NET LEASE INVESTMENT OFFERING. CHESTERBROOK ACADEMY (Leasehold With Land Purchase Option) 750 South 5th Street Oswego, IL (Chicago MSA)

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1 CHESTERBROOK ACADEMY (Leasehold With Land Purchase Option) 750 South 5th Street Oswego, IL (Chicago MSA)

2 TABLE OF CONTENTS TABLE OF CONTENTS I. Executive Profile Executive Summary Investment Highlights Property Overview Ground Lease Overview II. Location Overview Photographs Aerial Site Plan Maps III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview

3 DISCLAIMER STATEMENT DISCLAIMER STATEMENT: The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

4 EXECUTIVE SUMMARY EXECUTIVE SUMMARY: The Boulder Group is pleased to exclusively market for sale a single tenant Chesterbrook Academy leasehold property located in the Chicago MSA. This unique leasehold opportunity allows the lessee of the ground lease to purchase the ground at fair market value for a six month period beginning in February The surrounding area features a significant concentration of young families with a population of children aged four and younger that is 40% greater than the national average living within a one mile radius. There are eight years remaining on the Chesterbrook Academy lease which expires on July 31, The lease features rental escalations every five years throughout the primary term and renewal option periods. Chesterbrook Academy has 13 childcare centers throughout the Chicago MSA. The 10,938 square foot Chesterbrook Academy is strategically located just south of the signalized intersection of US Highway 34 and Fifth Street. US Highway 34 is the primary thoroughfare in the trade area and experiences traffic counts of 30,000 vehicles per day. The property is benefitted by its location within a primary retail destination which features Walmart, Target, Home Depot, Meijer, TJ Maxx, Best Buy, Dick s Sporting Goods, Best Buy, Hobby Lobby, Aldi and others. The surrounding area is affluent with average annual household incomes within a one mile radius in excess of $106,000. There are over 80,000 people living within a three mile radius of the property. Chesterbrook Academy is part of the Nobel Learning Communities which is a network of over 180 private schools in 19 states and the District of Columbia. Chesterbrook Academy has schools in Illinois, Florida, Maryland, North Carolina, New Jersey, Pennsylvania, South Carolina and Virginia.

5 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS: Located within the Chicago MSA Rental escalations every five years throughout the primary term and renewal option periods (next escalation in June 2019) Affluent area with average household incomes within a one mile radius in excess of $106,000 Option to purchase the ground beginning in February 2019 at fair market value 9.1% of the population is age four and younger which is significantly higher than the national average of 6.5% Over 80,000 people living within a three mile radius Vibrant retail destination which features Walmart, Target, Home Depot, Meijer, TJ Maxx, Best Buy, Dick s Sporting Goods, Best Buy, Hobby Lobby and Aldi Positioned just off of US Highway 34 which is a primary thoroughfare in the trade area (30,000 VPD) Tenant is part of a network of 180 private schools with 13 in the Chicago MSA

6 PROPERTY OVERVIEW PROPERTY OVERVIEW: Price: $2,261,493 Cap Rate: 8.10% Net Operating Income: $183,181 (Net of Ground Rent Payment) Rental Escalations: Lesser of 10% or CPI Every 5 Years Rent Commencement Date: August 1, 2009 Lease Expiration Date: July 31, 2024 Renewal Options: Three 5-Year Tenant: Nobel Learning Communities, Inc. D/B/A Chesterbrook Academy Year Built: 2009 Lease Type: NN (Roof & Structure) Building Size: 10,938 SF Land Size: 86,200 SF GROUND LEASE OVER- Ground Rent Lease Expiration: May 31, 2024 Ground Rent: $93,501* Ground Rent Options: Ground Rent Escalations: Ground Purchase Option: Three 5-Year Followed by Two 15-Year 10% Every Five Years There is the option to purchase the land between the February 2019 and July 2019 at a Fair Market Value. Fair Market Value to be determined by selected appraisers. *Chesterbrook Academy pays the ground rent.

7 PHOTOGRAPHS

8 AERIAL US Highway 34-30,000 VPD F I F T H S T R E E T Oswego East High Schools W O L F S C R O S S I N G R O A D

9 SITE PLAN F I F T H S T R E E T

10 MAPS

11 MAPS

12 DEMOGRAPHIC REPORT DEMOGRAPHIC REPORT: Population 1-Mile 3-Mile 5-Mile Total Population 8,321 80, ,713 Total Households 2,831 25,787 67,055 Income 1-Mile 3-Mile 5-Mile Median Household Income $101,086 $75,865 $73,706 Average Household Income $106,484 $90,436 $92,821

13 MARKET OVERVIEW MARKET OVERVIEW: Oswego is a village in Kendall County, Illinois that as of the 2010 census had a population of 30,355. The population has more than doubled since the 2000 census. Oswego is the largest municipality located within Kendall County. Oswego is located approximately 45 miles southwest from downtown Chicago. The community is striving to keep its small town character and it remains a great place to raise a family. Many new residents cite the high quality schools as the reason they moved to Oswego. Community Unit District 308 has an excellent reputation in the Chicagoland area and has maintained its high standards, even as enrollment has increased. Oswego is also home to a large Caterpillar plant. Chicago is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonald s, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O Hare International Airport is the second busiest airport in the world in terms of traffic movement. The metro is a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness.

14 TENANT OVERVIEW TENANT OVERVIEW: Chesterbrook Academy is part of the Nobel Learning Communities which is a network of more than 180 private schools in 19 states and the District of Columbia. Chesterbrook Academy has schools in Illinois, Florida, Maryland, North Carolina, New Jersey, Pennsylvania, South Carolina and Virginia. Nobel Learning Communities also operates Laurel Springs School, an accredited private online school, offering challenging programs for students in kindergarten through twelfth grade. Chesterbrook Academy schools around the country are all supported by the Nobel Learning Communities Education Department, a team of highly skilled experts in curriculum design, instruction and assessment. Nobel Learning Communities preschools provide the developmentally appropriate balance of learning and play to prepare children for kindergarten and beyond. Website: Locations: 180 Chicagoland Locations: 13 Parent Company: Nobel Learning Communities

15 Randy Blankstein President Jimmy Goodman Partner Dundee Road, Suite 1801 Northbrook, IL