Sealed-Bid/Live-Cry Auction     

of         

Prominent River North, Triple-Net-Lease Building      

at         
620 North LaSalle Street, Chicago, Illinois     

Auction Information

This sale will be conducted as a Sealed Bid/Live-cry Auction event. Participants will submit sealed bids under the terms of the sale and on the contract provided in the Property Information Package. At its sole discretion, the Seller will accept the highest bid or select a number of highest and best bidders eligible to participate in the live-cry auction which will immediately follow the opening of the sealed bids. Seller reserves the right to reject all offers

Auction Date, Time And Place

Wednesday, June 11, 1997
Sealed Bids must be tendered between 11:00am and 12:00 noon CDT Live-cry Auction: 1:00pm CDT
O'Hare Plaza
8725 W. Higgins Road, 8th Floor
Chicago, Illinois

Sealed bids will be received by David Kaufman & Company registrars and the outcry auction held at the above location.

O'Hare Plaza is located just west of the Marriott O'Hare which offers free shuttle service to and from O'Hare International Airport.

Property Inspection Dates

Please meet Mr. Robert Miller or Mr. David Kaufman on the first floor in the entrance to the 620 N. LaSalle Street Sportmart Building.

Additionally, you may inspect the property by scheduling an appointment for a private tour, with a minimum of 48 hours notice. Please do not disturb the tenant.

Auction Location Map

Take I-90 to Cumberland Rd., north exit. Go left (west) on Higgins Rd. to O'Hare Plaza, 8725 West Higgins Rd.

Property Information

Location:

The property is located on the southwest corner of LaSalle and Ontario Streets in the River North area of Chicago, Illinois. The property address is 620 North LaSalle Street and 149-155 West Ontario Street as classified by the City of Chicago assessors office. The parcel identification number is 17-09-231-08 through 17-09-231-012.

Average Daily Traffic Counts per 24-hour weekday period (last taken in 1994) are 33,300 traveling north/south along LaSalle Street, and 31,200 traveling westbound along Ontario Street. (IDOT adds approximately 3% per year increases.) Ontario Street runs one-way westbound and is a major artery when exiting the city towards north- and southbound Interstate 90/94.

Located in the thriving River North area, one of the city's newest, most exciting and most highly-trafficked commerce/restau-rant/entertainment centers, the property is surrounded by a desirable mixture of retail and tourist attractions such as the Rock & Roll McDonalds, Planet Hollywood, Rainforest Cafe, Hard Rock Cafe, Ed Debevic's, and Michael Jordan's Restaurant.

A complete Demographics Report can be found in the Property Information Package.

Zoning:

The property is located in a B7-5 (General Central Business District). Details on permitted uses can be found in the Property Information Package.

Site Descriptions:

The site of the property is an approximate 14,545-square-foot, rectangular-shaped lot which includes a paved area of 5,000 square feet utilized by the tenant, Sportmart, for customer parking. The parking lot fronts Ontario Street and has alternative access via a back alley running east/west between LaSalle and Wells Streets along the south side of the building.

Improvement Descriptions:

The property consists of an eight story 70,000+ square-foot building with a 9,511-square-foot basement. A portion of the basement is currently utilized as the utility room, and the remainder is used by the tenant as storage. The building was constructed circa 1920.

Tenant:

The building is 100% triple-net leased and occupied by Sportmart, Inc. a full-line sporting goods retailer who is publicly traded on the NASDAQ under SPMT and who has a net worth in excess of $70 Million.

Sportmart's lease of 620 N. LaSalle Street, Chicago, IL commenced on 2/1/94 and expires on 1/31/2004. Sportmart has two five-year lease renewal options and one three-year renewal option. The tenant is responsible for all costs and maintenance (triple-net, bond-type lease). A rent increase occurs during the lease year 1999 and a percentage rent commences in the first year of the second renewal option. Sportmart's 1996 annual sales were in excess of $514 million. The landlord receives additional revenue from the exterior vendor signs on the building.

Sportmart currently operates 59 stores nationwide and 15 in the greater Chicagoland area. The Sportmart located at 620 N. LaSalle Street is considered to be their premier store in the country.*

A more detailed description of the property's income schedule, Sportmart's lease and a copy of Sportmart's 1995 Annual Report can be found in the Property Information Package.

Property Financial Information:

Rental Income 2/1/94 - 1/31/99 $600,000.00 per year 2/1/99 - 1/31/04 $666,000.00 per year Signage Revenue 1996 $6,399.80

Directions To The Property

From O'Hare: I-190 east to I-90 east (staying on I-90 as it merges with I-94) to Ohio Street exit traveling east to LaSalle Street. Turn left traveling north to the property (one block up on the left) at the southwest corner of Ontario and LaSalle Streets.

From the Kennedy Expressway: Exit the Kennedy (I-90/94) at Ohio Street traveling east to LaSalle Street. Turn left traveling north to the property (one block up on the left) at the southwest corner of Ontario and LaSalle Streets.

From Lake Shore Drive: Exit Lake Shore Drive at Grand Avenue traveling west to LaSalle Street. Turn right traveling north to the property (two blocks up on the left) at the southwest corner of LaSalle and Ontario Streets.

Property Information Package

Property Information Packages are available for a fee of $40 each (refundable upon submitting a bid). The package includes the real estate sale contract, bidding instructions, plat of survey, rent roll, the lease, environmental report, engineering report, title commitment, and other pertinent information for the sale. Property Information Packages may also be purchased at any scheduled property inspection.

Terms Of Sale

Introduction

This property will be offered through a Sealed Bid/Live-cry Auction sale on Wednesday, June 11, 1997 Complete instructions for participation can be found in the Property Information Package.

David Kaufman & Company represents national financial institutions, corporations, private investors and governmental agencies and assists them in selling their real estate through Negotiated Sales, Sealed Bid Sales and Live Cry Auctions. Extensive consideration has been given to which method should be employed to sell this property. We hope you enjoy participating and are successful in acquiring this property.

Realtor® Participation

Realtor® participation is welcome, and a 1% (one percent) commission will be paid to the licensed Realtor® procuring the purchaser who pays and closes the purchase of the property. Realtor® must sign in with their prospect at one of the property inspections and register their prospect, in writing on company stationery with David Kaufman & Company, Sportmart Realtor® Registration, 8725 W. Higgins Road, Suite 820, Chicago, Illinois 60631, Fax number 773/693-3206 by Tuesday, June 3, 1997 at 4:00pm and attend the auction and sign in with their prospect. A complete registration file on all prospects will be maintained by David Kaufman & Company. No Realtor® will be recognized on a prospect who has previously contacted or been contacted by David Kaufman & Company. Commission will be paid to a participating Realtor® only when the sale has closed and commissions have been received. No commission will be paid to any Realtor® participating in the purchase as a principal and an affidavit will be required that the Realtor® is serving only as Broker

.

Buyer's Premium

A 1% Buyer's Premium will be added to the accepted high bid amount. High bid amount plus Buyer's Premium will equal purchase price.

Disclaimer

This property is being sold "As-Is, Where-Is" without warranty or guarantee of any kind except as may be otherwise expressly contained in the real estate sale contract. While information has been obtained from sources deemed reliable, no responsibility or liability is assumed for errors and/or conclusions of any kind whatsoever. Property may be withdrawn from sale without notice, and seller reserves the right to waive any formality of the sale process or reject any bid for any reason.

Earnest Money Deposits

Each Bidder shall tender, along with its sealed bid, initial earnest money in the amount of 2% of the bid price offered. Initial earnest money must be in the form of certified or cashier's check made payable to the bidder. Immediately upon the conclusion of the bidding, the successful bidder will endorse the initial earnest money check over to the escrow agent. This initial earnest money deposit will immediately be raised to 7% of the purchase price (non-certified funds are acceptable for the increased portion).

All earnest money deposits made by the purchaser shall be subject to the terms of the Real Estate Sale Contract and the terms and conditions of sale contained in the Property Information Package.

Closing

The successful bidder and the Seller will complete the execution of the Real Estate Sale Contract and the Joint Order Escrow immediately upon conclusion of the bidding. Purchase must close within 60 days. Sale is not contingent upon any third-party financing and closing will not be extended for that purpose.

Although information has been obtained from sources deemed reliable, the seller, the broker, the auctioneer and/or their representatives make no guarantee as to the accuracy of the information contained herein, and offer the property without expressed or implied warranty of any kind. All information is subject to verification and no liability for errors or omissions is assumed. Property may be withdrawn without notice.