31 W Superior St • Duluth, MN 55802 HUNTER BUILDING 31 W Superior St • Duluth, MN 55802

NON-ENDORSEMENT AND DISCLAIMER NOTICE Non-Endorsements Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved. HUNTER BUILDING Duluth, MN ACT ID Y0510485

PRESENTED BY Michael Ahles Senior Associate Member - National Office and Industrial Properties Group Minneapolis Office Tel: (952) 852-9718 Fax: (952) 852-9710 michael.ahles@marcusmillichap.com License: MN 20324981

INVESTMENT OVERVIEW 01 FINANCIAL ANALYSIS 02 MARKET COMPARABLES 03 HUNTER BUILDING TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Property Overview Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 Tenant Summary Lease Expiration Summary Operating Statement Notes Pricing Detail Proposal Price MARKET COMPARABLES 03 Sales Comparables MARKET OVERVIEW 04 Market Analysis Demographic Analysis

HUNTER BUILDING INVESTMENT OVERVIEW

6 HUNTER BUILDING PROPERTY OVERVIEW PROPERTY OVERVIEW The property is being offered below market value at $42/PSF. PROPERTY OVERVIEW Priced below market value. Roof replaced in 2006, and still under warranty. Offered on the market for the first time in 34 years! 6

HUNTER BUILDING REGIONAL MAP

HUNTER BUILDING LOCAL MAP

HUNTER BUILDING AERIAL PHOTO

HUNTER BUILDING PROPERTY PHOTOS

12 HUNTER BUILDING PROPERTY PHOTO Marcus & Millichap is proud to present a piece of Downtown Duluth history. 12

12 HUNTER BUILDING PROPERTY PHOTO Duluth’s Skywalk is an indoor skyway system connecting downtown buildings and businesses together without having to walk outside. 12

12 HUNTER BUILDING PROPERTY HISTORY Duluth’s Skywalk is an indoor skyway system connecting downtown buildings and businesses together without having to walk outside. 12

First Floor Third Floor Second Floor Third Floor (rear) HUNTER BUILDING FLOORPLANS First Floor Third Floor Second Floor Third Floor (rear) Second Floor (rear) 12

HUNTER BUILDING FINANCIAL ANALYSIS

HUNTER BUILDING FINANCIAL ANALYSIS There are a total of 8 tenants that occupy approximately 1/4th of the total space. All are on Month-to Month leases.

HUNTER BUILDING MARKET OVERVIEW

2016 MEDIAN HOUSEHOLD INCOME: HUNTER BUILDING Duluth OVERVIEW The Duluth-Superior metro is located along the north shore of Lake Superior, at the westernmost point of the Great Lakes. The lake as well as nearby state and national parks and forests draw a multitude of visitors to the region for a wide range of outdoor activities. The metro consists of St. Louis and Carlton counties in Minnesota and Douglas County in Wisconsin. Duluth is the most populous city in the region with 196,600 residents and is the seat of St. Louis County. Residents of the city are well educated with nearly 33 percent holding a bachelor’s degree, well above the U.S. level of 29 percent. METRO HIGHLIGHTS TOURIST DESTINATION A variety of natural features as well as the Great Lakes Aquarium, Canal Park, Lake Superior Railroad Museum and the Glensheen Mansion draw visitors. PORTS The combined facilities in Duluth, Minnesota, and nearby Superior, Wisconsin, form the largest port on the Great Lakes, shipping commodities worldwide. The University of Minnesota Duluth, College of St. Scholastica, Lake Superior College, University of Wisconsin-Superior and Wisconsin Indianhead Technical College are all located within the metro. ECONOMY A large tourism industry is underpinned by Lake Superior and the many state and national parks and forests nearby. The region offers an abundance of outdoor activities and is also the gateway to the North Shore and the Boundary Waters Canoe Area. Aviation is a sizable component of the economy. Cirrus Aircraft is headquartered and manufactured in Duluth. Kestrel Aircraft, AAR Corp., Monaco Air, the 148th Air National Guard and the Duluth International Airport also provide jobs in the area. Other major economic drivers include healthcare, manufacturing, data centers and logistics/transportation. DEMOGRAPHICS 2016 POPULATION: 2016 HOUSEHOLDS: 2016 MEDIAN AGE: 2016 MEDIAN HOUSEHOLD INCOME: 280K 117K 40.9 $61,800 Growth 2016-2021*: Growth 2016-2021*: U.S. Median: U.S. Median: 37.7 $57,200 1.5% 2.2% * Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau 1

PROPERTY NAME HUNTER BUILDING DEMOGRAPHICS MARKETING TEAM Created on November 2017 DEMOGRAPHICS MARKETING TEAM POPULATION 1 Miles 3 Miles 5 Miles 2021 Projection Total Population 9,165 47,225 85,415 2016 Estimate 9,233 47,191 85,243 2010 Census 9,170 47,034 85,173 2000 Census 9,488 46,430 84,582 Current Daytime Population 27,313 81,096 122,125 HOUSEHOLDS Total Households 4,855 19,503 35,608 4,853 19,369 35,290 Average (Mean) Household Size 1.78 2.14 2.22 4,856 19,322 35,317 5,026 19,401 35,047 HOUSEHOLDS BY INCOME $200,000 or More 0.63% 2.05% 2.64% $150,000 - $199,999 0.48% 2.38% 2.71% $100,000 - $149,000 3.21% 6.65% 8.62% $75,000 - $99,999 4.44% 8.59% 9.53% $50,000 - $74,999 9.18% 16.16% 18.57% $35,000 - $49,999 11.99% 13.80% 14.18% $25,000 - $34,999 13.45% 12.35% 11.28% $15,000 - $24,999 19.53% 15.71% 14.15% Under $15,000 32.08% 20.92% 17.86% Average Household Income $32,189 $52,206 $59,327 Median Household Income $21,872 $34,675 $41,066 Per Capita Income $17,764 $23,209 $25,720 POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age 2016 Estimate Total Population 9,233 47,191 85,243 Under 20 17.57% 22.91% 23.30% 20 to 34 Years 36.27% 35.20% 29.62% 35 to 39 Years 5.33% 4.70% 5.14% 40 to 49 Years 10.05% 8.81% 10.10% 50 to 64 Years 18.40% 16.03% 18.21% Age 65+ 12.39% 12.36% 13.64% Median Age 32.30 28.67 32.73 Population 25+ by Education Level 2016 Estimate Population Age 25+ 6,076 26,770 52,725 Elementary (0-8) 2.56% 1.55% 1.32% Some High School (9-11) 9.35% 5.82% 5.69% High School Graduate (12) 29.30% 25.57% 26.26% Some College (13-15) 25.03% 24.14% Associate Degree Only 9.46% 9.83% 9.77% Bachelors Degree Only 17.51% 21.54% 21.70% Graduate Degree 6.37% 10.79% 11.28% Source: © 2016 Experian

PROPERTY NAME HUNTER BUILDING DEMOGRAPHICS MARKETING TEAM Created on November 2017 DEMOGRAPHICS MARKETING TEAM POPULATION BY TRANSPORTATION TO WORK 1 Miles 3 Miles 5 Miles 2016 Estimate Total Population Bicycle 0.21% 0.98% 0.96% Bus or Trolley Bus 11.87% 5.45% 4.09% Carpooled 10.89% 8.15% 8.64% Drove Alone 60.02% 72.21% 75.57% Ferryboat 0.00% Motorcycle 0.02% 0.26% 0.20% Other Means 0.42% 0.54% 0.63% Railroad Streetcar or Trolley Car 0.17% 0.09% Subway or Elevated Taxicab 0.05% 0.24% 0.14% Walked 12.04% 7.91% 5.84% Worked at Home 4.50% 4.10% 3.84% POPULATION BY TRAVEL TIME TO WORK Under 15 Minutes 51.71% 51.90% 47.47% 15 - 29 Minutes 33.03% 34.15% 38.61% 30 - 59 Minutes 8.84% 7.57% 7.14% 60 - 89 Minutes 1.52% 1.32% 1.33% 90 or More Minutes 0.40% 0.75% 1.03% Average Travel Time in Minutes 17 18 Source: © 2016 Experian

HUNTER BUILDING PROPERTY NAME DEMOGRAPHICS MARKETING TEAM Population Race and Ethnicity In 2016, the population in your selected geography is 9,233. The population has changed by -2.69% since 2000. It is estimated that the population in your area will be 9,165.00 five years from now, which represents a change of -0.74% from the current year. The current population is 52.18% male and 47.82% female. The median age of the population in your area is 32.30, compare this to the US average which is 37.68. The population density in your area is 2,929.96 people per square mile. People of Hispanic origin make up 2.81% of the current year population in your selected area. Compare this to the US average of 17.65%. Households Housing There are currently 4,853 households in your selected geography. The number of households has changed by -3.44% since 2000. It is estimated that the number of households in your area will be 4,855 five years from now, which represents a change of 0.04% from the current year. The average household size in your area is 1.78 persons. The median housing value in your area was $134,937 in 2016, compare this to the US average of $187,181. In 2000, there were 1,196 owner occupied housing units in your area and there were 3,830 renter occupied housing units in your area. The median rent at the time was $368. Income Employment The current year per capita income in your area is $17,764, compare this to the US average, which is $29,962. The current year average household income in your area is $32,189, compare this to the US average which is $78,425. In 2016, there are 29,343 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 58.32% of employees are employed in white-collar occupations in this geography, and 40.40% are employed in blue-collar occupations. In 2016, unemployment in this area is 9.43%. In 2000, the average time traveled to work was 17.00 minutes. Source: © 2016 Experian

HUNTER BUILDING 8 DEMOGRAPHICS

PRESENTED BY www.MarcusMillichap.com Michael Ahles Senior Associate Member - National Office and Industrial Properties Group Minneapolis Office Tel: (952) 852-9718 Fax: (952) 852-9710 michael.ahles@marcusmillichap.com License: MN 20324981 www.MarcusMillichap.com