11 unit multi-family investment -...

2415 THORNTON RD, LANSING, IL 6043811 UNIT MULTI-FAMILY INVESTMENT

OFFERING MEMORANDUM

Office Address: 115 W. 55th Street | Clarendon Hills, IL 60514 | 630.325.8338 | LMTEAM.COM

ANDREW O'CONNELL ANTHONY SPANGLERDIRECTOR OF INVESTMENT SALES MULTI-FAMILY INVESTMENT BROKER630.560.2805 [email protected] [email protected]

Notice: Unless a Consent to Dual Agency has been signed by both parties to a transaction for this property Andrew O'Connell represents the Landlord only, and not the Tenant.


1 1 U N I T M U LT I - FA M I LY I N V E S T M E N T | 2

PROPERTY INFORMATION 3

LOCATION INFORMATION 8

FINANCIAL ANALYSIS 14

SALE COMPARABLES 18

RENT COMPARABLES 21

ADVISOR BIOS 24

All materials and information received or derived from LM Commercial Real Estate its directors,officers, agents, advisors, affiliates and/or any third party sources are provided withoutrepresentation or warranty as to completeness , veracity, or accuracy, condition of the property,compliance or lack of compliance with applicable governmental requirements, developability orsuitability, financial performance of the property, projected financial performance of the propertyfor any party’s intended use or any and all other matters.

Neither LM Commercial Real Estate its directors, officers, agents, advisors, or affiliates makes anyrepresentation or warranty, express or implied, as to accuracy or completeness of the anymaterials or information provided, derived, or received. Materials and information from anysource, whether written or verbal, that may be furnished for review are not a substitute for aparty’s active conduct of its own due diligence to determine these and other matters ofsignificance to such party. LM Commercial Real Estate will not investigate or verify any suchmatters or conduct due diligence for a party unless otherwise agreed in writing.

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 throughappropriate third party independent professionals selected by such party. All financial data shouldbe verified by the party including by obtaining and reading applicable documents and reports andconsulting appropriate independent professionals. LM Commercial Real Estate makes nowarranties and/or representations regarding the veracity, completeness, or relevance of anyfinancial data or assumptions. LM Commercial Real Estate does not serve as a financial advisor toany party regarding any proposed transaction. All data and assumptions regarding financialperformance, including that used for financial modeling purposes, may differ from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to aparty do not necessarily mean that rents can be established at or increased to that level. Partiesmust evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property.

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 shouldbe discussed by the party with appropriate engineers, architects, contractors, other consultantsand governmental agencies. All properties and services are marketed by LM Commercial RealEstate in compliance with all applicable fair housing and equal opportunity laws.

CONTENTS CONFIDENTIALITY & DISCLAIMER

TABLE OF CONTENTS2415 THORNTON RD, LANSING, IL 60438

FOR SALE

PROPERTY INFORMATION

SECTION 1





PROPERTY OVERVIEW

LM Commercial Real Estate is pleased to present the sale of2415 Thornton Rd in Lansing, IL. This property has a total of 11units, eight (2 Bedroom/1 Bath) units & three (1 Bedroom/1Bath) units. The property has been well maintained by thecurrent owners and no major capital expenditures areneeded. There is ample parking with 2 parking spots pertenant. This property provides an investor with a greatvalue-add opportunity to raise the building's below marketrents.

LOCATION OVERVIEW

The property is located in Lansing, Illinois which is a SouthSuburb of Chicago located along the border of Illinois andIndiana. The property has excellent access to Il Route 83/Torrence Ave, which connects I-80, I-94, I-294, I-394, andUS-6 at the Torrence Ave interchange located within a mile ofthe property. The quick highway access provides easyaccessibility to both Chicago Metropolitan and NorthwestIndiana and the surrounding areas. The property is within twomiles of major retail centers in River Oaks Mall, Wal-Mart,Home Depot, LA Fitness, and an ample supply of restaurantsand entertainment.

EXECUTIVE SUMMARY2415 THORNTON RD, LANSING, IL 60438

FOR SALE



Sale Price: $725,000

Number of Units: 11

Price Per Unit: $65,909

Year Built: 1966

NOI: $54,925

Cap Rate: 7.58%

Building SF: 8,394 SF

Land SF: 12,811 SF

SALE HIGHLIGHTS• Value add opportunity - below market rents

• Excellent access to Chicago

• Strong rental market in Lansing, IL

• Close proximity to the Torrence Ave retail corridor

• No major capital improvements needed

INVESTMENT OVERVIEW2415 THORNTON RD, LANSING, IL 60438

FOR SALE



ADDITIONAL PHOTOS2415 THORNTON RD, LANSING, IL 60438

FOR SALE

LOCATION INFORMATION

SECTION 2





11 Unit Multi-FamilyInvestment

REGIONAL MAP2415 THORNTON RD, LANSING, IL 60438

FOR SALE



RETAILER MAP2415 THORNTON RD, LANSING, IL 60438

FOR SALE



11 Unit Multi-FamilyInvestment

AERIAL MAP2415 THORNTON RD, LANSING, IL 60438

FOR SALE



LANSING, ILLocated just 30 miles from the Chicago downtown loop, Lansing is an economically and socially diverse community made upof college graduates, skilled tradesmen, and Seniors who have been invested in the community for decades. With a populationof over 28,000, the community is strategically located in the center of the dynamic Interstate 80 Corridor, allowing business totake advantage of a regional population of 9 million people. Metro Chicago is one the world’s finest transportation centers,and Lansing provides convenient access to O’Hare International Airport, Midway International Airport, and global intermodalfacilities via two Interstates.

Lansing, Illinois... it’s the best of both worlds. Small town charm, deep-seated family values, top-notch education systems anda select regional location await those who investigate the resources of this community. Look slightly beyond Lansing anddiscover rich economic, educational medical, and cultural potential to enhance the quality resources enjoyed by all who liveand work in Lansing.

CITY INFORMATION2415 THORNTON RD, LANSING, IL 60438

FOR SALE



POPULATION 1 MILE 3 MILES 5 MILES

Total population 11,830 74,433 232,673

Median age 36.8 38.6 36.9

Median age (male) 33.8 36.4 34.7

Median age (Female) 39.0 40.3 38.4

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total households 4,683 29,288 86,884

# of persons per HH 2.5 2.5 2.7

Average HH income $58,553 $60,418 $60,367

Average house value $172,925 $150,765 $160,055

* Demographic data derived from 2010 US Census

DEMOGRAPHICS MAP2415 THORNTON RD, LANSING, IL 60438

FOR SALE

FINANCIAL ANALYSIS

SECTION 3





INVESTMENT OVERVIEW CURRENT

Price $725,000

Price per Unit $65,909

GRM 6.9

CAP Rate 7.6%

Cash-on-Cash Return (yr 1) 11.52 %

Total Return (yr 1) $29,278

Debt Coverage Ratio 1.61

OPERATING DATA CURRENT

Gross Scheduled Income $105,900

Other Income $1,200

Total Scheduled Income $107,100

Vacancy Cost $1,200

Gross Income $105,900

Operating Expenses $50,974

Net Operating Income $54,925

Pre-Tax Cash Flow $20,888

FINANCING DATA CURRENT

Down Payment $181,250

Loan Amount $543,750

Debt Service $34,037

Debt Service Monthly $2,836

Principal Reduction (yr 1) $8,389

FINANCIAL SUMMARY2415 THORNTON RD, LANSING, IL 60438

FOR SALE



UNIT MIX

UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF

1 Bed/1 Bath 3 27.3 675 $750 $1.11 $850 $1.26

2 Bed/1 Bath 8 72.7 900 $850 $0.94 $1,000 $1.11

Totals/Averages 11 100% 9,225 $9,050 $0.98 $10,550 $1.14

INCOME SUMMARY CURRENT PROFORMA

Rental Income $105,900 -Market Rental Income - $126,600

Gross Income $105,900 $126,600

EXPENSE SUMMARY CURRENT PROFORMA

Taxes $22,690 $22,690Water $2,478 $2,485Sewer $412 $415Management $7,732 $7,800Janitor $582 $600Exterminator $69 $70Maintenance $16,210 $16,240Snow Removal $600 $600Lawn Care $200 $200

Gross Expenses $50,974 $51,100

Net Operating Income $54,925 $75,500

INCOME & EXPENSES2415 THORNTON RD, LANSING, IL 60438

FOR SALE



UNITNUMBER

UNITBED

UNITBATH

UNITSIZE (SF)

CURRENTRENT

CURRENTRENT (PER SF)

MARKETRENT

MARKETRENT/SF

1 1 1 675 $575 $0.85 $850 $1.26

2 1 1 675 $750 $1.11 $850 $1.26

3 1 1 675 $750 $1.11 $850 $1.26

4 2 1 900 $825 $0.92 $1,000 $1.11

5 2 1 900 $825 $0.92 $1,000 $1.11

6 2 1 900 $825 $0.92 $1,000 $1.11

7 2 1 900 $850 $0.94 $1,000 $1.11

8 2 1 900 $850 $0.94 $1,000 $1.11

9 2 1 900 $850 $0.94 $1,000 $1.11

10 2 1 900 $850 $0.94 $1,000 $1.11

11 2 1 900 $875 $0.97 $1,000 $1.11

Totals/Averages 9,225 $8,825 $0.96 $10,550 $1.15

RENT ROLL2415 THORNTON RD, LANSING, IL 60438

FOR SALE

SALE COMPARABLES

SECTION 4





1

2

3

4

5

SUBJECT PROPERTY PRICE # OF UNITS PRICE/UNIT YEAR BUILT BLDG SF

11 Unit Multi-Family Investment2415 Thornton RdLansing, IL 60438

$725,000 11 $65,909 1966 8,394 SF

SALE COMPS PRICE # OF UNITS PRICE/UNIT CLOSE YEAR BUILT BLDG SF

Lansing South Apartments18520 Wildwood AveLansing , IL 60438

$2,500,000 40 $62,500 09/15/2017 1965 29,600 SF

578 Douglas AveCalumet City, IL60409

$495,000 8 $61,875 11/11/2016 1960 7,054 SF

3546 W. 147th StreetMidlothian, IL60445

$580,000 8 $72,500 08/12/2015 1967 5,200 SF

4140-4144 Lindenwood DrMatteson, IL60423

$900,000 12 $75,000 On Market 1973 9,600 SF

647-651 Carroll ParkwayGlenwood, IL60425

$1,600,000 24 $66,666 On Market 1967 58,349 SF

PRICE # OF UNITS PRICE/UNIT CLOSE YEAR BUILT BLDG SF

Totals/Averages $1,215,000 18.4 $66,032 21,961 SF

SALE COMPS SUMMARY2415 THORNTON RD, LANSING, IL 60438

FOR SALE



2415 Thornton Rd | Lansing, IL 60438SUBJECT PROPERTY

118520 Wildwood AveLansing , IL 60438

LANSING SOUTH APARTMENTS 2Calumet City, IL60409

578 DOUGLAS AVE

3Midlothian, IL60445

3546 W. 147TH STREET 4Matteson, IL60423

4140-4144 LINDENWOOD DR

5Glenwood, IL60425

647-651 CARROLL PARKWAY

SALE COMPS MAP2415 THORNTON RD, LANSING, IL 60438

FOR SALE

RENT COMPARABLES

SECTION 5





1

2

3

4

SUBJECT PROPERTY UNIT TYPE MONTHLY RENT UNIT SIZE PRICE PER SF

11 Unit Multi-Family Investment2415 Thornton RdLansing, IL 60438

Multifamily $822 838 SF $0.98

RENT COMPS UNIT TYPE MONTHLY RENT UNIT SIZE PRICE PER SF

17701 Park BlvdLansing , IL60438

2 Bed/ 1 Bath $1,000 900 SF $1.11

3061 Bernice AveLansing, IL60438

2 Bed/ 1 Bath $900 900 SF $1.00

3145 Bernice AveLansing, IL60438

2 Bed/ 1 Bath $1,050 672 SF $1.56

3069 Bernice RdLansing, IL60438

3 Bed/ 2 Bath $975 900 SF $1.08

UNIT TYPE MONTHLY RENT UNIT SIZE PRICE PER SF

Totals/Averages N/A $981 843 SF $1.19

RENT COMPS SUMMARY2415 THORNTON RD, LANSING, IL 60438

FOR SALE



2415 Thornton Rd | Lansing, IL 60438SUBJECT PROPERTY

1Lansing , IL60438

17701 PARK BLVD 2Lansing, IL60438

3061 BERNICE AVE

3Lansing, IL60438

3145 BERNICE AVE 4Lansing, IL60438

3069 BERNICE RD

RENT COMPS MAP2415 THORNTON RD, LANSING, IL 60438

FOR SALE

ADVISOR BIOS

SECTION 6





ANDREW O'CONNELL

Director Of Investment Sales

115 W. 55th Street, Suite 300Clarendon Hills, IL 60514T [email protected]

PROFESSIONAL BACKGROUND

Andrew O’Connell is Director of Investment Sales, a Multi-Family Investment Specialistin the firm’s Clarendon Hills office. Mr. O’Connell specializes in Multi-Family propertiesthroughout Suburban Chicagoland, primarily in DuPage, SW Cook, Will, Kendall andKane Counties. He represents private investors, corporate and institutional buyers andsellers comprehensively throughout the investment sales process. Andrew has morethan 12 years of experience in commercial real estate marketing and underwritingdistressed assets and structured debt transactions for institutional commercial realestate firms.

ANTHONY SPANGLER

Multi-Family Investment Broker

115 W. 55th Street, Suite 300Clarendon Hills, IL 60514T [email protected]

PROFESSIONAL BACKGROUND

Anthony is a Commercial Broker specializing in Multi-Family properties primarily innorthern Indiana and the south suburbs of Chicago. Anthony’s detailed and hands-onexperience provides a thorough knowledge base for meeting client needs, assistingwith real estate issues and interfacing with building owners. As a Lansing, Illinois native,he is very familiar with the northern Indiana and south suburban Chicagoland markets.

ADVISOR BIOS2415 THORNTON RD, LANSING, IL 60438

FOR SALE

11 unit multi-family investment -...

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