 $4,515,000 $6,475,000 $5,425,000Parking Value Per Space $35,000 $35,000 $20,000 $30,000 $0 $25,000 $35,000 $30,000 $35,000 $35,000 $25,000Retail and Retail Parking [ProForma] [ProForma] (convtosalesctr.) [ProForma] [ProForma]Retail SF 33,925 102,616 3,990 12,962 0 2,430 1,200 0 27,118 8,944 19,957Retail Rent/SF $47.50 $24.17 $15.00 $20.00 $0.00 $20.00 $0.00 $0.00 $20.00 $42.43 $25.00Retail Cap Rate 8.00% 8.00% 8.00% 8.50% 0.00% 8.50% 0.00% 0.00% 8.00% 8.00% 8.25%Retail NOI $1,611,438 $2,480,000 $59,850 $259,240 $0 $48,600 $0 $0 $542,360 $379,528 $498,925Total Retail Value $20,142,969 $31,000,000 $748,125 $3,049,882 $0 $571,765 $0 $0 $6,779,500 $4,744,100 $6,047,576Excess Land ParcelsLand Parcels $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Net Residential Value $128,497,031 $144,295,000 $101,546,875 $278,430,118 $120,000,000 $65,053,235 $101,880,000 $95,850,000 $108,205,500 $73,780,900 $54,527,424Net Residential Value/Unit $513,988 $234,626 $313,416 $328,337 $308,483 $234,004 $460,995 $273,857 $434,560 $372,631 $158,510Net Residential Value/SF $590 $311 $393 $441 $379 $275 $479 $349 $487 $394 $230

Comments:

Owner converted 90,000sfinthe

smaller structure from commercial to 32 loft style

apartments. And upgraded 91

units in the main tower resulting in $125-$225rent

premiums.

Property completed in summer of

2012. Small retail component currently used as sales center. This transaction was apre-sale,property

priced in summer of 2011 at a 5.50% cap rate on Year 1

untrended numbers.

Ground fl oor retail includes restaurant

Parking and retail is owned separately; 221 stalls via REA

Assumes small ground fl oor retail space is leased.

Small1,200SFretail component. Assume it will not

be leased.

No retail

2nd and 3rd story retail going to 2 tenants from the Mart.$20NNN

wit~$60/ftTIon10yrlease.Mostof the $60 is to

vanillaboxspace.1 yr+ of free rent.

Includes2leasedboutique retail

spaces

Retail/commercial space includes

ground fl oor retail and also second fl oor commercial.

1 2 3 4 5 6 7 8 9 10 11

Downtown Chicago Multi-Housing sALES COMPARABLES – Componentized

Gross Value Detail Closed Closed Closed Closed Closed Closed Closed Closed Closed ClosedName 77 West Huron 505 North State Cityfront Place Roosevelt Collection One Superior Place Mondial Aqua Astoria Tower Trio Burnham PointeSubmarket River North River North Streeterville South Loop River North River West Lakeshore East South Loop West Loop South LoopYear Built 1988 2010 1991 2010 1999 2009 2009 2010 2010 2008Home Count 304 145 480 342 809 124 474 205 100 298Avg. Home Size 841 902 752 914 749 1,081 758 975 1,162 984Residential NRSF 255,659 130,843 360,750 312,668 605,709 135,887 359,462 182,700 116,935 300,843Retail SF 6,213 0 7,552 398,384 58,978 1,900 60,700 9,247 0 16,000Total SF 261,872 130,843 368,302 711,052 664,687 137,787 420,162 191,947 116,935 316,843Price $90,000,000 $62,000,000 $106,000,000 $159,850,000 $320,000,000 $31,600,000 $182,000,000 $44,739,000 $29,033,000 $88,000,000Price/Home $296,053 $427,586 $220,833 $467,398 $395,550 $254,839 $383,966 $218,239 $290,330 $295,302Price/SF $344 $474 $288 $225 $481 $229 $433 $233 $248 $278Cap Rate 4.50% 4.50% 3.00% 4.35% N/A 4.11% N/A N/A 5.45%

Seller Archstone John Buck Company Crescent Heights Centrum/BofA Brookfi eld Asset Mgmt.

Citta Development Group / Wells Fargo

BankMagellan M&IBank Bank of America StarkInvestments

Buyer L&B Realty LaSalleInvestmentManagement RREEF McCaffery/

Canyon HartzMountain Waterton JPMorgan Crescent Heights Marquette Behringer Harvard

Date of Sale Oct-11 Jul-11 Jul-11 Jun-11 May-11 Apr-11 Dec-10 Nov-10 Oct-10 Jul-10Component DetailGross Price (All Components) $90,000,000 $62,000,000 $106,000,000 $159,850,000 $320,000,000 $31,600,000 $182,000,000 $44,739,000 $29,033,000 $88,000,000Components:Residential ParkingResidential Parking Spaces 185 113 288 272 809 225 967 200 100 267Total Parking Value $6,475,000 $3,955,000 $10,080,000 $8,160,000 $28,315,000 $5,625,000 $33,845,000 $5,000,000 $3,000,000 $8,010,000Parking Value Per Space $35,000 $35,000 $35,000 $30,000 $35,000 $25,000 $35,000 $25,000 $30,000 $30,000Retail and Retail Parking 6,213 0 7,552 398,384 58,978 1,900 60,700 9,247 0 16,000Retail SF $35.00 $0.00 $41.71 $20.30 $37.00 $0.00 $20.00 $30.00 $0.00 $30.00Retail Rent/SF 8.75% 0.00% 8.50% 23.31% 6.25% 0.00% 8.25% 8.50% 0.00% 8.50%Retail Cap Rate $217,455 $0 $315,000 $8,085,958 $2,182,186 $0 $1,214,000 $277,410 $0 $480,000Retail NOI $2,485,200 $0 $3,705,882 $34,690,000 $34,914,976 $14,715,152 $3,263,647 $0 $5,647,059Total Retail Value $31,000,000 $748,125 $3,049,882 $0 $571,765 $0 $0 $6,779,500 $4,744,100 $6,047,576Excess Land ParcelsLand Parcels $0 $0 $0 $17,000,000 $0 $0 $0 $0 $0 $0Net Residential Value $81,039,800 $58,045,000 $92,214,118 $100,000,000 $256,770,024 $25,975,000 $133,439,848 $36,475,353 $26,033,000 $74,342,941Net Residential Value/Unit $266,578 $400,310 $192,113 $292,398 $317,392 $209,476 $281,519 $177,929 $260,330 $249,473Net Residential Value/SF $317 $444 $256 $320 $424 $191 $371 $200 $223 $247

Comments:

Small retail component. L&B

bought as value add. HFF arranged $47 million in fi nancing 10-yearloanwith

New York Life InsuranceCo.

Noretail,condoquality interiors. Located above Hotel Palomar.

Bridgestreet has 100% corp lease.

RREEF bought as value add.

Allocations per purchaser. Retail is only 22% leased.

Property was subject to ground lease.

Hartzboughtbothfeeinterest in land and leasehold interest.

Landwas$80Mand improvements

$240M.WholeFoodsis main retail tenant.

Property totals 141 units.Brokencondo,

buyer converting 124 unsold condos to rental. Nominal

retailspaceof1,900SF which may be used for future amenity space. Assumes 225 of

250 spaces used for rental units.

Mixedusewithhotel,condo,and

rental. Retail/commercial

includes a CVS but also offi ce space

currently leased by Magellan.

205 of the 243 condos unsold and buyer converting

to rental. Estimate 200 of 250 parking

spaces used for rental.

No retail. Built originally for condo by Terrapin.

12 13 14 15 16 17 18 19 20 21

Downtown Chicago Multi-Housing Development Pipeline

Navy Pier

Oak Street Beach

SewardPark

Millennium Park

Gold Coast

StreetervilleRiver North

Old Town

West Loop

South Loop

Grant Park

Chinatown

SoldierField

Chicago Ave

Division Str

Grand Ave

Kinzie St

Randolph St

Madison St

Adams St

Van Buren St

Harrison St

Roosevelt Rd

LaSa

lle S

t

Stat

e St

Mic

higa

n Av

e

Lake

Sho

re D

r

Cana

l St

Clar

k St

Mic

higa

n Av

e

Stat

e St

Wel

ls S

t

Clar

k St

Lake Shore Dr

Clin

ton

St

Wac

ker D

r

90

94

41

Ogilv

ie St

atio

n

UnionStation

290 Congress Pkwy

Washington St

Monroe St

Jackson Blvd

Polk St

NortherlyIsland

MuseumCampus

Oak St

Larr

abee

St

Clybourn Ave

Dear

born

Pkw

yChestnut St

Delaware Pl

Scott St

Crosby St

Chicago Ave

Elm St

Pearson St

Rush St

N Or

lean

s St

Wel

ls S

t

Sedg

ewic

k St

King

sbur

y St

Fairb

ank

Ct

Superior St

Huron St

Erie St

Ontario St

On Ramp to Kennedy Expressway / I-90 / I-94Ohio St

Grand Ave

Ilinois St

Water St

Mic

higa

n Av

e

Randolph St

Wacker Dr

Wacker Dr

Colu

mbu

s DrLake St

Fulton St

Lake St

Colu

mbu

s Dr

13th St

14th St

16th St

Indi

ana

Ave

Ping TomPark

Wab

ash

Ave

Clar

k St

Wel

ls S

t Plym

outh

Ct

11th St

Balbo St

Monroe St

LAKEMICHIGAN

1

2

3

32

4

27

26

5 186

930

10

8

16

15

12

20

29

24

22

1713

14

21

34

23

CTA Train StationsRed LineBlue Line (O’Hare)Brown LinePurple Line Orange Line (Midway)Green LinePink Line

Commuter/Commercial Train Lines

Legend

March 2013© HFF, L.P.

28

35

90

O’Hare InternationalAirport

MidwayInternationalAirport

95th St

Ogden Ave

Roosevelt Rd

North Ave

Irving Park Rd

Cicero Ave

Des PlainesEvanston

55th St

79th St

Halsted St

Ashland Ave

Lake Shore Dr

Lake Shore Dr

Hyde Park

Lincoln Park

Lakeview

90

94

90

94

290

55

57

41

41

19

31

36

11

2533

7

CBD

COMMITTED UNITS EXP. DELIVERY

1 K2 496 1Q 20132 Coast 515 1Q 20133 500 North LSD 500 2Q 20134 AMLIRiverNorth 409 2Q 20135 Optima Center Chicago 325 3Q 20136 Hubbard Place 450 4Q 20137 2100S.Indiana 59 4Q 20138 850 N. Lake Shore Drive 200 4Q 20139 Summit on Lake 332 2Q 2014

10 Waterview Apartments 504 2Q 201411 3740 North Halsted 277 2Q 201412 SWC Wells and Scott 71 2Q 201413 Catalyst 223 3Q 201414 AMLILofts 398 201415 Wolf Point 500 201416 454 N. Park 398 201417 Arkadia Tower 35118 220E.Illinois 600

TOTAL 6,608PLANNED/PROPOSED19 NewCityYMCASite 28020 State & Chestnut 36721 SEC Ninth & State 39622 353 W. Grand 20023 Roosevelt Tower 50024 Wells & Ontario 40025 City Hyde Park 18226 Jewel Site(Clark&Division) 50027 212W.Illinois 18828 One South Halsted 49229 MoodySite 29030 215N.Michigan 50031 Children'sMemorialSite 54832 SECMcClurg&Ohio 44333 Project 23534 3 acres in Central Station 120035 MCLSite 40036 Lakeview Station 770

TOTAL 7,891

Downtown Chicago Multi-Housing Development Pipeline ReportExpected Start Under Expected Delivery

Project Address Sub-Market Developer Equity Units Likelihood Quarter Year Construction Quarter Year

K2 365 N. Halsted River West Fifield CBREI 496 Committed 4 2011 1 2013

Coast 345 E. Wacker New East Side Magellan JPMIM 515 Committed 1 2012 1 2013

500 North LSD 500 N. Lake Shore Streeterville Related PNC (AFL-CIO) 500 Committed 3 2011 x 2 2013

AMLI River North 71 W. Hubbard River North AMLI/Friedman MS-PPF 409 Committed 4 2011 x 2 2013

Optima Center Chicago 200 E. Illinois Streeterville Optima/Debartolo LaSalle Investment 325 Committed 2 2012 x 3 2013

Hubbard Place 360 W. Hubbard River North Habitat Bentall Kennedy / CPP 450 Committed 1 2012 x 4 2013

2100 S. Indiana 2100 S. Indiana South Loop Karlik/JK Equities JK Equities 59 Committed 1 2013 4 2013

850 N. Lake Shore Drive 850 N. Lake Shore Drive Gold Coast Integrated NEBF 200 Committed 1 2013 x 4 2013

Summit on Lake 73 E. Lake Loop M&R Development UBS 332 Committed 3 2012 x 2 2014

Waterview Apartments 111 W. Wacker Loop Related Related Opp Fund 504 Committed 4 2012 x 2 2014

3740 North Halsted 3740 North Halsted Lake View Harlem Irving/JDL Prudential Mezz 277 Committed 4 2012 x 2 2014

Catalyst 123 N. Des Plaines West Loop Marquette / Urban R2 Kayne Anderson 223 Committed 2 2013 x 3 2014

AMLI Lofts Clark & Polk South Loop AMLI PPF/CPP 398 Committed 2 2013 x 2014

Wolf Point Wolf Point River North Hines/Magellan Pending/Confidential 500 Committed 2 2013 2014

454 N. Park 454 N. Park Streeterville DRWilson / John Buck Don Wilson 398 Committed 1 2013 x 2014

Arkadia Tower 756 W. Adams Greek Town White Oak Realty Partners, LLC Prudential 351 Committed 2013

SWC Wells and Scott 1220 North Wells Gold Coast JDL Harlem Irving 71 Committed 1 2014

220 E. Illinois 220 E. Illinois Streeterville Optima/Debartolo OPSEU Pension Trust 600 Committed 2017

Madison & Racine Madison & Racine West Loop Rebenson Intercontinental 216 High 2 2013 x 3 2014

New City YMCA Site 1515 N. Halsted St. Clybourn Corridor Structured Dev/John Bucksbaum JPMIM 280 High 1 2014

State & Chestnut 845 N. State Gold Coast Newcastle Limited Pending/Confidential 367 High 1 2014

SEC Ninth & State SEC Ninth & State South Loop Golub 396 High 1 2014

353 W. Grand 353 W. Grand River North Onni Group 200 Moderate 2014

Roosevelt Tower Wells & 9th South Loop McCaffery 500 Moderate 2014

Gino's East Site/Wells & Ontario 162 East Superior River North Magellan 400 Moderate 2014

City Hyde Park 51st and Lake Park Hyde Park Antheus Capital 182 Moderate 2014

Jewel Site (Clark & Division) NWC Clark and Division Gold Coast Fifield 500 Moderate 2014

212 W. Illinois Illinois & Franklin River North Fred Latsko 188 Moderate 2014

One South Halsted 1 S. Halsted West Loop F&F Realty 492 Moderate 2014

Moody Site 819 N. LaSalle River North Smithfield 290 Moderate 2014

215 N. Michigan 215 N. Michigan East Loop John Buck 500 Moderate

Children's Memorial Site 2515 N. Clark Lincoln park McCaffery 548 Moderate

SEC McClurg & Ohio 545 N. McCLurg Streeterville Golub CalSTRS 443 Moderate

Project Michigan/ Wabash and 46th/47th StreetBronzeville Landwhite Developers 235 Moderate

3 acres in Centeral Station Roosevelt and Michigan South Loop Crescent Heights 1200 Moderate

MCL Site McClurg & Illinois Streeterville MCL 400 Moderate

Lakeview Station Montrose and Clarendon Uptown JDL / Harlem Irving 770 Moderate

XO Site 1712 S Prairie South Loop Golub 400 Low

1035 W. Van Buren 1035 W. Van Buren West Loop Horner 315 Low

The Gateway 14 S. Halsted West Loop Taxman 200 Low

750 North Hudson 750 North Hudson River North Onni Group 240 Low

The Curve 1100 S. Clark Street South Loop iStar 700 Low

630 W. Washington 630 W. Washington West Loop Marquette 233 Low

601 W. Jackson Jackson & Jefferson West Loop Moceri 198 Low

Walton on the Park SWC Walton and State Gold Coast Dart / TBD 300 Low

Block 37 Air Rights 108 N. State St. Loop CIM Group 900 Low

Spire Site 400 N Lake Shore Drive Streeterville TBD TBD Low

723-29 Randolph 723-29 West Randolph West Loop Levine/Ezgur 97 Low

Atrium Village 300 West Hill Street Gold Coast Security Capital 2000 Low

500 N. Milwaukee 500 N. Milwaukee River West Contemporary Concepts 240 Low

1333 S. Wabash 1333 S. Wabash South Loop CMK Cos. 268 Low

Old Post Office 433 W. Van Buren South Loop Bill Davies 400 Low

Summary:Total

Pipeline CommittedHistoric and Expected

Start Under Construction Expected Deliveries

2011 1,405 2011 - 2012 2,403 2012 -

Totals Units 21,206 6,608 2013 2,345 4,016 2013 2,954 2014 3,866 2014 2,848 2015 - 2015 -

There are currently 6,608 units committed and 4,016 units under construction.

COMPARABLE SALES LISTS 2005-2013

• DOWNTOWN CHICAGO INSTITUTIONAL APARTMENT SALES SUMMARY• SUBURBAN CHICAGO INSTITUTIONAL APARTMENT SALES SUMMARY• CHICAGO METRO INSTITUTIONAL APARTMENT SALES: DOWNTOWN AND SUBURBAN

JANUARY 2013

CHICAGO: DOWNTOWN & SUBURBAN

39 TOTALS 18,672 16,109,788 863 $5,103,825,000 $273,341 $317

No. Property Name Date of Sale Year of Sale Buyer Seller City SubmarketYear

CompletedUnit Count

Total SF (Apt + Retail)

Average Unit SF

Sale Price Price Per Unit Price PSF Retail Cap Rate Cap Calc.

1 Onterie Center Feb-13 2013 LaSalle Investment Management MPA Chicago Streeterville 1986 615 567,273 756 $188,000,000 $305,691 $331 * 4.50% T-6

2 SoNo East Dec-12 2012 Prudential Real Estate Smithfield JV Gordon Segal JV Nitzberg Chicago River North 2012 324 258,194 797 $106,400,000 $328,395 $412 TBD TBD

3 MDA City Apartments Dec-12 2012 Bluerock Enhanced Multifamily Trust (Partial Equity Interest 56.5%)

Village Green (Retained Partial Equity Interest 43.5%)

Chicago Loop 1929/2006 190 168,490 844 $54,900,000 $288,947 $326 * TBD TBD

4 215 West Dec-12 2012 MetLife Cornerstone JV Jupiter Chicago Loop 2010 389 316,788 814 $119,000,000 $305,913 $376 TBD TBD

5 Alta at K Station Dec-12 2012 Morguard Corp. Fifield JV Pacific Life Chicago West Loop 2010 848 662,693 766 $300,000,000 $353,774 $453 * 4.00% T-6

6 1401 S. State Sep-12 2012 Marquette Cos. EQR JV Lincoln Property Chicago South Loop 2008 278 236,398 850 $70,000,000 $251,799 $296 * 4.14% T-6

7 Parc Huon Mar-12 2012 L&B Realty Advisors J.P. Morgan Asset JV M&R Development Chicago River North 2010 221 214,060 969 $110,000,000 $497,738 $514 4.20% T-3

8 The Seneca Feb-12 2012 Waterton Associates IRMCO Management Chicago Gold Coast 1926 264 168,651 639 $35,600,000 $134,848 $211 2.00% T-6

9 Echelon at K Station Jan-12 2012 Crescent Heights Fifield JV Pacific Life Chicago West Loop 2008 350 275,170 786 $104,500,000 $298,571 $380 * 4.30% T-3

10 EnV Dec-11 2011 MetLife Lynd Chicago River North 2010 249 249,517 893 $122,000,000 $489,960 $489 * 4.00% T-3

11 Flair Tower Dec-11 2011 GID McCaffery Interests JV CalPERS via Canyon Johnson

Chicago River North 2010 198 196,450 947 $85,000,000 $429,293 $433 * 4.69% T-3

12 Park Michigan (fka 1212 South Michigan) Dec-11 2011 Crescent Heights Urban Realty Partners JV Davis Group Chicago South Loop 1981 344 237,154 689 $65,000,000 $188,953 $274 4.75% T-3

13 Belden-Stratford Dec-11 2011 Laramar IRMCO Management Chicago Lincoln Park 1923 297 198,365 668 $59,300,000 $199,663 $299 N/A Mixed-Use Hotel

14 Regents Park Oct-11 2011 Antheus Capital Crescent Heights Chicago Hyde Park 1970 1,031 1,016,940 979 $159,000,000 $154,219 $156 * 5.25% T-3

15 77 West Huron Oct-11 2011 L&B Realty Advisors Archstone (Lehman Bros. Holdings) Chicago River North 1988 304 261,877 841 $90,000,000 $296,053 $344 * Sub-4% Terminated Corp. Contract

16 505 N. State Jun-11 2011 LaSalle Investment Management John Buck Chicago River North 2010 145 130,843 902 $61,300,000 $422,759 $469 N/A Corporate Contract

17 Roosevelt Collection Jun-11 2011 McCaffery / Canyon Johnson Centrum / Bank of America Chicago South Loop 2009 342 710,912 914 $159,850,000 $467,398 $225 ** 4.00% T-3

18 One Superior Place (includes land) May-11 2011 Hartz Mountain Industries Brookfield Asset Management / Stellar Management

Chicago River North 2000 809 661,052 748 $320,000,000 $395,550 $484 *** 3.22% T-6

19 Cityfront Place May-11 2011 RREEF Crescent Heights Chicago Streeterville 1991 480 376,672 769 $106,000,000 $220,833 $281 * 4.58% T-3

20 Aqua (Partial Interest) Dec-10 2010 JP Morgan Asset Management Magellan Development Chicago New East Side 2009 474 362,743 765 $181,500,000 $385,000 $500 * 4.00% Actual

21 Burnham Pointe Jul-10 2010 Behringer Harvard Stark Investments Chicago South Loop 2008 298 293,232 984 $88,000,000 $295,302 $300 4.80% Actual

22 Cityfront Place Dec-09 2009 Crescent Heights Northwestern Mutual Chicago Streeterville 1991 480 376,672 769 $82,750,000 $172,396 $220 * 5.80% July2009 Annualized

23 The Streeter Aug-07 2007 OHSTRS Golub & Company JV AEW JV BlackRock Chicago Streeterville 2006 481 454,699 945 $210,000,000 $436,590 $462 * 4.15% Actual

24 One Superior Place (excludes land) Aug-07 2007 Stellar Management Archstone Chicago River North 2000 809 661,052 748 $217,600,000 $268,974 $329 **** N/A N/A

25 180 N. Jefferson Jun-07 2007 Draper and Kramer BlackRock & CalSTRS Chicago West Loop 2004 274 217,099 764 $75,300,000 $274,818 $347 * 3.50% Actual

26 Presidential Towers Mar-07 2007 Waterton Associates JV CalSTRS Pritzker Residential Chicago West Loop 1983 2,346 1,648,976 656 $475,000,000 $202,472 $288 * 4.10% Actual

27 Left Bank at K Station Jan-07 2007 Prudential Real Estate Fifield Realty Corp. Chicago West Loop 2007 451 343,764 762 $115,000,000 $254,989 $335 Pre-Sale Pre-Sale

28 Grand Plaza (East Tower) Jan-07 2007 Strategic Real Estate Advisors US Equities JV Magellan Chicago River North 2003 481 570,899 979 $262,500,000 $545,738 $460 * 4.00% Actual

29 One East Delaware Dec-06 2006 Waterton Associates Archstone Chicago Gold Coast 1989 306 250,834 689 $91,250,000 $298,203 $364 * 4.40% Actual

30 1212 South Michigan Oct-06 2006 Urban Realty Partners BlackRock Chicago South Loop 1981 344 237,154 689 $65,000,000 $188,953 $274 4.75% Actual

31 River North Park May-06 2006 Waterton Associates Archstone Chicago River North 1987 399 306,604 694 $60,050,000 $150,501 $196 5.75% Actual

32 McClurg Court May-06 2006 Kennedy Associates Archstone Chicago Streeterville 1972 1,058 784,844 742 $126,000,000 $169,853 $161 * 6.00% Actual (GROUND LEASE)

33 The Bernardin Dec-05 2005 UBS Realty RREEF Chicago River North 2005 171 200,050 1,048 $89,425,000 $522,953 $447 * 4.50% Actual

34 Ontario Place Oct-05 2005 American Invsco General Investment & Development Chicago River North 1984 468 472,400 800 $125,000,000 $267,094 $265 N/A N/A

35 Onterie Center Sep-05 2005 Metropolitan Properties of America Clark Realty Capital Chicago Streeterville 1986 583 600,845 715 $132,000,000 $226,415 $220 * 5.25% Actual

36 Grand Plaza (West Tower) Aug-05 2005 Terrapin Properties US Equities JV Magellan Chicago River North 2003 283 277,057 979 $91,000,000 $321,555 $328 5.00% Actual

37 Printers Square Jul-05 2005 JDL Enterprises Waterton Associates Chicago South Loop 1909 356 299,823 842 $44,600,000 $125,281 $149 4.10% Actual

38 400 North LaSalle Apr-05 2005 Draper and Kramer JV JP Morgan Habitat JV Vornado Chicago River North 2003 452 381,182 837 $126,000,000 $278,761 $331 4.40% Actual

39 Park Millennium Jan-05 2005 MCZ Dev. JV Centrum Properties Archstone Chicago New East Side 2002 480 462,360 963 $130,000,000 $270,833 $281 4.80% Actual

**********

Chicago Institutional Apartment Sales Summary DOWNTOWN2005-2013

Price Includes Retail/Commercial Square Footage

MORAN & COMPANYBY DATE

Total Purchase Included 398,324 sf retail 23% leased by Kerasotes Theater and 1,482 space parking garage and 2 development sites zoned for 658 units.

Price Includes Retail/Commercial Square Footage. Price includes the land, which was sold separately to the same buyer.

Price excludes the land, which was sold separately.

Note: Total SF for The Streeter and McClurg Court is Apartment SF only.

92 TOTALS 32,900 30,184,822 917 $3,978,603,000 $120,930 $132

No. Property Name Date of Sale Year of Sale Buyer Seller Address City SubmarketYear

CompletedUnit Count Total SF

Average Unit SF

Sale PricePrice Per

UnitPrice PSF

Cap Rate

Cap Calc.

1 The Retreat at Seven Bridges Under Contract 2013 CONFIDENTIAL Edge Principal Advisors 6690 Double Eagle Drive Woodridge DuPage County 1996 252 267,200 1,060 CONFIDENTIAL N/A N/A N/A N/A

2 Farmington Lakes Under Contract 2013 CONFIDENTIAL ASB Capital Management 2000 Farmington Lakes Drive Oswego Kane/Kendall Counties

2002 304 280,844 924 CONFIDENTIAL N/A N/A N/A N/A

3 Ashford at Geneva (fka Brittany Court)

Feb-13 2013 The RADCO Cos. Shodeen Management 390 Brittany Court Geneva Kane/Kendall Counties

1989 226 217,340 962 $27,900,000 $123,451 $128 5.60% T-12

4 AMLI at Oakhurst North Feb-13 2013 Abacus Capital Group AMLI 2800 Pontiac Ct Aurora Naperville/Aurora 1999 464 469,568 1,012 $60,300,000 $129,957 $128 5.71% T-6

5 TGM Willowbrook (fka Ascot Glen & Ascot Glen at Willowbrook)

Feb-13 2013 TGM Associates RREEF 6096 Knollwood Road Willowbrook DuPage County 1985-1987 712 602,904 847 $101,000,000 $141,854 $168 N/A N/A

6 Camden at Bloomingdale Dec-12 2012 Friedkin Realty LaSalle Investment Management 348 Glenwood Drive Bloomingdale DuPage County 1990 360 317,920 883 $54,800,000 $152,222 $172 5.80% T-6

7 Stratford Place Dec-12 2012 Friedkin Realty LaSalle Investment Management 232 Butterfield Drive Bloomingdale DuPage County 1990 342 322,680 944 $50,000,000 $146,199 $155 5.80% T-6

8 Arbors of Glen Ellyn (fka Berkshires of Glen Ellyn)

Dec-12 2012 Friedkin Realty Berkshire Property Advisors 325 Ramblewood Drive Glen Ellyn DuPage County 1975 264 206,184 781 $24,200,000 $91,667 $117 TBD TBD

9 Chesapeake Landing Dec-12 2012 TGM Associates AIMCO 4101 Chesapeake Drive Aurora Naperville/Aurora 1987 600 523,731 873 $57,600,000 $96,000 $110 TBD TBD

10 The Moorings Nov-12 2012 Steadfast Income REIT Berkshire Property Advisors 619 Plum Grove Road Roselle NW Cook County 1977 216 190,512 882 $20,300,000 $93,981 $107 6.89% T-6

11 Arrowhead Nov-12 2012 Steadfast Income REIT Berkshire Property Advisors 1950 Cambridge Court Palatine NW Cook County 1975 200 173,400 867 $16,800,000 $84,000 $97 7.05% T-6

12 Oak Park Place Oct-12 2012 Cornerstone White Peterman 479 North Harlem Avenue Oak Park Oak Park 2009 204 174,189 854 $62,900,000 $308,333 $361 3.77% T-6

13 Grand Vista (fka Schaumburg Villas)

Aug-12 2012 Stadt Group LNR Properties 1010 Knollwood Drive Schaumburg NW Cook County 1979 300 282,000 940 $19,400,000 $64,667 $69 9.00% T-6

14 Hancock Square at Arlington Station (fka Avalon Arlington Heights)

Jun-12 2012 John Hancock AvalonBay 200 N. Arlington Heights Road Arlington Heights NW Cook County 1988 409 346,146 846 $87,250,000 $213,325 $252 5.28% T-6

15 Fieldpointe of Schaumburg Jun-12 2012 Westdale Investment Partners Draper & Kramer 1730 Birch Place Schaumburg NW Cook County 1973 396 297,600 752 $37,375,000 $94,381 $126 TBD TBD

16 Legacy at Martin's Point (fka Avalon Lombard)

May-12 2012 KBS Legacy Partners REIT AvalonBay 2101 S. Finley Road Lombard DuPage County 1989-2009 256 202,000 789 $35,500,000 $138,672 $176 5.50% T-6

17 TGM Park Meadows (fka Lincoln Meadows)

Apr-12 2012 TGM Associates Invesco 10 Lincoln Meadows Drive Schaumburg NW Cook County 1990 576 471,959 819 $86,700,000 $150,521 $184 5.80% T-6

18 Dunton Tower Mar-12 2012 Henderson Global Oakbrook Corp 55 S. Vail Avenue Arlington Heights NW Cook County 1986 216 193,705 897 $39,350,000 $182,176 $203 5.38% T-6

19 Stratford Green Apartments (fka Avalon at Stratford Green)

Jan-12 2012 KCK Properties AvalonBay 492 Vinings Drive Bloomingdale DuPage County 1997 192 251,520 1,310 $38,275,000 $199,349 $152 5.25% T-6

20 Gates of Deer Grove Jan-12 2012 Home Properties Laramar Group 125 West Dundee Road Palatine NW Cook County 1974 204 183,000 897 $20,200,000 $99,020 $110 6.00% T-6

21 Aspen Place Dec-11 2011 Friedkin Realty Kensington Realty Advisors 826 Terrace Lake Drive Aurora Naperville/Aurora 1988 416 441,280 1,061 $49,088,000 $118,000 $111 5.75% T-6

22 The Windbrooke Crossing Apartments (fka AMLI at Windbrooke)

Dec-11 2011 Mesirow Financial AMLI 1160 Windbrooke Drive Bufffalo Grove Lake County 1986 236 213,160 903 $34,250,000 $145,127 $161 5.31% T-6

23 Pembrook Club Dec-11 2011 Captec Financial Northwestern Mutual 5389 Leslie Lane Gurnee Lake County 1989 280 241,920 864 $30,000,000 $107,143 $124 6.50% T-6

24 Legacy at Poplar Creek (fka Avalon at Poplar Creek)

Dec-11 2011 KBS Legacy Partners REIT AvalonBay 1900 Windsong Drive Schaumburg NW Cook County 1986 196 173,264 884 $27,200,000 $138,776 $157 5.75% T-6

25 Brook Hill Dec-11 2011 Friedkin Realty Heitman 201 W. Oakley Dr N Westmont DuPage County 1972 408 404,050 990 $58,500,000 $143,382 $145 6.25% T-6

26 Lakeside Apartment Homes (fka Avalon Lakeside)

Dec-11 2011 Friedkin Realty AvalonBay 1750 East 22nd Street Wheaton DuPage County 1978 204 160,752 788 $20,500,000 $100,490 $128 5.75% T-6

27 Fordham Glen Nov-11 2011 Henderson Global UBS 1245 Fordham Drive Glendale Heights DuPage County 1989 296 268,400 907 $34,500,000 $116,554 $129 5.86% T-6

28 Hamilton Court Aug-11 2011 Golub & Company JV Alcion Ventures Baird Family 1030 Charlela Lane Elk Grove Village NW Cook County 1977 579 486,360 840 $40,000,000 $69,085 $82 7.00% T-6

29 The Reserve at Evanston Jul-11 2011 Cornerstone Invesco JV Atlantic Realty 1930 Ridge Avenue Evanston North Shore 2003 193 162,935 844 $55,600,000 $288,083 $341 4.75% T-6

30 Briarbrook Jul-11 2011 Westdale Investment Partners Heitman 1147 Briarbrook Drive Wheaton DuPage County 1972 342 299,672 876 $34,250,000 $100,146 $114 5.84% T-3

31 Parkway Commons Jun-11 2011 Friedkin Realty Heitman 545 Gundersen Drive Carol Stream DuPage County 1972 384 363,400 946 $33,000,000 $85,938 $91 6.06% T-3

32 Deer Valley Jun-11 2011 Prime Property Investors Stockbridge 30011 N. Waukegan Road Lake Bluff Lake County 1990 224 189,800 847 $22,000,000 $98,214 $116 6.00% T-6

33 Country Lakes May-11 2011 Hayman AIMCO 1598 Fairway Drive Naperville Naperville/Aurora 1985 640 574,859 898 $60,000,000 $93,750 $104 7.25% T-6

34 Prentiss Creek at Downers Grove Mar-11 2011 Pensam Capital JV BH Equities PRG Real Estate 2210 Prentiss Drive Downers Grove DuPage County 1974 700 615,850 880 $49,300,000 $70,429 $80 6.74% T-12

35 The Preserve at Osprey Lake (fka AMLI at Osprey Lake)

Dec-10 2010 TA Associates AMLI 2025 Greystem Circle Gurnee Lake County 1997 483 453,289 938 $55,050,000 $113,975 $121 5.42% T-12

36 The Villages at Canterfield (fka AMLI at Canterfield)

Sep-10 2010 TA Associates AMLI 50 Canterfield Parkway West Dundee Kane County 2001 352 359,040 1,020 $59,300,000 $168,466 $165 5.84% T-12

37 Clover Creek Aug-10 2010 Golub & Company Intercontinental/Olympic JV 830 Foxworth Blvd. Lombard DuPage County 1987 504 473,318 939 $45,000,000 $89,286 $95 6.16% T-3

38 Lakes of Schaumburg Aug-10 2010 Marquette Companies Cornerstone Advisers 801 Belinder Lane Schaumburg NW Cook County 1988 428 342,600 800 $47,000,000 $109,813 $137 6.40% T-6

39 McDowell Place Jul-10 2010 Banner Realty BlackRock 1647 Westminster Drive Naperville Naperville/Aurora 1988 400 406,400 1,016 $41,000,000 $102,500 $101 5.80% T-6

40 The Retreat at Seven Bridges (fka Lincoln at Seven Bridges)

Jul-10 2010 Edge Principal Advisors Kennedy Associates 6690 Double Eagle Drive Woodridge DuPage County 1996 252 267,200 1,060 $30,720,000 $121,905 $115 5.65% T-12

41 Arbors of Brookdale Dec-09 2009 Prime Property Investors Northwestern Mutual 1373 Ivy Lane Naperville Naperville/Aurora 1989 281 275,345 980 $32,000,000 $113,879 $116 6.75% T-6

42 Waterford Place Dec-09 2009 Legacy Real Estate Development Capreit, Inc. 313 Happfield Road Arlington Heights NW Cook County 1987 280 216,824 774 $22,000,000 $78,571 $101 6.50% T-6

43 Oak Park City Dec-09 2009 IntercontinentalReal Estate Corp

BlackRock 675 West Lake Street Oak Park South Cook County 1987 125 105,915 847 $20,000,000 $160,000 $189 5.85% T-6

44 The Retreat at Danada Farms (fka Avalon at Danada Farms)

Dec-09 2009 Edge Principal Advisors AvalonBay 22 Vivaldi Court Wheaton DuPage County 1997 295 350,606 1,188 $45,450,000 $154,068 $130 6.70% T-6

45 Brook Run Oct-09 2009 Draper and Kramer AIMCO 2734 Buffalo Grove Road Arlington Heights NW Cook County 1986 182 187,866 1,032 $15,500,000 $85,165 $83 7.10% T-12

46 Autumn Run Sep-09 2009 Peter Fazio AIMCO 1627 Country Lakes Drive Naperville Naperville/Aurora 1988 320 253,882 793 $24,600,000 $76,875 $97 7.50% T-12

Chicago Institutional Apartment Sales SummarySUBURBAN2005-2013BY DATE

MORAN & COMPANY

92 TOTALS 32,900 30,184,822 917 $3,978,603,000 $120,930 $132

No. Property Name Date of Sale Year of Sale Buyer Seller Address City SubmarketYear


Average Unit SF

Sale PricePrice Per

UnitPrice PSF

Cap Rate

Cap Calc.

Chicago Institutional Apartment Sales SummarySUBURBAN2005-2013BY DATE

MORAN & COMPANY

47 Chevy Chase Jun-09 2009 Penobscot AMLI 1701 Johnson Drive Buffalo Grove Lake County 1988 592 478,768 809 $60,000,000 $101,351 $125 7.00% T-12

48 Landings of Lake Zurich Jun-09 2009 Eagle Management JP Morgan 25 N. Buesching Road Lake Zurich Lake County 2000 206 186,018 903 $18,600,000 $90,291 $100 7.00% T-12

49 Brookdale Lakes Jun-09 2009 Royal Imperial Group AIMCO 1812 Gowdey Road Naperville Naperville/Aurora 1990 200 191,400 957 $19,500,000 $97,500 $102 7.25% T-12

50 Yorktree Sep-08 2008 Friedkin Realty AIMCO 201 Flame Drive Carol Stream DuPage County 1972 293 258,721 883 $23,000,000 $78,498 $89 6.25% T-12

51 Lakehaven I & II Jul-08 2008 F & F Realty AIMCO 746 Bluff Street Carol Stream DuPage County 1984 492 466,908 949 $52,252,000 $106,203 $112 6.25% T-12

52 Hunters Ridge Jul-08 2008 Marquette Companies Concert Realty 1355 Todd Farm Drive Elgin Kane County 1972 408 342,000 838 $39,300,000 $96,324 $115 6.50% T-12

53 Fountains at Stone Crest (fka Avalon at West Grove)

Jun-08 2008 Redwood Capital AvalonBay One Fountainhead Drive Westmont DuPage County 1966 400 388,600 972 $38,700,000 $96,750 $100 6.25% T-12

54 Woodlake May-08 2008 Benj. Sherman ING-Clarion 101 Woodlake Blvd. Gurnee Lake County 2000 260 235,520 906 $34,250,000 $131,731 $145 5.18% T-12

55 Thornberry Woods Jan-08 2008 UBS Realty Lincoln National Life 7501 Gladstone Drive Naperville Naperville/Aurora 2002 280 272,720 974 $39,200,000 $140,000 $144 N/A N/A

56 Berkshires at Hoffman Estates (fka Park Place)

Jan-08 2008 Berkshire Property Advisors Park Place 875 Pacific Avenue Schaumburg NW Cook County 1985 642 620,172 966 $66,000,000 $102,804 $106 N/A N/A

57 Lakes at Fountain Square Jan-08 2008 Redwood Capital Waterton Associates 500 Lakehurst Road Waukegan Lake County 1976 384 303,360 790 $30,650,000 $79,818 $101 6.25% T-12

58 Park Evanston Jan-08 2008 TIAA John Buck Company 1630 Chicago Avenue Evanston North Shore 1997 283 260,794 922 $100,000,000 $353,357 $383 3.85% T-12

59 Briarbrook Dec-07 2007 Heitman Inland Real Estate 1147 Briarbrook Drive Wheaton DuPage County 1972 342 300,302 878 $33,000,000 $96,491 $110 5.00% T-12

60 Glenmuir Nov-07 2007 JP Morgan Chase ARA 2604 Rockport Lane Naperville Naperville/Aurora 1999 321 331,800 1,034 $55,500,000 $172,897 $167 5.02% T-6

61 The Oaks at Knollwood Oct-07 2007 RREEF Invesco 6096 Knollwood Road Willowbrook DuPage County 1986 224 181,984 812 $30,100,000 $134,375 $165 4.75% T-6

62 Stratford Place Sep-07 2007 LaSalle Investment Management Blackrock 232 Butterfield Drive Bloomingdale DuPage County 1990 342 322,680 944 $50,500,000 $147,661 $157 4.28% T-6

63 Camden at Bloomingdale Sep-07 2007 LaSalle Investment Management Blackrock 348 Glenwood Drive Bloomingdale DuPage County 1990 360 317,920 883 $54,300,000 $150,833 $171 4.32% T-6

64 Covey at Fox Valley Sep-07 2007 Sentinel America First Apartment Investors 2160 Walcott Road Aurora Naperville/Aurora 1987 216 192,672 892 $23,511,000 $108,847 $122 N/A N/A

65 Reserve at Eagle Ridge Aug-07 2007 Jupiter Realty DeBruller & Company 1947 West Eagle Ridge Drive Waukegan Lake County 2001 370 302,290 817 $31,800,000 $85,946 $105 N/A N/A

66 Woodland Creek Jun-07 2007 JP Morgan Confidential 333 Wood Creek Road Wheeling NW Cook County 1986 640 593,440 927 $95,000,000 $148,438 $160 5.16% T-6

67 Glenlake Club May-07 2007 Henderson Global EQR 1400 N. Oakmont Drive Glendale Heights DuPage County 1986 336 267,360 796 $35,000,000 $104,167 $131 N/A N/A

68 Four Lakes May-07 2007 Marquette Companies EQR 5885 Forest View Road Lisle DuPage County 1989 476 308,924 649 $38,000,000 $79,832 $123 N/A N/A

69 Brookdale Village Apr-07 2007 Sterling Enterprises EQR 1652 Brookdale Road Naperville Naperville/Aurora 1986 252 222,880 884 $29,000,000 $115,079 $130 N/A N/A

70 Grand Reserve Apr-07 2007 Heitman UBS 504 Chamberlain Lane Naperville Naperville/Aurora 1997 319 326,657 1,024 $52,400,000 $164,263 $160 4.55% T-12

71 The Park Butterfield Mar-07 2007 BPG Properties Laramar Group 2223 Mayfair Place Mundelein Lake County 1974 522 490,788 940 $60,000,000 $114,943 $122 6.50% T-6

72 Orchard Village Jan-07 2007 Benj. Sherman GE Capital 1240 W. Indian Trail Road Aurora Naperville/Aurora 2000 272 238,272 876 $27,800,000 $102,206 $117 5.32% T-12

73 Fox Valley Villages Jan-07 2007 American Realty Advisors H. Schein 2700 Village Green Drive Aurora Naperville/Aurora 1990 420 403,760 961 $46,050,000 $109,643 $114 4.34% T-12

74 Windscape Village Dec-06 2006 Sterling Enterprises TGM 896 Benedetti Drive Naperville Naperville/Aurora 1985 352 267,872 761 $33,500,000 $95,170 $125 5.00% T-12

75 21 Kristin Place Dec-06 2006 Christopher Feurer BJB Realty 21 Kristin Drive Schaumburg NW Cook County 1972 359 332,075 925 $36,000,000 $100,279 $108 N/A N/A

76 Avalon Lombard (fka The Covington)

Nov-06 2006 AvalonBay Prudential 2101 S. Finley Road Lombard DuPage County 1989 256 199,424 779 $32,250,000 $125,977 $162 4.75% T-12

77 Railway Plaza Oct-06 2006 ING Clarion Wiseman-Hughes 507 Railway Drive Naperville Naperville/Aurora 2000 417 440,840 1,057 $66,250,000 $158,873 $150 4.39% T-12

78 Alara at Summerfield(fka The Gables)

Aug-06 2006 ARA Gables Mgt. 1847 Clubhouse Drive Aurora Naperville/Aurora 2002 368 413,815 1,124 $50,500,000 $137,228 $122 4.75% T-12

79 The Landings at Amhurst Lake (fka Northern Crossing)

Jul-06 2006 JP Morgan MIG 1375 S. White Oak Drive Waukegan Lake County 1996 340 322,388 948 $39,550,000 $116,324 $123 N/A N/A

80 Countryside Jul-06 2006 Vince Manglardi & TJ Wojtas Alliance Holdings 975 N. Sterling Avenue Palatine NW Cook County 1973 719 627,640 873 $68,200,000 $94,854 $109 N/A N/A

81 GlenGarry Club May-06 2006 Equity Marketing EQR 231 Butterfield Drive Bloomingdale DuPage County 1989 250 215,098 860 $28,850,000 $115,400 $134 5.20% T-12

82 McDowell Place Apr-06 2006 BlackRock EQR 1647 Westminster Driver Naperville Naperville/Aurora 1988 400 406,400 1,016 $47,500,000 $118,750 $117 5.00% T-12

83 The Landings of Lake Zurich Mar-06 2006 JP Morgan EQR 25 N. Buesching Road Lake Zurich Lake County 2001 206 185,956 903 $30,100,000 $146,117 $162 5.00% T-12

84 Bourbon Square Mar-06 2006 Marquette Companies EQR 548 Constitution Lane Palatine NW Cook County 1984 612 875,160 1,430 $78,000,000 $127,451 $89 N/A N/A

85 City View At The Highlands Jan-06 2006 Sentinel EQR 2720 S. Highland Avenue Lombard DuPage County 2003 403 363,696 903 $78,650,000 $195,161 $216 3.40% T-12

86 Oak View Jan-06 2006 Heitman Inland 201 W. Oakley Drive N Westmont DuPage County 1972 408 403,920 990 $39,900,000 $97,794 $99 4.95% T-12

87 Archstone Garden Glen Dec-05 2005 Michael Sparks Archstone 120 Kristin Circle Schaumburg NW Cook County 1987 460 442,805 834 $63,000,000 $136,957 $142 5.00% T-12

88 Forest Pointe Sep-05 2005 BlackRock RREEF 29533 N. Waukegan Road Waukegan Lake County 1990 236 200,714 850 $27,282,000 $115,602 $136 5.25% T-12

89 Walden Woods Sep-05 2005 Hudson Capital Waterton Associates 1931 Prairie Square Schaumburg NW Cook County 1972 613 551,700 900 $50,300,000 $82,055 $91 5.50% T-12

90 Avalon at Poplar Creek (fka AMLI at Poplar Creek)

Jun-05 2005 AvalonBay AMLI 1900 Windsong Drive Schaumburg NW Cook County 1986 196 178,556 911 $24,950,000 $127,296 $140 5.00% T-12

91 Archstone at Willowbrook (fka Ascot Glen)

Jun-05 2005 RREEF Archstone 6060 Laurel Lane Willowbrook DuPage County 1987 488 418,384 857 $65,000,000 $133,197 $155 5.50% T-12

92 Legacy at Fox Valley (fka AMLI at Fox Valley

May-05 2005 TA Associates AMLI 3750 E. New York Street Aurora Naperville/Aurora 1998 272 269,280 990 $34,500,000 $126,838 $128 5.50% T-12

131 TOTALS 51,572 46,294,610 898 $9,082,428,000 $176,112 $196.19

92 SUBURBAN 32,900 30,184,822 917 $3,978,603,000 $120,930 $131.8139 DOWNTOWN 18,672 16,109,788 863 $5,103,825,000 $273,341 $316.82

No. Property Name Date of Sale Year of Sale Buyer Seller City Submarket MarketYear


Average Unit SF


1 The Retreat at Seven Bridges Under Contract 2013 CONFIDENTIAL Edge Principal Advisors Woodridge DuPage County Chicago 1996 252 267,200 1,060 CONFIDENTIAL N/A N/A N/A N/A

2 Farmington Lakes Under Contract 2013 CONFIDENTIAL ASB Capital Management Oswego Kane/Kendall Counties

Chicago 2002 304 280,844 924 CONFIDENTIAL N/A N/A N/A N/A N/A

3 Ashford at Geneva (fka Brittany Court)

Feb-13 2013 The RADCO Cos. Shodeen Management Geneva Kane/Kendall Counties

Chicago 1989 226 217,340 962 $27,900,000 $123,451 $128 5.60% T-12 N/A

4 Onterie Center Feb-13 2013 LaSalle Investment Management MPA Chicago Streeterville Chicago 1986 615 567,273 756 $188,000,000 $305,691 $331 * 4.50% T-6

5 AMLI at Oakhurst North Feb-13 2013 Abacus Capital Group AMLI Aurora Naperville/Aurora Chicago 1999 464 469,568 1,012 $60,300,000 $129,957 $128 5.71% T-6

6 TGM Willowbrook (fka Ascot Glen & Ascot Glen at Willowbrook)

Feb-13 2013 TGM Associates RREEF Willowbrook DuPage County Chicago 1985-1987 712 602,904 847 $101,000,000 $141,854 $168 N/A N/A N/A

7 Camden at Bloomingdale Dec-12 2012 Friedkin Realty LaSalle Investment Management Bloomingdale DuPage County Chicago 1990 360 317,920 883 $54,800,000 $152,222 $172 5.80% T-6

8 Stratford Place Dec-12 2012 Friedkin Realty LaSalle Investment Management Bloomingdale DuPage County Chicago 1990 342 322,680 944 $50,000,000 $146,199 $155 5.80% T-6

9 Arbors of Glen Ellyn (fka Berkshires of Glen Ellyn)

Dec-12 2012 Friedkin Realty Berkshire Property Advisors Glen Ellyn DuPage County Chicago 1975 264 206,184 781 $24,200,000 $91,667 $117 TBD TBD

10 Chesapeake Landing Dec-12 2012 TGM Associates AIMCO Aurora Naperville/Aurora Chicago 1987 600 523,731 873 $57,600,000 $96,000 $110 TBD TBD

11 215 West Dec-12 2012 Prudential Real Estate Smithfield JV Gordon Segal JV Nitzberg

Chicago River North Chicago 2012 324 258,194 797 $106,400,000 $328,395 $412 TBD TBD

12 SoNo East Dec-12 2012 Bluerock Enhanced Multifamily Trust (Partial Equity Interest

Village Green (Retained Partial Equity Interest 43.5%)

Chicago Loop Chicago 1929/2006 190 168,490 844 $54,900,000 $288,947 $326 * TBD TBD

13 MDA City Apartments Dec-12 2012 MetLife Cornerstone JV Jupiter Chicago Loop Chicago 2010 389 316,788 814 $119,000,000 $305,913 $376 TBD TBD

14 Alta at K Station Dec-12 2012 Morguard Corp. Fifield JV Pacific Life Chicago West Loop Chicago 2010 848 662,693 766 $300,000,000 $353,774 $453 * 4.00% T-6

15 The Moorings Nov-12 2012 Steadfast Income REIT Berkshire Property Advisors Roselle NW Cook County Chicago 1977 216 190,512 882 $20,300,000 $93,981 $107 6.89% T-6

16 Arrowhead Nov-12 2012 Steadfast Income REIT Berkshire Property Advisors Palatine NW Cook County Chicago 1975 200 173,400 867 $16,800,000 $84,000 $97 7.05% T-6

17 Oak Park Place Oct-12 2012 Cornerstone White Peterman Oak Park Oak Park Chicago 2009 204 174,189 854 $62,900,000 $308,333 $361 3.77% T-6

18 1401 S. State Sep-12 2012 Marquette Cos. EQR JV Lincoln Property Chicago South Loop Chicago 2008 278 236,398 850 $70,000,000 $251,799 $296 * 4.14% 2011 Actual

Chicago Institutional Apartment Sales SummaryCHICAGO METRO (DOWNTOWN + SUBURBAN)2005-2013BY DATE

MORAN & COMPANY

19 Grand Vista (fka Schaumburg Villas) Aug-12 2012 Stadt Group LNR Properties Schaumburg NW Cook County Chicago 1979 300 282,000 940 $19,400,000 $64,667 $69 9.00% T-6

20 Hancock Square at Arlington Station (fka Avalon Arlington Heights)

Jun-12 2012 John Hancock AvalonBay Arlington Heights NW Cook County Chicago 1988 409 346,146 846 $87,250,000 $213,325 $252 5.28% T-6

21 Fieldpointe of Schaumburg Jun-12 2012 Westdale Investment Partners Draper & Kramer Schaumburg NW Cook County Chicago 1973 396 297,600 752 $37,375,000 $94,381 $126 TBD TBD

22 Legacy at Martin's Point (fka Avalon Lombard)

May-12 2012 KBS Legacy Partners REIT AvalonBay Lombard DuPage County Chicago 1989-2009 256 202,000 789 $35,500,000 $138,672 $176 5.50% T-6

23 TGM Park Meadows (fka Lincoln Meadows)

Apr-12 2012 TGM Associates Invesco Schaumburg NW Cook County Chicago 1990 576 471,959 819 $86,700,000 $150,521 $184 5.80% T-6

24 Dunton Tower Mar-12 2012 Henderson Global Oakbrook Corp Arlington Heights NW Cook County Chicago 1986 216 193,705 897 $39,350,000 $182,176 $203 5.38% T-6

25 Parc Huon Mar-12 2012 L&B Realty Advisors J.P. Morgan Asset JV M&R Development

Chicago River North Chicago 2010 221 214,060 969 $110,000,000 $497,738 $514 4.20% T-3

26 The Seneca Feb-12 2012 Waterton Associates IRMCO Management Chicago Gold Coast Chicago 1926 264 168,651 639 $35,600,000 $134,848 $211 2.00% Actual

27 Stratford Green Apartments (fka Avalon at Stratford Green)

Jan-12 2012 KCK Properties AvalonBay Bloomingdale DuPage County Chicago 1997 192 251,520 1,310 $38,275,000 $199,349 $152 5.25% T-6

28 Gates of Deer Grove Jan-12 2012 Home Properties Laramar Group Palatine NW Cook County Chicago 1974 204 183,000 897 $20,200,000 $99,020 $110 6.00% T-6

29 Echelon at K Station Jan-12 2012 Crescent Heights Fifield JV Pacific Life Chicago West Loop Chicago 2008 350 275,170 786 $104,500,000 $298,571 $380 * 4.30% T-3

30 EnV Dec-11 2011 MetLife Lynd Chicago River North Chicago 2010 249 249,517 893 $122,000,000 $489,960 $489 * 4.00% T-3

31 Flair Tower Dec-11 2011 GID McCaffery Interests JV CalPERS via Canyon Johnson

Chicago River North Chicago 2010 198 196,450 947 $85,000,000 $429,293 $433 * 4.69% T-3

32 Park Michigan (fka 1212 South Michigan)

Dec-11 2011 Crescent Heights Urban Realty Partners JV Davis Group Chicago South Loop Chicago 1981 344 237,154 689 $65,000,000 $188,953 $274 4.75% T-3

33 Belden-Stratford Dec-11 2011 Laramar IRMCO Management Chicago Lincoln Park Chicago 1923 297 198,365 668 $59,300,000 $199,663 $299 N/A Mixed Use

34 Aspen Place Dec-11 2011 Friedkin Realty Kensington Realty Advisors Aurora Naperville/Aurora Chicago 1988 416 441,280 1,061 $49,088,000 $118,000 $111 5.75% T-6

35 The Windbrooke Crossing Apartments (fka AMLI at Windbrooke)

Dec-11 2011 Mesirow Financial AMLI Residential Bufffalo Grove Lake County Chicago 1986 236 213,160 903 $34,250,000 $145,127 $161 5.31% T-6

36 Pembrook Club Dec-11 2011 Captec Financial Northwestern Mutual Gurnee Lake County Chicago 1989 280 241,920 864 $30,000,000 $107,143 $124 6.50% T-6

37 Legacy at Poplar Creek (fka Avalon at Poplar Creek)

Dec-11 2011 KBS Legacy Partners REIT AvalonBay Schaumburg NW Cook County Chicago 1986 196 173,264 884 $27,200,000 $138,776 $157 5.75% T-6

38 Brook Hill Dec-11 2011 Friedkin Realty Heitman Westmont DuPage County Chicago 1972 408 404,050 990 $58,500,000 $143,382 $145 6.25% T-6

39 Lakeside Apartment Homes (fka Avalon Lakeside)

Dec-11 2011 Friedkin Realty AvalonBay Wheaton DuPage County Chicago 1978 204 160,752 788 $20,500,000 $100,490 $128 5.75% T-6

40 Fordham Glen Nov-11 2011 Henderson Global UBS Glendale Heights DuPage County Chicago 1989 296 268,400 907 $34,500,000 $116,554 $129 5.86% T-6

41 Regents Park Oct-11 2011 Antheus Capital Crescent Heights Chicago Hyde Park Chicago 1970 1,031 1,016,940 979 $159,000,000 $154,219 $156 * 5.25% T-3

42 77 West Huron Oct-11 2011 L&B Realty Advisors Archstone (Lehman Bros. Holdings) Chicago River North Chicago 1988 304 261,877 841 $90,000,000 $296,053 $344 * Sub-4% Terminated Corp.

43 Hamilton Court Aug-11 2011 Golub & Company JV Alcion Ventures

Baird Family Elk Grove Village NW Cook County Chicago 1977 579 486,360 840 $40,000,000 $69,085 $82 7.00% T-6Ventures

44 The Reserve at Evanston Jul-11 2011 Cornerstone Invesco JV Atlantic Realty Evanston North Shore Chicago 2003 193 162,935 844 $55,600,000 $288,083 $341 4.75% T-6

131 TOTALS 51,572 46,294,610 898 $9,082,428,000 $176,112 $196.19




Average Unit SF



MORAN & COMPANY

45 Briarbrook Jul-11 2011 Westdale Investment Partners Heitman Wheaton DuPage County Chicago 1972 342 299,672 876 $34,250,000 $100,146 $114 5.84% T-3

46 Parkway Commons Jun-11 2011 Friedkin Realty Heitman Carol Stream DuPage County Chicago 1972 384 363,400 946 $33,000,000 $85,938 $91 6.06% T-3

47 Deer Valley Jun-11 2011 Prime Property Investors Stockbridge Lake Bluff Lake County Chicago 1990 224 189,800 847 $22,000,000 $98,214 $116 6.00% T-6

48 505 N. State Jun-11 2011 LaSalle Investment Management John Buck Chicago River North Chicago 2010 145 130,843 902 $61,300,000 $422,759 $469 N/A Corporate Contract

49 Roosevelt Collection Jun-11 2011 McCaffery / Canyon Johnson Centrum / Bank of America Chicago South Loop Chicago 2009 342 710,912 914 $159,850,000 $467,398 $225 ** 4.00% T-3

50 Country Lakes May-11 2011 Hayman AIMCO Naperville Naperville/Aurora Chicago 1985 640 574,859 898 $60,000,000 $93,750 $104 7.25% T-6

51 One Superior Place (includes land) May-11 2011 Hartz Mountain Industries Brookfield Asset Management / Stellar Management

Chicago River North Chicago 2000 809 661,052 748 $320,000,000 $395,550 $484 *** 3.22% 2010 Actual

52 Cityfront Place May-11 2011 RREEF Crescent Heights Chicago Streeterville Chicago 1991 480 376,672 769 $106,000,000 $220,833 $281 * 4.58% T-3

53 Prentiss Creek at Downers Grove Mar-11 2011 Pensam Capital JV BH Equities PRG Real Estate Downers Grove DuPage County Chicago 1974 700 615,850 880 $49,300,000 $70,429 $80 6.74% T-12

54 Aqua (Partial Interest) Dec-10 2010 JP Morgan Asset Management Magellan Development Chicago New East Side Chicago 2009 474 362,743 765 $181,500,000 $385,000 $500 * 4.00% Actual

55 The Preserve at Osprey Lake (fka AMLI at Osprey Lake)

Dec-10 2010 TA Associates AMLI Gurnee Lake County Chicago 1997 483 453,289 938 $55,050,000 $113,975 $121 5.42% T-12

56 The Villages at Canterfield (fka AMLI at Canterfield)

Sep-10 2010 TA Associates AMLI West Dundee Kane County Chicago 2001 352 359,040 1,020 $59,300,000 $168,466 $165 5.84% T-12

57 Clover Creek Aug-10 2010 Golub & Company Intercontinental/Olympic JV Lombard DuPage County Chicago 1987 504 473,318 939 $45,000,000 $89,286 $95 6.16% T-3

58 Lakes of Schaumburg Aug-10 2010 Marquette Companies Cornerstone Advisers Schaumburg NW Cook County Chicago 1988 428 342,600 800 $47,000,000 $109,813 $137 6.40% T-6

59 Burnham Pointe Jul-10 2010 Behringer Harvard Stark Investments Chicago South Loop Chicago 2008 298 293,232 984 $88,000,000 $295,302 $300 4.80% Actual

60 McDowell Place Jul-10 2010 Banner Realty BlackRock Naperville Naperville/Aurora Chicago 1988 400 406,400 1,016 $41,000,000 $102,500 $101 5.80% T-6

61 The Retreat at Seven Bridges (fka Lincoln at Seven Bridges)

Jul-10 2010 Edge Principal Advisors Kennedy Associates Woodridge DuPage County Chicago 1996 252 267,200 1,060 $30,720,000 $121,905 $115 5.65% T-12

62 Arbors of Brookdale Dec-09 2009 Prime Property Investors Northwestern Mutual Naperville Naperville/Aurora Chicago 1989 281 275,345 980 $32,000,000 $113,879 $116 6.75% T-6

63 Waterford Place Dec-09 2009 Legacy Real Estate Development Capreit, Inc. Arlington Heights NW Cook County Chicago 1987 280 216,824 774 $22,000,000 $78,571 $101 6.50% T-6

64 Oak Park City Dec-09 2009 IntercontinentalReal Estate Corp

BlackRock Oak Park South Cook County Chicago 1987 125 105,915 847 $20,000,000 $160,000 $189 5.85% T-6

65 Cityfront Place Dec-09 2009 Crescent Heights Northwestern Mutual Chicago Streeterville Chicago 1991 480 376,672 769 $82,750,000 $172,396 $220 * 5.80% July2009 Annualize

66 The Retreat at Danada Farms (fka Avalon at Danada Farms)

Dec-09 2009 Edge Principal Advisors AvalonBay Wheaton DuPage County Chicago 1997 295 350,606 1,188 $45,450,000 $154,068 $130 6.70% T-6

67 Brook Run Oct-09 2009 Draper and Kramer AIMCO Arlington Heights NW Cook County Chicago 1986 182 187,866 1,032 $15,500,000 $85,165 $83 7.10% T-12

68 Autumn Run Sep-09 2009 Peter Fazio AIMCO Naperville Naperville/Aurora Chicago 1988 320 253,882 793 $24,600,000 $76,875 $97 7.50% T-12

69 Chevy Chase Jun-09 2009 Penobscot AMLI Buffalo Grove Lake County Chicago 1988 592 478,768 809 $60,000,000 $101,351 $125 7.00% T-12

70 Landings of Lake Zurich Jun-09 2009 Eagle Management JP Morgan Lake Zurich Lake County Chicago 2000 206 186,018 903 $18,600,000 $90,291 $100 7.00% T-12

71 Brookdale Lakes Jun-09 2009 Royal Imperial Group AIMCO Naperville Naperville/Aurora Chicago 1990 200 191,400 957 $19,500,000 $97,500 $102 7.25% T-12

72 Yorktree Sep-08 2008 Friedkin Realty AIMCO Carol Stream DuPage County Chicago 1972 293 258,721 883 $23,000,000 $78,498 $89 6.25% T-12

73 Lakehaven I & II Jul-08 2008 F & F Realty AIMCO Carol Stream DuPage County Chicago 1984 492 466,908 949 $52,252,000 $106,203 $112 6.25% T-12

74 Hunters Ridge Jul-08 2008 Marquette Companies Concert Realty Elgin Kane County Chicago 1972 408 342,000 838 $39,300,000 $96,324 $115 6.50% T-12

75 Fountains at Stone Crest (fka Avalon at West Grove)

Jun-08 2008 Redwood Capital AvalonBay Westmont DuPage County Chicago 1966 400 388,600 972 $38,700,000 $96,750 $100 6.25% T-12

76 Woodlake May-08 2008 Benj. Sherman ING-Clarion Gurnee Lake County Chicago 2000 260 235,520 906 $34,250,000 $131,731 $145 5.18% T-12

77 Thornberry Woods Jan-08 2008 UBS Realty Lincoln National Life Naperville Naperville/Aurora Chicago 2002 280 272,720 974 $39,200,000 $140,000 $144 N/A N/A

78 Berkshires at Hoffman Estates (fka Park Place)

Jan-08 2008 Berkshire Property Advisors Park Place Schaumburg NW Cook County Chicago 1985 642 620,172 966 $66,000,000 $102,804 $106 N/A N/A

79 Lakes at Fountain Square Jan-08 2008 Redwood Capital Waterton Associates Waukegan Lake County Chicago 1976 384 303,360 790 $30,650,000 $79,818 $101 6.25% T-12

80 Park Evanston Jan-08 2008 TIAA John Buck Company Evanston North Shore Chicago 1997 283 260,794 922 $100,000,000 $353,357 $383 3.85% T-12

81 Briarbrook Dec-07 2007 Heitman Inland Real Estate Wheaton DuPage County Chicago 1972 342 300,302 878 $33,000,000 $96,491 $110 5.00% T-12

82 Glenmuir Nov-07 2007 JP Morgan Chase ARA Naperville Naperville/Aurora Chicago 1999 321 331,800 1,034 $55,500,000 $172,897 $167 5.02% T-6

83 The Oaks at Knollwood Oct-07 2007 RREEF Invesco Willowbrook DuPage County Chicago 1986 224 181,984 812 $30,100,000 $134,375 $165 4.75% T-6

84 Stratford Place Sep-07 2007 LaSalle Investment Management Blackrock Bloomingdale DuPage County Chicago 1990 342 322,680 944 $50,500,000 $147,661 $157 4.28% T-6

85 Camden at Bloomingdale Sep-07 2007 LaSalle Investment Management Blackrock Bloomingdale DuPage County Chicago 1990 360 317,920 883 $54,300,000 $150,833 $171 4.32% T-6

86 Covey at Fox Valley Sep-07 2007 Sentinel America First Apartment Investors Aurora Naperville/Aurora Chicago 1987 216 192,672 892 $23,511,000 $108,847 $122 N/A N/A

87 The Streeter Aug-07 2007 OHSTRS Golub & Company JV AEW JV BlackRock

Chicago Streeterville Chicago 2006 481 454,699 945 $210,000,000 $436,590 $462 * 4.15% ActualBlackRock

88 One Superior Place (excludes land) Aug-07 2007 Stellar Management Archstone Chicago River North Chicago 2000 809 661,052 748 $217,600,000 $268,974 $329 **** N/A N/A

131 TOTALS 51,572 46,294,610 898 $9,082,428,000 $176,112 $196.19




Average Unit SF



MORAN & COMPANY

89 Reserve at Eagle Ridge Aug-07 2007 Jupiter Realty DeBruller & Company Waukegan Lake County Chicago 2001 370 302,290 817 $31,800,000 $85,946 $105 N/A N/A

90 Woodland Creek Jun-07 2007 JP Morgan Confidential Wheeling NW Cook County Chicago 1986 640 593,440 927 $95,000,000 $148,438 $160 5.16% T-6

91 180 N. Jefferson Jun-07 2007 Draper and Kramer BlackRock & CalSTRS Chicago West Loop Chicago 2004 274 217,099 764 $75,300,000 $274,818 $347 * 3.50% Actual

92 Glenlake Club May-07 2007 Henderson Global EQR Glendale Heights DuPage County Chicago 1986 336 267,360 796 $35,000,000 $104,167 $131 N/A N/A

93 Four Lakes May-07 2007 Marquette Companies EQR Lisle DuPage County Chicago 1989 476 308,924 649 $38,000,000 $79,832 $123 N/A N/A

94 Brookdale Village Apr-07 2007 Sterling Enterprises EQR Naperville Naperville/Aurora Chicago 1986 252 222,880 884 $29,000,000 $115,079 $130 N/A N/A

95 Grand Reserve Apr-07 2007 Heitman UBS Naperville Naperville/Aurora Chicago 1997 319 326,657 1,024 $52,400,000 $164,263 $160 4.55% T-12

96 The Park Butterfield Mar-07 2007 BPG Properties Laramar Group Mundelein Lake County Chicago 1974 522 490,788 940 $60,000,000 $114,943 $122 6.50% T-6

97 Presidential Towers Mar-07 2007 Waterton Associates JV CalSTRS Pritzker Residential Chicago West Loop Chicago 1983 2,346 1,648,976 656 $475,000,000 $202,472 $288 * 4.10% Actual

98 Grand Plaza (East Tower) Jan-07 2007 Strategic Real Estate Advisors US Equities JV Magellan Chicago River North Chicago 2003 481 570,899 979 $262,500,000 $545,738 $460 * 4.00% Actual

99 Left Bank at K Station Jan-07 2007 Prudential Real Estate Fifield Realty Corp. Chicago West Loop Chicago 2007 451 343,764 762 $115,000,000 $254,989 $335 Pre-Sale Pre-Sale

100 Orchard Village Jan-07 2007 Benj. Sherman GE Capital Aurora Naperville/Aurora Chicago 2000 272 238,272 876 $27,800,000 $102,206 $117 5.32% T-12

101 Fox Valley Villages Jan-07 2007 American Realty Advisors H. Schein Aurora Naperville/Aurora Chicago 1990 420 403,760 961 $46,050,000 $109,643 $114 4.34% T-12

102 One East Delaware Dec-06 2006 Waterton Associates Archstone Chicago Gold Coast Chicago 1989 306 250,834 689 $91,250,000 $298,203 $364 * 4.40% Actual

103 Windscape Village Dec-06 2006 Sterling Enterprises TGM Naperville Naperville/Aurora Chicago 1985 352 267,872 761 $33,500,000 $95,170 $125 5.00% T-12

104 21 Kristin Place Dec-06 2006 Christopher Feurer BJB Realty Schaumburg NW Cook County Chicago 1972 359 332,075 925 $36,000,000 $100,279 $108 N/A N/A

105 Avalon Lombard (fka The Covington) Nov-06 2006 AvalonBay Prudential Lombard DuPage County Chicago 1989 256 199,424 779 $32,250,000 $125,977 $162 4.75% T-12

106 1212 South Michigan Oct-06 2006 Urban Realty Partners BlackRock Chicago South Loop Chicago 1981 344 237,154 689 $65,000,000 $188,953 $274 4.75% Actual

107 Railway Plaza Oct-06 2006 ING Clarion Wiseman-Hughes Naperville Naperville/Aurora Chicago 2000 417 440,840 1,057 $66,250,000 $158,873 $150 4.39% T-12

108 Alara at Summerfield(The Gables)

Aug-06 2006 ARA Gables Mgt. Aurora Naperville/Aurora Chicago 2002 368 413,815 1,124 $50,500,000 $137,228 $122 4.75% T-12

109 The Landings at Amhurst Lake (formerly Northern Crossing)

Jul-06 2006 JP Morgan MIG Waukegan Lake County Chicago 1996 340 322,388 948 $39,550,000 $116,324 $123 N/A N/A

110 Countryside Jul-06 2006 Vince Manglardi & TJ Wojtas Alliance Holdings Palatine NW Cook County Chicago 1973 719 627,640 873 $68,200,000 $94,854 $109 N/A N/A

111 GlenGarry Club May-06 2006 Equity Marketing EQR Bloomingdale DuPage County Chicago 1989 250 215,098 860 $28,850,000 $115,400 $134 5.20% T-12

112 River North Park May-06 2006 Waterton Associates Archstone Chicago River North Chicago 1987 399 306,604 694 $60,050,000 $150,501 $196 5.75% Actual

113 McClurg Court May-06 2006 Kennedy Associates Archstone Chicago Streeterville Chicago 1972 1,058 784,844 742 $126,000,000 $169,853 $161 * 6.00% Actual (GROUND

114 McDowell Place Apr-06 2006 BlackRock EQR Naperville Naperville/Aurora Chicago 1988 400 406,400 1,016 $47,500,000 $118,750 $117 5.00% T-12

115 The Landings of Lake Zurich Mar-06 2006 JP Morgan EQR Lake Zurich Lake County Chicago 2001 206 185,956 903 $30,100,000 $146,117 $162 5.00% T-12

116 Bourbon Square Mar-06 2006 Marquette Companies EQR Palatine NW Cook County Chicago 1984 612 875,160 1,430 $78,000,000 $127,451 $89 N/A N/A

117 City View At The Highlands Jan-06 2006 Sentinel EQR Lombard DuPage County Chicago 2003 403 363,696 903 $78,650,000 $195,161 $216 3.40% T-12

118 Oak View Jan-06 2006 Heitman Inland Westmont DuPage County Chicago 1972 408 403,920 990 $39,900,000 $97,794 $99 4.95% T-12

119 The Bernardin Dec-05 2005 UBS Realty RREEF Chicago River North Chicago 2005 171 200,050 1,048 $89,425,000 $522,953 $447 * 4.50% Actual

120 Archstone Garden Glen Dec-05 2005 Michael Sparks Archstone Schaumburg NW Cook County Chicago 1987 460 442,805 834 $63,000,000 $136,957 $142 5.00% T-12

121 Ontario Place Oct-05 2005 American Invsco General Investment & Development Chicago River North Chicago 1984 468 472,400 800 $125,000,000 $267,094 $265 N/A N/A

122 Onterie Center Sep-05 2005 Metropolitan Properties of America Clark Realty Capital Chicago Streeterville Chicago 1986 583 600,845 715 $132,000,000 $226,415 $220 * 5.25% Actual

123 Forest Pointe Sep-05 2005 BlackRock RREEF Waukegan Lake County Chicago 1990 236 200,714 850 $27,282,000 $115,602 $136 5.25% T-12

124 Walden Woods Sep-05 2005 Hudson Capital Waterton Associates Schaumburg NW Cook County Chicago 1972 613 551,700 900 $50,300,000 $82,055 $91 5.50% T-12

125 Grand Plaza (West Tower) Aug-05 2005 Terrapin Properties US Equities JV Magellan Chicago River North Chicago 2003 283 277,057 979 $91,000,000 $321,555 $328 5.00% Actual

126 Printers Square Jul-05 2005 JDL Enterprises Waterton Associates Chicago South Loop Chicago 1909 356 299,823 842 $44,600,000 $125,281 $149 4.10% Actual

127 Avalon at Poplar Creek (fka AMLI at Poplar Creek)

Jun-05 2005 AvalonBay AMLI Schaumburg NW Cook County Chicago 1986 196 178,556 911 $24,950,000 $127,296 $140 5.00% T-12

128 Archstone at Willobrook (fka Ascot Glen)

Jun-05 2005 RREEF Archstone Willowbrook DuPage County Chicago 1987 488 418,384 857 $65,000,000 $133,197 $155 5.50% T-12

129 Legacy at Fox Valley (fka AMLI at Fox Valley

May-05 2005 TA Associates AMLI Aurora Naperville/Aurora Chicago 1998 272 269,280 990 $34,500,000 $126,838 $128 5.50% T-12

130 400 North LaSalle Apr-05 2005 Draper and Kramer JV JP Morgan Habitat JV Vornado Chicago River North Chicago 2003 452 381,182 837 $126,000,000 $278,761 $331 4.40% Actual

131 Park Millennium Jan-05 2005 MCZ Dev. JV Centrum Properties Archstone Chicago New East Side Chicago 2002 480 462,360 963 $130,000,000 $270,833 $281 4.80% Actual

NEW EAST SIDE

STREETERVILLE

GOLDCOAST

RIVER NORTH

NEAR NORTH

LOOP

SOUTH LOOP

WEST LOOP

20132013

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6

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8

9

10

11

12

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20112011

ONE SUPERIOR PLACEDATE OF SALE May-11BUYER NAME Hartz Mountain Ind.SELLER NAME Brookfi eld Asset Mgmt / Stellar MgmtCITY ChicagoSUBMARKET River NorthYEAR BUILT 2000UNIT COUNT 809TOTAL SF 661,052AVG UNIT SF 748SALE PRICE $320,000,000PRICE PER UNIT $395,550PRICE PSF $484CAP RATE 3.22%CAP CALC 2010 Actual

18

2011

PARC HUONDATE OF SALE Mar-12BUYER NAME L&B Realty AdvisorsSELLER NAME J.P. Morgan JV M&R DevelopmentCITY ChicagoSUBMARKET River NorthYEAR BUILT 2010UNIT COUNT 221TOTAL SF 214,060AVG UNIT SF 969SALE PRICE $110,000,000PRICE PER UNIT $497,738PRICE PSF $514CAP RATE 4.20%CAP CALC T-3

7

2012

77 WEST HURONDATE OF SALE Oct-11BUYER NAME L&B Realty AdvisorsSELLER NAME Archstone (Lehman Bros. Holdings)CITY ChicagoSUBMARKET River NorthYEAR BUILT 1988UNIT COUNT 304TOTAL SF 261,877AVG UNIT SF 841SALE PRICE $90,000,000PRICE PER UNIT $296,053PRICE PSF $344CAP RATE Sub-4%CAP CALC Terminated Corp.

15

2011

ECHELON AT K STATIONDATE OF SALE Jan-12BUYER NAME Crescent HeightsSELLER NAME Fifi eld JV Pacifi c LifeCITY ChicagoSUBMARKET West LoopYEAR BUILT 2008UNIT COUNT 350TOTAL SF 275,170AVG UNIT SF 786SALE PRICE $104,500,000PRICE PER UNIT $298,571PRICE PSF $380CAP RATE 4.30%CAP CALC T-3

9

2012

ALTA AT K STATIONDATE OF SALE Dec-12BUYER NAME Morguard Corp.SELLER NAME Fifi eld JV Pacifi c LifeCITY ChicagoSUBMARKET West LoopYEAR BUILT 2010UNIT COUNT 848TOTAL SF 662,693AVG UNIT SF 766SALE PRICE $300,000,000PRICE PER UNIT $353,774PRICE PSF $453CAP RATE 4.00%CAP CALC T-6

5

2012

BURNHAM POINTEDATE OF SALE Jul-10BUYER NAME Behringer HarvardSELLER NAME Stark InvestmentsCITY ChicagoSUBMARKET South LoopYEAR BUILT 2008UNIT COUNT 298TOTAL SF 293,232AVG UNIT SF 984SALE PRICE $88,000,000PRICE PER UNIT $295,302PRICE PSF $300CAP RATE 4.80%CAP CALC Actual

21

2010

1401 S. STATEDATE OF SALE Sep-12BUYER NAME Marquette Cos.SELLER NAME EQR JV Lincoln PropertyCITY ChicagoSUBMARKET South LoopYEAR BUILT 2008UNIT COUNT 278TOTAL SF 236,398AVG UNIT SF 850SALE PRICE $70,000,000PRICE PER UNIT $251,799PRICE PSF $296CAP RATE 4.14%CAP CALC 2011 Actual

6

2012

1212 SOUTH MICHIGANDATE OF SALE Dec-11BUYER NAME Crescent HeightsSELLER NAME Urban Realty & JV Davis GroupCITY ChicagoSUBMARKET South LoopYEAR BUILT 1981UNIT COUNT 344TOTAL SF 237,154AVG UNIT SF 689SALE PRICE $65,000,000PRICE PER UNIT $188,953PRICE PSF $274CAP RATE 4.75%CAP CALC T-3

12

2011

REGENTS PARKDATE OF SALE Oct-11BUYER NAME Antheus CapitalSELLER NAME Crescent HeightsCITY ChicagoSUBMARKET Hyde ParkYEAR BUILT 1970UNIT COUNT 1,031TOTAL SF 1,016,940AVG UNIT SF 979SALE PRICE $159,000,000PRICE PER UNIT $154,219PRICE PSF $156CAP RATE 5.25%CAP CALC T-3

14

2011

BELDEN-STRATFORDDATE OF SALE Dec-11BUYER NAME LaramarSELLER NAME IRMCO ManagementCITY ChicagoSUBMARKET Lincoln ParkYEAR BUILT 1923UNIT COUNT 297TOTAL SF 198,365AVG UNIT SF 668SALE PRICE $59,300,000PRICE PER UNIT $199,663PRICE PSF $299CAP RATE N/ACAP CALC Mixed Use

13

2011

AQUA (PARTIAL INTEREST)DATE OF SALE Dec-10BUYER NAME JP MorganSELLER NAME Magellan CITY ChicagoSUBMARKET New East SideYEAR BUILT 2009UNIT COUNT 474TOTAL SF 362,743AVG UNIT SF 765SALE PRICE $181,500,000PRICE PER UNIT $385,000PRICE PSF $500CAP RATE 4.00%CAP CALC Actual

20

2010

CITYFRONT PLACEDATE OF SALE May-11BUYER NAME RREEFSELLER NAME Crescent HeightsCITY ChicagoSUBMARKET StreetervilleYEAR BUILT 1991UNIT COUNT 480TOTAL SF 376,672AVG UNIT SF 769SALE PRICE $106,000,000PRICE PER UNIT $220,833PRICE PSF $281CAP RATE 4.58%CAP CALC T-3

19

2011

505 N. STATEDATE OF SALE Jun-11BUYER NAME LaSalle SELLER NAME John BuckCITY ChicagoSUBMARKET River NorthYEAR BUILT 2010UNIT COUNT 145TOTAL SF 130,843AVG UNIT SF 902SALE PRICE $61,300,000PRICE PER UNIT $422,759PRICE PSF $469CAP RATE N/ACAP CALC Corporate Contract

16

2011

ONTERIE CENTERDATE OF SALE Under ContractBUYER NAME CONFIDENTIALSELLER NAME MPACITY ChicagoSUBMARKET StreetervilleYEAR BUILT 1986UNIT COUNT 615TOTAL SF 567,273AVG UNIT SF 756SALE PRICE CONFIDENTIALPRICE PER UNIT CONFIDENTIALPRICE PSF CONFIDENTIALCAP RATE CONFIDENTIALCAP CALC CONFIDENTIAL

1

2013

THE SENECADATE OF SALE Feb-12BUYER NAME Waterton AssociatesSELLER NAME IRMCO ManagementCITY ChicagoSUBMARKET Gold CoastYEAR BUILT 1926UNIT COUNT 264TOTAL SF 168,651AVG UNIT SF 639SALE PRICE $35,600,000PRICE PER UNIT $134,848PRICE PSF $211CAP RATE 2.00%CAP CALC Actual

8

2012

CHICAGO INSTITUTIONAL APARTMENT SALES SUMMARY2010-2013

As of 1/22/2013

STABILIZED 2011 OR 2012

CONDO REVERSION

STABILIZED 2010LAND

UNDER CONSTRUCTION

2013 START

KEY IN LEASE-UP

ROOSEVELT COLLECTIONDATE OF SALE Jun-11BUYER NAME McCaffery / Canyon JohnsonSELLER NAME Centrum / BoACITY ChicagoSUBMARKET South LoopYEAR BUILT 2009UNIT COUNT 342TOTAL SF 710,912AVG UNIT SF 914SALE PRICE $159,850,000PRICE PER UNIT $467,398PRICE PSF $225CAP RATE 4.00%CAP CALC T-3

17

2011

CHICAGO INSTITUTIONAL APARTMENT SALES SUMMARY 2010-2012

20112011

20102010

MDA CITY APARTMENTSDATE OF SALE Dec-12BUYER NAME Blue Rock (56.5%) JV Village GreenSELLER NAME Village GreenCITY ChicagoSUBMARKET LoopYEAR BUILT 1929 / 2006UNIT COUNT 190TOTAL SF 168,490AVG UNIT SF 844SALE PRICE $54,900,000PRICE PER UNIT $288,947PRICE PSF $326CAP RATE TBDCAP CALC TBD

3

2012

SONO EASTDATE OF SALE Dec-12BUYER NAME PrudentialSELLER NAME Smithfi eld / JV Segal / JV NitzbergCITY ChicagoSUBMARKET River NorthYEAR BUILT 2012UNIT COUNT 324TOTAL SF 258,194AVG UNIT SF 797SALE PRICE $106,400,000PRICE PER UNIT $328,395PRICE PSF $412CAP RATE TBDCAP CALC TBD

4

2012

3

4

20122012215 WESTDATE OF SALE Dec-12BUYER NAME MetLife Inc.SELLER NAME Jupiter / CornerstoneCITY ChicagoSUBMARKET LoopYEAR BUILT 2010UNIT COUNT 389TOTAL SF 259,194AVG UNIT SF 797SALE PRICE $120,000,000PRICE PER UNIT $308,000PRICE PSF $412CAP RATE TBDCAP CALC TBD

2

2012

ENVDATE OF SALE Dec-11BUYER NAME MetLifeSELLER NAME LyndCITY ChicagoSUBMARKET River NorthYEAR BUILT 2010UNIT COUNT 249TOTAL SF 249,517AVG UNIT SF 893SALE PRICE $122,000,000PRICE PER UNIT $489,960PRICE PSF $489CAP RATE 4.00%CAP CALC T-3

10

2011FLAIR TOWERDATE OF SALE Dec-11BUYER NAME GIDSELLER NAME McCaffery Interests JV CalPERSCITY ChicagoSUBMARKET River NorthYEAR BUILT 2010UNIT COUNT 198TOTAL SF 196,450AVG UNIT SF 947SALE PRICE $85,000,000PRICE PER UNIT $429,293PRICE PSF $433CAP RATE 4.69%CAP CALC T-3

11

2011

2

NEW EAST SIDE

STREETERVILLE

GOLDCOAST

RIVER NORTH

NEAR NORTH

LOOP

SOUTH LOOP

WEST LOOP

20072007

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20062006CHICAGO INSTITUTIONAL APARTMENT SALES SUMMARY2005-2009

As of 1/22/2013

STABILIZED 2011 OR 2012

CONDO REVERSION

STABILIZED 2010LAND

UNDER CONSTRUCTION

2013 START

KEY IN LEASE-UP

CHICAGO INSTITUTIONAL APARTMENT SALES SUMMARY 2005-2009

20062006

THE STREETERDATE OF SALE 7-AugBUYER NAME OHSTRSSELLER NAME Golub & Company JV AEW JV BlackRockCITY ChicagoSUBMARKET StreetervilleYEAR BUILT 2006UNIT COUNT 481TOTAL SF 454,699AVG UNIT SF 945SALE PRICE $210,000,000PRICE PER UNIT $436,590PRICE PSF $462CAP RATE 4.15%CAP CALC Actual

2

2007

ONE SUPERIOR PLACE DATE OF SALE 7-AugBUYER NAME Stellar ManagementSELLER NAME ArchstoneCITY ChicagoSUBMARKET River NorthYEAR BUILT 2000UNIT COUNT 809TOTAL SF 661,052AVG UNIT SF 748SALE PRICE $217,600,000PRICE PER UNIT $268,974PRICE PSF $329CAP RATE N/ACAP CALC N/A

3

2007

180 N. JEFFERSONDATE OF SALE 7-JunBUYER NAME Draper and KramerSELLER NAME BlackRock & CalSTRSCITY ChicagoSUBMARKET West LoopYEAR BUILT 2004UNIT COUNT 274TOTAL SF 217,099AVG UNIT SF 764SALE PRICE $75,300,000PRICE PER UNIT $274,818PRICE PSF $347CAP RATE 3.50%CAP CALC Actual

4

2007

PRESIDENTIAL TOWERSDATE OF SALE 7-MarBUYER NAME Waterton Associates JV CalSTRSSELLER NAME Pritzker ResidentialCITY ChicagoSUBMARKET West LoopYEAR BUILT 1983UNIT COUNT 2,346TOTAL SF 1,648,976AVG UNIT SF 656SALE PRICE $475,000,000PRICE PER UNIT $202,472PRICE PSF $288CAP RATE 4.10%CAP CALC Actual

5

2007

LEFT BANK AT K STATIONDATE OF SALE 7-JanBUYER NAME PrudentialSELLER NAME Fifi eld Realty Corp.CITY ChicagoSUBMARKET West LoopYEAR BUILT 2007UNIT COUNT 451TOTAL SF 343,764AVG UNIT SF 762SALE PRICE $115,000,000PRICE PER UNIT $254,989PRICE PSF $335CAP RATE Pre-SaleCAP CALC Pre-Sale

6

2007

GRAND PLAZA (EAST TOWER)DATE OF SALE 7-JanBUYER NAME Strategic RE AdvisorsSELLER NAME US Equities JV MagellanCITY ChicagoSUBMARKET River NorthYEAR BUILT 2003UNIT COUNT 481TOTAL SF 570,899AVG UNIT SF 979SALE PRICE $262,500,000PRICE PER UNIT $545,738PRICE PSF $460CAP RATE 4.00%CAP CALC Actual

7

2007

ONE EAST DELAWAREDATE OF SALE 6-DecBUYER NAME Waterton AssociatesSELLER NAME ArchstoneCITY ChicagoSUBMARKET Gold CoastYEAR BUILT 1989UNIT COUNT 306TOTAL SF 250,834AVG UNIT SF 689SALE PRICE $91,250,000PRICE PER UNIT $298,203PRICE PSF $364CAP RATE 4.40%CAP CALC Actual

8

2006

1212 SOUTH MICHIGANDATE OF SALE 6-OctBUYER NAME Urban Realty PartnersSELLER NAME BlackRockCITY ChicagoSUBMARKET South LoopYEAR BUILT 1981UNIT COUNT 344TOTAL SF 237,154AVG UNIT SF 689SALE PRICE $65,000,000PRICE PER UNIT $188,953PRICE PSF $274CAP RATE 4.75%CAP CALC Actual

9

2006

20052005

MCCLURG COURTDATE OF SALE 6-MayBUYER NAME Kennedy AssociatesSELLER NAME ArchstoneCITY ChicagoSUBMARKET StreetervilleYEAR BUILT 1972UNIT COUNT 1,058TOTAL SF 784,844AVG UNIT SF 742SALE PRICE $126,000,000PRICE PER UNIT $169,853PRICE PSF $161CAP RATE 6.00%CAP CALC Actual (GROUND LEASE)

11

2006

THE BERNARDINDATE OF SALE 5-DecBUYER NAME UBS RealtySELLER NAME RREEFCITY ChicagoSUBMARKET River NorthYEAR BUILT 2005UNIT COUNT 171TOTAL SF 200,050AVG UNIT SF 1,048SALE PRICE $89,425,000PRICE PER UNIT $522,953PRICE PSF $447CAP RATE 4.50%CAP CALC Actual

12

2005

ONTARIO PLACEDATE OF SALE 5-OctBUYER NAME American InvscoSELLER NAME General Investment & DevelopmentCITY ChicagoSUBMARKET River NorthYEAR BUILT 1984UNIT COUNT 468TOTAL SF 472,400AVG UNIT SF 800SALE PRICE $125,000,000PRICE PER UNIT $267,094PRICE PSF $265CAP RATE N/ACAP CALC N/A

3

2005

ONTERIE CENTERDATE OF SALE 5-SepBUYER NAME Metropolitan Proper- ties of AmericaSELLER NAME Clark Realty CapitalCITY ChicagoSUBMARKET StreetervilleYEAR BUILT 1986UNIT COUNT 583TOTAL SF 600,845AVG UNIT SF 715SALE PRICE $132,000,000PRICE PER UNIT $226,415PRICE PSF $220CAP RATE 5.25%CAP CALC Actual

14

2005

GRAND PLAZA (WEST TOWER)DATE OF SALE 5-AugBUYER NAME Terrapin PropertiesSELLER NAME US Equities JV MagellanCITY ChicagoSUBMARKET River NorthYEAR BUILT 2003UNIT COUNT 283TOTAL SF 277,057AVG UNIT SF 979SALE PRICE $91,000,000PRICE PER UNIT $321,555PRICE PSF $328CAP RATE 5.00%CAP CALC Actual

15

2005

PRINTERS SQUAREDATE OF SALE 5-JulBUYER NAME JDL EnterprisesSELLER NAME Waterton AssociatesCITY ChicagoSUBMARKET South LoopYEAR BUILT 1909UNIT COUNT 356TOTAL SF 299,823AVG UNIT SF 842SALE PRICE $44,600,000PRICE PER UNIT $125,281PRICE PSF $149CAP RATE 4.10%CAP CALC Actual

16

2005

400 NORTH LASALLEDATE OF SALE 5-AprBUYER NAME Draper and Kramer JV JP MorganSELLER NAME Habitat JV VornadoCITY ChicagoSUBMARKET River NorthYEAR BUILT 2003UNIT COUNT 452TOTAL SF 381,182AVG UNIT SF 837SALE PRICE $126,000,000PRICE PER UNIT $278,761PRICE PSF $331CAP RATE 4.40%CAP CALC Actual

17

2005

PARK MILLENNIUMDATE OF SALE 5-JanBUYER NAME MCZ Dev. JV Centrum- PropertiesSELLER NAME ArchstoneCITY ChicagoSUBMARKET New East SideYEAR BUILT 2002UNIT COUNT 480TOTAL SF 462,360AVG UNIT SF 963SALE PRICE $130,000,000PRICE PER UNIT $270,833PRICE PSF $281CAP RATE 4.80%CAP CALC Actual

18

2005

4

10

15

CITYFRONT PLACEDATE OF SALE Dec-09BUYER NAME Crescent HeightsSELLER NAME Northwestern MutualCITY ChicagoSUBMARKET StreetervilleYEAR BUILT 1991UNIT COUNT 480TOTAL SF 376,672AVG UNIT SF 769SALE PRICE $82,750,000PRICE PER UNIT $172,396PRICE PSF $220CAP RATE 5.80%CAP CALC July-09 Annualized

1

2009

20092009

1

RIVER NORTH PARKDATE OF SALE 6-MayBUYER NAME Waterton AssociatesSELLER NAME ArchstoneCITY ChicagoSUBMARKET River NorthYEAR BUILT 1987UNIT COUNT 399TOTAL SF 306,604AVG UNIT SF 694SALE PRICE $60,050,000PRICE PER UNIT $150,501PRICE PSF $196CAP RATE 5.75%CAP CALC Actual

10

2006

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