corner retail building for sale -...

SVN | CHICAGO COMMERCIAL | 940 WEST ADAMS STREET, SUITE 200, CHICAGO, IL 60607 OFFERING MEMORANDUM

CORNER RETAILBUILDING FORSALE5900 N BROADWAYCHICAGO, IL 60660

Tim Rasmussen, CCIMAssistant Vice [email protected]

OFFERING SUMMARY

Sale Price: $1,250,000

Cap Rate: 7.74%

NOI: $96,735

Building Size: 6,380 SF

Renovated: 2001

Zoning: B1-2

Market: Chicago North

Submarket: Edgewater

Price / SF: $195.92

INVESTMENT OVERVIEW5900 N Broadway is a high visibility single story, three tenant commercial building located at the cornerof Broadway and Rosedale in Chicago’s Edgewater neighborhood. The 6,380-square foot building sits onan approximately 6,400 square foot site and was gut renovated in 2000. Recent upgrades were made tothe roof and mechanical systems for the restaurant tenant.

The projected 2018 net operating income is $96,735. Scheduled 2018 base rental for the three tenants isapproximately $139,383 with projected water, sewer and real estate tax reimbursements of $13,942.Operating expenses are projected, based on 2017 actual numbers, to be $56,581.

The tenants include State Farm Insurance, Broadway Cellars Restaurant, and the Edgewater Chamber ofCommerce. State Farm Insurance and the Edgewater Chamber lease 1,440 square feet each, whileBroadway Cellars leases 3,500 square feet. The Edgewater Chamber and Broadway Cellars have beenlong term tenants with leases going back since the 2000 renovation of the building. State FarmInsurance is a relatively new tenant with a lease commencement date of November 2016.

State Farm and Broadway Cellars lease terms are modified gross with pass throughs for their pro-ratashare of increases in real estate taxes over specified base year amounts. In addition, Broadway Cellars isresponsible for 85% of the building’s sewer and water bill. State Farm is on a gross lease with noadditional expense pass through obligations. All three tenant’s leases are subject to 3% annual rentescalations.

The Edgewater Chamber of Commerce lease expires December 31, 2018 with no additional lease renewaloptions. State Farm’s primary term expires November 30, 2021 with one (1) five (5) year renewal option ata rental rate based on the cumulative increased change in the Consumer Price Index. Broadway Cellarslease expires August 31, 2020. Broadway Cellars have no additional renewal rights.

Investment Summary

5900 N BROADWAY, CHICAGO, IL 60660 SVN | Chicago Commercial |

LOCATION OVERVIEW

5900 N Broadway is a corner, single story, multi-tenant buildingin the heart of Chicago's Edgewater neighborhood. Located onprime stretch of N Broadway. Surrounded by numerous newand proposed developments. 25,900 average daily traffic count.Steps away from Loyola University Chicago and premierretailers including Whole Foods, LA Fitness, CVS, Walgreen's,Ann Sather, Ethiopian Diamond, Revival Social Club,Orangetheory Fitness, Starbucks, Income Tax Restaurant, BarkBark Club and much more. Easy access via CTA Redline(Thorndale, Bryn Mawr Stations), #36 Broadway, #147 OuterDrive Express, #151 Sheridan and #155 Devon.

Incredibly dense population base of nearly 70,000 within onemile of the subject property. Immediately west of an adjacent tothe property is the affluent Edgewater Glen neighborhood. Justto the south is Chicago's landmarked Lakewood Balmoralneighborhood. This highly walkable location features awalkability score of 94.

Location Overview


Additional Photos


Location Maps


Site Plan


INVESTMENT OVERVIEW 2018

Price $1,250,000

Price per SF $195.92

CAP Rate 7.7%

Cash-on-Cash Return (yr 1) 11.22 %

Total Return (yr 1) $49,990

Debt Coverage Ratio 1.42

OPERATING DATA 2018

Gross Scheduled Income $139,374

Other Income $13,942

Total Scheduled Income $153,316

Vacancy Cost $0

Gross Income $153,316

Operating Expenses $56,581

Net Operating Income $96,735

Pre-Tax Cash Flow $28,749

FINANCING DATA 2018

Down Payment $256,250

Loan Amount $993,750

Debt Service $67,986

Debt Service Monthly $5,665

Principal Reduction (yr 1) $21,241

Financial Summary


INCOME SUMMARY 2018

Scheduled Base Rent $139,374Other Income - Expense Reimbursements $13,942

Gross Income $153,316

EXPENSE SUMMARY 2018

Real Estate Taxes (2016 payable 2017) $33,025Insurance (Actual 2017) $3,270Electricity $0Gas $0Water (Actual 2017) $5,308Building Maintenance (Actual 2017) $7,165Scavenger/Exterminator $0Landscaping $0Security $0Management (based on 4% of Total Scheduled Income) $5,575Administrative $2,238

Gross Expenses $56,581

Net Operating Income $96,735

Income & Expenses


1 DEMOGRAPHICS5900 N BroadwayChicago, IL 60660


0.25 MILES 0.5 MILES 1 MILE

Total population 6,385 25,308 68,757

Median age 38.2 37.2 37.0

Median age (male) 38.8 37.8 37.8

Median age (female) 36.9 36.0 36.0

0.25 MILES 0.5 MILES 1 MILE

Total households 3,320 13,332 35,342

Total persons per HH 1.9 1.9 1.9

Average HH income $59,964 $58,530 $63,347

Average house value $356,451 $372,521 $408,604

* Demographic data derived from 2010 US Census

Demographics Report


POPULATION 0.25 MILES 0.5 MILES 1 MILE

Total population 6,385 25,308 68,757

Median age 38.2 37.2 37.0

Median age (male) 38.8 37.8 37.8

Median age (Female) 36.9 36.0 36.0

HOUSEHOLDS & INCOME 0.25 MILES 0.5 MILES 1 MILE

Total households 3,320 13,332 35,342

# of persons per HH 1.9 1.9 1.9

Average HH income $59,964 $58,530 $63,347

Average house value $356,451 $372,521 $408,604

* Demographic data derived from 2010 US Census

Demographics Map


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