a multifamily investment opportunity 1235 n....

2211 N Elston Ave., Suite 302, Chicago, IL 60614 | Phone: 773.305.4900 | Website: essexrealtygroup.com

1235 N. KARLOV ST.CHICAGO, IL 60651

A MULTIFAMILY INVESTMENT OPPORTUNITY

TABLE OF CONTENTS

1. 3PROPERTY INFORMATION

4Property Location5Property Overview6Location Overview7Property Details8Kitchens9Living Area & Bedroom

10Bathroom11Parking & Rear12Mechanicals

2. 13FINANCIAL ANALYSIS

14Rent Roll15Unit Mix / Income & Expenses16Financial Summary

3. 17SALE COMPARABLES

18Sale Comps Map19Sale Comp Analysis20Sale Comp Analysis21Sale Comps

4. 24RENT COMPARABLES

25Rent Comps Map26Rent Comp Analysis27Rent Comps

5. 29DEMOGRAPHICS

30Demographics Report31Demographics Map

SECTION 1

1235 N. KARLOV ST.

PROPERTY INFORMATION

CHICAGO, IL 60651


This information has been secured from sources we believe to be reliable, but we make no representations nor warranties, express nor implied as to theaccuracy of the information. References to square footage are approximate.Buyer must verify the information and bears all risks for any inaccuracies. 4

PROPERTY LOCATIONSECTION 1

Essex Realty Group, Inc is proud to exclusively market for sale 1235 N. Karlov

Ave. The subject property is a 15-unit brick, corner walk-up building at the

intersection of Karlov and Crystal in the Humboldt Park neighborhood of Chi-

cago.

The unit mix consists of fifteen (15) 2 Bed / 1 Bath layouts. The apartments

are extremely spacious and have hardwood floors throughout the living are-

as. The kitchen finishes include white cabinetry and white appliances. There

is a two (2) car garage behind the property that is accessed through the alley.

All the units have individual gas forced furnaces and individual domestic hot

water heaters that are separately metered. In addition, electricity is sepa-

rately metered with breakers; therefore, gas and electric are tenant paid.

The windows were replaced several years ago with vinyl sliders. The build-

ings porches were replaced in 2016. The plumbing consists of a mix of copper

and galvanized piping.

This is a true value add opportunity; the current rents are averaging $100/

month below market. The property is being offered for sale under $75,000/

unit with a proforma CAP rate exceeding 7.5%.


PROPERTY OVERVIEWSECTION 1

Humboldt Park is listed by RedFin in 2014 as one of the top ten neighborhoods in the country with the median home sales price up 62% year over year. The growing attention to this neighborhood can be attributed to the steady rise in property values, development activity in the neighborhood, and surrounding areas such as Logan Square, West Town, ĂŶĚ�tŝĐŬĞƌ�WĂƌŬ͘�

Humboldt Park houses a surprising array of retail, dining, and nightlife options. Popular nightlife and dining spots include Haywood Tavern, Rootstock Wine & Beer Bar, California Clipper, and Archie's.

The subject property is located just a mile southwest from the beginning access point to the 606/Bloomingdale Trail. The 606 Trail is a 2.7-mile-long path that runs from 1801 North Ridgeway Avenue in Humboldt Park to 1722 North Ashland Avenue in Bucktown. The $95 million project was completed in May of 2015 and had received wide support from several public and private organizations. The trail has been a crucial point toward gentrification of the westside neighborhoods and will continue to spur growth and development in Humboldt Park.

Bus lines that are easily accessible to the subject property include the #70 Division bus and the #53 Pulaski bus allowing residents an easy commute throughout the Chicagoland area.


LOCATION OVERVIEWSECTION 1


PROPERTY DETAILSSECTION 1

HEAT: Separate Furnaces;Tenant Paid

HOT WATER: Fifteen (15) 29-Gallon Hot Water Heaters;Tenant Paid

PLUMBING: Copper/Galvanized Mix

ELECTRIC: Separately Metered;Tenant Paid

WINDOWS: Vinyl (Newer)

PORCHES: Replaced (2016)

ADDRESS: 1235 N. Karlov St.

PIN: 16-03-231-016-0000

YEAR BUILT: 1926

LOT SIZE: Approx. (50' X 120') 6,000SF - Per City

Zoning Website

NO. OF UNITS: 15

PARKING: Two (2) Garage Parking Spaces

Property Summary

Building Systems


KITCHENSSECTION 1


LIVING AREA & BEDROOMSECTION 1


BATHROOMSECTION 1


PARKING & REARSECTION 1


MECHANICALSSECTION 1

SECTION 2

1235 N. KARLOV ST.

FINANCIAL ANALYSIS

CHICAGO, IL 60651


Unit # Current Rent Lease Expiration

1233-1 ¹ $900 VACANT

1233-2 ¹ $900 VACANT

1233-3 $850 MTM

1235-1 $940 9/30/2017

1235-2 $950 12/31/2017

1235-3 ¹ $900 VACANT

1237-1 $780 MTM

1237-2 $940 10/31/2017

1237-3 $750 MTM

4056-1 $900 7/31/2018

4056-2 ¹ $900 VACANT

4056-3 ¹ $900 VACANT

4058-1 $500 2/28/2018

4058-2 $900 4/30/2018

4058-3 ¹ $900 VACANT

Totals/Averages $12,910

¹ Unit is Currently Vacant

2 Bed / 1 Bath

2 Bed / 1 Bath

2 Bed / 1 Bath

2 Bed / 1 Bath

2 Bed / 1 Bath

Unit Type

2 Bed / 1 Bath

2 Bed / 1 Bath

2 Bed / 1 Bath

2 Bed / 1 Bath

2 Bed / 1 Bath

2 Bed / 1 Bath

2 Bed / 1 Bath

2 Bed / 1 Bath

2 Bed / 1 Bath

2 Bed / 1 Bath


RENT ROLLSECTION 2

$12,910 $154,920 $900 $13,500 $162,000

$12,910 $154,920 $13,500 $162,000

Income Summary Current % of SGI Per Unit Pro Forma % of SGI Per Unit

Gross Potential Rent $154,920 100.0% $10,328 $162,000 99.3% $10,800

Parking 1 $0 0.0% $0 $1,200 0.7% $80

Scheduled Gross Income (SGI) $154,920 100.0% $10,328 $163,200 100.0% $10,880

Vacancy Loss $23,238 15.0% $1,549 $16,320 10.0% $1,088

Expected Gross Income (EGI) $131,682 85.0% $8,779 $146,880 90.0% $9,792

Expense Summary Current % of SGI Per Unit Pro Forma % of SGI Per Unit

Real Estate Taxes 2 $13,592 8.8% $906 $16,320 10.0% $1,088

Property Insurance $10,911 7.0% $727 $10,911 6.7% $727

Gas $0 0.0% $0 $0 0.0% $0

Electric $553 0.4% $37 $553 0.3% $37

Water & Sewer $8,479 5.5% $565 $8,479 5.2% $565

Scavenger $3,136 2.0% $209 $3,136 1.9% $209

Management Fee 3 $7,746 5.0% $516 $8,160 5.0% $544

Janitor 3 $3,750 2.4% $250 $3,750 2.3% $250

Repairs & Maintenance 3 $4,500 2.9% $300 $4,500 2.8% $300

Cleaning & Decorating 3 $4,500 2.9% $300 $4,500 2.8% $300

Miscellaneous & Reserves 3 $3,000 1.9% $200 $3,000 1.8% $200

Gross Expenses $60,166 38.8% $4,011 $63,308 38.8% $4,221

Net Operating Income $71,516 46.2% $4,768 $83,572 51.2% $5,571

1 Pro Forma Parking Income Based Upon Two (2) Spaces that Rent for $50/month each

2 2015 Real Estate Tax Bill; Pro Forma Real Estate Taxes Estimated at 10% of SGI

3 Broker Estimate

Pro Forma

Mo. Income

Pro Forma

Annual

Income

Unit TypeCurrent

Mo. Income

Current

Annual

Income

Pro Forma

Avg. Rent

15

Current Avg. Rent

$861

Totals

2 Bed / 1 Bath

Count

15


UNIT MIX / INCOME & EXPENSESSECTION 2


INVESTMENT OVERVIEW CURRENT PRO FORMA

Price $1,100,000 $1,100,000

Price per Unit $73,333 $73,333

GRM 7.1 6.74

CAP Rate 6.5% 7.6%

Cash-on-Cash Return (YR 1) 6.5% 7.6%

Total Return (YR 1) 6.5% 7.6%

OPERATING DATA CURRENT PRO FORMA

Gross Scheduled Income $154,920 $163,200

Other Income - -

Total Scheduled Income $154,920 $163,200

Vacancy Cost $23,238 $16,320

Collected Income $131,682 $146,880

Operating Expenses $60,166 $63,308

Net Operating Income $71,516 $83,572

FINANCIAL SUMMARYSECTION 2

SECTION 3

1235 N. KARLOV ST.

SALE COMPARABLES

CHICAGO, IL 60651



1235 N. Karlov St. | Chicago, IL 60651SUBJECT PROPERTY

1 1512 North Karlov AvenueChicago, IL 60651 2 1117 North Kildare Avenue

Chicago, IL 60651 3 4203 West Walton StreetChicago, IL 60651

4 636 North Avers AvenueChicago, IL 60624 5 4449 West Dickens Avenue

Chicago, AK 60639

SALE COMPS MAPSECTION 3

$80,833

$62,500

$70,000

$61,538

$68,750

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

1512 N. Karlov Ave. 1117 N. Kildare Ave. 4203 W. Walton St. 636 N. Avers Ave. 4449 W. Dickens Ave.

Price Per Unit

$68,724


SALE COMP ANALYSISSECTION 3

8.80

6.89

7.65

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

1512 N. Karlov Ave. 1117 N. Kildare Ave. 4449 W. Dickens Ave.

GRM

7.68%

8.98%

7.29%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

1512 N. Karlov Ave. 1117 N. Kildare Ave. 4449 W. Dickens Ave.

Cap Rate

7.98%

7.78


SALE COMP ANALYSISSECTION 3

SALE COMPSSECTION 3

1

$485,000Sale Price: 1921Year Built:

5,863 SFBuilding SF: $82.72Price PSF:

6No. Units: $80,833Price / Unit:

7.68%Cap: 08/28/2015Closed:

8.8GRM: $37,260NOI:

UNIT TYPE # UNITS % OF

2 Bed / 1 Bath 6 100

TOTAL/AVG 6 100%

- Tenant paid heat- Kitchens and bathrooms were not updated- Units were in vintage condition at time of sale- Each apartment has a separate dining area

1512 NORTH KARLOV AVENUE

Chicago, IL 60651

1

2




8.98%Cap: 08/11/2015Closed:

6.89GRM: $49,411NOI:


2 Bed / 1 Bath 8 100

TOTAL/AVG 8 100%

- Tenant paid heat- Kitchens and bathrooms were in average condition at sale

1117 NORTH KILDARE AVENUE

Chicago, IL 60651

2


SALE COMPSSECTION 3

3




03/22/2017Closed:


1 Bed / 1 Bath 2 25

2 Bed / 1 Bath 6 75

TOTAL/AVG 8 100%

- Two garage parking spaces are available

4203 WEST WALTON STREET

Chicago, IL 60651

3

4




09/22/2016Closed:


2 Bed / 1 Bath - Garden 1 7.7

2 Bed / 1 Bath 9 69.2

3 Bed / 1 Bath 3 23.1

TOTAL/AVG 13 100%

- Tenant paid heat- Kitchens and bathrooms were in moderate condition- Hardwood flooring throughout the living spaces

636 NORTH AVERS AVENUE

Chicago, IL 60624

4


SALE COMPSSECTION 3

5




7.29%Cap: 04/09/2015Closed:

7.65GRM: $60,143NOI:


1 Bed / 1 Bath 5 41.7

2 Bed / 1 Bath 7 58.3

TOTAL/AVG 12 100%

- Owner paid heat- Kitchens and bathrooms were in vintage condition at time of sale

4449 WEST DICKENS AVENUE

Chicago, AK 60639

5


SECTION 4

1235 N. KARLOV ST.

RENT COMPARABLES

CHICAGO, IL 60651



1235 N. Karlov St. | Chicago, IL 60651SUBJECT PROPERTY

1 4120 West Potomac AvenueChicago, IL 60651 2 1123 North Kildare Avenue

Chicago, IL 60651 3 1239 North Keeler AvenueChicago, IL 60651

4 4048 West Division StreetChicago, IL 60651

RENT COMPS MAPSECTION 4

$1,150

$850

$1,145

$850

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

4120 W. Potomac Ave. 1123 N. Kildare Ave. 1239 N. Keeler Ave. 4048 W. Division St.

2 Bed / 1 Bath

$948


RENT COMP ANALYSISSECTION 4

RENT COMPSSECTION 4


4120 WEST POTOMAC AVENUEChicago, IL 60651

1928Year Built:0 ACLot Size:

- Tenant paid heat

Walk-upBuilding Type:

2No. Units:

1UNIT TYPE AVG. RENT

2 Bed / 1 Bath $1,150

TOTAL/AVG $1,150

1123 NORTH KILDARE AVENUEChicago, IL 60651


- Tenant paid heat


8No. Units:


2 Bed / 1 Bath $850

TOTAL/AVG $850

1239 NORTH KEELER AVENUEChicago, IL 60651


- Tenant paid heat

Six-FlatBuilding Type:

6No. Units:


2 Bed / 1 Bath $1,145

TOTAL/AVG $1,145

RENT COMPSSECTION 4


4048 WEST DIVISION STREETChicago, IL 60651


- Owner paid heat- Kitchens and bathrooms have standardfinishes- White appliances / laminate countertops /wood cabinetry- Hardwood flooring throughout the livingspaces


12No. Units:

4UNIT TYPE SIZE SF AVG. RENT RENT/SF

2 Bed / 1 Bath 800 $850 $1.06

TOTAL/AVG 800 $850 $1.06

SECTION 5

1235 N. KARLOV ST.

DEMOGRAPHICS

CHICAGO, IL 60651



* Demographic data derived from 2010 US Census

0.5 MILES 1 MILE 1.5 MILES

Total households 3,838 15,310 35,420

Total persons per hh 3.5 3.4 3.3

Average hh income $44,493 $41,958 $41,702

Average house value $280,701 $273,945 $291,861

0.5 MILES 1 MILE 1.5 MILES

Total population 13,276 52,509 115,685

Median age 27.8 28.5 29.7

Median age (male) 25.9 26.9 28.6

Median age (female) 30.0 30.3 31.0

DEMOGRAPHICS REPORTSECTION 5


* Demographic data derived from 2010 US Census

POPULATION 0.5 MILES 1 MILE 1.5 MILES

TOTAL POPULATION 13,276 52,509 115,685

MEDIAN AGE 27.8 28.5 29.7

MEDIAN AGE (MALE) 25.9 26.9 28.6

MEDIAN AGE (FEMALE) 30.0 30.3 31.0

HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES

TOTAL HOUSEHOLDS 3,838 15,310 35,420

# OF PERSONS PER HH 3.5 3.4 3.3

AVERAGE HH INCOME $44,493 $41,958 $41,702

AVERAGE HOUSE VALUE $280,701 $273,945 $291,861

DEMOGRAPHICS MAPSECTION 5

a multifamily investment opportunity 1235 n....

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