Overview of Avison Young

partnership.performance.

May 2011Avison Young – Chicago, LLC9700 W. Higgins Road, Suite 500Rosemont, Illinois 60018847.849.1900

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I. Overview of Avison Young

II. Biographies

II. Case Studies

Table of Contents

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Overview of Avison Young

Full Service Real Estate Firm Founded 1978 23 Canadian and U.S. Offices; Toronto HQ Over 700 Real Estate Professionals 1,400+ Annual Investment Sales and Leasing

Transactions 50 mm sq. ft. Property Under Management

Property Types Office Industrial Retail Multi-Family Hotel Land

Range of Services Investment Advisory and Investment Sales Equity and Debt Private Placement Property Financing Leasing Representation: Tenant/Owner Property Management Corporate Advisory/Consulting Research

Canada Offices: Toronto, Vancouver, Calgary, Edmonton, Lethbridge, Regina, Winnipeg, Mississauga, North Toronto, Ottawa, Montreal, Quebec City, Halifax

U.S. Offices: Boston, Chicago (2), Atlanta (2), Houston, Washington, DC (2)

Future U.S. Offices: Los Angeles, New York, San Francisco

Calgary

Edmonton

HalifaxMississauga

MontrealOttawa

Quebec City

Regina

Toronto

Vancouver

Winnipeg

Chicago

Atlanta

Washington DC

Toronto North

Lethbridge

HeadquartersFuture office*

San Francisco

Los Angeles

Houston

BostonNew York

*

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Coverage Map

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Vision & Culture

Vision

Culture

• North American Real Estate Company to Global Real Estate Company

• Client Interests and Needs Align with Avison Young Experience and Execution

• Utilize Our Intellectual Capital to Differentiate From Marketplace

• Principal Owned, North America Coverage• Integrity, Highest Professionalism, Commitment, Focus• Organizational Investment in our Employees• Compensated for Performance: Creating and Delivering Value

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Michael Fonda, SIORPrincipal

Biography

Mike Fonda joined Avison Young – Chicago, LLC as Principal. Formerly, Mike was a Senior Director in the Chicago Suburban office of Cushman & Wakefield. His main area of responsibility is the sale and leasing of industrial real estate. He began his industrial career in Chicago in 1973. In February of 1981, Mike joined Cushman & Wakefield as an industrial broker. He was promoted to Vice President in 1984 and served as Manager of the Chicago suburban office from 1984 to 1987.

During his 32-year career in real estate, Mike has represented both buyers and sellers in all facets of real estate – tenant representation on new requirements as well as lease renewals, marketing properties for developers and major corporations, sale/leasebacks, investment sales, and build-to-suit transactions for both sale and lease.

Mike graduated from Colorado State University with a Bachelor of Arts and is a licensed real estate broker in the State of Illinois. He was the 1992 President of the Chicago Chapter of the Society of Industrial and Office Realtors. Mike resides in Winnetka, Illinois.

Awards:

CORPORATE CLIENTS INSTITUTIONAL CLIENTS EXPERIENCEBlyth, Inc CenterPoint Properties Acquisitions

General Electric First Industrial Build-to-Suits

Heidleberg IDI Corporate Services

Johnson & Johnson ProLogis Dispositions

Newell Rubbermaid Space Center Headquarters Relocation

Northfield Laboratories TA Associates Investment Sales

Rollex Corporation USAA Lease Negotiations

Tower Automotive

1996 – Runner Up Metro Industrial Broker of the Year 2002 – Metro Industrial Broker of the Year1997 – Runner Up Metro Industrial Broker of the Year 2004 – NAIOP Suburban Office Transaction of the Year1997 – Build-To-Suit Transactions of the Year 2009 – NAIOP Suburban Office Transaction of the Year Finalist

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Todd HeineDirector

Biography

Todd Heine recently joined Avison Young – Chicago, LLC as Director.  Formerly, Todd was an Associate Vice President at Newmark Knight Frank (formerly Epic Realty Partners) in Rosemont, Illinois.  Over the past five years Todd has sourced in excess of $200 million dollars in transactions and has completed more than 75 transactions in the O’Hare market. Todd has built his business on having a comprehensive understanding about the O’Hare Industrial Market. His specialty is working with companies that have multiple facilities and are in need of manufacturing/distribution optimization. Todd is a member of the Association of Industrial and Real Estate Brokers (AIRE). Todd is a native Chicagoan, attended Fenwick Preparatory High School in Oak Park and received his Bachelors in Communications from Loyola University.  Prior to becoming an industrial broker, Todd managed multimillion dollar index option positions.

Awards:2007 – Rising Star 2008 – Scott Nelson Memorial Award for Ethics

 

CORPORATE CLIENTS INSTITUTIONAL CLIENTS

Finn Power USA

Gold Medal Products

Next End, LLC

Poly-Tak, Inc.

Vertex Fasteners(Division of Leggett & Platt)

Perfection Plating

FNA Group

Laird Plastics

Lighten the Load

Cook Financial

First Industrial

JP Morgan Chase

ML Realty Partners

DCT Inudstrial

Cabot Properties

CenterPoint Properties

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Brendan Kelly, SIORPrincipalU.S. Supply Chain Group

Brendan Kelly joined Avison Young – Chicago, LLC as Principal in January 2009. Formerly, Brendan was a Senior Director, Global Supply Chain Solutions, in the Chicago Suburban Branch of Cushman & Wakefield of Illinois, Inc. He joined the Industrial/Technology Group at Cushman & Wakefield in August, 1990.

Brendan was employed as an Account Marketing Representative for International Business Machines Corporation from 1984-1990, specializing in Mainframe applications for manufacturing, real estate, and health related companies. Brendan is a member of the Council of Supply Chain Management Professionals and Society of Industrial and Office Realtors.

Brendan graduated from the University of Arizona, Tucson, Arizona, with a Bachelor Science in Finance. In the community, Brendan served on the Board of Directors and Past President of the Chicago 20-30 Club, School Board Member of Saint Francis Xavier and is also a member of the Board of Regents for the Mercy Home for Boys and Girls. Brendan and his wife Kristan and their five sons reside in Wilmette, Illinois.

Awards:

CORPORATE CLIENTS INSTITUTIONAL CLIENTS EXPERIENCEAlcan/Pechiney Plastic Packaging

Dow Chemical

Hyundai Motor of America

Kraft Foods

Pep Boys

Rollex Corporation

Solo Cup Company

Yamaha Motor of America

CenterPoint Properties

First Industrial

Fritz Duda Companies

Globe Corporation

Industrial Development International

Northwestern Mutual Life

Opus North Corporation

Pasquinelli Development

Pizzuti

ProLogis

TA Realty

USAA Realty Company

Acquisitions

Asset Repositioning/Redevelopment

Build-to-Suits

Buyer and Tenant Representation

Dispositions

Headquarters Relocation

Investment Sales

Lease Negotiations

National Account Services

1996 – Runner Up Metro Industrial Broker of the Year 2002 – Metro Chicago Industrial Broker of the Year1997 – Runner Up Metro Industrial Broker of the Year 2004 – NAIOP Suburban Office Transaction of the Year1997 – Build-To-Suit Transactions of the Year 2009 – NAIOP Suburban Office Transaction of the Year Finalist

Biography

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Hugh WilliamsPrincipal

Biography

Hugh Williams joined Avison Young – Chicago, LLC as Principal. Formerly, Hugh was a Senior Director in the Chicago office of Cushman & Wakefield. Hugh was a member of Cushman & Wakefield’s Industrial Technology Services Group and graduated from Cushman & Wakefield’s yearlong Associates Development Program in 1998. During his tenure in the Associates Program he completed projects in C&W’s core business groups including Project Management, Asset Management, Corporate Services, Financial Systems and Research Services. He is a member of the Board of Directors for the Chicago Chapter of NAIOP, Advisory Board member for Project REAP, and also Northwestern University’s representative on the Big 10 Advisory Commission. Hugh’s team was awarded the Sun Times Metro Chicago Industrial Brokers of the Year Award in 2002.

Hugh graduated from Northwestern University in 1994, with a Bachelor of Arts in Psychology. He went on to receive his Masters of Science in database marketing from Northwestern University in 1996. Prior to joining Cushman & Wakefield, Hugh played professional football in Europe.

Awards:2002 – Metro Chicago Industrial Broker of the Year2004 – NAIOP Suburban Office Transaction of the Year2006 – CoStar Power Broker2009 – NAIOP Suburban Office Transaction of the Year Finalist

CORPORATE CLIENTS INSTITUTIONAL CLIENTS EXPERIENCEPAST AND PRESENTBOARD LEADERSHIP

Abrasive Form Abbott Land and Development Acquisitions Big 10 Advisory CommissionAlcan/Pechiney Plastic Packaging AMB Build-to-Suits The Hope Institute AdvisoryDow Chemicals Cal East Corporate Services NAIOP ChicagoGoya Foods Globe Corporation Dispositions Posse Foundation Leadership CouncilHeidelberg USA IDI Headquarters Relocation Project REAP AdvisoryITT Space Center Investment SalesPon North America USAA Realty Company Land Acquisition/DispositionRollex RREEFF Lease NegotiationsSuperValu Sale-Leaseback

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Suzanne SerinoPrincipal

Biography

Suzanne Serino joined Avison Young – Chicago, LLC as Principal. She has spent the last 10 years in industrial real estate and was formerly a Director in the Chicago office of Cushman & Wakefield. Suzanne works with owners and corporations in the leasing and sales of industrial properties and has completed many national and international transactions.

Prior to becoming an industrial broker, Suzanne worked in retail management and worked in various international countries in operational and management capacities. Prior to working at Cushman & Wakefield, Suzanne also worked in the commercial real estate industry in Phoenix, Arizona. Suzanne graduated from Arizona State University with a Bachelor of Science and is a licensed real estate broker. Suzanne resides in South Barrington, Illinois.

Awards2002 – Metro Chicago Industrial Broker of the Year2004 – NAIOP Suburban Office Transaction of the Year2009 – NAIOP Suburban Office Transaction of the Year Finalist

CORPORATE CLIENTS INSTITUTIONAL CLIENTS EXPERIENCEAbrasive Forms CenterPoint Properties AcquisitionsEquipment Depot Globe Corporation Build-to-SuitsHeidelberg IDI Corporate ServicesMail Express Opus North DispositionsSolo Cup ProLogis Headquarters RelocationPitney Bowes TCB Development Land Acquisition/DispositionSCE Unlimited USAA Real Estate Company Leaseback

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Christine ChoiAssociate Director

Biography

Christine Choi joined Avison Young – Chicago, LLC as Associate Director. Formerly, Christine worked on the institutional side at First Industrial Realty Trust, where she was integrally involved in the company’s expansion into the European market. At First Industrial, she also developed and executed marketing strategies, activities, budgeting and deliverables for the U.S. and European real estate markets. Prior to becoming an industrial broker, Christine gained extensive reporting and data management experience while managing the direct marketing programs for a database of over 200,000 prospects. She also worked in the corporate sector in merchandise planning and optimizing new product launches for Fortune 100 companies. Christine serves as a board officer for the Council of Supply Chain Management Professionals (CSCMP) Chicago Roundtable. She is a member of the Developing Leaders Committee for the Chicago Chapter of the National Association of Office and Industrial Properties (NAIOP), Young Professionals of Chicago (YPC), and is active with the Association of Industrial and Real Estate Brokers (AIRE), National Association of Asian American Professionals (NAAAP), and the Chicago Korean American Chamber of Commerce (CKACC).

In the community, Christine has served as an auxiliary board member and tutor for the Sue Duncan Center’s Center, an after-school educational and recreational program for inner-city children, for the past five years. She is actively involved in her alma mater’s alumni association.

 EducationNorthwestern University, Bachelor of Science

SPECIALIZATIONS INSTITUTIONAL CLIENTS BOARD LEADERSHIPAcquisitions IDI CSCMP Chicago RoundtableDispositions ProLogis NAIOP ChicagoLease and Sale Negotiations Globe Corporation Sue Duncan Children’s CenterBuyer/Tenant RepresentationRenewal NegotiationsSale LeasebackMulti Market NegotiationBuild-to-SuitInvestment Sales

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Mike NolanDirector

Biography

Mike Nolan recently joined Avison Young – Chicago, LLC as Director.  Mike began his career working for Newmark Knight Frank (formerly Epic Realty Partners) in November of 2005.  In just under four years Mike has sourced and participated in more than $50 million in transactions. He works with tenants, owners, developers and institutions in the sale, leasing and build-to-suits of industrial and office projects. He has negotiated lease agreements and purchase/sale contracts for manufacturing plants, warehouses, freight forwarding facilities, multi-tenant developments and vacant land throughout the Chicago Metropolitan area. Mike specializes in industrial real estate and has completed more than 40 transactions in the O’Hare market in the past three years.

As a native of the Chicago area, Michael received his degree from Arizona State University in Business and Marketing.

Awards:2007 – Rising Star 2008 – Scott Nelson Memorial Award for Ethics

 

CORPORATE CLIENTS INSTITUTIONAL CLIENT

Finn Power USA

Gold Medal Products

Next End, LLC

Poly-Tak, Inc.

Vertex Fasteners(Division of Leggett & Platt)

Cook Financial

First Industrial

JP Morgan Chase

ML Realty Partners

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150 S. Saunders Road, Lake Forest, Illinois133,218 Square Feet

Solo CupCorporate Headquarter RelocationLake Forest, Illinois

Case Study

Tenant Representation

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Solo CupCorporate Headquarter RelocationLake Forest, Illinois

Case Study

Tenant Representation

Background

Challenges

Results

Location

• Solo Cup engaged our team to assist in the relocation of their corporate headquarters from an office and manufacturing facility in Highland Park, Illinois to a high image office building.

• Solo Cup required a location that would maintain existing employees, provide access to commuter rail service, offer high image while maintaining a tight budget.

• Provided employee scattergram documenting employee residential locations

• Provided detailed survey of 15 buildings that could meet Solo’s requirement in North Suburban Chicago

• Assisted in interviewing and hiring project manager / space programmer

• Provided in depth GAAP financial analysis and impact on balance sheet and EBITDA for both purchase and lease options

• Provided leadership for lease negotiation in coordination with outside legal counsel

• 150 S. Saunders Road, Lake Forest, Illinois. 133,218 square feet.

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Tenant Representation8770 W. Bryn Mawr Ave, Chicago, Illinois82,169 Square Feet

Alcan PackagingCorporate Headquarter RelocationChicago, Illinois

Case Study

Packaging

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Alcan PackagingCorporate Headquarter RelocationChicago, Illinois

Case Study

Tenant Representation

Background• Alcan Packaging’s executive leadership engaged our team to evaluate its options to relocate the Alcan Packaging

headquarters in North and Northwest suburban Chicago from the O’Hare market versus renewing at its current location.

Challenges

• Retained Environments Group to model clients current and future needs

• Completed an employee scattergram documenting the employee living density by zip code

• After extensive market study of 20 plus properties determined the O’Hare market was the optimal solution to retain current employees and optimize real estate costs

• Negotiated over multiple years a new 15 year lease that assumed its existing multi-year sublease obligation, generous refurbishment allowance, signage on 3 sides of the building and in the lobby

Results

Location • 8770 W. Bryn Mawr, Chicago, Illinois

• Alcan had several years of an existing sublease at 8770 W. Bryn Mawr

• Alcan also would have to live in existing conditions while renovations took place of its existing space

• Alcan had a significant employee population living near the Loop, northwest suburban and west suburban Chicago.

• Alcan had no signage and a competitor’s name was on the building

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Tenant RepresentationTwo Glenlake, Fulton CountyAtlanta, Georgia

356,000 Square Feet

Newell RubbermaidCorporate Headquarter Relocation Atlanta, Georgia

Case Study

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Newell RubbermaidCorporate Headquarter Relocation Atlanta, Georgia

Case Study

Tenant Representation

Background• In 2001, Newell Rubbermaid (NR) wanted to build a new headquarters and asked our team to assist them in

determining the best city and state

Challenges

• Our team prepared in-depth analysis of four possible sites

• Prepared financial analysis

• Lease signed in October 2006 with occupancy scheduled for October 2008

Results

Location • Two Glenlake, Fulton County, Atlanta, Georgia

• In 2001, we conducted a multi-state search for a new corporate headquarters

• Ultimately, NR chose Atlanta, Georgia although the project was put on hold in 2002

• In 2003, NR asked us to provide an in-depth search of parks and campus settings that could accommodate NR requirement in Atlanta

• NR decided not to build a campus but to look for smaller space instead

• Our team identified a 75,000 SF sublease and achieved below market rent

• In June 2006, under the direction of a new CEO, NR was prepared to move forward with a 350,000 SF build-to-suit and NR wanted the lease signed by September 2006

• NR wanted to be in the northern perimeter or further north along Georgia 400 and identify a site quickly

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National Jockey Club Asset Reposition & Disposition

80 Acre Commercial Redevelopment ofAuto and Horse Racing Complex

Sportsman’s ParkCicero, Illinois

Case Study

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Sportsman’s Park Cicero, Illinois

Background

Challenges

Solution

• Owned and operated by the National Jockey Club (Bidwill family) since 1932

• Due to changing gaming industry climate, the Bidwill family combined their business with the owners of Hawthorne Race Track next door (Carey Family)

• Needed to be sold to non-competitive operator in six to nine months

• Accelerated marketing process due to negative cash flows

• Complex ownership and infrastructure

• Created a pre-development package with extensive due diligence information to mitigate development risk. Assembled demolition bids, civil engineering study and plans, architectural site plans and TIF analysis

• Qualified five bidders based upon financial qualifications, development expertise and their development plan

• Sold to City of Cicero at 110% of projected sales price ($15 million)

Property • Sportsman’s Park, a horse and race car track situated on 80 acres and located in Cicero, IL

• Existing improvements consist of 60,000 seat stadium and extensive underground infrastructure

National Jockey Club

Case Study

Asset Reposition & Disposition

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727,000 Square Feet on 25 Acres

Busse Corporate Center Elk Grove Village, Illinois

Case Study

Asset Reposition & Disposition

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Background • Repositioned empty manufacturing building as a state-of-the-art, multi-tenant distribution/warehouse

• Previously occupied by Cooper Lighting, which remains and releases 180,000 sq. ft.

• Provided strategic plan, redevelopment expertise, leasing and management

Challenges

• Upon completing tenant-ready space, leased 146,000 sq. ft. to Kuehne & Nagel (6 months ahead of pro forma)

• Converted unused surface acreage into 90 spot trailer parking and tenant parking

• Completed 43 new loading docks

• $12.3 million of capital improvements including new entries, ribbon windows, new canopy

• Sold to Prologis 80% leased for $38 million

Results

• Outdated single-tenant manufacturing facility (built in 1970) and non-conforming to modern distribution/warehouse specifications

– Antiquated boilers; HVAC– Dated exterior look– Unused surface acreage

• Asbestos and soil contamination

Property • Busse Corporate Center, a 727,000 square foot manufacturing facility located in Elk Grove Village, IL

Busse Corporate CenterElk Grove Village, Illinois

Case Study

Asset Reposition & Disposition

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500-520 North AvenueCarol Stream, Illinois

Case Study

Asset Reposition and Disposition1,300,000 square feet on 164 acres

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Background

Challenges

Results

Property

500-520 North AvenueCarol Stream, Illinois

Case Study

Asset Reposition and Disposition

• A 314,574 sf warehouse facility on 27 acres fully leased to McKesson. The building was constructed in 1965 and was the former home of the FoxMeyer Drug Company. The building’s ownership was a national developer/owner of retail assets.

• The north end of the site contained a 3 story, 80,000 sf office building that McKesson was not using and had sat vacant for years in-spite of ownership’s effort to lease it.

• The building is located in a submarket, Central DuPage County, where most buildings feature modern construction, 28’ to 30’ ceiling clear heights, and ample loading. The subject property had interior docks and 22’ clear heights.

• Office users had shown no interest in leasing the separate office building.

• The building only had one year of term left on the lease and a likelihood of vacancy afterward.

• Advised ownership to demolish vacant office building and to re-subdivide and re-zone surplus land to retail use.

• Renegotiated the lease to a four year term for current tenant, McKesson Corporation.

• Sold the building with separate 8 acre retail parcel for several million dollars above ownership’s expectation.

• 500 – 520 North Avenue, Carol Stream, Illinois

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San Bernadino, CaliforniaCase Study

Tenant RepresentationBuild to Suit Lease1,300,000 square feet on 164 acres

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Background

Challenges

Results

Property

San Bernadino, CaliforniaCase Study

Tenant RepresentationBuild to Suit Lease

• San Bernardino, California

• Conducted a multi-year search to relocate PepBoys west coast distribution center

• Consolidation from three buildings in Vernon, California and Northern California

• Considered Arizona, Nevada, and Southern California

• Our team of real estate professionals, analyzed the transportation, labor, real estate costs and economic incentives including a free trade zone.

• Negotiated build to suit with a 15 year lease with Hillwood Development

• Developed a detailed construction specification to compare five developer bids and managed construction schedule and budge on behalf of PepBoys

• Negotiated economic incentive package including free trade zone resulting in multiple millions of dollars savings

• Validated labor quality and quantity to reduce the risk of a sixty mile relocation

• Negotiated expansion option of 200,000 square feet to provide flexibility

• Our team has represented PepBoys for build to suits in Indianapolis, New York, and California totaling 1.4 million square feet.

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Commerce CenterUniversity Park, Illinois

Case Study

Landlord Representation &Tenant Representation

Built-to-Suit1,300,000 square feet on 164 acres907,000 Square Feet

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Background

Challenges

Results

Property

Commerce CenterUniversity Park, Illinois

Case Study

Landlord Representation &Tenant Representation

Built-to-Suit

• Our team was engaged by USAA to procure large users for occupancy in University Park, a new business campus located in the unproven I-57 corridor. Separately, our team worked with Sweethart Cup to help secure a new distribution center, relocating from the southside of Chicago.

• Conducted labor study to establish the Park’s viability

• Reviewed current list of tenant clients for potential opportunities

• Identified Sweetheart Cup as a likely candidate for relocation to the Park

• Emphasized the viability of a third airport to demonstrate the Park’s appreciation potential

• Successfully negotiated a 907,000 SF, 20-year lease on 60 acres with Sweetheart Cup

• Transaction marks 2002’s largest build to suit project in the Midwest

• Negotiated and secured government incentives including a 23-year Tax Increment Financing plan ($.30 psf tax bill)

• In Q4 of 2004, assisted in the 635,000 SF expansion of the original building

• University Park, Illinois