EXECUTIVE SUMMARY CHICAGO O HARE SUITES HOTEL. Highly visible, transit orientated. hotel located in Chicago, IL

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1 Highly visible, transit orientated CHICAGO O HARE SUITES HOTEL hotel located in Chicago, IL Jeff Bucaro, a licensed real estate broker in the state of Illinois, along with Holliday Fenoglio Fowler, L.P. ( HFF ). IL Lic. # EXECUTIVE SUMMARY

2 THE OFFERING Holliday Fenoglio Fowler, L.P. ( HFF ) is pleased to present Renaissance Chicago O Hare Suites Hotel (the Hotel or Renaissance O Hare ), which offers investors the opportunity to acquire a recently renovated, management unencumbered hotel within the coveted O Hare submarket of Chicago. Renaissance O Hare is an all-suite 15-story, hotel tower containing 362 keys with 9,400 square feet of meeting space and ballroom areas plus ample parking. The Hotel occupies a strategic location that places it within the midst of 2.37 million square feet of class A office space with immediate proximity to Rosemont s amenities. With frontage along I-90, the Hotel benefits from superb presence and visibility along the interstate. Renaissance O Hare has immediate access to O Hare International Airport, the Rosemont and Cumberland CTA Blue Line stops, and two of Chicago s most integral expressways I-90 and the aforementioned I-294. The transportation lines serve as a link to downtown, which provides the O Hare submarket with a huge competitive advantage, allowing employers to tap into the highly educated workforce residing within the Chicago CBD and surrounding neighborhoods. KEY PROPERTY STATISTICS HOTEL NAME Renaissance Chicago O'Hare Suites Hotel ADDRESS 8500 W Bryn Mawr Ave, Chicago, IL GUESTROOMS FUNCTION SPACE 362 keys 14 meeting rooms, 9,400 sq ft of total meeting space GROUND LEASE Expiration Date: March 31, 2098 PARKING* FOOD & BEVERAGE AMENITIES 698 parking deck spaces and 15 surface parking spaces (for authorized vehicles only) plus 16 ADA designated parking spaces Breakfast (for a fee - Buffet, Continental, Full American, Grab-n-Go, Hot) Urban Grill R Bar Starbucks The Market Airport Shuttle Fitness Center Swimming Pool Spa Meeting Event Space YEAR BUILD / LAST RENOVATED 2005 / 2016 MANAGEMENT BRAND Unencumbered Marriott Renaissance * Hotel has exclusive access to 170 parking spaces in the connected parking garage, designated with signage. The Hotel has evening and weekend access to an additional 528 spaces. 2

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4 KEY INVESTMENT HIGHLIGHTS Recently Renovated, Stylish All Suites Highly Desirable Office Submarket Unencumbered by Upscale Hotel Hotel and Dominant Employment Center Management O'HARE CLASS A GROSS MARKET RENTS $30.75 $31.32 $31.90 Prior to the reveal in the summer of 2016, Renaissance O Hare provides guests The O Hare office submarket boasts The Renaissance O Hare consists of 362 total the Hotel underwent a substantial $7.3 with 362 newly renovated guestrooms the highest Class-A rents and lowest keys without management encumbrance. The million dollar overhaul of its guestrooms, with three different layouts to choose vacancy in suburban Chicago as a result Hotel will allow investors to align with preferred lobby, common areas, and restaurant space. from: Renaissance Suite, Club Level, and of superior access, high barriers to entry, regional and national management companies This significantly transformed the Hotel s 1 Bedroom 2 room suite. All rooms are and comprehensive amenities. and with their operating targets. ambiance from a dated, casual atmosphere suites with large room sizes averaging to a contemporary and fresh one. approximately 440 SF that are well suited for the corporate and leisure market. 4

5 Unrivaled Connectivity Drawing Strong Corporate Demand Thriving, Urban, Mixed-Use Environment Sophisticated and Savvy Brand Geographically situated at the center of Metropolitan Chicago, at the junction of two of the region s most vital driving arteries (I-90 and I-294), the Hotel is located within a 5 minute drive from the CTA, the Metra and O Hare International Airport, the country s second busiest airport. Rosemont is a walkable, vibrant, mixed-use environment attracting nearly 100,000 daily visitors. The Hotel is within a five minute drive of over 45 restaurants, 22 hotels and a multitude of entertainment and retail spaces. Renaissance Hotels is a global, full-service, niche brand featuring contemporary styling with touches of luxury and creativity across all 160 hotels in over 35 countries. While benefitting from Marriott s unparalleled demand engines and vast international customer base, each Renaissance hotel offers its own intriguing personality, unique local flavor and distinctive style. 5

6 UNIT MIX TYPE SIZE COUNT ROOM FEATURES Renaissance Suite 685 SF 13 Living/sitting area Dining area Living room is separated Living area is separated from bed by privacy wall Conference room Club Level SF 54 Living/sitting area Dining area Living area is separated from bed by privacy wall 1 Bedroom, 2 Room Suite SF 295 TOTAL 362 Air-conditioned Connecting rooms are not available Living/sitting area Dining area Living room is separated Living area is separated from bed by privacy wall *Of the 362 guestrooms, 18 guestrooms are designated as accessible rooms. RECENTLY RENOVATED, UPSCALE HOTEL In June 2016, the Hotel unveiled its $7.3 million comprehensive renovation. This overhaul included a refurbishment of all 362 suites as well as the lobby, common areas, and restaurant spaces. This substantially transformed the Hotel s ambiance from average, casual to elevated and sophisticated. Over $3.3 million was invested into brand new fixtures, furniture, and equipment for the public spaces and guestrooms, with most of that being focused on rooms upgrades. Additional investments included improved bedding linen packages, replacement rugs, and exterior signage. An additional $150,000 provided the upgrades of the Starbucks and its FF&E package. Since opening, the Hotel has been institutionally maintained translating into minimal annual capital expenditures for the various Hotel components. Due to the renovation in 2015/2016, there were minimal other capital expenditures required since totaling to approximately $400,000. ALL SUITES HOTEL Renaissance O Hare provides guests with 362 newly renovated guestrooms with three different layouts to choose from: Renaissance Suite, Club Level, and 1 Bedroom 2 room suite. All rooms are suites with large room sizes averaging approximately 440 SF that are well suited for the corporate and leisure market. 6

7 SOPHISTICATED AND SAVVY BRAND SUPPORTED BY MARRIOTT S UNRIVALED RESERVATION SYSTEM AND BRAND NETWORK Renaissance Hotel s diverse portfolio includes historic icons, modern boutiques, exotic resorts, and convention hotels. The Hotel epitomizes the individuality of this brand. Furthermore, this brand precisely targets the growing millennial population about to hit its spending peak, who seek hotels with a chic, life-style-oriented environment that, not only allows them to socialize and work in the lobby and other public areas, but also provides a unique and authentic local experience that they can boast about via social media. CHICAGO O HARE SUITES HOTEL In September 2016, Marriott International announced the completion of its acquisition of Starwood Hotels & Resorts Worldwide, effectively creating the largest reservation system worldwide. The new company operates or franchises more than 5,700 properties and 1.1 million rooms, representing 30 leading brands from the moderatetier to luxury in over 110 countries. With this acquisition, Marriott now has the most powerful frequent traveler programs in the lodging industry. With 100 million members, Marriott Rewards, The Ritz- Carlton Rewards and Starwood Preferred Guest (SPG ) provide members with unprecedented choice, value, and experiences. The programs benefit from SPG s expertise with affluent consumers in the lifestyle segment and Marriott s long-standing relationship with frequent business travelers across a broad brand portfolio. UNENCUMBERED BY MANAGEMENT Management Flexibility The Renaissance O Hare consists of 362 total keys without management encumbrance. The Hotel will allow investors to align with preferred regional and national management companies and with their operating targets. 7

8 UNRIVALED CONNECTIVITY DRAWING STRONG CORPORATE DEMAND Benefiting from the combination of a prime central location and immediate proximity to robust transportation infrastructure, Renaissance O Hare enjoys unparalleled connectivity. Geographically situated at the center of Metropolitan Chicago, Rosemont serves as hub to the major suburban communities of Chicago and as a gateway to the City of Chicago. The Hotel is situated at the junction of two of Metropolitan Chicago s most vital arteries, I-90 and I-294, providing convenient direct access to the region s robust network of roadways. Rosemont falls within an exceptionally rare subset of Metropolitan Chicago communities equitably serviced by the CTA and Metra, providing employers with unparalleled access to deep labor pools throughout the region. The CTA Rosemont and Cumberland Blue Line Stops, located less than a 5-minute drive from the Hotel, are two of the most utilized in the entire CTA rail network with 2015 average daily ridership of approximately 6,000 and 4,100 respectively. The Blue Line provides convenient direct service to O Hare International Airport, the Chicago CBD, and the popular western neighborhoods of Chicago. Popular urban neighborhoods including Bucktown, Wicker Park, and the West Loop are located a short commute from Rosemont via the Blue Line. 2 min ROSEMONT Additionally, the Rosemont Metra Station, serviced by the Metra North Central Service Line, provides CUMBERLAND direct linkage to the highly desired executive housing stock contained within Chicago s northwest suburban communities. Prominent northwest suburban communities such as Libertyville are located just 40 minutes from Rosemont via Metra. BLUE LINE LOGAN SQUARE (Logan Square) WESTERN (Bucktown) 20 min 24 min DAMEN (Wicker Park) 26 min 31 O Hare International Airport, rated by MIT s Airport Connectivity Quality Index as the Best Connected Airport in the U.S, is located just minutes northwest of the Hotel via North River Road and I-190. O Hare facilitates direct flights to virtually every major city in the United States and the world, further enhancing the Hotel s international, national, regional, and local accessibility. GRAND (West Loop/RiverNorth) min Clark/Lake (Chicago CBD) 33 min 8

9 W T O U H Y AV E CHICAGO O HARE SUITES HOTEL 294 INTERSTATE 294 S R I V E R R D Approximate Average Daily Traffic Counts 176,000+ W TA L C O T T R D W H I G G I N S R D 294 E D E VO N AV E O HARE O HARE INTERNATIONAL AIRPORT M A N N H E I M R D O HARE INTERNATIONAL AIRPORT 875,136 annual flights logged; 2nd busiest airport in the country. INTERSTATE 190 Approximate Average Daily Traffic Counts 70,000+ ROSEMONT M A N N H E I M R D 294 T R I - S TAT E T O L LW AY W H I G G I N S R D ROSEMONT CTA BLUE LINE STATION Approximately 6,000 Weekday Boardings ROSEMONT N R I V E R R D N R I V E R R D ROSEMONT CTA PARKING D E S P L A I N E S R I V E R ROSEMONT METRA STATION NORTH CENTRAL SERVICE LINE Approximately 5,800 Average Weekday Riders V E R S D E E R D INTERSTATE 90 Approximate Average Daily Traffic Countss 120,000+ W L AW R E N C E AV E N EAST RIVER RD W H I G G I N S R D 90 W F O S T E R AV E S CUMBERLAND AVE N CUMBERLAND AVE N CUMBERLAND AVE CUMBERLAND CTA BLUE LINE STATION Approximately 4,100 Weekday Boardings CUMBERLAND 72 K E N N E DY E X P R E S S W AY 9

10 THRIVING, URBAN MIXED-USE ENVIRONMENT Rosemont possesses an unrivaled sense of urbanization and connectivity. Spurred by the $16 million construction of a new I-294 offramp at Balmoral Avenue in 2011, Rosemont has become the epicenter of office, dining, shopping, and entertainment activity within the O Hare area and surrounding communities. With a total land area of only approximately two (2) square miles, Rosemont is exceptionally walkable, providing easy access to the area s plentiful amenities. With estimated visitors reaching 75,000 to 100,000 daily, Rosemont generates healthy demand for the hoteling industry, fueled by the top demand drivers at right. // PARKWAY BANK PARK ENTERTAINMENT DISTRICT Opened in 2012, the $85 million 200,000 SF park is a thriving community of 12 venues offering a diverse range of dining options, live music, comedy, state-of-the-art film and bowling situated around a 30,000 square foot central garden, which offers various outdoor seasonal activities as well. On January 1, 2018, Parkway Bank officially took over naming rights of Rosemont s entertainment district, formerly MB Financial Park. // FASHION OUTLETS OF CHICAGO Opened in 2013, the $250 million 530,000 SF Fashion Outlets of Chicago is a two-level upscale outlet mall featuring over 150 retailers and 18 restaurants the likes of Bloomingdale s The Outlet Store, Last Call by Neiman Marcus and Saks Fifth Avenue OFF 5th. The mall is the Midwest s only two-level indoor shopping experience offering over 150 outlets. // THE DONALD E. STEPHENS CONVENTION CENTER The 840,000 SF convention center enter offers adaptable exhibition space as well as a ballroom capable of hosting up to 4,000 guests. NOTABLE EVENTS HELD ANNUALLY INCLUDE: The Chicago RV and Boat Show The International Gem and Jewelry Show Anime Central // THE PEARL DISTRICT Anime Midwest Wizard World Chicago Islamic Society of North America Convention Rosemont plans to open a new mixed-use complex, The Pearl District, in Located at the intersection of Balmoral Avenue and Pearl Street, The Pearl District will feature two restaurants, Dave & Buster s, and The Rose hotel. The Pearl District s plaza, located adjacent to its restaurants, will host seasonal programming throughout the year. // THE ROSEMONT THEATRE The theater is a two-tiered modern performing arts center capable of comfortably accommodating an audience of 4,400. The venue hosts many different musical artists and shows. // THE ROSEMONT DOME & BALLPARK The Rosemont Dome and Ballpark is a 2,000 seat softball/baseball stadium built to comply with NCAA standards and an adjacent 140,000 square foot indoor sports venue. The stadium is the new home of the Chicago Bandits professional women s softball team, and the dome hosts tournaments, leagues, and individual games for youth baseball & softball as well as adult softball teams. // RIVERS CASINO The 147,000 square foot, $445 million project opened in 2011, the 140,000 square foot casino includes over 1,000 slot machines and over 60 table games. The facility also includes seven different dining options. // IMPACT FIELD The brand new, world-class stadium will be the home of the newest expansion team of the American Association of Independent Professional Baseball and a multitude of premier sports and entertainment events. Scheduled to open in 2018, the ballpark will seat 6,300 people. It will feature a double-sided digital scoreboard, which will be visible to more than 70 million cars that travel on Interstate 294 each year. 10

11 CHICAGO O HARE SUITES HOTEL Cumberland Station and Lawson Products Cook County Forest Preserve Rosemont Station Cook County Forest Preserve huttle CTA S e Servic To O Hare Benchmark Gastropub O Hare New 16-Acre Development Minor League Baseball Stadium The Pearl Mixed-Use Complex 0.25 Miles Hi gg ins Ro 0.25 Miles ad Hig Riv er d a Ro gin Municipal Building Devo n Ro sr ad oad On-ramp to I-90 11

12 O HARE SUBMARKET STRENGTH The O Hare submarket continues to attract top corporate users due to its convenient access to highways, public transportation, and proximity to O Hare International Airport. Unlike other suburban Chicago submarkets, O Hare has significant barriers to entry due to the limited supply of land and height restrictions for new office development. This combined with its comprehensive amenities results in the highest Class-A rents and lowest vacancy in suburban Chicago. Furthermore, strong O Hare fundamentals in 2017 resulted in positive absorption of 123,026 square feet. CLASS A SUBURBAN GROSS OFFICE RENTS $28.86 $27.82 $28.00 $28.22 $24.33 $24.74 $25.21 $31.31 $30.23 $30.75 $31.32 $31.90 $29.27 $29.47 $30.13 NORTHWEST LISLE/NAPERVILLE OAK BROOK NORTH O'HARE CLASS A SUBURBAN CHICAGO OFFICE VACANCY RATE % 24.00% 22.00% 20.00% 18.00% 16.00% 14.00% 12.00% 10.00% Northwest Lisle/Naperville Oak Brook North O Hare 12 Source: Colliers Chicago Suburban Market Report Q

13 W TOUHY AVE 90 POINTE O'HARE RSF 270,512 Occupancy 85% Current Asking Gross Rent $38.00 Year Built/Renovated 2001 ONE O HARE CENTER RSF 380,360 Occupancy 87% Current Asking Gross Rent $37.00 Year Built/Renovated 1986 S RIVER RD RIVERWAY RSF 858,711 Occupancy 95% Current Asking Gross Rent $40.00 Year Built/Renovated 1989 US CELLULAR PLAZA RSF 424,833 Occupancy 92% Current Asking Gross Rent $32.00 Year Built/Renovated 1981/1993 W TALCOTT RD E DEVON AVE O HARE INTERNATIONAL AIRPORT 190 MANNHEIM RD MANNHEIM RD TRI-STATE TOLLWAY W HIGGINS RD N RIVER RD COLUMBIA CENTRE RSF ,775 Occupancy 92% Current Asking Gross Rent $33.00 Year Built/Renovated 1986/2008 N RIVER RD DES PLAINES RIVER NES RIVER S DEE RD 294 TRIANGLE PLAZA RSF 631,445 Occupancy 91% Current Asking Gross Rent $34.00 Year Built/Renovated 1985/2006 W LAWRENCE AVE N EAST RIVER RD W HIGGINS RD W FOSTER AVE S CUMBERLAND AVE N CUMBERLAND AVE N CUMBERLAND AVE PRESIDENTS PLAZA RSF 840,346 Occupancy 95% Current Asking Gross Rent $34.00 Year Built/Renovated 1980/ KENNEDY EXPRESSWAY 13

14 COMPELLING SUBURBAN INVESTMENT ACTIVITY Suburban investment growth has far outpaced growth in the Chicago CBD. In the last two years, over 70% of investments and jobs created have been attributed to the suburbs as opposed to the Chicago CBD. This defeats the common myth that central business districts outpace suburban environments in terms of investment potential. As laid out in the graphics below, companies are investing over $2.2 billion in the Chicago suburbs, which foreshadows the rebound this market is poised to experience. Chicago Central Business District versus Suburban Investments Notable O Hare Investment Activity Komatsu relocating North American HQ to Triangle Plaza due to quality of the space paired with the location s unparalleled connectivity to Blue Line, O Hare, and arterial highways Angelo Gordon acquiring Presidents Plaza for $148M signaling institutional interest in the submarket W Diamond Group, an apparel company, expanding facilities, thereby investing $12 million Sysco Chicago Food Services planning to renovate current facility for $5 million The Cary Company expanding sales distribution facility with a $5 million investment # OF INVESTMENTS $ OF INVESTMENTS (MILLION) # OF JOBS CREATED 14 Source: 2017 Conway Site Selection Investment Report, BLS

15 EVANGELICAL LUTHERAN CHURCH IN AMERICA and Lawson Products ASSOCIATION MANAGEMENT CENTER CHICAGO O HARE SUITES HOTEL CHICAGO MEPS EARLY WARNINGS SERVICES PLAZA RESEARCH eclinicalworks WILLAMETTE MANAGEMENT ASSOCIATES COVERIS ADVOCATE MEDICAL GROUP CHICAGO O HARE SUITES HOTEL 15

16 Contact Information Investment Contacts Financing Contacts 150 North Riverside Plaza Tony Malk Ryan Lindgren Jeff Bucaro Suite 2500 Managing Director Director Senior Director Chicago, IL Telephone: Fax: CA Lic. # IL Lic. # Nicole Aguiar Associate naguiar@hfflp.com 2018 Holliday Fenoglio Fowler, L.P. ( HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 26 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.