2300 East Devon Des Plaines, Illinois

FAA Great Lakes Regional Headquarters

239,331 SF, GSA Long Term Leased Suburban Chicago Office

Offering Summary Transwestern, as exclusive agent and advisor to Ownership is pleased to offer the opportunity to acquire the Federal Aviation Administration Midwest Regional Headquarters located at 2300 East Devon in Des Plaines, Illinois (“the Property”). •

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The Property is a 239,331 square foot office facility that enjoys a prominent location in Chicago’s O’Hare submarket with tollway exposure. The Property is currently 94% leased, and is 88% leased to the FAA through October 2020. The FAA has maintained its regional headquarters at the building since 1971 and expanded the building in 1999 to accommodate its continued growth. Multiple functions of the FAA are housed at 2300 East Devon. The FAA enjoys close and immediate proximity to O’Hare International Airport. This proximity and the building’s central location in the Chicago Suburbs has driven its long term tenancy at the building. The building is offered with in-place financing that can be assumed by the new owner. The financing is in place until 2024. The Property offers long term contractual income with increases over the term of the FAA lease and strong in-place and straight-line income yields. The Property also generates a healthy and accretive FFO return on initial invested equity through the term of the FAA lease when adding back the amortization of the current mortgage.

OVerview Location:

2300 East Devon, Des Plaines, IL (Cook County)

Property Type:

Four-story, Multi-Tenant Office Building

Size:

239,331 SF

Site

7.15 acres

Addition/Renovation:

1999

Submarket:

O’Harev

Occupancy:

94%

In-Place NOI:

$3,573,000

Straight-Line NOI:

$3,770,000

Investment Highlights Long Term Contractual Cash Flow & FFO Returns • The building has an in-place NOI of $3,573,000 and straight-line NOI of $3,770,000. There is an ability to grow NOI though the lease up of current vacancies to GSA tenants. • The opportunity offers excellent returns on both on in-place and straight-line income basis. • The Property offers investors healthy FFO returns on invested equity.

Government Anchored, Long-Term Occupancy • The Federal Aviation Administration (GSA) serves as the anchor tenant occupying 88% of the building’s square footage through October 2020 with a 6.50% rental escalation in October of 2015. • Additionally, the USDA and Lockheed Martin Corp. occupy 5.2% of the Property through October 2020. • The Property offers investors a unique combination of long-term cash flow secured by governmental credit with a yield-enhancement component that provides upside through the leasing of the current vacancies to other GSA tenancy. • A majority of the income generated from new leasing is expected to fall directly to NOI as marginal expenses at the Property are not expected to increase.

Tenant Overview FAA Anchored Long Term Historical Occupancy – Continued Renewal & Expansion • The FAA’s Great Lakes Regional Headquarters includes multiple functions governing air traffic and operations over an 8 state region. • Since opening the development in 1971, the FAA has expanded its presence at 2300 East Devon. The FAA has renewed its lease multiple times investing heavily in security infrastructure that is not present in most buildings in the surrounding markets. • In 1999, the building was expanded by 63,000 square feet to accommodate the FAA’s overall growth and the addition of new divisions to the regional headquarters. The entire building was upgraded with a new mechanical system and sprinkler system in addition to extensive overall rehab.

Tenant Summary Tenant

SF

% of RBA

209,970

88%

USDA (GSA)

1,496

0.6%

USDA (GSA)

9,740

4.1%

Lockheed Martin Corp.

1,152

0.5%

10/31/20

Lakeview Deli

1,835

0.8%

3/31/15

Total Occupied SF

224,193

94%

Leasable Vacancy

8,566

3.6%

Conf. Center/ Lunch Room

6,572

2.8%

FAA (GSA)

Total SF

239,331

Lease Exp.

10/21/20

Prominent Location High Visibility, Prominent Suburban Location • 2300 East Devon is one of 5 multi-story office buildings within O’Hare Lake Office Park, a 50 acre master planned office development with a public transportation linkage to the River Road CTA Blue Line EL, as well as PACE bus stops at every building within the Park. • The asset is highly visible with 3,000 feet of Tollway frontage. Situated along the west side of the Tri-State Tollway, the asset is directly across from the northbound toll plaza, visible to 171,300 vehicles daily. The Property enjoys unique access to I-294, I-90 and I-190, and is 5 minutes to O’Hare terminals and 15 miles via expressway to the Chicago CBD.

O’Hare Modernization Plan- FAA Involvement • The $6.6 billion O’Hare Modernization Program will reconfigure O’Hare International Airport’s intersecting runways into a more modern, parallel layout to reduce flight delays and increase flight capacity. The FAA is involved in this expansion and modernization process. FAA Midwest Regional Headquarters is responsible for government oversight of O’Hare, which includes all flight operations in the region. • The realignment and modernization will accommodate approximately 1.6 million aircraft operations a year, expected to reduce overall delays by 79%, produce 195,000 new jobs and contribute an additional $14 billion to $19 billion to the regional economy.

2300 E. Devon

Gary P. Nussbaum Managing Director & Managing Broker 312.881.7090 [email protected]

Thomas A. Gorman Managing Director 312.881.7019 [email protected]

Peter G. Brown Associate 312.881.7022 [email protected]

Transwestern 200 West Madison Suite 3300 Chicago, Illinois 60606

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