Holliday Fenoglio Fowler, L.P. (“HFF”) is an Illinois licensed real estate broker

94

200 BUILDING

300 BUILDING

100 BUILDING

CDW CENTER(25 & 75 BUILDINGS)

PARKING DECK

Tri-State Tollway

Half-Day Road22

157,000+Vehicles Per Day

30,000+Vehicles Per Day

Holliday Fenoglio Fowler, L.P. (“HFF”) is pleased to present the unique oppor-

tunity to acquire the fee simple interest in Tri-State International Office Center (the “Portfolio”,

“Property” or “Tri-State”), a 559,204 RSF, fully amenitized, five (5) building office portfolio

located in Lincolnshire, IL. The Portfolio is 79.3% leased and derives income stability from its

anchor tenant, CDW, a Fortune 500 Company (#220) who recently relocated their headquar-

ters to the Property, fully occupying two buildings. CDW Center (209,021 RSF or 37.4% of the

Portfolio) is fully leased until November 2028 and has a parking ratio of 6.0 / 1,000 RSF due

to the recently completed parking deck. The remaining 100, 200 & 300 Buildings (350,183

RSF or 62.6% of the Portfolio) currently has 115,652 RSF of vacancy or 20.7% of the Portfolio,

offering a significant value-add component. The Portfolio features a balanced tenant roster

with 7.8 years of remaining lease term, and benefits from fantastic visibility and access from

the adjacent Tri-State Tollway. Further, the Property is proximate to the affluent North Shore

communities, which are home to the Chicago area’s executives and decision makers.

INVESTORS ARE

WELCOME TO BID

ON THE PORTFOLIO

OR CDW CENTER

SEPARATE FROM

THE 100, 200 &

300 BUILDINGS

2

3

E X E C U T I V E S U M M A R Y

S t a b l e C a s h F l o w w i t h Va l u e - A d d Up s i d e

The combination of the five assets presents a unique opportunity to acquire

the long-term stable cash flow provided by CDW at CDW Center (the 25 & 75

Buildings) and further enhance returns through the stabilization of the 100,

200 & 300 Buildings of the complex.

The 100, 200 & 300 Buildings sit southwest of CDW Center and are connected

by ground-level enclosed walkways. These buildings represent a value-add

opportunity through the lease up of the 115,652 RSF or 33.0% of current

vacancy, which will enhance immediate cash flow and drive residual value.

Tri-State International, constructed between 1984 and 1989, sits on 37.4 acres at the four-way interchange of the Tri-State Tollway (I-94)

and Half Day Road (Route 22), complemented by beautiful landscaping. The Portfolio is a newly upgraded, fully amenitized offering with

a conference center, 135-seat auditorium, and amenity center in the 200 Building, and a fitness center and deli (currently undergoing ren-

ovations) in the 300 Building. A recently completed 4-story parking structure was constructed for CDW’s employees and is immediately

northeast of CDW Center, which contributes to the Property’s above average 4.3 / 1,000 RSF parking ratio.

Inclusive of the parking deck construction, current ownership has invested over $15.1 million since 2013 to upgrade the amenities and to

implement other substantial improvements to the building systems, parking lot, building lobbies and multi-tenant corridors & restrooms.

Due to this recent capital infusion, a future investor is able to immediately capture new tenants seeking accessibility, visibility and Class A

Amenities all while providing an economical alternative to competing buildings on Route 60 (Townline Road) or Lake Cook Road.

KEY PORTFOLIO STATISTICS

Building Address: 25-300 Tri-State International

Rentable Area: 559,204 RSF

Land Site: 37.4 Acres

% Leased: 79.3%

Stories: 3, 4 or 5

Typical Floor Plate: 19,900 - 39,000 RSF

Year Built / Renovated: 1984-1989 / 2013-Present

Parking Spaces: 2,394

Parking Ratio: 4.3 / 1,000 RSF

SUMMARY OF PRIMARY TENANTS

SUMMARY OF PRIMARY TENANTS BUILDING LEASED RSF % SHARE (1)CURRENT RENT/RSF EXPIRES

REMAINING TERM

CDW 25 & 75 209,021 37.4% $16.25 Nov-28 11.3 yrs

LTD Commodities 200 & 300 61,633 11.0% $12.50 Aug-22 5.1 yrs

Solo Cup 300 22,715 4.1% $13.75 Sep-21 4.1 yrs

Wells Fargo Bank, NA 300 22,371 4.0% $13.50 Jun-20 2.8 yrs

NEC Enterprise Communication Technologies (2) 300 19,111 3.4% $19.00 Dec-28 11.4 yrs

Opus Capital Markets (3) 100 18,789 3.4% $19.50 Sep-19 2.2 yrs

Melinta Therapeutics 300 17,031 3.0% $13.79 Jun-22 4.8 yrs

Total / Weighted Average Lease Term 370,671 66.3% 8.6 yrs

(1)(2)(3)

Proportionate Share is based on Portfolio total of 559,204 RSFNEC Enterprise’s contractual LXD is 6/14/19; an amendment is out for signature, which analysis assumes is executed. The amendment includes Tenant downsizing by 8,042 RSF effective 6/19.Opus pays Gross Rent

4

CDW CENTER Investment Profile: Single Tenant Triple Net Lease

Land Site: 14.8 acres (645,607 SF)

Remaining Term: 11.3 years (11/28 LXD)

Stories: 4

Completed / Renovated: 1989 / 2015-16

Typical Floor Plate: 27,450 RSF

Parking Ratio: 6.0 / 1,000 RSF

Guarantor: CDW Corporation

Rent / RSF: $16.25 with $0.50 annual escalations

Renewal Options: Two (2) five (5) year Options at Market

CDW Center – Single Tenant Net Lease Opportunity

CDW Center (209,021 RSF) comprises the 25 & 75 Buildings and represents

a true single-tenant net lease investment opportunity with an astounding

remaining term of 11.3 years with no termination option. CDW, a Fortune 500

Company (#220), is a leading multi-brand technology solutions provider to

business, government, education and healthcare organizations in the United

States, Canada and the United Kingdom, which recently relocated their head-

quarters to the Property in 2015. CDW leases 100% of CDW Center through

November 2028, and is responsible for all operating expenses and taxes for

the building, and the adjacent 4-story, 932-space parking structure – which

was constructed exclusively for the Tenant.

Further evidence of CDW’s long term commitment to the site is the $30/RSF

spent by the tenant above their $62.50/RSF Tenant Improvement allowance.

S u b P o r t f o l i o S u m m a r y

Due to the flexibility and uniqueness of the assets within the Portfolio, investors are

welcome to bid on the Portfolio in its entirety, or submit an offer on CDW Center

(209,021 RSF) separate from the 100, 200 & 300 Buildings (350,183 RSF). The fol-

lowing summaries and charts outline the potential sub-portfolios based on their

return profile.

“ Th e L i n c o l n s h i r e l o c a t i o n m a r k s a n e w c h a p t e r i n t h e C DW s u c c e s s s t o r y . Th i s b e a u t i f u l f a c i l i t y w i l l p o s i t i o n u s f o r e v e n m o r e g r o w t h a n d e n a b l e o u r t e a m s t o m o r e e f f e c t i v e l y c o l l a b o r a t e a n d i n n o v a t e f o r o u r p a r t n e r s a n d c u s t o m e r s .”

– Tom Richards, CDW Chairman and CEO

Source: http://www.cdwnewsroom.com/cdw-opens-new-execu-tive-office-inlincolnshire/#AdH3kFQt0Ww6tVx4.99

5

E X E C U T I V E S U M M A R Y

TRI-STATE INTERNATIONAL – 100, 200 & 300 BUILDINGSInvestment Profile: Value Add Opportunity

Land Site: 22.6 acres (984,682 SF)

Building Address: 100 Tri-State 200 Tri-State 300-Tri-State

Rentable Area: 110,097 RSF 89,404 RSF 150,682 RSF

Total Rentable Area: 350,183 RSF

% Leased: 52.9% 45.5% 90.0%

Overall % Leased: 67.0%

Remaining Term: 4.3 years

Stories: 3 5 4

Completed: 1984 1986 1986

Renovated: 2015-16

Typical Floor Plate: 38,900 RSF 19,000 RSF 38,000 RSF

Parking: 1,140 spaces

100, 200 & 300 Buildings – Value Add Investment

The 100, 200 & 300 Buildings of Tri-State represent 350,183 RSF through a collection of three interconnected buildings and are 67.0%

occupied. The 100, 200 & 300 Buildings provide 115,652 RSF of vacancy allowing an investor to take full advantage of the current leas-

ing momentum in the North Suburban submarket. The North Suburban submarket currently boasts a direct Class A vacancy rate of

12.8%, down from 15.5% in 2010, representing overall net absorption of approximately 810,000 RSF. This represents the phenomenal

opportunity for an investor to implement an aggressive leasing program in order to capitalize on the surrounding corporate environment

and the North Suburban submarket’s fundamentals. An investor can also complete a number of capital projects, such as upgrading the

remaining restrooms and corridors in the 300 Building, replacing the roofs and upgrading the elevators.

In addition to this upside opportunity, the existing major tenants at the 100, 200 & 300 Buildings provide income stability. The six largest

tenants at the 100, 200 & 300 Buildings occupy 43.9% of the Property, and on an average weighted basis, have been at the Property for

more than 11 years. This includes LTD Commodities which has leased space at Tri-State International since 1998, and Wells Fargo whose

lease commenced in 2002. This speaks to their combined commitment to the Property which further provides stability of cash flow.

6

N o r t h S h o r e L o c a t i o n w i t h S u p e r i o r A c c e s s i b i l i t y

Tri-State International benefits from its excellent positioning at the four-way interchange of the Tri-State Tollway and Half

Day Road (Route 22), near the prestigious North Shore. The North Shore is recognized for some of the Chicago area’s

most affluent and well-educated communities, where many executives and decision-makers are just a few miles away.

Within a one mile radius of the Property, over 75.8% of the population possesses a bachelor’s degree or higher level of

education, and the average household income is $236,722. These are astounding numbers compared to Lake County

as only 43.1% have earned a bachelor’s degree or higher and the average household income is $120,529. With many

executives and professionals calling the area home, the immediate area boasts a median housing value of $661,750,

which demonstrates the desirability of the region. Tri-State International Portfolio is well-positioned to tap the diverse

and skilled labor pool clustered in the Greater North Shore area.

The Property’s adjacency to the Tri-State Tollway provides tre-

mendous signage opportunities, along with superior accessibility

to the surrounding area. The Property is only 17 miles from O’Hare

International Airport which services over 87 million passengers

with non-stop flights to over 200 destinations. Two other regional

airports, the Chicago Executive Airport and Waukegan National

Airport are respectively 8 and 19 miles from the Property and serve

as an amenity to corporations and their executives. In fact, the

Waukegan National Airport has reached prominence as a base

of operations for “Chicagoland’s Fortune 500 Flyers.”

Fu l l y A m e n i t i z e d P r o p e r t y

Tri-State International Office Center offers tenants an unparalleled suite of on-site amenities, most

of which have been recently upgraded. These distinctive and highly desirable amenities help

to position the Property as a best-of-the-best asset in the market. On-site amenities include a

recently expanded fitness center with locker rooms (4,218 RSF), deli (3,143 RSF), 135-seat audito-

rium (3,580 RSF), conference room (916

RSF), and amenities center (835 RSF).

The deli is currently undergoing renova-

tion with a targeted completion date in

April 2017, with budgeted costs of up to

$400,000. To the right is a summary of

the capital costs associated with upgrad-

ing Tri-State International’s amenities.

Hi g h l y A t t r a c t i v e a n d E c o n o m i c A l t e r n a t i v e s

Current asking rates at Tri-State International Office Center offer a significant discount to Class

A alternatives in the area, while still providing physical characteristics and amenities consistent

with these higher cost buildings. Tri-State International sits on Half Day Road (Route 22) which

is halfway between Lake Cook Road in Deerfield, and Townline Road (Route 60) in Lake Forest,

when traveling along the Tri-State Tollway. However, the Class A net asking rents for office

buildings along these two corridors range from $16.50 to $22.00 per RSF, compared to Tri-

State International’s net asking rates of $13.50 per RSF. This is a 29% discount to the average

rental rate across these properties, which totals approximately 2.1 million square feet. As this

market leading competitive set of assets continues to tighten and asking rents continue to rise,

a number of value-focused office tenants will consider fully amenitized alternatives such as Tri-

State International Office Center.

TRI-STATE INTERNATIONAL – SKILLED LABOR POOL1-MILE

RADIUS3-MILE

RADIUS5-MILE

RADIUS LINCOLNSHIRELAKE

COUNTY ILLINOIS

% Attaining Bachelor's Degree or Higher 75.8% 71.7% 61.4% 68.2% 43.1% 32.2%

Average Household Income $236,722 $206,130 $157,001 $177,351 $120,529 $84,285

Median Housing Value $661,750 $636,174 $464,824 $530,609 $276,478 $193,011

AMENITY UPGRADE COSTSFitness Center $88,082

Locker Room $34,513

Auditorium Upgrades $157,685

Deli (Budgeted) $400,000

Total $680,281

(1) Deli's cost estimated per budget

7

E X E C U T I V E S U M M A R Y

HISTORIC SUBURBAN V. CBD CUMULATIVE ABSORPTION

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2010 2011 2012 2013 2014 2015 2016

Cumulative CBD Absorption (RSF)

Cumulative Suburban Absorption (RSF)Suburban Resurgence: 2.4 million RSF of net absorption in the

suburbs since 2014, versus 1.6 million RSF of net aborption in the CBD

Cum

ulat

ive

Abs

orpt

ion

(RSF

)

Absorption (%

)

S t r e n g t h o f t h e S u b u r b s

Recent media reports have portrayed a central business district in Chicago that significantly

out-paces suburban markets in both real estate fundamentals and investment potential.

Contrary to such reports, suburban fundamentals continue to improve and often outper-

form the CBD in key indicators including cumulative absorption, which has outpaced CBD

absorption by over 2.3 million RSF since 2010. The continued strength of economic growth

in the Chicago suburban markets provides well informed investors the opportunity to enter

a rising market at a highly competitive basis.

Suburban corporate and infrastructure investment

growth has also outpaced investment growth in the Chi-

cago 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. Companies are invest-

ing over $2.2 billion in the Chicago suburbs, of which

over $307M is being invested within the North Suburban

Submarket with major recipients including Lincolnshire

and neighboring Bannockburn, Northfield and Gurnee.

Such robust investment likely foreshadows institutional

investors return to suburban markets.

# of Investments $ of Investments (million) # of Jobs Created

99

244

$707

$2,220

3,962

9,487S U B URBS

CBD

S U B URBS

CBD

S U B URBS

CBD

Source: Conway New Plant & Expansion 2016 Report

90

294

94

94

94

41

41

2222

83

53

21

60

6868

137

21

To Downtown Chicago

SKOKIE

EVANSTON

WILMETTE

WINNETKA

HIGHLANDPARK

LAKE FOREST

DEERFIELD

NORTHBROOK

GLENVIEW

NILES

WHEELING

LINCOLNSHIRE

8

FORTUNE 500 HEADQUARTERS IN CHICAGO MSACHICAGO RANKING COMPANY

FORTUNE 500 RANKING INDUSTRY

2015 REVENUES(IN MILLIONS) LOCATION

■ 1 Walgreens Boots Alliance 19 Food and Drug Stores $103,444 Deerfield,IL2 Boeing 24 Aerospace & Defense $96,114 Chicago, IL3 Archer Daniels Midland 41 Food Production $67,702 Chicago, IL4 United Continental 80 Airlines $37,864 Chicago, IL

■ 5 Allstate 81 Insurance $35,653 Northbrook, IL■ 6 Mondelez International 94 Food Consumer Products $29,636 Deerfield, IL

7 Exelon 95 Utilities: Gas and Electric $29,447 Chicago, IL8 McDonald's* 109 Food Services $25,413 Oak Brook, IL9 Sears 111 General Merchandisers $25,146 Hoffman Estates,IL10 US Foods Holding 122 Wholesalers: Food & Grocery $23,128 Rosemont, IL

■ 11 AbbVie 123 Pharmaceuticals $22,859 North Chicago, IL■ 12 Abbott Laboratories 138 Medical Products & Equip. $20,661 Abbott Park, IL■ 13 Illinois Tool Works 211 Industry Machinery $13,405 Glenview, IL■ 14 CDW 220 Information Tech. Services $12,989 Lincolnshire, IL

15 R.R. Donnelley & Sons 255 Publishing, Printing $11,257 Chicago, IL16 Navistar International 281 Motor Vehicles and Parts $10,140 Lisle,IL

■ 17 Discover Financial Services 283 Commercial Banking $10,002 Riverwoods, IL■ 18 W.W. Grainger 285 Diversified Wholesalers $9,973 Lake Forest, IL■ 19 Baxter International 286 Medical Products & Equip. $9,968 Deerfield, IL

20 Univar 315 Miscellaneous $8,982 Downers Grove, IL■ 21 Tenneco 334 Motor Vehicles and Parts $8,209 Lake Forest, IL

22 LKQ 369 Diversified Wholesalers $7,193 Chicago, IL23 Dover 377 Industrial Machinery $7,029 Downers Grove, IL

■ 24 Anixter International 391 Diversified Wholesalers $6,596 Glenview, IL■ 25 Baxalta 420 Pharmaceuticals $6,149 Bannockburn, IL

26 Jones Lang LaSalle 436 Real Estate $5,966 Chicago, IL27 Old Republic International 442 Insurance $5,766 Chicago, IL

■ 28 Packaging Corp of America 446 Packaging, Containers $5,742 Lake Forest, IL29 Motorola Solutions 451 Network & Commun. Equip. $5,695 Chicago, IL30 Ingredion 456 Food Production $5,621 Westchester, IL31 Arthur J Gallagher 471 Diversified Financials $5,392 Itasca, IL

■ 32 Essendant 477 Wholesalers: Elect. & Off. Equip. $5,363 Deerfield, IL33 Telephone & Data Systems 496 Telecommunications $5,176 Chicago, IL

Source: Fortune (2016) Suburban-based Headquarters ■ North Suburban-based Headquarters

*McDonald’s will be moving to downtown Chicago in 2018

Tenants enjoy the excellent white collar labor force, high image

office parks and lower Lake County property taxes. The scarcity

of land sites in prime locations, heightened regulation of develop-

ment and the soaring cost of construction will mitigate speculative

development, contributing to rent growth and lower vacancy rates.

C h i c a g o’s P r e m i e r O f f i c e S u b m a r ke t

The North Suburban submarket’s strong demographics and high-end housing stock provide an exceptional labor pool that keeps vacancy rates con-

sistently below the suburban average and makes it the premier option for Chicago area companies. Of the 23 Fortune 500 companies headquartered

in Suburban Chicago, 15 are located in the North Suburban Submarket – including CDW, which is headquartered at the Property. Many of the Chicago

area’s largest employers are concentrated in the North Suburban submarket including Abbott Laboratories, Allstate, Anixter, Aon Hewitt, Astellas, CVS

Caremark, Hospira, Illinois Tool Works, Takeda and Walgreens.

90

294

94

94

94

41

41

2222

83

53

21

60

6868

137

21

To Downtown Chicago

SKOKIE

EVANSTON

WILMETTE

WINNETKA

HIGHLANDPARK

LAKE FOREST

DEERFIELD

NORTHBROOK

GLENVIEW

NILES

WHEELING

LINCOLNSHIRE

9

Substantial Discount to Replacement Cost

Tri-State International provides investors the opportunity to acquire a Class A office portfolio at a substantial discount

to replacement cost, providing a competitive basis for years to come. Due to the dearth of available land sites and the

rising cost of construction, the replacement cost of a similar asset would be in excess of $360 per rentable square

foot. New developments would require net rents in excess of $33 per rentable square foot, which is approximately 2.5

times the Property’s current market rents. This spread creates the ideal path to rent growth and a hedge against future

speculative development in the area.

E X E C U T I V E S U M M A R Y

NET RENTAL RATE COMPARISON

$-

$10.00

$20.00

$30.00

$40.00

Tri-StateInternational

NewConstruction

GR

OSS

REN

TS

$13.50 /RSF

59% discount toreplacement rents$33.00 /RSF

SUBURBAN CLASS A OFFICE REPLACEMENT COST/SF

Land $35

Core & Shell $160

Tenant Improvements $75

Parking $50

Total Hard Costs $320

Lease Commissions $26

Financing Costs $10

Other Soft Costs $5

Total Soft Costs $41

Total Development Cost ($/GSF) $361

Yield on Cost 9.00%

Net Rents $33

©2017 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 24 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 Twitter @HFF.

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.

Contact InformationHFF Chicago181 West Madison | Suite 3900Chicago, IL 60602Telephone: 312.528.3650Fax: 312.528.3651

Investment ContactsBryan D. RosenbergAssociate Director312.300.7282brosenberg@hfflp.com

Patrick M. ShieldsAssociate Director312.528.3685pshields@hfflp.com

Mark B. KatzSenior Managing Director312.980.3604mkatz@hfflp.com

Jeffrey M. BramsonSenior Managing Director/Managing Broker312.528.3687jbramson@hfflp.com

Jaime M. FinkSenior Managing Director312.528.3683jfink@hfflp.com

Yoonjin ChooReal Estate Analyst312.980.3606ychoo@hfflp.com

Debt ContactsChristopher S. CarrollManaging Director312.980.3609ccarroll@hfflp.com

Trent R. NiederbergerDirector312.528.3682tniederberger@hfflp.com

Leasing ContactsJonathon ConnorVice President – Colliers International847.698.8246jonathon.connor@colliers.com

Steve KlingPrincipal – Colliers International847.698.8256steve.kling@colliers.com