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

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Page 1: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

Executive Summary

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

Page 2: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

INVESTMENT OVERVIEWHolliday Fenoglio Fowler, L.P. (“HFF”) is pleased to present One Parkway North (the “Property” or

“One Parkway”), a rare opportunity for investors to acquire a core asset in Chicago’s prestigious

North Shore. One Parkway North is a 273,934 rentable square foot (“RSF”), five-story Class A

building that is the cornerstone of the Parkway North Center office campus, one of Chicago’s

premier office campuses. The Property serves as the global headquarters for Essendant

(NASDAQ: ESND, 72.5% of the GLA), a Fortune 500 company with 2016 revenues of $5.4 billion.

Essendant recently recommitted to the Property by extending their lease through October 2027,

with over 10 years remaining, which contributes to the Property’s overall weighted average

lease term of 9.2 years.

Located adjacent to the Tri-State Tollway, the Property enjoys excellent visibility and access to the

surrounding North Shore as well as the CBD and greater Chicago metropolitan area. The asset’s

proximity to decision makers in the North Shore and easy access to Chicago’s vast labor pool

in the North and West, coupled with Lake County’s low taxes, create the perfect environment

for a corporate headquarters location, evidenced by Caterpillar’s recent announcement of their

headquarter relocation to Deerfield. Including Caterpillar, of the 34 Fortune 500 companies

that are headquartered in the Chicago area, 24 of them are located in the suburbs, and 16 are

located in the North Suburban submarket, specifically Abbott Laboratories, Abbvie, Allstate,

Anixter, Baxter, Caterpillar, CDW, Discover Financial, Essendant, Illinois Tool Works, Mondelez

International, Packaging Corp of America, Tenneco, W.W. Grainger and Walgreens. In addition,

One Parkway North is located proximate to a number of other corporate headquarters such as

AonHewitt, Astellas, Caremark, Hospira, and Takeda Pharmaceuticals.

One Parkway North provides the opportunity for an investor to acquire a core Class A office

asset with a highly secure income stream in a strategic corporate headquarter location in

Chicago’s prestigious North Shore.

2

Page 3: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

KEY INVESTMENT HIGHLIGHTS

A n c h o r Te n a n t a n d G u a r a n t e e d I n c o m e S t a b i l i t y Anchor tenant, Fortune 500 company Essendant, Inc. (formerly known as United Stationers) with revenues of $5.4 billion in 2016, leases 198,730 RSF (72.5% of the gross building area) and recently renewed their lease for an additional 11 year term through October 2027 with no termination option. Long term cash flow is guaranteed as the Property’s weighted average lease term is an impressively high 9.2 years.

Up s i d e w i t h C o m p e t i t i v e B a s i s a t S u b s t a n t i a l D i s c o u n t t o Re p l a c e m e n t C o s tThe lack of new supply in the North Suburban submarket will provide One Parkway North significant room for rents to continue improving in the near future. Built to the highest standard of Class A office developments, One Parkway’s replacement cost today would be in excess of $360 per rentable square foot requiring net rents of $33.00 per rentable square foot (60% above the current market rent for the Property).

O n e - o f - a - K i n d L o c a t i o n One Parkway North provides direct access to the Tri-State and Edens Expressway, along with tremendous visibility to the 155,000 vehicles passing the Property on a daily basis providing tremendous signage opportunities. In addition, the Property is proximate to two (2) Metra stations, connecting One Parkway to the surrounding suburbs, the Chicago CBD, O’Hare International Airport, and two other regional airports.

N o r t h S u b u r b a n S u b m a r ke t a n d L a ke C o u n t y A d d r e s sThe North Suburban submarket routinely outperforms the surrounding areas in occupancy rate, net rents and leasing velocity due to the area’s reputation as Chicago’s premier office market and the premier destination for corporate headquarters and biotech companies. The Lake County address is of further appeal because of the lower tax rates compared to Cook County. Caterpillar, a Fortune 500 (#59) company, recently announced the relocation of their corporate headquarters to approximately 100,000 RSF to Deerfield, which is indicative of the area’s appeal.

P a r kw a y N o r t h C e n t e r : B e s t- i n - C l a s s O f f i c e P a r kOne Parkway North is part of the master-planned, TOBY award-winning office campus known as Parkway North Center. The campus features a Marriott Suites hotel, Bright Horizons daycare center, state-of-the-art LifeStart fitness center, three Pace bus stops, three on-site dining options, Starbucks kiosk, and an adjacent luxury apartment community. The desirability of the office campus is evidenced by the tenant roster, which includes the headquarters of Fortune 500 company Mondelez, CF Industries, Walgreens, GCG Financial, Aerotek, Meridian Group and many others.

I m m e d i a t e A c c e s s t o C l a s s A A m e n i t i e sOne Parkway North benefits from an on-site food service, heated executive parking, a newly renovated atrium, and brand new in-building fitness center. Within a 5 to 10 minute drive of the Property, there are over 50 restaurants, 8 hotels, 11 banks, 9 retail/shopping centers (including Northbrook Court), a Whole Foods and 2 Metra Stations. This vibrant atmosphere leads to strong tenant retention at One Parkway North.

I n s t i t u t i o n a l l y Ma i n t a i n e d t h r o u g h E x t e n s i v e C a p i t a l I m p r o v e m e n tCurrent ownership recently completed a fitness center and renovated the building atrium and on-site food service, in addition to several building upgrades performed in the last year. The total cost of capital improvements completed since acquisition in 2015 (inclusive of the anticipated cost of a BAS capital project) is equal to $3.9 million.

S k i l l e d L a b o r P o o l a n d N o r t h S h o r e L o c a t i o nOne Parkway North’s access to a deep labor pool in the surrounding areas is another advantage of the Property’s North Shore location. Within one mile of One Parkway, 75.4% of residents have obtained a Bachelor’s degree or higher, the average annual household income is $228,860 and the median housing value is $597,054. Many decision makers and executives live in the surrounding areas which is another reason why corporate businesses want to be in this submarket.

KEY PROPERTY STATISTICS

BUILDING ADDRESS One Parkway North Blvd, Deerfield, IL

RENTABLE AREA 273,934 RSF

LAND SITE 11.22 acres (488,743 SF)

PERCENT LEASED 92.7%

STORIES 5

DATE COMPLETED/RENOVATED 1988 / 2016

TYPICAL FLOOR PLATE 57,000 RSF

PARKING 934 SPACES (3.64 / 1,000 RSF)

WEIGHTED AVERAGE LEASE TERM 9.2 Years

3

Page 4: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

Summary of Primary Tenants Leased SF % Share (1) Current Net Rent/RSF Current Market Rent/RSF % Above / Below Market Expires Remaining Term Credit Rating (2)

ESSENDANT 198,730 72.5% $18.00 $19.00 -5.26% Oct-27 10.2 yrs NA

FRIEDMAN CORPORATION 15,687 5.7% $18.29 $19.00 -3.74% Apr-20 2.7 yrs Fitch: BBB-

AJILON PROFESSIONAL STAFFING 6,257 2.3% $19.00 $19.00 0.00% Feb-24 6.5 yrs S&P: BBB+; Moody's: Baa1

RIGHT MANAGEMENT 4,458 1.6% $19.67 $19.00 3.53% Sep-18 1.1 yrs S&P: BBB; Moody's: Baa1

ORTHONET SERVICES 3,238 1.2% $19.14 $19.00 0.74% Aug-18 1.0 yrs NA

HENKEL CORPORATION (3) 3,210 1.2% $19.00 $19.00 0.00% Feb-23 5.4 yrs S&P/Fitch: A; Moody’s: A2

BDM INVESTMENTS 1,578 0.6% $19.10 $19.00 0.53% Oct-20 3.2 yrs NA

TOTAL / WEIGHTED AVERAGE LEASE TERM 233,158 85.1% -4.66% 9.2 yrs

(1) % Share is based on Future BOMA Building Siize of 273,934 RSF.(2) Credit Ratings for Friedman, Right Management and Henkel Corporation are reflective of their respective parent companies, Constellation Software, ManpowerGroup and Henkel AG & Company, KGaA. Credit rating for Ajilon is reflective of its Guarantor, Adecco.(3) Henkel is in lease for a 65 month term with a targeted commencement date of 10/1/17.

D e d i c a t e d A n c h o r Te n a n t w i t h C r e d i t Q u a l i t y I n c o m e S t a b i l i t y

Essendant (NASDAQ: ESND), the Property’s anchor tenant, is a publicly-traded Fortune 500 company that recently

memorialized their long term commitment to the Property with a lease extension through October 2027. Formerly

known as United Stationers Supply Company, Essendant is a leading national wholesale distributor of workplace

essentials, and has been headquartered at the building since 2005. Essendant leases 198,730 RSF (72.5%

of the gross building area). The tenant has a ROFO on all remaining space in the building and does not have an option

to terminate, creating the ideal environment for Essendant to increase their footprint within the Property. Essendant’s

anchor tenancy will provide significant stabilized cash flow to an investor looking for a core income stream.

4

Page 5: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

I n s t i t u t i o n a l l y Ma i n t a i n e d Th r o u g h E x t e n s i v e C a p i t a l I n v e s t m e n t

The Property has been maintained and managed to the highest institutional standards with current and recent

ownership investing in significant capital projects. To date, ownership has completed $3.6 million of capital

improvements to the building systems and aesthetics, and are in the process of completing a BAS capital

project. Current ownership’s total capital investment, inclusive of the anticipated costs for the BAS project,

is $3.9 million. These capital projects include the installation of a brand-new fitness center, a renovation of

the atrium, improvements to the on-site food service, modernization of elevators, and HVAC upgrades.

In addition, the restrooms on multi-tenant floors have also been upgraded.

Up s i d e w i t h C o m p e t i t i v e B a s i s a t S u b s t a n t i a l

D i s c o u n t t o Re p l a c e m e n t C o s t

The Property provides investors the opportunity to acquire a Class A office building at a substantial discount to

replacement cost, providing a competitive basis for years to come. Built to the highest standard of office developments,

and institutionally owned and maintained, the cost to replicate the asset today in its superior North Shore location

would be in excess of $360 per square foot. New developments would require net rents in excess of $33 per RSF

which is 60% above current market rents for One Parkway. This spread creates the ideal path to rent growth as well

as a hedge against future speculative development.

NET RENTAL RATE COMPARISON

$-

$10.00

$20.00

$30.00

$40.00

One Parkway NorthNewConstruction

NET

REN

TS

$19.00 / RSF

42% 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

5

Page 6: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

ONE PARKWAY NORTH2 -Way

Interchange94

94

Pace Bus Stop

Pace Bus Stop

Pace Bus Stop

Woodview Apartments at Fifteen

Parkway North

Woodview Apartments at Fifteen

Parkway North10 ParkwayNorth

10 ParkwayNorth

9 ParkwayNorth

9 ParkwayNorth

3 ParkwayNorth

3 ParkwayNorth

4 ParkwayNorth

4 ParkwayNorth

6 ParkwayNorth

6 ParkwayNorth

5 ParkwayNorth

5 ParkwayNorth

DEERFIELD ROAD

DEERFIELD ROAD

HAWTHORNE LANE

DOWNTOWN DEERFIELD (6 Minute Drive)

Lake MichiganLake Michigan

27 Miles toChicago CBD

6

Page 7: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

O n e - o f - a - K i n d L o c a t i o n

One Parkway is located in the prestigious North Shore and

benefits from excellent visibility along the Tri-State Tollway

I-94/I-294. This provides tremendous tenant signage identity

as the Tri-State Tollway is one of the busiest highways in the

country with over 155,000 vehicles passing by the Property

on a daily basis. The North Shore is home to Chicago’s most

affluent communities, with executives and decision-makers that

live just a short distance from the Property, while the Tri-State

Tollway provides easy access to Chicago's deep labor pool.

The 3 on-site Pace bus stops connect the Property to an

abundance of public transportation options, including the

Deerfield and Lake Cook Metra Stations, which are only 2 and

3 miles from the Property, respectively. These Metra Stations

connect One Parkway North to the broader North Shore and

the CBD, allowing tenants to attract Chicago's highly educated

millennial work force, without opening offices in the CBD.

The Chicago Executive Airport in Wheeling is only 5 miles from

the Property, while O’Hare International Airport, the second

busiest airport in the world based on air traffic, is 15 miles from

the Property. This ease of access to world class airports is a

must have for the global headquarters tenants that are located

in Parkway North Center and along the Tri-State corridor.

7

Page 8: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

L a ke C o u n t y - L e a d e r o f B i o t e c h C o n c e n t r a t i o n

Lake County has emerged as a leader in the biotech industry, with nearly 12% of the state's biotech companies

located within its limits. Even more impressive is that 37% of the biotech employment in Illinois is in Lake County,

with its companies employing 30,250, compared with the state's total of 81,000. The average annual salary within

the biotech industry is nearly $90,000, more than 45% higher than the overall average in Lake County and more

than twice the national average. There are more than 100 biotech and pharmaceutical companies in Lake County,

including 10 corporate headquarters, with total worldwide sales exceeding $57 billion. Large corporations in Illinois

have been an important source of early-stage funding to biotech startups with companies such as Abbott, Astellas,

Baxter and Takeda significantly increasing venture capital funding in recent years.

ONE PARKWAY NORTH

4 -WayInterchange

2 -WayInterchange

Woodview Apartments at Fifteen

Parkway North

Woodview Apartments at Fifteen

Parkway North

Hyatt HotelHyatt Hotel

10 ParkwayNorth

10 ParkwayNorth

9 ParkwayNorth

9 ParkwayNorth

3 ParkwayNorth

3 ParkwayNorth

4 ParkwayNorth

4 ParkwayNorth

6 ParkwayNorth

6 ParkwayNorth

Baxter Healthcare Headquarters

Baxter Healthcare Headquarters

Takeda HeadquartersTakeda HeadquartersDiscover Financial

HeadquartersDiscover Financial

Headquarters

5 ParkwayNorth

5 ParkwayNorth

DEERFIELD ROAD

HAWTHORNE LANE

LAKE COOK ROAD

SAUNDERS ROAD

27 Miles toChicago CBD

Cook County LineCook County Line

Pace Bus Stop

Pace Bus Stop

Pace Bus Stop7 Parkway

North7 Parkway

North

94

94

9494

294

294294

294

WalgreensHeadquarters

WalgreensHeadquarters

8

Page 9: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

I m m e d i a t e A c c e s s t o C l a s s A A m e n i t i e s

One Parkway North benefits from having a newly renovated 5-story atrium with

a cafeteria and food-service inside the building, as well as the availability of 934

parking spaces, 36 of which are located in the heated, executive parking garage.

The Property also features a 4,270 SF fitness facility on the 1st floor, completed in

the summer of 2016. The adjacent Marriott Suites hotel provides an unbeatable

hospitality option just steps from the Property. Additionally, the Woodview

Apartments at Fifteen Parkway North are directly north of the Property, and offer

a convenient, luxury rental option for One Parkway North’s tenants.

In addition to these on-site amenities, the Property is also proximate to retail

centers that offer a range of dining and shopping options. Restaurants such as

J.Alexander's, Cooper's Hawk Winery, Buca di Beppo, Rosebud and Meritage in the

Mariott, along with fast casual lunch options such as Panera, Subway, Jimmy John's,

and Chipotle are a short drive away from the Property. In addition to the on-site

Marriott Suites hotel, there is also a Hyatt, Embassy Suites, Westin and many other

hotels within the area that provide convenient hospitality for corporate guests. Not

more than 5 miles away from the Property are a plethora of retail offerings, including

Deerbrook Shopping Center and Northbrook Court, which is one of the country’s

most prominent regional shopping malls with 99 stores, a movie theater and several

dining options. Northbrook Court caters to the affluent residents of the North Shore

and includes high-end retailers such as Neiman Marcus, Apple, Louis Vuitton,

Burberry, and Tiffany & Co. Westfield Old Orchard Mall in neighboring Skokie is a

1.8 million square foot complex located only 12 miles from the Property, featuring

over 110 retailers and brands. The shopping center is anchored by Bloomingdale’s,

Lord & Taylor, Macy’s, Nordstrom and Saks Fifth Avenue.

Tri-S

tate

Tollway

CHICAGOEXECUTIVEAIRPORT

Lake Cook Rd

Dundee Rd

Pfingsten Rd

Western Ave

Landwehr Rd

Saunders Rd

Walters Ave

Techny Rd

Willow Rd

Deerfield Rd

Waukegan Rd

Waukegan Rd

Edens Expressway

Edens Spur (Toll Road)

NorthbrookCourt

DeerbrookShopping Center

Future Site:NorthShore770

Greek Feast Leonard's

BakeryOnce Upon

a DeliJake's

Pizzeria

simply thai

Francesco’shole in the wall

Max’s Deli

Next DoorB i s t r o

Charlie Beinlich’sf o o d & t a p

site1000 Skokie Blvd

RT Lounge

Tastes of Chicago

Old Munich Inn

Joe’s PizzeriaPinhead’s Jeffrey Lanes

Golden Chef

First American Bank ATM

294

94

94

94

41

43

6868

21

83

83

21

68

43

94

Parkway Bank & Trust Co

Lake Michigan

4 WayInterchange

2 WayInterchange

ONE PARKWAY NORTH

9

Page 10: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

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 consistently below the suburban average and makes it the premier option for Chicago

area companies. The North Suburban market is the preferred headquarters location for companies in the biotech,

pharmaceutical, advanced manufacturing, financial services and professional services industries, as demonstrated

by Caterpillar’s recent announcement of their headquarter relocation to Deerfield. Of the 34 Fortune 500 corporate

headquarters located in the Chicago area, 24 are located in the suburbs and 16 are located in the North Suburban

market. Many of the Chicago area’s largest employers are currently concentrated in the North Suburban submarket,

including Abbott Laboratories, Abbvie, Allstate, Anixter, Astellas, Baxter, Caremark, CDW, Discover, Essendant,

Hospira, Illinois Tool Works, Mondelez International, Packaging Corp of America, Takeda Pharmaceuticals, Tenneco,

W.W. Grainger and Walgreens. Going forward, the lack of desirable land sites should reduce vacancy rates and

foster significant rent growth in the submarket.

S k i l l e d L a b o r P o o l

One Parkway North is well-positioned to tap the diverse and skilled labor pool clustered in the Greater North Shore

area. Within a one mile radius of the Property, over 75.4% of the population possesses a bachelor’s degree or higher

level of education, and the average household income is $228,860. These are astounding numbers compared to

the State of Illinois as only 32.2% have earned a bachelor’s degree or higher and the average household income

is $84,285. With many executives and professionals calling the area home, the immediate area boasts a median

housing value of $597,054, demonstrating the desirability of the region.

1-MileRadius

3-Mile Radius

5-MileRadius

Lake County Illinois

% Attaining Bachelor's Degree or Higher 75.4% 62.2% 58.4% 43.1% 32.2%

Average Household Income $228,860 $154,561 $141,980 $120,529 $84,285

Median Housing Value $597,054 $486,548 $435,138 $276,478 $193,011

Source: Nielsen

10

Page 11: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

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

ONE PARKWAY NORTH

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,IL

2 Boeing 24 Aerospace & Defense $96,114 Chicago, IL3 Archer Daniels Midland 41 Food Production $67,702 Chicago, IL

■ 4 Caterpillar (1) 59 Construction & Farm Machinery $47,011 Deerfield,IL5 United Continental 80 Airlines $37,864 Chicago, IL

■ 6 Allstate 81 Insurance $35,653 Northbrook, IL■ 7 Mondelez International 94 Food Consumer Products $29,636 Deerfield, IL

8 Exelon 95 Utilities: Gas and Electric $29,447 Chicago, IL9 McDonald's (2) 109 Food Services $25,413 Oak Brook, IL10 Sears 111 General Merchandisers $25,146 Hoffman Estates,IL11 US Foods Holding 122 Wholesalers: Food & Grocery $23,128 Rosemont, IL

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

■ 15 CDW 220 Information Tech. Services $12,989 Lincolnshire, IL16 R.R. Donnelley & Sons 255 Publishing, Printing $11,257 Chicago, IL

17 Navistar International 281 Motor Vehicles and Parts $10,140 Lisle,IL■ 18 Discover Financial Services 283 Commercial Banking $10,002 Riverwoods, IL■ 19 W.W. Grainger 285 Diversified Wholesalers $9,973 Lake Forest, IL■ 20 Baxter International 286 Medical Products & Equip. $9,968 Deerfield, IL

21 Univar 315 Miscellaneous $8,982 Downers Grove, IL■ 22 Tenneco 334 Motor Vehicles and Parts $8,209 Lake Forest, IL

23 LKQ 369 Diversified Wholesalers $7,193 Chicago, IL24 Dover 377 Industrial Machinery $7,029 Downers Grove, IL

■ 25 Anixter International 391 Diversified Wholesalers $6,596 Glenview, IL■ 26 Baxalta 420 Pharmaceuticals $6,149 Bannockburn, IL

27 Jones Lang LaSalle 436 Real Estate $5,966 Chicago, IL28 Old Republic International 442 Insurance $5,766 Chicago, IL

■ 29 Packaging Corp of America 446 Packaging, Containers $5,742 Lake Forest, IL30 Motorola Solutions 451 Network & Commun. Equip. $5,695 Chicago, IL

31 Ingredion 456 Food Production $5,621 Westchester, IL

32 Arthur J Gallagher 471 Diversified Financials $5,392 Itasca, IL■ 33 Essendant 477 Wholesalers: Elect. & Off. Equip. $5,363 Deerfield, IL

34 Telephone & Data Systems 496 Telecommunications $5,176 Chicago, IL

Source: Fortune (2016) Suburban-based Headquarters ■ North Suburban-based Headquarters(1) Caterpillar will relocate to Deerfield in 2018(2) McDonald’s will relocate to downtown Chicago in 2018

CORPORATE HEADQUARTERS

11

Page 12: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

Te n a n t s w a n t t o b e i n P a r kw a y N o r t h C e n t e r

This multi-building, master-planned, TOBY award-winning office campus features six office buildings consisting of

over 1 million square feet which is fully stabilized and over 94% leased, and has earned the reputation of attracting

large, corporate tenants. Several institutional and prominent investors have invested in the Parkway North campus

including GE, Griffin Capital, Blackstone, Wells Real Estate Funds, CBRE Global Investors, and Carr America.

TENANCY

+ Essendant, a Fortune 500 company and the leading national wholesale distributor of essential work place

items, anchors One Parkway in 198,730 square feet.

+ CF Industries is headquartered in the park with approximately 190,000 RSF in Three and Four Parkway

North, having recently expanded and extended their lease for 10 years.

+ To accommodate CF Industries’ expansion, Lundbeck relocated from Four Parkway to approximately 50,000

RSF at Six Parkway in a 10 year lease.

+ Mondelez International, another Fortune 500 company which recently split from Kraft Foods in 2011, is also

headquartered in the park at Three Parkway North in 50,000 square feet.

+ PRA Health Sciences, a spin off of Takeda Pharmaceuticals will soon occupy 50,000 RSF in Three Parkway,

fully stabilizing the building.

+ Walgreens also leases space within the office park for its Walgreens University, in 40,000 square feet in Six

Parkway North.

+ Other major tenants in the park include GCG Financial and Meridian Group.

AMENITIESOne Parkway North’s central location within this office park allows its tenants to benefit from the breadth of amenities

that Parkway North Center has to offer.

+ A full-service Marriott Suites Hotel with 248 hotel suites and 14 meeting rooms, including conference facilities

for tenant-use, and a white-tablecloth restaurant, is located adjacent to One Parkway

+ Five Parkway North, on the west side of the campus, features a LifeStart fitness center and athletic club, along

with a 20,000 RSF Bright Horizons daycare center.

+ The campus features picturesque landscaping with a centralized pond, miles of jogging/walking trails, three

Pace bus stops, a Starbucks kiosk, ATM and three on-site dining options.

+ Woodview Apartments at Fifteen Parkway North, recently purchased by LaSalle Investment Management,

is a luxury apartment community completed in 2015, offering further assurance that the park will remain one

of the premier mixed-use campus destinations in Chicago.

Deerfield Road

Deerfield Road

Saunders RoadSaunders Road

Haw

thor

ne L

ane

Haw

thor

ne L

ane

Deerfield Park District Golf Course

Deerfield Park District Golf Course

10 ParkwayNorth

10 ParkwayNorth

9 ParkwayNorth

9 ParkwayNorth3 Parkway

North3 Parkway

North

4 ParkwayNorth

4 ParkwayNorth

6 ParkwayNorth

6 ParkwayNorth

27 Miles to Chicago CBD

(94/294 Interchange)27 Miles to Chicago CBD

(94/294 Interchange)

Deerfield Road

Deerfield Road

Woodview Apartments at Fifteen

Parkway North

Woodview Apartments at Fifteen

Parkway North

Baxter HealthcareCorporation

Baxter HealthcareCorporation

2 WayInterchange

5 ParkwayNorth

5 ParkwayNorth

ONE PARKWAY NORTH

7 ParkwayNorth

7 ParkwayNorth

12

Page 13: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

ONE PARKWAY NORTH

Deerfield Road

94

94

Parkway North

Parkway North

Saun

ders

Roa

d

Hawthorne LaneDeerrun Drive

ONE PARKWAY

NORTH

Pace Bus Stop

Pace Bus Stop

Pace Bus Stop

10 ParkwayNorth

10 ParkwayNorth9 Parkway

North9 Parkway

North

3 ParkwayNorth

3 ParkwayNorth

4 ParkwayNorth

4 ParkwayNorth

6 ParkwayNorth

6 ParkwayNorth

Woodview Apartments at Fifteen Parkway North

Woodview Apartments at Fifteen Parkway North

5 ParkwayNorth

5 ParkwayNorth

Wintergarden Cafe

Wintergarden Cafe

Meritage Restaurant and Bar

Meritage Restaurant and Bar

Takeda Headquarters,Baxter Healthcare Headquarters, Discover Financial Headquarters

Takeda Headquarters,Baxter Healthcare Headquarters, Discover Financial Headquarters

Walgreens Headquarters

Walgreens Headquarters

CF IndustriesCF Industries Mondelez, GCG Financial

Mondelez, GCG Financial

WalgreeensLundbeck

WalgreeensLundbeck

Meridian GroupAerotek

Meridian GroupAerotek

MarkelMarkel

2 WayInterchange

7 ParkwayNorth

7 ParkwayNorth

S i t e P l a n

13

Page 14: Executive Summary · 2018. 7. 11. · Credit rating for Ajilon is reflective of its Guarantor, Adecco. (3) Henkel is in lease for a 65 month term with a targeted commencement date

©2017 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are 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, funds marketing, M&A and corporate advisory, loan sales and 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 ContactsMark B. KatzSenior Managing [email protected]

Bryan D. RosenbergAssociate [email protected]

Patrick M. ShieldsAssociate [email protected]

Jeffrey M. BramsonSenior Managing Director/Managing [email protected]

Jaime M. FinkSenior Managing [email protected]

Yoonjin ChooReal Estate [email protected]

Debt ContactChristopher S. CarrollManaging [email protected]

Leasing Contacts

Jonathon ConnorVice President – Colliers [email protected]

Steve KlingPrincipal – Colliers [email protected]