chicago, il 23 unit walk up in lakeview 924 w newport …

NEIGHBORHOOD OVERVIEW

924 W NEWPORTCHICAGO, IL

924 W NEWPORT AVENUE

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]

2 3 U N I T W A L K U P I N L A K E V I E W

924 W NEWPORT AVENUE

33realty.comMORE INFORMATION AVAILABLE ONLINE: Page #

MORE INFORMATION AVAILABLE ONLINE:

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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.


TABLE OF CONTENTSTABLE OF CONTENTS

924 W NEWPORT AVECHICAGO, IL

EXECUTIVE SUMMARY

ADDITIONAL PHOTOS

NEIGHBORHOOD DATA

RETAILER MAP

FINANCIAL SUMMARY

INCOME AND EXPENSES

RENT ROLL

UNIT TYPE

FLOOR PLANS

SALES COMPS

SALES COMPS MAP

SALES COMPS SUMMARY

RENT COMPS SUMMARY

RENT COMPS MAP

DEMOGRAPHICS MAP & REPORT

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33realty.com

33 Realty LLC (“33”) is pleased to announce the opportunity to acquire 924 W Newport (“the property”) ararely available 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 northsideneighborhood has to offer. Whether it be the vibrant night life, gourmet dining options, accessibility topublic transportation, proximity to Lake Michigan, or walkability to Wrigley Field, the property is a perfectbase camp for any young professional to explore the best that Chicago has to offer.

The property provides an investor a unique opportunity to acquire an asset that has undergone asubstantial renovation as well as implementation of professional management services. Recentimprovements to the property include:

• 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 or vinyl replacement• Addition of closet organizers• Addition of in-unit washer and dryer• New electrical service, drop and runs• Addition of Butterfly keyless entry system• 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 one (1) two-bedroom, one-bathroom unit; sixteen (16)one-bedroom, one-bathroom units; and six (6) studio units. The property presents an investor theopportunity to acquire a turn key asset with incredible density in one of Chicago's most sought afterlocations. Additionally, an investor could maximize current vacant basement space to add a bike roomor amenity room for the property.


EXECUTIVE SUMMARY

PROPERTY SUMMARY

EXECUTIVE SUMMARY

List Price: $5,200,000

Number Of Units: 23

Cap Rate: 5.75%

Proforma Cap Rate: 5.92%

NOI: $298,957

Proforma NOI: $307,837

Lot Size: 50 X 120

Building Size: 16,000 SF

Zoning: RM-5


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ADDITIONAL PHOTOS

33realty.comMORE INFORMATION AVAILABLE ONLINE:

NEIGHBORHOOD OVERVIEW


INVESTMENT HIGHLIGHTS TURN-KEY OPPORTUNITY: This 23 unit walk up building in Lakeview was recently updated in 2016. Renovations included new kitchens and baths, refinished hardwood floors, in-unit washer/dryers, and updated electrical service.

EXCELLENT TRANSIT: 924 W Newport Ave 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:87

TRANSIT SCORE: 86

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


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INVESTMENT OVERVIEW CURRENT PROFORMA

Price $5,200,000 $5,200,000

Price per Unit $226,086 $226,086

Gross Rent Multiplier ("GRM") 12.64 12.22

CAP Rate 5.75% 5.92%

Cash-on-Cash Return (yr 1) 4.76% 5.44%

Total Return (yr 1) $124,744 $133,624

Debt Coverage Ratio 1.26 1.30

OPERATING DATA CURRENT PROFORMA

Gross Scheduled Income $411,288 $425,640

Other Income $13,080 $13,080

Total Scheduled Income $412,030 $425,951

Vacancy Cost ($12,338) ($12,769)

Gross Income $412,030 $425,951

Operating Expenses $113,073 $118,114

Net Operating Income $298,957 $307,837

Pre-Tax Cash Flow $61,828 $70,708

FINANCING DATA CURRENT PROFORMA

Down Payment $1,300,000 $1,300,000

Loan Amount $3,900,000 $3,900,000

Debt Service $237,129 $237,129

Debt Service Monthly $19,760 $19,760

Principal Reduction (yr 1) $62,916 $62,916


FINANCIAL SUMMARY


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INCOME SUMMARY CURRENT PROFORMA

Rental income $411,288 $425,640

Other income (move in fees, pet fees, etc) $2,700 $2,700

Utility reimbursements $10,380 $10,380

Vacancy (3%) ($12,338) ($12,769)

TOTAL INCOME $412,030 $425,951

EXPENSE SUMMARY CURRENT PROFORMA

Taxes $29,782 $34,249

Insurance* $7,000 $7,000

Repair & Maintenance $11,500 $11,500

Turnover $4,140 $4,140

Cleaning & Snow Removal $5,500 $5,500

Garbage & Recycling* $3,000 $3,000

Gas* $12,000 $12,000

Electric* $2,000 $2,000

Water* $5,000 $5,000

Management Fees (4%)* $16,451 $17,025

Leasing Fees $9,200 $9,200

Capital Reserves $7,500 $7,500

OPERATING EXPENSES $113,073 $118,114

NET OPERATING INCOME $298,957 $307,837


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.


RENT ROLL


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UNITNUMBER

UNITBED

UNITBATH

LEASESTART

LEASEEND

CURRENTRENT

MARKETRENT

GDE 2 1 08/01/2018 07/31/2019 $1,925 $1,980

GDW 1 1 08/12/2018 08/11/2020 $1,450 $1,475

101 1 1 07/22/2019 06/30/2020 $1,525 $1,570

102 1 1 06/01/2019 05/31/2020 $1,550 $1,595

103 1 1 02/01/2017 04/30/2020 $1,410 $1,595

104 1 1 10/01/2018 09/30/2019 $1,500 $1,595

105 1 1 08/01/2019 07/31/2020 $1,525 $1,570

106 0 1 08/01/2018 07/31/2019 $1,175 $1,195

107 0 1 03/01/2019 03/31/2020 $1,150 $1,195

201 1 1 07/01/2018 06/30/2020 $1,500 $1,570

202 1 1 05/15/2019 05/31/2020 $1,500 $1,595

203 1 1 04/01/2019 03/31/2020 $1,550 $1,595

204 1 1 06/01/2017 05/31/2020 $1,550 $1,595

205 1 1 03/20/2017 04/30/2020 $1,550 $1,570

206 0 1 05/19/2019 05/31/2020 $1,225 $1,225

207 0 1 02/09/2017 03/31/2020 $1,199 $1,225

301 1 1 07/01/2019 06/14/2020 $1,525 $1,570

302 1 1 06/01/2018 05/31/2020 $1,525 $1,595

303 1 1 07/01/2019 06/30/2020 $1,575 $1,595

304 1 1 05/01/2017 07/31/2019 $1,525 $1,595

305 1 1 06/01/2018 06/30/2020 $1,515 $1,570


RENT ROLL


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UNITNUMBER

UNITBED

UNITBATH

LEASESTART

LEASEEND

CURRENTRENT

MARKETRENT

306 0 1 09/01/2019 08/31/2020 $1,250 $1,250

307 0 1 06/01/2018 08/31/2019 $1,175 $1,250

Parking x6 $900 $900

$34,274 $35,470


UNIT TYPE SUMMARY


Studios1 bed, 1 bath2 bed, 1 bath

6161

26.1%69.6%4.3%

$1150-1250$1410-1575

$1925

UNIT TYPE COUNT % TOTAL RENT

Totals/Averages 23 100% $34,274

UNIT TYPE

STUDIO & TWO BEDROOM FLOOR PLANS


FLOOR PLAN SUMMARY


ONE BEDROOM FLOOR PLANS


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SUBJECT PROPERTY

Chicago, IL 60657924 W Newport

UNIT TYPE # UNITS % OF

Studios 6 26.1

1 bed, 1 bath 16 69.6

2 bed, 1 bath 1 4.3

TOTAL/AVG 23 100%

$5,200,000Sale Price: 1920Year Built:

16,000 SFBuilding SF:

23No. Units:$226,087Price / Unit:

12.67GRM:

1106 W NEWPORT

Chicago, IL 606571106 W Newport

UNIT TYPE # UNITS % OF SIZE SF

1 bed, 1 bath 24 100 550

TOTAL/AVG 24 100% 550

Apartment quality units. Long term owner, current rents undermarket.



24No. Units:$251,041

15.04GRM:08/31/2018Closed:

1

1 663 W MELROSE

Chicago, IL 60657663 W Melrose

UNIT TYPE # UNITS % OF SIZE SF

1 bed, 1 bath 18 100 650

TOTAL/AVG 18 100% 650

Condo deconversion with 12 exterior parking spots. Units in goodto excellent condition.

$4,400,000Sale Price:


18No. Units:

Year Built: 1974

Price / Unit: $244,444

GRM: N/A -

Condo Deconversion11/05/2018

2

2


SALE COMPS

Closed:

Price / Unit:


33realty.com

Chicago, IL 60657926 W George St


1 Bd / 1Ba 6 46.2

2 Bd / Ba 6 46.2

3 Bd / 1Ba 1 7.7

TOTAL/AVG 13 100%



13No. Units:$298,076Price / Unit:11.56GRM:

10/22/2018Closed:

3

3 1301 W CORNELIA

Chicago, IL 606571301 W Cornelia Avenue


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.



13No. Units:$305,769Price / Unit:

13.38GRM:01/11/2019Closed:

4

4


SALE COMPS


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

924 W NewportChicago, IL 60657

$5,200,000 16,000 SF $226,087 12.67 23 N/A

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

11106 W Newport1106 W NewportChicago, IL 60657

$6,025,000 16,950 SF $251,041 15.04 24 08/31/2018

2663 W Melrose663 W MelroseChicago, IL 60657

$4,400,000 12,000 SF $244,444 N/A 18 11/05/2018

3926 W George St926 W George St Chicago, IL 60657

$3,875,000 11,264 SF $298,076 11.56 13 10/22/2018

41301 W Cornelia1301 W Cornelia AvenueChicago, IL 60657

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

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

$4,568,750 13,554 SF $268,750 13.38 17


SALE COMPS SUMMARY


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SALE COMPS MAP

924 W Newport Ave | Chicago, IL 60657SUBJECT PROPERTY

1

1106 W NewportChicago, IL 60657

1106 W NEWPORT

2

663 W MelroseChicago, IL 60657

663 W MELROSE

3

926 W George StChicago, IL 60657

4

1301 W Cornelia AvenueChicago, IL 60657

1301 W CORNELIA


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924 W Newport Ave | Chicago, IL 60657SUBJECT PROPERTY

13640 N Pine Grove AveChicago, IL 60613

3640 N PINE GROVE 2611 W Patterson AveChicago, IL 60613

611 W PATTERSON 33421 N Elaine PlChicago, IL 60657

3421 N ELAINE PL 4663Chicago, IL 60657

663 W MELROSE


RENT COMPS MAP

33realty.comMORE INFORMATION AVAILABLE ONLINE: Page 18

RENT COMPS SUMMARY


924 W Newport

3640 N Pine Grove

611 W Patterson

3421 N Elaine Pl

663 W Melrose

$1,275

$1,350

$1,675

$1,700

PROPERTY Studio 1/1

RENT COMPS SUMMARY


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POPULATION 0.25 MILES 0.5 MILES 1 MILE

Total population 6,188 22,776 89,430

Median age 28.8 29.0 30.7

Median age (Male) 29.4 30.1 31.6

Median age (Female) 27.5 27.7 29.6

HOUSEHOLDS & INCOME 0.25 MILES 0.5 MILES 1 MILE

Total households 3,075 11,940 49,447

# of persons per HH 2.0 1.9 1.8

Average HH income $109,592 $107,113 $100,496

Average house value $479,796 $453,033

* Demographic data derived from 2010 US Census


DEMOGRAPHICS MAP & REPORT

chicago, il 23 unit walk up in lakeview 924 w newport …

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