3-27-14 The yield curve continued to flatten today as the gap between U.S. five-year and 30-year Treasuries narrowed to the least since October 2009. Federal Reserve Chair Yellen said last week that policymakers may increase the Fed funds rate by the middle of 2015 if economic growth warrants it. GDP growth seems to be picking up; stronger than expected data shows that the economy is gaining strength, jobless claims have been decreasing and the Treasury may pick up the pace of tapering in months to come. According to a Bloomberg survey of economists, interest rates will rise in coming months.

Marcus & Millichap CRE Forum: Chicago - coming up this Wednesday, March 26! Featured Speakers Include: Milan Rubenstein Windy City RE Christopher Kennedy Joseph P. Kennedy Enterprises Lou Raizin Broadway In Chicago Richard Gatto The Alter Group Randy Tiemen Mortenson Development

Join Windy City RE and over 300 owners, investors and developers to discuss the investment and industrial trends in Chicago at the Marcus & Millichap CRE Forum: Chicago - coming up this Wednesday, March 26! Hear what's in store for future developments in Chicago with keynote presentations from the head of Wolf Point and the leader of Chicago's entertainment resurgence, Christopher Kennedy of Joseph P. Kennedy Enterprises and Lou Raizin of Broadway In Chicago. As a friend of the Windy City RE Save 25% off Early Registration with promo code: SP-25WINDY Early Registration: $399 (Full Rate: $449)

Marcus & Millichap CRE Forum: Chicago Gleacher Center Chicago Wednesday, March 26, 2014 8:00 am - 5:00 pm

Early Registration Rate $399 Full Registration Rate $449

Featured Speakers Include:

Milan Rubenstein Windy City RE

Christopher Kennedy Joseph P. Kennedy Enterprises

Lou Raizin Broadway In Chicago

Richard Gatto The Alter Group

Randy Tiemen Mortenson Development

Confirmed Speakers: Jeff Broaden, Vice President, AJ Capital Partners Daniel Cole, Partner, Ginsberg Jacobs Dan Cowell, VP & Healthcare Market Manager, Irgens Rand Diamond, Principal, Glenstar Properties Collete English-Dixon, Principal - Transactions, Prudential James Field, Co-Founder, Field & Goldberg Dan Fogarty, Vice President, Connor Commercial Todd Frank, Senior Real Estate Manager, Walgreens Richard Gatto, Executive Vice President, The Alter Group Michael Goldman, SVP - Acquisitions & Investment, Golub & Company Matt Goode, Principal, Venture One Real Estate Andrew Hochberg, Chief Executive Officer, Next Realty Todd Lillibridge, President & CEO , Lillibridge Healthcare Services Alfred Klairmont, President, Imperial Realty Christopher Kennedy, Chairman, Joseph P. Kennedy Enterprises Roger Koeppen, Vice President, Amata Office Centers Scott McKibben, Managing Principal & Co-Founder, Brennan Investment Group John Murphy, President, MB Real Estate J. Scot Pepper, Executive Vice President, Pepper Construction Sarang Peruri, Principal, Oxford Capital Alan Pontius, Senior Vice President / National Director - NOIPG, Marcus & Millichap Anthony Pricco, Principal, Bridge Development Lou Raizin, President, Broadway in Chicago Michael Reschke, Chairman & CEO, Prime Group Bill Rose, Vice President / National Director - National Retail Group, Marcus & Millichap Milan Rubenstein, Partner, Windy City RE David Ruttenberg, Director of Acquisitions & Finance, Marc Realty Robert Smietana, CEO & Vice Chairman, HSA Commercial Real Estate Mark Stern, SVP - Acquisition, Waterton Associates Sy Taxman, President, The Taxman Corp Randy Tiemen, Director of Real Estate Development, Mortenson Development Scott Toban, Partner, Dentons Nick Wibbenmeyer, VP - Regional Officer, Regency Centers John Wilson, President, HSA PrimeCare Meet the Speakers

Conference Agenda: Investing in Chicago: Is the Glass Half Empty of Half Full? Tale of Two Cities: City vs. Suburbs Attention Shoppers!: Hot Trends in Chicago Retail Paging Dr. Development: Is there a Healthcare Boom? Now That’s What I Call Logistics: The Future of Chicago’s Industrial Development What Was Old Is New Again: How Adaptive Reuse Has Been Successful in Chicago Don’t Stop Thinking About Tomorrow: Investment Strategies for Chicago Capital Markets View the Full Agenda

Get Involved! Registration Questions: Scott Milliken (646) 862-9912 scott@greenpearlevents.com

Contact us for details: A number of opportunities exist for speaking, sponsoring and/or exhibiting at the conference.

Sponsorship & Exhibiting: Adam Kolanko (646) 783-3955 akolanko@greenpearlevents.com

Conference Producer: John Ward (646) 755-3164 jward@greenpearlevents.com

Marketing Partnerships: Heather Eisenstadt  (646) 862-6128 heisenstadt@greenpearlevents.com

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Economic Commentary

3-17-14 Global funds moved out of stock markets and into the safe haven of Treasuries causing prices to rise and the 10-year yield to fall to 2.65%. This decline was the largest drop since January 23rd and comes in response to increasingly heated comments from world leaders with regard to the turmoil in Ukraine’s Crimea region. In addition, data showing a dramatic slowing in China’s economy in the first two months of the year added to the flight into Treasuries. While growth in investment, retail sales and factory output were reported at multi-year lows, China’s Premier Li Keqiang indicated he does not want to employ economic stimulus to spur growth. Milan Rubenstein Windy City RE LLC 737 N. Michigan Ave Suite 1230 Chicago IL 60611 Office: 312-867-8744 x 200 www.windycityre.com

“Taper Swoon”  in the bond market…….  Massive sell off, yields spike as investors try to parse recent indications from the Fed that it may slow down the $85 billion monthly bond purchases.  The 10 year T spiked from 1.75 to a high of 2.21% last week.  Today it stands at 2.10% as the Treasury rallied on poor economic data.  Often times in the “new normal” era, bad economic news triggers a rally in markets that have become “addicted” to extraordinary Fed stimulus such as QE3.  Bad news = continuing stimulus.  Note that the sell off was not triggered by any actual slowing of bond purchases, just on speculation that bond purchases may be tapered in a few months.  The sequence of the removal of Fed stimulus will most likely be (1) Less bond purchases; (2) No bond purchases; (3) Selling of bonds; (4) Raising of the discount rate.  Is this the beginning of the “training wheels coming off”?  Will the market effects be gradual or chaotic?  Remember, this is uncharted territory with no historical precedent….  For now, investors will be closely watching Friday’s employment numbers, Fed meeting (and Bernanke’s press conference) along with other “tea leaves”...
Milan Rubenstein Windy City RE LLC 161 E. Chicago Ave. 27B Chicago IL 60611 Phone 312-867-8744 Fax 312-803-2177 milan@windycityre.com www.windycityre.com