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FOR SALE | SFR PORTFOLIO CHICAGO 429 SFR PORTFOLIO Chicago, IL Todd Franks, CCIM Managing Director 972.916.9397 [email protected] Paul Yazbeck Vice President 972.916.9045 [email protected] Angel Flores Advisor 972.232.2325 [email protected] Shan Zaidi Advisor 972.402.5595 [email protected]

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Page 1: Chicago, IL...Chicago was named “TopMetro” area in the U.S. for corporate relocations and expansions from 2014 – 2016 by Site Selection Magazine. In Chicago, home sales increased

FOR SALE | SFR PORTFOLIO

CHICAGO 429 SFR PORTFOLIOChicago, IL

Todd Franks, CCIMManaging Director

[email protected]

Paul YazbeckVice President972.916.9045

[email protected]

Angel FloresAdvisor

[email protected]

Shan ZaidiAdvisor

[email protected]

Page 2: Chicago, IL...Chicago was named “TopMetro” area in the U.S. for corporate relocations and expansions from 2014 – 2016 by Site Selection Magazine. In Chicago, home sales increased

Executive Summary

2

The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and isnot to be used for any other purpose. This information should not, under any circumstance, be photocopied or disclosed to any third partywithout the written consent of the SVN® Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possiblepurchase of the Property.

The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this brochure, and noother person is authorized by the Owner to provide any information or to make any representations other than contained in this OfferingBrochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must bereturned to the SVN Advisor.

Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of theinformation contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the futurerepresentation of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that suchestimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations or warranties, expressedor implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available tothe recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fullyexecuted and delivered Real Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of those materials shall not look to Owner or the SVNAdvisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof.Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at itssole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, toterminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment orobligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes anddelivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, aprospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from anyliability with respect thereto.

To the extent Owner or any agent of Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchasershould not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bindthe property and each prospective purchaser proceeds at its own risk.

DISCLAIMERCHICAGO 475 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Page 3: Chicago, IL...Chicago was named “TopMetro” area in the U.S. for corporate relocations and expansions from 2014 – 2016 by Site Selection Magazine. In Chicago, home sales increased

TABLE OF CONTENTSProperty Overview 5-9

Benefits of SFRs 10-14

Financial Overview 16-25

Location Overview 27-29

Chicago In The News 31-39

Demographics 36-42

About SVN® 46-51

3

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4

FOR SALE | SFR PORTFOLIO

CHICAGO 429 SFR PORTFOLIOCHICAGO, IL

1 PROPERTY OVERVIEW

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Page 5: Chicago, IL...Chicago was named “TopMetro” area in the U.S. for corporate relocations and expansions from 2014 – 2016 by Site Selection Magazine. In Chicago, home sales increased

5

Executive Summary

SECTION 1 | PROPERTY OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

PROPERTY OVERVIEW

PROPERTY SUMMARY

SALE PRICE: $46,100,000

NUMBER OF HOMES: 429

PRICE/HOME: $107,459

AVG. RENT/HOME/SF: $1,351 / $1.20

AVG. PROPERTY SIZE: 1,094 SF

PRICE/SF: $98.23

STABILIZED T-12 NOI: $4,572,243

STABILIZED T-12 CAP RATE: 8.42%

CASH-ON-CASH/TOTAL RETURN: 14.24%

PROPERTY HIGHLIGHTS

SVN | TJF Investments is pleased to announce the exclusive listing of a 429 SingleFamily Home Portfolio in Chicago, IL. Chicago is the 3rd largest market in the UnitedStates with an economic output of $660.40 billion in 2015. According to Swiss BankUBS, Chicago home prices are the most undervalued in the nation. Chicago has astrong rental market with a market vacancy below 4%. Additionally, home priceshave risen 9% and home sales have increased 4.8% (Chicago Tribune) in 2016.

The portfolio consists primarily of 3 and 4 bedroom homes in desirable working classneighborhoods. The average property size is 1,094 square feet including basementswith an average rent of $1,351. At a purchase price of $46.1 MM or $107K a home and$101.81 per square foot the portfolio offers an opportunity to purchase aconcentrated set of homes under retail value and below replacement cost. Thehomes generate strong, consistent cash flow and are priced above a 14% gross yield.The properties are located within a tight perimeter of 30 miles which offers potentialeconomies of scale and ease of management (Current Management company willingto stay on at a 5% management fee). There is significant upside through enactingrent increases to levels established by HUD’s Fair Market Rent DocumentationSystem for 2016.

• Tenants are 97% Section 8 with Long-Term Leases and Allowable Rent Increases

• Year Over Year Market Increases of 10% (YOY) Have Outpaced Portfolio RentIncreases of 3% (YOY) Allowing for Huge Upside in Increasing Revenue

• Opportunity to Purchase a Stabilized Portfolio with Built In Equity

• Homes are Located in Desirable Working Class Neighborhoods in Chicago

• Homes were Recently Renovated to High Rental Standards

• As Priced, Portfolio Returns Above a 14% Gross Yield

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66

Living Room Photos

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 1 | PROPERTY OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

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77

Kitchen Photos

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 1 | PROPERTY OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

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88

Bedroom Photos

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 1 | PROPERTY OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

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99

Bathroom Photos

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 1 | PROPERTY OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

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Benefits of SFRs

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 1 | PROPERTY OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

Chicago was named “Top Metro” area in the U.S. for corporate relocations and expansions from 2014 – 2016 by Site SelectionMagazine. In Chicago, home sales increased 7.6% from August 2015 – August 2016 and the median price increased 4.5% to$230,000. Increasing prices coupled with high occupancy in the single family rental market magnify the attractiveness of thisopportunity. In addition, more residents are delaying home ownership and a greater share are renting, which puts rental homes ineven higher demand. SFR portfolios provide several advantages over apartment investments:

• Multiple exit strategies: provides a hedge on the market

When residential values are higher, the owner can exit on an individual sales basis

If home values decrease, rental homes maintain their value with rental income

Owners can sell the property to the tenant offering “Seller Financing” at above market interest rates and sell the loanson the open market

• Homes are spread over a larger area which spreads the risk of value swings in any one submarket

• Portfolios can be sold in parts meaning you can cash out (sell) only part of your portfolio leaving you with cashflow.

• Portfolios can be refinanced in parts.

• Performing a 1031 exchange on a bulk sale is much more feasible than exiting one by one.

• Tenants tend to be more stable than multifamily with less turnover

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SECTION 4 | CHICAGO IN THE NEWSCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

A Onetime Housing Skeptic Plans $1 Billion Bet on HomesDonald Mullen Jr., who a decade ago helped oversee Goldman Sach’s lucrative bet against the housing market, is raising money for a big bet in the other direction

By RYAN DEZEMBERUpdated Oct. 5, 2016 9:14 a.m. ET

Donald Mullen Jr., the former Wall Street executive who a decade ago helped oversee Goldman Sachs Group Inc.’s lucrative betagainst the U.S. housing market, co-founded real-estate investment firm Pretium Partners LLC, which is raising $1 billion to buysingle-family homes to rent out to tenants, according to fundraising documents reviewed by The Wall Street Journal.

Mr. Mullen, the onetime head of Goldman’s mortgage-and-credit business, is now pitching pensions, endowments and otherlarge investors on a wager that, four years after the housing market hit bottom, rents and home prices will continue to rise.

“We believe tight credit availability is preventing new households from being able to obtain mortgages to purchase their firsthome,” Pretium wrote in its 69-page pitch to investors. “Households that have been unable to obtain mortgages have becomerenters, thus driving high occupancy rates and robust rent growth.”

Through a spokesman, Mr. Mullen and Pretium declined to comment.

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SECTION 4 | CHICAGO IN THE NEWSCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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SECTION 4 | CHICAGO IN THE NEWSCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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14

SECTION 4 | CHICAGO IN THE NEWSCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Chicago Neighborhood Home Value Change YOY

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SECTION 4 | CHICAGO IN THE NEWSCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Chicago Neighborhood Home Value Change YOY

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16

SECTION 4 | CHICAGO IN THE NEWSCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Chicago Neighborhood Home Value Change YOY

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SECTION 4 | CHICAGO IN THE NEWSCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Chicago Neighborhood Home Value Change YOY

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18

2 FINANCIAL OVERVIEW

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

FOR SALE | SFR PORTFOLIO

CHICAGO 429 SFR PORTFOLIOCHICAGO, IL

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1919

Unit Mix – Phase 1

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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2020

Unit Mix – Phase 2

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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2121

Rent Roll – Phase 1

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

Page 22: Chicago, IL...Chicago was named “TopMetro” area in the U.S. for corporate relocations and expansions from 2014 – 2016 by Site Selection Magazine. In Chicago, home sales increased

2222All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

Rent Roll – Phase 1

Page 23: Chicago, IL...Chicago was named “TopMetro” area in the U.S. for corporate relocations and expansions from 2014 – 2016 by Site Selection Magazine. In Chicago, home sales increased

2323All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

Rent Roll – Phase 1

Page 24: Chicago, IL...Chicago was named “TopMetro” area in the U.S. for corporate relocations and expansions from 2014 – 2016 by Site Selection Magazine. In Chicago, home sales increased

2424All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

Rent Roll – Phase 1

Page 25: Chicago, IL...Chicago was named “TopMetro” area in the U.S. for corporate relocations and expansions from 2014 – 2016 by Site Selection Magazine. In Chicago, home sales increased

2525All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

Rent Roll – Phase 1

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2626

Rent Roll – Phase 1

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

Rent Roll – Phase 2: Available for Download

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2727

Financial Analysis – Phase 1

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

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2828

Trending Analysis – Phase 1

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

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2929

IRR Deferred – Phase 1

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

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Financial Analysis – Phase 2

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

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3131

Trending Analysis – Phase 2

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

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3232

IRR Deferred – Phase 2

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

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33

3 LOCATION OVERVIEW

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

FOR SALE | SFR PORTFOLIO

CHICAGO 429 SFR PORTFOLIOCHICAGO, IL

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3434

Portfolio Map

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | LOCATION OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

Page 35: Chicago, IL...Chicago was named “TopMetro” area in the U.S. for corporate relocations and expansions from 2014 – 2016 by Site Selection Magazine. In Chicago, home sales increased

Area Highlights

Named “Top Metro” area in the U.S. for corporate

relocations and expansionsfrom 2014 – 2016 by Site

Selection Magazine

The Chicago Transit Authority (CTA) operates the nation’s 2nd largest public

transportation system with 1,800 buses that provide 1 million passenger trips per

day and 1,450 train cars that provide 750,000 customer

trips each weekday

Headquarters to over 30 Fortune 500 companies

including Boeing, Walgreens, United Airlines, Allstate

Insurance, Sears, McDonald’s, US Foods, Kraft

Foods, and Motorola

Improving housing market – Home Sales increased 7.6% from August 2015 – August 2016 and the median price

increased 4.5% to $230,000

The total economic output of Chicago in GDP totaled

$610B in 2014, making it the 3rd largest economy in the

U.S. and one of the largest in the world

Home to several top rated universities including the

University of Chicago, Northwestern University, the

University of Illinois at Chicago, and Loyola University Chicago

Numerous cultural focal points including the Art

Institute of Chicago, Chicago Cultural Center, Chicago

Theater, Museum of Science and Industry, Symphony

Center, and more

Chicago O’Hare International Airport is the 4th busiest airport in the world by passenger traffic and it

serves as the #2 carrying hub for United Airlines and

#3 hub for American Airlines

Abundant entertainment options including boat tours

on the Chicago River, Millennium Park, Grant Park, the Navy Pier, Lincoln Park

Zoo, Shedd Aquarium, Skydeck, and more

One of four U.S. cities to have teams from the five

major American professional team sports, helping it to

become the #6 Best Sports City according to WalletHub

The acclaimed MagnificentMile offers world-class

shopping to residents and visitors, with more than 460 stores, 275 restaurants, and 60 hotels along its 13-block length on Michigan Avenue

The Chicago Park District is the largest municipal park manager in the nation with

more than 8,100 acres of green space, 600 parks, 5

recreational facilities, and 11 beaches

35All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | LOCATION OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

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3636All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | LOCATION OVERVIEWCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

36363636

ENTERTAINMENT

LARGEST 20 EMPLOYERS

- Wrigley Field (Chicago Cubs), United Center (Chicago Bulls & Blackhawks), Soldier Field (Chicago Bears), U.S. Cellular Field (Chicago White Sox)

- Millennium Park- Grant Park- Navy Pier- Lincoln Park Zoo- Acclaimed Museums Including: Museum of Science and Industry, Art Institute of

Chicago, the Field Museum, Adler Planetarium, and more- Michigan Avenue Shopping

Economic Drivers

- U.S. Government – 42,887 employees- Chicago Public Schools – 37,406 employees- City of Chicago – 30,276 employees- Cook County – 21,795 employees- Advocate Health Care – 18,308 employees- University of Chicago – 16,197 employees- Northwestern Memorial Healthcare – 15,317 employees- State of Illinois – 15,136 employees- JPMorgan Chase – 14,158 employees- United Continental Airlines – 14,000 employees- Health Care Service Corp. – 13,006 employees- Walgreens Boots Alliance – 13,006 employees- Presence Health – 10,500 employees- Abbott Laboratories – 10,000 employees- Northwestern University – 9,708 employees- Jewel-Osco – 9,660 employees- Chicago Transit Authority – 9,510 employees- University of Illinois at Chicago – 9,212 employees- American Airlines Group – 8,900 employees- Rush University Medical Center – 8,273 employees

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37

4 CHICAGO IN THE NEWS

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

FOR SALE | SFR PORTFOLIO

CHICAGO 429 SFR PORTFOLIOCHICAGO, IL

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SECTION 4 | CHICAGO IN THE NEWSCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Chicago rental market rise fueled by job growth, report saysHomeUnion reports health of housing and rental markets in Chicago based on employment and economics

PUBLISHED ON JUN 20, 2016BY KIMBERLY MANNING STAFF WRITER

Key Takeaways

• Chicago rental vacancy rate forecasted to reach 3.9 percent by the end of 2016.

• Relocation of major corporations to Chicago is helping to add jobs and fuel demand for new homes.

• Chicago remains a strong market for investors with a strong cap rate.

It may have taken a while, but the Chicago rental market is slowly pulling itself out of the recession. HomeUnion recently releaseda second quarter report on the city’s current and future economic and real estate health, and things are looking up in the WindyCity.

The improving job market and relocation of several large corporations to downtown is helping fuel the demand for apartmentsand driving down vacancy in Chicago, the report says. By the end of 2016, vacancy is expected to fall 10 basis points from lastyear to 3.9 percent, while rents continue to climb.

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3939All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 4 | CHICAGO IN THE NEWSCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

Rents have increased steadily while vacancy has remained fairly flat; rents are expected to climb 4.6 percent to an average $1,972per month.

The growth of the rental market is largely saturated in downtown neighborhoods like River North and The Loop, but future growthis expected to spread outside of the city’s urban core.

According to the report, investors in the first quarter of 2016 were seeing returns in the mid-7 percent range. The median price of an investment transaction was $113,300 and the leveraged price was $196,000 in Q1 of 2016.

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4040All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 4 | CHICAGO IN THE NEWSCHICAGO 429 SFR PORTFOLIO | CHICAGO, IL

Where does HomeUnion suggest the next thriving Chicago markets will be? Neighborhoods with good transportation, such asLakeview, Lincoln Park and South Cook County markets, are expected to be on the list.

Job market growth

McDonalds recently announced that it is planning to move its massive Oak Brook headquarters to Fulton Market, but the fastfood giant is one in many making such a transition. Kraft Heinz is also moving 250 employees to the Aon Center, and ConAgra ismoving to the Chicago Merchandise Mart.

The construction of the new Wrigley Field and surrounding open-air attractions has already added construction, leisure andhospitality jobs.

Manufacturing, mining and logging sectors are the only industries reported to see an annual fall. Leisure and hospitality rankedin the top spot for annual change with a 5.8 percent increase, followed by construction at 5.2 percent and government at 2.3 percent.

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All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

September 29, 2016

Another housing bubble? Not in ChicagoBY ALBY GALLUN

Housing markets in big cities around the globe are overheating, but Chicago's is still a bitchilly.

That's the conclusion of a recent report by Swiss Bank UBS that ranked 18 financial centersbased on its “bubble index,” an indicator that measures home prices relative to othermetrics, like incomes. Chicago ranked dead last, the only city where UBS found homes to beundervalued.

Home prices in the Chicago area fell 35 percent between 2006 and 2012 but have onlyrecovered by 10 percent in the past four years, according to the report.

“The pace of price recovery has been weak due to relatively high unemployment and fiscalproblems,” the report said.

But look on the bright side: At least Chicago-area homeowners don't have to worry yetabout prices crashing again, like they do in Vancouver, which UBS found to have the greatestbubble risk. London, Stockholm, Sydney, Munich and Hong Kong have also entered thedanger zone, with bubble scores exceeding 1.5.

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4242All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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“In a world in which more than a third of all government bonds offer negative yields, investing in tangible assets remainspopular,” the report said. “So it is hardly surprising that housing markets are again overheating, just a few years after the lastmajor wave of global correction. We see a significant overvaluation of housing markets in some key financial centers.”

But Chicago's bubble score is 0.7, in the “undervalued” range, according to UBS. New York and Boston are “fair-valued,” while SanFrancisco is “overvalued.”

UBS computes its index by compiling a weighted average of indicators for each market including price-to-income and price-to-rent ratios, measures of mortgage lending and construction activity. Chicago had the lowest price-to-income and price-to-rentratio of all 18 cities.

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All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Duracell Opens Executive Office in Chicago, Bringing 65 Jobs to the City Will Flanagan - GM9/15/16 @ 10:02 a.m. in Tech

Over the past year, Chicago has secured several high-profile corporate relocations, including ConAgra, ADM, McDonald's,Motorola Solutions, and GE Healthcare. Today, the city powers up with one more.

This morning, Duracell, the world's largest battery-maker, announced that it's opening an Executive Office in Chicago, bringing65 jobs to the city. The company will maintain its global research facility and headquarters in Bethel, Connecticut. Duracellemploys approximately 2,700 employees worldwide.

According to the company, Duracell is coming to Chicago for a variety of reasons, including the city's thriving businessecosystem, its central location, and the quality of life for employees. The new office will be located at 181 W. Madison, in the loop.

"With this move, Duracell is making their future part of Chicago’s future," said Mayor Rahm Emanuel in a statement. "Duracell’scommitment to Chicago speaks volumes about their confidence in Chicago. As a company that relies on innovative research anddevelopment, I am confident Duracell will continue to grow and thrive in a city that is leading the way on 21st-centuryinnovation.”

In March, Duracell was officially bought by Warren Buffet's Berkshire Hathawy, an acquisition that was first announced inNovemeber, 2014, and made private. Previously, Duracell was owned by Proctor & Gambell as a result of the former's acquisitionof Gillette in 2005.

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4444All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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The move to Chicago has been rumored for months, with job postings teasing the relocation appearing online as early as February. In one of the early listings, Durcell said that, as part of the move, it would be "building out its corporate and strategic functions and looking for key talent across multiple functions.“

While Duracell will continue to maintain its reputation as the global leader in battery manufacturing, the company also aims to transform more into a "personal power company," identifying and expanding into new growth categories, such as rechargeables.

Explained Duracell CEO Angelo Pantaleo, “Duracell is in an exciting period in our company’s history. As we look ahead, we will continue to build on our rich past and strong foundation to transform the world’s number-one battery maker into the world’s number-one personal power company. We are pleased to lead that effort from the great city of Chicago, where the city’s business ecosystem, talent, quality of life and far-reaching global connections are first class.”

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All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

ConAgra settles into new HQ at Chicago’s Merchandise Mart

By Greg TrotterChicago Tribune

JUNE 30, 2016, 3:52 PM

ConAgra Foods, the processed-food company known for brands like Slim Jim, Chef Boyardee and Reddi-wip, moved itsheadquarters to Chicago earlier this week from its longtime home in Omaha, Neb., company executives said Thursday.

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4646All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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ConAgra, which reported its fiscal 2016 fourth-quarter results Thursday morning, is settling into space in the Merchandise Mart.The move was announced in October, one of many dramatic changes for the company under the leadership of CEO SeanConnolly, who lives in suburban Winnetka. The open floor plan of the office will help promote the values that the company'strying to embrace as it becomes leaner and more performance-oriented, Connolly said in an interview Thursday.

"We've already been behaving in a way that's more entrepreneurial, more collaborative and more innovative," Connolly said."What the physical space does is help facilitate the culture you're looking for."

As of Monday, ConAgra had about 500 employees in its new 170,000-square-foot office space on the 13th floor of the Mart andthere's room to grow. When ConAgra announced the move, the company projected its head count would be about 700, withmost of jobs being relocated from offices in Omaha and Naperville. But since then, ConAgra has announced divestitures thataffected staffing levels and fewer people than expected wanted to make the move from Omaha.

But Connolly said the company's expecting the number of employees at the Chicago office to grow in the coming year. Morethan 100 positions will be filled from Chicago-area candidates, he said.

"When you move headquarters, you're going to have some departures from people who don't want to make the move," Connollysaid.

The new headquarters has 52 conference rooms and 25 open meeting spaces. Every work station has sit-stand desks. There areno offices on the perimeter; the executive team is in the "middle of the floor" along with everyone else, Connolly said. Similaroffice changes are underway in Omaha, where more than 1,000 employees remain, he said.

ConAgra's next big transformation will be splitting from its frozen-potato business, a spinoff that's expected to be completedthis fall. Once that's done, ConAgra Foods will be rebranded as Conagra Brands, and the spun-off business will be known asLamb Weston.

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5 DEMOGRAPHICS

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

FOR SALE | SFR PORTFOLIO

CHICAGO 429 SFR PORTFOLIOCHICAGO, IL

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4848

Dominant Tapestry Map

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All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Tapestry LifeMode

** 84% of the Portfolio is located in an areacharacterized by LifeMode L12: Hometown in theSegment 12A/Family Foundations. See following pagesfor the socioeconomic and demographic compositionof this segment.

Source: ESRI, 2016

L1: Affluent Estates

L2: Upscale Avenues

L3: Uptown Individuals

L4: Family Landscapes

L5: GenXurban

L6: Cozy Country

L7: Ethnic Enclaves

L8: Middle Ground

L9: Senior Styles

L10: Rustic Outposts

L11: Midtown Singles

**L12: Hometown

L13: Next Wave

L14: Scholars and Patriots

L15: Unclassified

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4949All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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5050All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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5151All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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6 ABOUT SVN®

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

FOR SALE | SFR PORTFOLIO

CHICAGO 429 SFR PORTFOLIOCHICAGO, IL

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5353All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SVN | TJF Overview

• Closed $28M in SFR Portfolios YTD

• Exclusively marketing over $100M in

SFR Portfolios in 6 markets

• National platform for SFR Portfolio

sales

200OFFICES

$2.35BMULTI-FAMILY SALES IN 2015

500+MARKETS

Specialty Areas

Local Expertise

• Single Family Rental Portfolios (SFRs)

• Multifamily/Apartments

• Senior Housing

• Multifamily Land

• Joint Venture Raise

• Multifamily

• Assisted Living

• Development

• Multifamily

• Assisted Living

• Single Family Rental

6,000+CLIENTS

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54All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

2015 Transaction Volume and Production Type

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TRANSACTIONVOLUME

UNITED STATES NATIONAL DISTRIBUTION*

PRODUCT TYPENATIONAL DISTRIBUTION BY PRODUCT VOLUME*

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Angel FloresAdvisorSVN | TJF Investments

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Angel began his real estate career in 2010 with the purchase of several single family rental homes.Multifamily investing was the next logical step and in 2014 he and his investment group purchased asmall apartment complex in Irving, TX. Shortly after, he raised capital and grew his multifamilyportfolio by purchasing his second apartment complex.

With 10 years of corporate sales experience in Fortune 500 companies, Angel gained invaluableconsultative sales skills and became a trusted advisor to his clients. Angel joined the SVNMultifamily Team in Dallas during March of 2016 to advise investors about their multifamily andcommercial real estate. Angel brings years of investment, ownership, and management experienceto the team. He understands the difficult decisions owners face during the portfolio’s cycle ofownership. Through deep analysis of the asset and tracking the trending market data, Angel will beable to advise them when selling to maximize their profits.

License #: 669899Phone: 972.232.2325Fax: 214.206.9616E-mail: [email protected]: 6320 LBJ Frwy.

Suite 228Dallas, TX 75240

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Shan ZaidiAdvisorSVN | TJF Investments

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Shan began his real estate career in 2011, when he purchased his first rental property in Dallas.Before becoming a Commercial Broker, he worked in the water industry overseeing financialreporting and investor relations. Shan honed his real estate skills negotiating complex water rightsacquisitions and dispositions in Texas, the Ozarks and the Appalachian Mountains. Previously, Shanworked as a management consultant at Alvarez & Marsal providing strategy and operationssolutions to private equity portfolio companies and at Hitachi Consulting advising Fortune 500companies on technology strategy. While working as a consultant Shan earned his MBA from theUniversity of Texas at Austin. Additionally, Shan holds a Master of Science in Operations Researchand Bachelors degrees in Economics, Finance and Engineering from Southern Methodist Universitywhere he was a National Merit Scholar. At SMU Shan received a distinguished community serviceaward and was chosen to attend the Leadershape program.

Volunteer work includes: Work with the One Society, a charity that supports Children’s MedicalCenter, coordination of initiatives at the Bridge shelter and the Family Place and participation onseveral projects for Habit for Humanity and Hearts and Hammers. Shan has also served as anadvisor for the SMU chapter of Alpha Phi Omega, America’s largest community service fraternity.

License #: 671728Phone: 972.402.5595Fax: 214.206.9616E-mail: [email protected]: 6320 LBJ Frwy.

Suite 228Dallas, TX 75240

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Paul YazbeckVice President | Investment SalesSVN | TJF Investments

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Paul specializes in the representation of multifamily owners in Texas and Oklahoma, Single FamilyRental (SFR) portfolios throughout the United States, and land. Year-to-date 2016, he is the TopProducer at TJF Investments, 2nd ranked SVN Broker in the Southwest Region, and the 16th HighestProducing Broker of over 1,400 SVN Brokers worldwide.

Paul began his career in real estate in 2006, when he was an Army Officer stationed at Fort Hoodand began buying foreclosed SFRs. He continues to manage his portfolio in Dallas and the FortHood MSA and has experience with foreclosure and tax lien auctions. He was a ManagementAssociate with Citibank where he was hired after completing his MBA. During the great recession, heworked at the FDIC while getting his MBA and managed 75 loan sales nationwide with book valuesup to $600M. Paul left the Army as a Captain after serving 27 months in Baghdad, Iraq and wasawarded the Bronze Star Medal for his service in Iraq during his second deployment. He has his MBAfrom the University of Texas at Austin and has an undergraduate degree in finance from CU-Boulderwhere he attended on an Army ROTC scholarship.

He has served as a panelist sharing his expertise on Single Family Rental (SFR) portfolio dispositionsat conferences hosted by both IMN and Five Star.

Volunteer work includes: Dallas County Junior Board member for Big Brother Big Sisters (BBBS),working with the Rosedale Group to provide housing assistance to local Veterans, and is a regulardonor with Carter Bloodcare..

License #: 633488Phone: 972.916.9045Fax: 214.206.9616E-mail: [email protected]: 6320 LBJ Frwy.

Suite 228Dallas, TX 75240

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Todd Franks, CCIMManaging DirectorSVN | TJF Investments

All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Todd’s career in commercial real estate brokerage began in 2000 by specializing in therepresentation of multi-family Sellers. Over the past 16 years, Todd has facilitated the development,redevelopment, disposition, acquisition and repositioning of hundreds of A, B, and C – Class multi-family and commercial assets (totaling more than $750,000,000), in the Dallas/Fort Worth marketas well as secondary and tertiary markets across North Texas and Oklahoma. When Todd left hisprevious brokerage firm in March 2014, he was acknowledged as the all-time top producer. Shortlyafter, Todd opened his own SVN office in Dallas, TX and is now recognized as one of the top fiveadvisors in the world (SVN 2015). His list of clients includes: Trammel Crow ResidentialDevelopment, Highland Capital, CW Capital, LNR Partners, C-III, Midland Loan Services, Orix CapitalMarkets, Imperial Bank, City National Bank, La Jolla Bank as well as numerous lenders, servicers,institutions, family offices, partnerships and individual owners.

Todd is regularly interviewed and featured in local and national commercial real estate publicationssuch as “The New York Times,” “The Dallas Morning News,” “Dallas Business Journal,” “Globe Street”and “Bisnow.” He has also served as an expert witness in trials that require multi-family andfinancing expertise. In 2011, Todd became the youngest founder in the acquisition of “Texas RepublicBank” which has matured from $22,000,000 to now over $160,000,000 in assets.

Related volunteer work included: Former Chairman of the Board for the Vickery Meadows EconomicDevelopment Division, former Board of Directors for the Vickery Meadows Public ImprovementDistrict and former Board of the Multi-family Property Standards Committee.

License #: 479935Phone: 972.916.9397Fax: 214.206.9616E-mail: [email protected]: 6320 LBJ Frwy.

Suite 228Dallas, TX 75240

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59All SVN® Offices Independently Owned and OperatedThe information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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Please also visit us on our website at http://www.svn-tjf.com