Fulton West Ace Hotel Chicago

1330 W Fulton 311 N Morgan

2017 Development Highlights

> In 2017, Sterling Bay (SB) continued to transform the neighborhoods of Chicago with its developments. SB completed three
major projects during the year: Fulton West, a 293,000 SF office/retail building, the new 159-room Ace Hotel, and renovated
178-room Talbott Hotel. SB and its projects continue to lead the industry in vision, quality and a commitment to creating office,
retail and hospitality destinations where Chicagoans can work, live and play.
Fulton West | 1330 W Fulton
> I n 2014, SB purchased an existing parking garage and the unfinished MarchFirst core at 1330 W Fulton. SB and Gensler
designed a nine-story 293,000 SF modern office/retail building with an enlarged parking garage and a 20,000 SF of green
space. SB faced challenges during the Fulton West project including assessing and retrofitting the existing structure as well
as lapsed zoning.
> S
 B attracted tenants quickly, signing leases with Skender, Glassdoor, ClimateCorp and Dyson. Leases for the 17,000 SF retail
level are currently in negotiation. As of 12/31/17, the property was 80% leased.
> F
 ulton West created over 250 construction jobs and 1,500 permanent jobs. Community benefits include eliminating an
abandoned construction site, improving the streetscape, offering public parking and creating an office/retail destination that
will act as an economic driver for the neighborhood. The total project cost was $120 million.
Ace Hotel Chicago | 311 N Morgan
> In 2014, SB purchased two industrial buildings located at 311 N Morgan to meet a requirement of its tenant Google to develop
a nearby hotel. SB came to an agreement with Ace Hotel and hired GREC Architects to design a new construction part seven-
and part four-story building for the 159-room hotel.SB faced challenges during the Ace project, including a zoning change and
preserving a historic façade. An underground storage tank (UST) was discovered during construction, stopping work to remove
it and remediate the site.
>R
 estaurant City Mouse agreed to handle all F&B needs, while SB’s leasing team signed a lease with Stumptown Coffee for
2,800 SF. A lease is currently being finalized for the final 3,800 SF. As of 12/31/17, the hotel was in full operation and 42%
of the retail was leased.
>T
 he Ace development created over 150 construction jobs and the hotel employs 215 people. Community benefits include
eliminating dilapidated buildings, improving the streetscape and creating a neighborhood destination. The total project cost
was $73 million.
> In 2018, Fulton West and Ace Hotel were awarded Redevelopment of the Year and Development of the Year by the Greater
Chicago Food Depository, respectively.
Sterling Bay’s tenants include:

STARBUCKS TRUE LOGOS. GENERATED BY CHI NGUYEN (CHISAGITTA)

 Our Platform Highlights1
>S
 terling Bay is a fully-integrated, owner/operator real estate
In the last decade alone, Sterling Bay has:
company that pioneered the urban model of innovation
districts anchored by top companies in Chicago
> Acquired 56 properties, totaling $3.4 billion

> sterlingbay.com
> Sold $835 million of assets
> Generated top-quartile returns for Fund I
>H
 igh profile projects include regional, national and
global corporate headquarters for tenants such as: > Currently $2.8 billion assets under management

STARBUCKS TRUE LOGOS. GENERATED BY CHI NGUYEN (CHISAGITTA)

Track Record2
> Sterling Bay and its institutional joint venture partners have invested $1 billion of equity in 56 properties
> Since 2008, 12 investments have been realized, generating a 66% gross/47% net IRR with a 2.6x gross/2.1x net equity multiple

1KFulton 110N Carpenter

Google’s Midwest Headquarters McDonald’s Global Headquarters

Management Team
> Highly experienced team of four investment and development professionals that have worked together since 2012
on build-to-suit and mixed-use properties

Andy Gloor >D irects all the firm’s operations, development John Gavin >F ocuses on sourcing new investments and institutional
Managing Principal and investment activity Principal capital relationships
> 24 years of diverse real estate experience > 23 years of diverse real estate experience

Keating Crown >F ocuses on acquisitions, development and Chang Lee >F ocuses on sourcing investments, asset management
Principal strategic capital pursuits and investor relations Principal and capital markets activity
> 16 years of diverse real estate experience > 23 years of diverse real estate experience

AS OF Q32017