12 unit lakeview walk up 853-55 w grace/3757-59 n …€¦ · neighborhood overview 853-55 w grace...

853-55 W GRACE/3757-59 N FREMONT

PRESENTED BY:

SEAN CONNELLYMANAGING DIRECTOR [email protected]

A M U L T I - F A M I L Y I N V E S T M E N T O F F E R I N G

MARK KURGANINVESTMENT BROKER [email protected]

12 U N I T L A K E V I E W W A L K U P

853-55 W GRACE/3757-59 N FREMONT

MORE INFORMATION AVAILABLE ONLINE:

33realty.com

Confidentiality & Disclaimer ContentsAll materials and information received or derived from 33 Realty, LLC its directors, officers, agents,advisors, affiliates and/or any third party sources are provided without representation or warranty asto completeness , veracity, or accuracy, condition of the property, compliance or lack of compliancewith applicable governmental requirements, developability or suitability, financial performance of theproperty, projected financial performance of the property for any party’s intended use or any and allother matters.

Neither 33 Realty, LLC its directors, officers, agents, advisors, or affiliates makes any representation orwarranty, express or implied, as to accuracy or completeness of the any materials or informationprovided, derived, or received. Materials and information from any source, whether written or verbal,that may be furnished for review are not a substitute for a party’s active conduct of its own duediligence to determine these and other matters of significance to such party. 33 Realty, LLC will notinvestigate or verify any such matters or conduct due diligence for a party unless otherwise agreed inwriting.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify allinformation and to conduct their own inspections and investigations including through appropriatethird party independent professionals selected by such party. All financial data should be verified bythe party including by obtaining and reading applicable documents and reports and consultingappropriate independent professionals. 33 Realty, LLC makes no warranties and/or representationsregarding the veracity, completeness, or relevance of any financial data or assumptions. 33 Realty, LLCdoes not serve as a financial advisor to any party regarding any proposed transaction. All data andassumptions regarding financial performance, including that used for financial modeling purposes,may differ from actual data or performance. Any estimates of market rents and/or projected rentsthat may be provided to a party do not necessarily mean that rents can be established at or increasedto that level. Parties must evaluate any applicable contractual and governmental limitations as well asmarket conditions,vacancy factors and other issues in order to determine rents from or for theproperty.

Legal questions should be discussed by the party with an attorney. Tax questions should bediscussed by the party with a certified public accountant or tax attorney. Title questions should bediscussed by the party with a title officer or attorney. Questions regarding the condition of theproperty and whether the property complies with applicable governmental requirements should bediscussed by the party with appropriate engineers, architects, contractors, other consultants andgovernmental agencies. All properties and services are marketed by 33 Realty, LLC in compliance withall applicable fair housing and equal opportunity laws.

853-55 W GRACECHICAGO, IL

TABLE OF CONTENTS

EXECUTIVE SUMMARY

ADDITIONAL PHOTOS

NEIGHBORHOOD DATA

RETAILER MAP

FINANCIAL SUMMARY

INCOME AND EXPENSES

RENT ROLL

FLOOR PLANS

UNIT TYPE

SALES COMPS

SALES COMPS SUMMARY

SALES COMPS MAP

RENT COMPS SUMMARY

RENT COMPS MAP

DEMOGRAPHICS MAP & REPORT

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33realty.com

PROPERTY OVERVIEW33 Realty LLC (“33”) is pleased to announce the opportunity to acquire 853-55 W. Grace (“the property”) a rarelyavailable corner walk-up building in Chicago’s Lakeview Neighborhood. The property is located in an idealneighborhood for young professionals who want to experience all that the famous northside neighborhood has tooffer. Whether it be the vibrant night life, gourmet dining options, accessibility to public transportation, proximityto Lake Michigan, or walkability to Wrigley Field, the property is a perfect base camp for any young professional toexplore the best that Chicago has to offer.

The property provides an investor a unique opportunity to acquire an asset that has undergone a substantialrenovation as well as implementation of professional management services. Recent improvements to the propertyinclude:

• Renovation of all kitchens with granite counter tops, dishwashers and granite counters• Renovation of bathrooms with pedestal sinks, tile floor and tile shower surrounds• Dark stain and refinishing of original hard wood floors• Addition of closet organizers for bedroom closets• Addition of in-unit washer and dryer• Replacement of older plumbing with copper plumbing• New electrical service, drop and runs• New glass entryway doors• Addition of Butterfly keyless entry system• New hot water storage tank• New leases signed to roll off in prime rental season• Implementation of ratio utility billing system (‘RUBS”) for existing tenants

The property has an excellent current unit mix of four (4) two-bedroom, one-bathroom units; four (4)two-bedroom, two-bathroom units; two (2) three-bedroom, one-bathroom units; and two (2) three-bedroom,two-bathroom units. While a turn key investor can enjoy the in place stabilized returns, those looking for additionalopportunity can increase the already incredible bedroom count of 28 by adding three (3) duplex units into thelarge basement spaces to add additional rentable square footage in this roommate friendly neighborhood.


EXECUTIVE SUMMARY

PROPERTY SUMMARY

EXECUTIVE SUMMARY

Sale Price: $4,000,000

Number Of Units: 12

Cap Rate: 5.78%

Pro Forma Cap Rate: 5.97%

NOI: $231,152

Pro Forma NOI: $238,614

Lot Size: 50 x 120

Building Size: 15,000 SF

Year Built: 1920

Zoning: RM-5


33realty.com


ADDITIONAL PHOTOS

NEIGHBORHOOD OVERVIEW

853-55 W GRACE

33realty.comMORE INFORMATION AVAILABLE ONLINE:

CHICAGO, IL

LAKEVIEW

Anchored by a beautiful stretch of shoreline to the east and dotted with train stops from two ‘L’ lines, Lakeview is one of Chicago’s liveliest and most accessible neighborhoods. Several distinct areas — East Lakeview, Central Lakeview, Boystown and Wrigleyville — meld together to form a lakefront community that celebrates diversity and boasts something for every type of visitor.

Hit the bustling commercial districts along Belmont Avenue, Lincoln Avenue, Southport Avenue, Clark Street, Halsted Street and Broadway Street to shop — be it for vintage frocks, designer jeans or leather biker gear — or live it up with the locals at the seemingly endless options for bars and pubs, and the dozens of celebrated restaurants in between.

Arts and culture come in the form of live music venues, several summer street festivals and a thriving scene for theater, dance and comedy (Belmont Theater District is a stellar collection of nearly 20 independent companies).

Not to be outdone by its extraordinary entertainment landscape, Lakeview makes full use of its slice of Lincoln Park, a 1,200-acre oasis dedicated to the outdoors. Here you will find the scenic Lakefront Trail, a golf course and driving range, a boat harbor, a bird sanctuary, tennis courts and grassy playing fields that are also perfect for picnics or just soaking in the views.

Credit: ChooseChicago.com

NEIGHBORHOOD OUTLOOK• According to Zumper, Lakeview was recently named one

the best neighborhoods in Chicago.

• Based on inventory from Apartment Guide and Rent.com, Lakeview was one of the top 5 neighborhoods in Chicago that saw the highest rent increases between May 2018 and May 2019.

• Average monthly rent in Lakeview is below the city average, according to Rent.com, but still saw double-digit, year-over-year percentage increases.

• Rent.com cites new construction, supply and demand, and large neighborhood investments or new businesses boosting these neighborhoods’ popularity.

• The median age for Lakeview residents is 30 (for both men and women) and the average household income is greater than $100,000.


853-55 W GRACE


CHICAGO, IL

INVESTMENT HIGHLIGHTS VALUE-ADD OPPORTUNITY: This 12 unit walk up building in Lakeview was recently updated in 2016. While the existing property can be purchased as a turn key luxury investment, there is still a value add opportunity to duplex into the basements for buyers looking to maximize returns.

EXCELLENT TRANSIT: 853 W Grace offers residents easy access to excellent transportation options. The CTA Red line Addison stop is only a few blocks away, giving the site walk/tranist/bike scores of 93/86/87 on the popular ratings site WalkScore.com which correlate to “Walker’s Paradise,” “Excellent Transit” and “Very Bikable.”

A+ LOCATION: The property is exceptionally well located just steps from endless shopping, restaurants, and entertainment, easy access to the “L” and just blocks from Wrigley Field home of the 2016 World Series Champions - the Chicago Cubs.

BIKE SCORE:81

TRANSIT SCORE: 85

WALK SCORE: 93

WRIGLEY FIELDHome of the 2016 World Series Champions - the Chicago Cubs

BELMONT HARBORChicago’s largest harbor (800+ slips) and views of Lincoln Park



LOCATION INFORMATION


853-55 W GRACE & 3757-59 N FREMONT 855 W GRACE ST is situated between the Sheridan and Addison CTA stops in Wrigley Field’s backyard. Cub-themed sports bars and restaurants surround the area. Major nearby retailers include PetSmart and Whole Foods as well as Walgreens, Chase Bank and UPS. There is also a nearby Fitness Formula Club and the Lake is just over a 1/2 mile due east.

855 W GRACE ST

Just over1/2 mi away

M

M



853-55 W GRACE


CHICAGO, IL

Page 11

FLOOR PLAN INFORMATION


FLOOR PLANS

33realty.comMORE INFORMATION AVAILABLE ONLINE: Page 12

UNIT MIX SUMMARY


2 bed, 1 bath2 bed, 2 bath3 bed, 1 bath3 bed, 2 bath

4422

33.3%33.3%16.7%16.7%

800925800

1,300

$2,050$2,175$2,400$2,750

UNIT TYPE COUNT % TOTAL SIZE (SF) RENT

Totals/Averages 12 100% 11,100 $27,200

2 bed, 1 bath2 bed, 2 bath3 bed, 1 bath3 bed, 2 bath4 bed, 3 bath

22242

16.7% 16.7% 16.7% 33.3%16.7%

800925800

1,5001,800

$2,050$2,175$2,400$3,000$3,500


Totals/Averages 12 100% 14,650 $32,250

CURRENT UNIT TYPE

FUTURE UNIT TYPE

RENT COMPS SUMMARY

853-55 W GRACE


CHICAGO, IL

853 - 55 W Grace

729 W Corneila

907 W Corneila

706 W Grace

3736 N Sheffield

3716 N Magnolia

710 W Buckingham

3538 N Fremont

1148 W Addison

$1950-2150

$2,150

$2,200

$2025-2170

$2,200

$2,295

$2150-2450

$2,750

$2700-2800

$3,000

$3,200

PROPERTY 2/1 2/2 3/1 3/2

RENT COMPS SUMMARY

$3,495

4/3


33realty.com

INVESTMENT OVERVIEW CURRENT PROFORMA PROFORMA (VALUE-ADD)

Price $4,000,000 $4,000,000 $4,000,000

Price per Unit $333,333 $333,333 $333,333

Gross Rent Multiplier ("GRM") 12.55 12.08 10.29

CAP Rate 5.78% 5.97% 7.31%

Cash-on-Cash Return (yr 1) 5.68% 6.42% 11.80%

Total Return (yr 1) $108,521 $115,983 $169,730

Debt Coverage Ratio 1.33 1.37 1.68

OPERATING DATA CURRENT PROFORMA PROFORMA (VALUE-ADD)

Gross Scheduled Income $318,780 $331,200 $388,860

Other Income $7,180 $7,180 $7,180

Total Scheduled Income $316,275 $328,322 $396,040

Vacancy Cost ($9,685) ($10,058) ($11,665)

Gross Income $316,275 $328,322 $384,375

Operating Expenses $85,123 $89,708 $92,014

Net Operating Income $231,152 $238,614 $292,361

Pre-Tax Cash Flow $56,783 $64,245 $117,992

FINANCING DATA CURRENT PROFORMA PROFORMA (VALUE-ADD)

Down Payment $1,000,000 $1,000,000 $1,000,000

Loan Amount $3,000,000 $3,000,000 $3,000,000

Debt Service $174,369 $174,369 $174,369

Debt Service Monthly $14,530 $14,530 $14,530

Principal Reduction (yr 1) $51,738 $51,738 $51,738


FINANCIAL SUMMARY

Debt quote provided from CBRE. 5,7, & 10 year amortization options available. Also, 1,2, & 3 year interest only options available. Value-add does not include cost to duplex units.


33realty.com

INCOME SUMMARY CURRENT PROFORMA PROFORMA (VALUE-ADD)

Rental Income $318,780 $331,200 $388,860

Other Income (move in fees, pet fees, etc) $3,100 $3,100 $3,100

Utility Reimbursements $4,080 $4,080 $4,080

Vacancy (3%) ($9,685) ($10,058) ($11,665)

TOTAL INCOME $316,275 $328,322 $384,375

EXPENSE SUMMARY CURRENT PROFORMA PROFORMA (VALUE-ADD)

Taxes $27,112 $31,200 $31,200

Insurance* $3,800 $3,800 $3,800

Repair & Maintenance $6,000 $6,000 $6,000

Turnover $2,160 $2,160 $2,160

Cleaning & Snow Removal $3,500 $3,500 $3,500

Garbage & Recycling* $3,200 $3,200 $3,200

Gas* $10,500 $10,500 $10,500

Electric* $2,000 $2,000 $2,000

Water* $3,300 $3,300 $3,300

Management Fees (4%)* $12,751 $13,248 $15,554

Leasing Fees $4,800 $4,800 $4,800

Capital Reserves $6,000 $6,000 $6,000

OPERATING EXPENSES $85,123 $89,708 $92,014

NET OPERATING INCOME $231,152 $238,614 $292,361


INCOME & EXPENSES

*Indicates actual expense. R&M estimated at $500/unit. Leasing fees assume 40% turnover with $1000 leasing fee. Turnover cost assumes 40% turnover at $450 per turn.

853-55 W GRACE & 3757-59 N FREMONTCHICAGO, IL

RENT ROLL


33realty.com

UNITNUMBER

UNITBED

UNITBATH

LEASESTART

LEASEEND

CURRENTRENT

MARKETRENT

PROFORMA

(VALUE-ADD)

1E* 2 2 05/01/2019 05/31/2020 $2,150 $2,215 $3,500

1N* 2 1 05/15/2018 05/31/2020 $1,950 $2,000 $3,200

1S* 2 1 06/01/2019 06/30/2020 $2,150 $2,215 $3,200

1W* 2 2 07/01/2018 06/30/2019 $2,100 $2,165 $3,500

2E 2 2 03/20/2018 04/30/2020 $2,170 $2,235 $2,235

2N 2 1 05/31/2018 07/31/2019 $1,970 $2,030 $2,030

2S 3 1 06/22/2019 06/30/2020 $2,450 $2,520 $2,520

2W 3 2 07/01/2018 06/30/2019 $2,800 $2,885 $2,885

3E 2 2 06/01/2018 05/31/2020 $2,025 $2,085 $2,085

3N 2 1 07/01/2019 06/30/2020 $1,950 $2,000 $2,000

3S 3 1 08/31/2018 08/31/2019 $2,150 $2,450 $2,450

3W 3 2 09/01/2018 08/31/2019 $2,700 $2,800 $2,800

$26,565 $27,600 $32,405

*Opportunity to duplex down and add rental square footage.#1E would be converted to 4 bed, 3 bath renting for $3,500/mo#1N would be converted to 3 bed, 2 bath renting for $3,200/mo#1S would be converted to 3 bed, 2 bath renting for $3,200/mo#1W would be converted to 4 bed, 3 bath renting for $3,500/mo


853-55 W GRACE


CHICAGO, IL

FLOOR PLAN INFORMATION



FLOOR PLANS

UNIT MIX SUMMARY

853-55 W GRACE


CHICAGO, IL

2 bed, 1 bath2 bed, 2 bath3 bed, 1 bath3 bed, 2 bath

4422

33.3%33.3%16.7%16.7%

800925800

1,300

$2,050$2,175$2,400$2,750


Totals/Averages 12 100% 11,100 $27,200

2 bed, 1 bath2 bed, 2 bath3 bed, 1 bath3 bed, 2 bath4 bed, 3 bath

22242

16.7% 16.7% 16.7% 33.3%16.7%

800925800

1,5001,800

$2,050$2,175$2,400$3,000$3,500


Totals/Averages 12 100% 14,650 $32,250

CURRENT UNIT TYPE

PROFORMA UNIT TYPE


33realty.com

SUBJECT PROPERTY

Chicago, IL 60613853-55 W Grace

UNIT TYPE # UNITS % OF SIZE SF RENT RENT/SF

2 bed, 1 bath 4 33.3 800 $2,050 $2.56

2 bed, 2 bath 4 33.3 925 $2,175 $2.35

3 bed, 1 bath 2 16.7 800 $2,400 $3.00

3 bed, 2 bath 2 16.7 1,300 $2,750 $2.12Liquid error: no implicit conversion from nil to integer

TOTAL/AVG 12 100% 925 $2,266 $2.45

$4,000,000Sale Price: 1920Year Built:

15,000 SFBuilding SF:

12No. Units:$333,333Price / Unit:

12.55GRM:

1301 W CORNELIA

Chicago, IL 606571301 W Cornelia Avenue

UNIT TYPE # UNITS % OF

1 Bed, 1 Bath 7 53.8

2 bed, 1 bath 6 46.2

TOTAL/AVG 13 100%

The apartment building at Cornelia & Lakewood is comprised of(7) 1 bed & (6) 2 bed apartments.




13.38GRM:01/11/2019Closed:

1

1 1228 W DIVERSEY

Chicago, IL 606141228 W Diversey Pky

UNIT TYPE # UNITS % OF

4Bd / 3Ba 1 16.7

3Bd / 3Ba 1 16.7

2Bd / 2Ba 2 33.3

2Bd / 1Ba 2 33.3

TOTAL/AVG 6 100%



6No. Units:

$400,000Price / Unit:

12.12GRM:11/01/2018Closed:

2

2


SALE COMPS


33realty.com

3032 N KENMORE

Chicago, IL 606573032 N Kenmore

UNIT TYPE # UNITS % OF SIZE SF RENT

1 bed, 1 bath 2 33.3 600 $1,550

3 bed, 1 bath 1 16.7 1,300 $2,000

3 bed, 2 bath 3 50 1,400 $2,415Liquid error: no implicit conversion from nil to integer

TOTAL/AVG 6 100% 1,116 $2,057

Upgraded apartments with individual HVAC. 4 units + 2 unitframed coach house. No parking.




13.41GRM:06/30/2017Closed:

3

3 2530-34 N ORCHARD

Chicago, IL 606142530 N Orchard



TOTAL/AVG 6 100% 1,100 $2,100

Clean, spacious apartments. Boiler heat & window A/C.



6No. Units:

Price / Unit: $327,500

GRM: 13.34

09/17/2018Closed:

4

4 900 W WRIGHTWOOD

Chicago, IL 60614900 W Wrightwood



TOTAL/AVG 6 100% 1,200 $1,900

Two bed, two bath apartments with individual HVAC.



6No. Units:Price / Unit: $316,666

GRM: 14.8810/31/2018Closed:

5

5


SALE COMPS


33realty.com

SUBJECT PROPERTY PRICE BLDG SF PRICE/UNIT GRM # OF UNITS CLOSE

853-55 W GraceChicago, IL 60613

$4,000,000 15,000 SF $333,333 12.55 12 N/A

SALE COMPS PRICE BLDG SF PRICE/UNIT GRM # OF UNITS CLOSE

11301 W Cornelia1301 W Cornelia AvenueChicago, IL 60657

$3,975,000 14,000 SF $305,769 13.38 13 01/11/2019

21228 W Diversey1228 W Diversey PkyChicago, IL 60614

$2,400,000 6,400 SF $400,000 12.12 6 11/01/2018

33032 N Kenmore3032 N KenmoreChicago, IL 60657

$1,980,000 7,370 SF $330,000 13.41 6 06/30/2017

42530-34 N Orchard2530 N OrchardChicago, IL 60614

$1,965,000 8,095 SF $327,500 13.34 6 09/17/2018

5900 W Wrightwood900 W WrightwoodChicago, IL 60614

$1,900,000 7,014 SF $316,666 14.88 6 10/31/2018

TOTALS/AVERAGES PRICE BLDG SF PRICE/UNIT GRM # OF UNITS

$2,444,000 8,576 SF $330,270 13.43 7.4


SALE COMPS SUMMARY


33realty.com


SALE COMPS MAP

853-55 W Grace | Chicago, IL 60613SUBJECT PROPERTY

1

1301 W Cornelia AvenueChicago, IL 60657

1301 W CORNELIA

2

1228 W Diversey PkyChicago, IL 60614

1228 W DIVERSEY

3

3032 N KenmoreChicago, IL 60657

3032 N KENMORE

4

2530 N OrchardChicago, IL 60614

2530-34 N ORCHARD

5

900 W WrightwoodChicago, IL 60614

900 W WRIGHTWOOD

RENT COMPS SUMMARY

853-55 W GRACE


CHICAGO, IL

853 - 55 W Grace

729 W Corneila

907 W Corneila

706 W Grace

3736 N Sheffield

3716 N Magnolia

710 W Buckingham

3538 N Fremont

1148 W Addison

$1950-2150

$2,150

$2,200

$2025-2170

$2,200

$2,295

$2150-2450

$2,750

$2700-2800

$3,000

$3,200

PROPERTY 2/1 2/2 3/1 3/2

RENT COMPS SUMMARY

$3,495

4/3


33realty.com

853-55 W Grace | Chicago, IL 60613SUBJECT PROPERTY

1729 W CorneliaChicago, IL 60657

729 W CORNELIA 2907 W CorneliaChicago, IL 60613

907 W CORNELIA 3706 W GraceChicago, IL 60613

706 W GRACE 43736 N SheffieldChicago, IL 60613

3736 N SHEFFIELD

53716 N MagnoliaChicago, IL 60613

3716 N MAGNOLIA 6710 W BuckinghamChicago, IL 60657

710 W BUCKINGHAM 73538 N FremontChicago, IL 60657

3538 N FREMONT 81148 W AddisonChicago, IL 60613

1148 W ADDISON


RENT COMPS MAP


33realty.com

POPULATION 0.25 MILES 0.5 MILES 1 MILE

Total population 6,310 23,146 80,770

Median age 30.3 31.5 31.7

Median age (Male) 30.8 32.5 32.5

Median age (Female) 29.2 30.4 30.9

HOUSEHOLDS & INCOME 0.25 MILES 0.5 MILES 1 MILE

Total households 3,393 13,363 45,692

# of persons per HH 1.9 1.7 1.8

Average HH income $102,638 $85,500 $87,004

Average house value $264,222 $264,417 $397,357

* Demographic data derived from 2010 US Census


DEMOGRAPHICS MAP & REPORT

12 unit lakeview walk up 853-55 w grace/3757-59 n …€¦ · neighborhood overview 853-55 w grace...

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