offering memorandum · coldwell banker commercial devonshire realty | champaign, il | 217.352.7712...

COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM

802 W. Oregon St.,

601 S. Busey Ave.,

603 S. Busey Ave.,

Urbana, IL 61801

University of Illinois Campus Housing in Opportunity Zone

Ryan Murphy, CCIM

CBCDR Senior Advisor, Brokerage

C: 217.840.7953

O: 217.403.3379

[email protected]

OFFERING MEMORANDUM

601 S. Busey

603 S. Busey802 W. Oregon


This Confidential Investment Summary (“CIS”) is provided by Coldwell Banker Commercial Devonshire Realty (“CBCDR”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This CIS may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of CBCDR. This CIS does not constitute or pertain to an offer of a security or an offer of any investment contract. This CIS contains descriptive materials, financial information and other data compiled by CBCDR for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. CBCDR has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon CBCDR.

The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.

BY ACCEPTING THIS CIS, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from CBCDR relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to CBCDR, all or any part of this CIS or the Information; (3) upon request by CBCDR at any time, you will return and/or certify your complete destruction of all copies of this CIS and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless CBCDR all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this CIS and/or any other Information concerning the Property; (5) you will not provide this CIS or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that CBCDR shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.

CONFIDENTIALITY AND RESTRICTED USE AGREEMENT

USE AGREEMENT


THE OFFERING

Coldwell Banker Commercial Devonshire Realty (CBCDR) is proud to exclusively offer for sale a student housing portfolio located in an Opportunity Zone at the University of Illinois at Urbana-Champaign (UIUC) containing three adjacent properties totaling 28 units and 51 beds. The portfolio provides two corner lots and is situated in a prime location one block east of Lincoln Avenue on the University of Illinois campus (51,196 students and 10,974 faculty & staff).

Two properties in the portfolio, 802 W. Oregon and 603 S. Busey, are known as the Europa House, which was considered Private Certified Housing for UIUC. Certification requirements have recently changed, so the seller has elected not to renew the certification or transition to a traditional student housing model to provide the buyer with maximum flexibility. These properties have a shared swimming pool and lower level parking garage to accommodate 28 cars.

802 W. Oregon is a three-and-a-half-story building built in 1967. The top three floors each have six, 2-bedroom units, which feature a double sink vanity in the bathroom and personal balcony. The bottom floor has one, 2-bedroom unit along with a shared resident lounge, laundry room and meeting space.

603 S. Busey is a single-story building built in 1993. The eight studio lofts feature a two-and-a-half-story cathedral ceiling, living room, bathroom, full kitchen with a breakfast bar, personal patio, and a loft level for sleeping and closet space. The building provides a shared lounge and laundry room.

601 S. Busey is a two-story house with on-site parking for seven cars. Each of the five bedrooms has an ensuite bathroom. The first floor has a spacious living room, large kitchen and additional bathroom. The basement is unfinished, but provides a washer and dryer for the residents.

OVERVIEW

PURCHASE PRICE $2,190,000

PRO FORMA GROSS ANNUAL INCOME $332,652

PRO FORMA NOI $205,578

PRO FORMA CAP RATE 9.38%

PRO FORMA GIM 6.58

TOTAL UNITS/BEDS 28 Units / 51 Total Beds

COMBINED LOT SIZE +/- 30,941 SF

ZONING R-4 & R-7

COMBINED RE TAXES $66,055

YEAR(S) BUILT Varies

OPPORTUNITY ZONE Yes

PORTFOLIO OVERVIEW


LOW AERIAL


HIGH AERIAL


SITE PLAN & ZONING

ZONING R-4 R-7

Max Build Height 35’ 35’

Max FAR 0.5 0.5

Max OSR 0.35 0.35

Setbacks 10-25’ (F), 5’ (S), 10’ (R)

10-25’ (F), 5’ (S), 10’ (R)

ZONINGINFORMATION

R-4 Medium Density Multiple-Family Residential District is intended to

provide areas for multiple-family dwellings at low and medium densities.

R-7 University Residential District is intended to provide areas in

proximity to the University of Illinois for dormitories and rooming houses,

which are occupied primarily by students, to insure the longevity of

architectural character and use of these existing buildings, and to protect

nearby low-density residential districts from incompatible developments.

R-4

R-4

R-7

R-7


AREA OVERVIEW

The city of Urbana is a highly educated community thanks in

part to the world-renowned University of Illinois at Urbana-

Champaign. Champaign County is also home to the University

of Illinois Willard Airport, Parkland College and a vibrant

collection of business, tech, financial service, and agricultural

firms. Champaign residents enjoy a robust healthcare network

with two regional hospitals (Carle and OSF) and a full

complement of specialty clinics (i.e. Christie Clinic) and

medical providers.

The subject portfolio is within easy walking distance to

academic buildings, entertainment venues, recreation and

sports facilities, and numerous restaurants and retailers. It is

located in a Qualified Opportunity Zone, which provides

potential tax incentives. The tax incentives, which are tied to

capital gains, are as follows:

• Temporary tax deferral

• Step-up in basis based on the length of time

invested in the Opportunity Fund

• Permanent exclusion (minimum hold of 10 years)

from capital gains tax accrued in the Opportunity

Funds

LOCATION


RENT PROJECTION

ADDRESS UNITS LAYOUT MONTHLYRENT/UNIT

TOTALMONTHLY

RENT

802 W. Oregon 19 2 bed / 1 bath $1,100.00 $20,900.00

603 S. Busey 8 Studio Lofts $685.00 $5,480.00

601 S. Busey 1 5 bed / 6 bath house $2,800.00 $2,800.00

TOTAL 28 $29,180.00


PROFORMA INCOME STATEMENT

REVENUE PROFORMA

Potential Rental Income $350,160

Vacancy & Credit Loss (5%) $17,508

GROSS OPERATING INCOME $332,652

OPERATING EXPENSES PROFORMA

Taxes $66,055

Management Fee (6% GOI) $19,959

Insurance $8,000

Utilities (Non-Reimbursed) $6,000

Cleaning $5,200

Maintenance/Repairs/Turnover $12,800

Lawn & Snow $600

Trash Hauling $2,500

Advertising/Marketing $960

Miscellaneous Expenses $5,000

TOTAL OPERATING EXPENSES $127,074

NET OPERATING INCOME $205,578


802 W. OREGON

PROPERTY 802 W. OREGON

Lot Size (SF) 15,366

Lot Size (Acres) 0.35

Year Built 1967

Zoning R-7: University Residential District

PIN 91-21-17-152-014

Taxes (2018) $39,752

Opportunity Zone

Yes

Units 19

Layout 2 Bed / 1 Bath

PROPERTY OVERVIEW


802 W. OREGON FLOOR PLANS


603 S. BUSEY

PROPERTY 603 S. BUSEY

Lot Size (SF) 7,805


Year Built 1993

Zoning R:4 Medium Density Multiple-Family Residential

PIN 91-21-17-152-013

Taxes (2018) $17,839

Opportunity Zone Yes

Units 8

Layout Studio Lofts

PROPERTY OVERVIEW


603 S. BUSEY FLOOR PLAN


601 S. BUSEY

PROPERTY 601 S. BUSEY

Lot Size (SF) 7,770


Zoning R:4 Medium Density Multiple-Family Residential

PIN 91-21-17-152-012

Taxes (2018) $8,464

Opportunity Zone Yes

Units 1

Layout 5 Bed / 6 Bath House

PROPERTY OVERVIEW


• Opportunity Zone Investment

• University of Illinois Campus

Housing Portfolio

• Three Property Portfolio with Two

Corner Lots

• 28 Units & 51 Total Beds

PROPERTY HIGHLIGHTS

CONTACT & HIGHLIGHTS

Ryan Murphy, CCIMCBCDR Senior Advisor, Brokerage

C: 217.840.7953

O: 217.403.3379

[email protected]

CBCDR Office

201 W. Springfield Ave., 11th Floor

Champaign, IL 61820

offering memorandum · coldwell banker commercial devonshire realty | champaign, il | 217.352.7712...

Documents