FOR SALE LAKEVIEW RENOVATED MIXED-USE PROPERTY 2834 N. SOUTHPORT CHICAGO, IL 60657

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1 FOR SALE LAKEVIEW RENOVATED MIXED-USE PROPERTY 2834 N. SOUTHPORT CHICAGO, IL SVN CHICAGO COMMERCIAL 940 WEST ADAMS STREET, SUITE 200, CHICAGO, IL OFFERING MEMORANDUM

2 PROPERTY INFORMATION 3 Property Description Property Highlights Property Details LOCATION INFORMATION 7 Regional Map Additional Photos Area Aerial Map Property Pictures 11 Exterior Photos Photos - Restaurant Photos - Unit 1 Photos - Unit 2 Photos - Unit 3 FINANCIAL ANALYSIS 17 Financial Summary Income & Expenses Rent Roll SALE COMPARABLES 21 Sale Comps Sale Comps Summary Sale Comps Map DEMOGRAPHICS 28 Demographics Map ADVISOR BIOS 30 Advisor Bio & Contact Advisor Bio & Contact Back Page 2834 N. SOUTHPORT 2834 N. SOUTHPORT, CHICAGO, IL SALE PROPOSAL

3 1 PROPERTY INFORMATION 2834 N. Southport Chicago, IL N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 3

4 Property Description PROPERTY OVERVIEW SVN Chicago Commercial is pleased to offer for sale a beautiful, fully leased, mixed-use corner building on Southport Ave in Chicago's highly sought after Lakeview neighborhood. The property is comprised of 3 apartments + 1 ground floor restaurant space which is leased to Sal's Trattoria, an acclaimed neighborhood Italian eatery. The approx SF, three-story building + usable basement has excellent visibility along Southport Ave. The property consists of one, 1200 SF restaurant space with an additional 1800 SF lower level, two approx SF 4 bed/2.5 bath apartments, and one approx. 800 SF 1 bed/1 bath apartment. Following a complete renovation in 2017, the apartments are in exceptional condition, with all featuring new kitchens, stainless steel appliances, bathrooms, hardwood floors, lighting and in-unit laundry. The utilities & HVAC are separate per unit, providing minimal operating expense basis to the property owner. Two rear parking spaces are also included. Sal's Trattoria, part of a multi-unit restaurant group, opened in June 2017 to rave reviews and is on a new long-term lease. The restaurant space, which also received substantial improvements with its new tenant, seats approx 40 inside and has an outdoor area capable of +/- 50 seats. This is great opportunity to acquire a beautifully renovated, stabilized, mixed-use building in one of Chicago's preeminent north side neighborhoods. LOCATION OVERVIEW The property is located in Chicago's desirable Lakeview neighborhood on Southport Ave. With an affluent and densely populated demographic, this sub-market boasts average home values over $660,000, and average annual income levels over $160,000. The property's location affords convenience as it is walking distance to CTA's Diversey 'L' stop, DePaul University, numerous restaurants and eateries, "Southport Corridor" retail shops, and many entertainment & nightlife destinations. Southport Ave in Lakeview is one of Chicago's most sought after locations for restaurant operators, retailers, & residents alike based on its demographics, population density & convenient location N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 4

5 Property Highlights SALE HIGHLIGHTS Mixed-use, 100% leased corner building in Chicago's Lakeview neighborhood 4 total units: 3 apartments + 1 ground floor restaurant space w/ full basement Spectacular renovated apartments w/ new kitchens, baths, appliances, flooring, doors, in-unit laundry Long-term restaurant lease with acclaimed Sal's Trattoria Restaurant seats approx. 40 inside w/ outdoor area for +/- 50 seats Utilities & HVAC separately metered per unit On-site parking for residential and commercial Close to mass transit 2017 Renovations include: - New Roof - Roof Turret repaired/re-shingled - Parking pad/garbage corral installed - - Siding & insulation added to 1st floor apartment unit exterior - Upgraded ventilation system for restaurant - New chimney liners - Common hallways & stairways upgraded - Complete rehab of residential units including new kitchens, appliances, baths, flooring, paint, fixtures, lighting, doors, laundry 2834 N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 5

6 Property Details Property Address: 2834 N. Southport Chicago, IL Sale Price: $2,499,000 Proforma NOI: $145,336 Proforma CAP Rate: 5.82% Property Type: Neighborhood: Lot Size: Multifamily / Mixed-use Lakeview 3,025 SF Zoning: B1-2 Building Size: Approx SF Tax Pin: Roof: Gas & Electric: Heat & Air conditioning: Laundry: Mass Transit Access: Cross Streets: Rubber Bitumen (2017 Tear-off replacement) Individually metered per unit Individual per unit In-unit washer/dryer CTA Diversey Southport and Wolfram Number of Units: 4 # Parking Spaces: 2 Year Renovated: N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 6

7 2 LOCATION INFORMATION 2834 N. Southport Chicago, IL N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 7

8 Regional Map 2834 N. Southport 2834 N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 8

9 Additional Photos 2834 N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 9

10 Area Aerial Map 2834 N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 10

11 3 PROPERTY PICTURES 2834 N. Southport Chicago, IL N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 11

12 Exterior Photos 2834 N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 12

13 Photos - Restaurant 2834 N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 13

14 Photos - Unit N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 14

15 Photos - Unit N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 15

16 Photos - Unit N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 16

17 4 FINANCIAL ANALYSIS 2834 N. Southport Chicago, IL N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 17

18 Financial Summary INVESTMENT OVERVIEW 2018 PROFORMA Price $2,499,000 GRM 13.3 CAP Rate 5.82% Total Return (yr 1) $63,018 Debt Coverage Ratio 1.21 OPERATING DATA 2018 PROFORMA Gross Scheduled Income $187,362 Other Income - Total Scheduled Income $187,362 Vacancy Cost $5,620 Gross Income $187,362 Operating Expenses $36,406 Net Operating Income $145,336 Pre-Tax Cash Flow $25,611 FINANCING DATA 2018 PROFORMA Down Payment $749,000 Loan Amount $1,750,000 Debt Service $119,725 Debt Service Monthly $9,977 Principal Reduction (yr 1) $37,407 Note: Financing & Loan assumptions above based on 70% LTV, 4.75% APR, 5 year term, 25 year amortization new acquisition loan 2834 N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 18

19 Income & Expenses INCOME SUMMARY 2018 PROFORMA Apt Rent $113,700 Commercial Rent $71,862 Parking Rent $1,800 Gross Income $187,362 EXPENSE SUMMARY 2018 PROFORMA Repairs/Maintenance ($300/apt unit) $900 Cleaning/Decorating ($100/apt unit) $300 Common Utilities ( % annual increases) $2,034 RE Taxes (2016 payable 2017) $17,029 Insurance (estimate) $5,200 Scavenger ($9.50/month per apt unit) $342 Management (4%) $7,051 Reserves/Replacement ($300/unit) $1,200 Permits/Licenses $250 Miscellaneous $2,100 Gross Expenses $36,406 Net Operating Income $145,336 Notes: 1. RE Taxes & Scavenger are actual current expenses 2. Commercial rent above includes annual rental bump in July The above financials include a 3% vacancy factor 4. Restaurant tenant handles majority of snow removal. Miscellaneous above includes partial snow removal, exterior care & pest control 2834 N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 19

20 Rent Roll UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) LEASE START LEASE END LEASE START CURRENT RENT CURRENT RENT (PER SF) Ground Floor (Sal's) 1,200 1/1/2017 6/30/2022 Current 7/1/2018 $5,900 $6,077 $4.92 $5.06 Apt ,000 3/1/2018 5/31/2019 Current $3,900 $1.95 Apt ,000 12/20/2017 3/31/2019 Current $4,000 $2.00 Apt 1R /3/2017 6/30/2018 Current $1,575 $1.97 Parking 10/3/2017 6/30/2018 Current $150 Basement (Sal's) 1,800 Included in 1st floor rent Totals/Averages 7,800 $15,613 $2.00 Notes: 1. First floor tenant also occupies approx SF useable basement 2. One parking space leased with unit 1R, the other is included in restaurant lease 2834 N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 20

21 5 SALE COMPARABLES 2834 N. Southport Chicago, IL N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 21

22 Sale Comps SUBJECT PROPERTY 2834 N. Southport, Chicago, IL Sale Price: $2,499,000 Lot Size: 0 Acres Building SF: 7,800 SF Price PSF: $ No. Units: 4 Price / Unit: $624,750 Cap: 5.82% GRM: NOI: $145, W. ARMITAGE 1003 W. Armitage Chicago, IL Sale Price: $2,650,000 Year Built: 1884 Building SF: 5,009 SF Price PSF: $ No. Units: 5 Price / Unit: $530,000 CAP: 5.77% Closed: 05/08/2017 Occupancy: 100% 5 unit mixed use building - 4 apts, 1 storefront 2 car parking pad N. CLARK 2322 N. Clark Chicago, IL Sale Price: $2,025,000 Year Built: 2008 Building SF: 7,380 SF Price PSF: $ No. Units: 7 Price / Unit: $289,285 CAP: 6% Closed: 12/07/2016 Occupancy: 100% 7 total units - 6 apts, 1 storefront N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 22

23 Sale Comps N. MILWAUKEE 1360 N. Milwaukee Chicago, IL Sale Price: $2,500,000 Year Built: 1913 Building SF: 5,610 SF Price PSF: $ No. Units: 5 Price / Unit: $500,000 CAP: 6.08% Closed: 03/28/2017 Occupancy: 100% 5 total units - 4 apartments + 1 storefront 4 car parking pad Renovated in N. LINCOLN - MIXED-USE 2942 N. Lincoln Chicago, IL Sale Price: $3,926,000 Year Built: 2006 Building SF: 13,200 SF Price PSF: $ No. Units: 8 Price / Unit: $490,750 CAP: 6.18% Closed: 04/05/ N. BURLING 2520 N. Burling Chicago, IL Sale Price: $1,560,000 Year Built: 1893 Building SF: 5,400 SF Price PSF: $ No. Units: 5 Price / Unit: $312,000 CAP: 5% Closed: 12/22/ N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 23

24 Sale Comps N. CLIFTON 3032 N. Kenmore Chicago, IL Sale Price: $1,980,000 Year Built: 1913 Building SF: 5,335 SF Price PSF: $ No. Units: 5 Price / Unit: $396,000 CAP: 5.97% Closed: 07/18/ N. CLIFTON 3045 N. Clifton Chicago, IL Sale Price: $1,230,000 Year Built: 1890 Building SF: 3,951 SF Price PSF: $ No. Units: 5 Price / Unit: $246,000 CAP: 6% Closed: 08/15/ N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 24

25 Sale Comps Summary SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS 2834 N. Southport 2834 N. Southport Chicago, IL $2,499,000 7,800 SF $ $624, % SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE W. Armitage 1003 W. Armitage Chicago, IL N. Clark 2322 N. Clark Chicago, IL N. Milwaukee 1360 N. Milwaukee Chicago, IL N. Lincoln - Mixed-Use 2942 N. Lincoln Chicago, IL N. Burling 2520 N. Burling Chicago, IL N. Clifton 3032 N. Kenmore Chicago, IL N. Clifton 3045 N. Clifton Chicago, IL $2,650,000 5,009 SF $ $530, % /08/2017 $2,025,000 7,380 SF $ $289, % /07/2016 $2,500,000 5,610 SF $ $500, % /28/2017 $3,926,000 13,200 SF $ $490, % /05/2016 $1,560,000 5,400 SF $ $312, % /22/2016 $1,980,000 5,335 SF $ $396, % /18/2017 $1,230,000 3,951 SF $ $246, % /15/ N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 25

26 Sale Comps Summary SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE Totals/Averages $2,267,286 6,555 SF $ $397, % N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 26

27 Sale Comps Map SUBJECT PROPERTY 2834 N. Southport, Chicago, IL W. ARMITAGE W. Armitage Chicago, IL N. CLARK N. Clark Chicago, IL N. MILWAUKEE N. Milwaukee Chicago, IL N. LINCOLN - MIXED-USE N. Lincoln Chicago, IL N. BURLING N. Burling Chicago, IL N. CLIFTON N. Kenmore Chicago, IL N. CLIFTON N. Clifton Chicago, IL N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 27

28 6 DEMOGRAPHICS 2834 N. Southport Chicago, IL N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 28

29 Demographics Map POPULATION 0.5 MILES 1 MILE 1.5 MILES Total population 18,625 72, ,231 Median age Median age (male) Median age (Female) HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES Total households 8,160 31,774 72,698 # of persons per HH Average HH income $160,476 $141,438 $126,482 Average house value $662,032 $662,287 $644,281 * Demographic data derived from 2010 US Census 2834 N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 29

30 7 ADVISOR BIOS 2834 N. Southport Chicago, IL N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 30

31 Advisor Bio & Contact JOHN LIVADITIS Senior Advisor PROFESSIONAL BACKGROUND John S. Livaditis serves as a senior advisor with SVN Chicago Commercial, specializing in the sale of land and development projects in the Metropolitan Chicago market. Prior to joining SVN, Livaditis developed numerous properties and currently owns properties in the Lincoln Square and Lakeview neighborhoods on the north side of Chicago, and was formerly a client of the firm. Livaditis came to appreciate the unique client based approach SVN offered and was inspired to join the team. Previously, Livaditis served as co-owner and operator of Plitt Seafood, where he helped build a local fish distributor into a company with over $100 million in sales across several Midwest markets. As a result, he was recognized by Inc. Magazine, winning the Inc. Inner City 100 Award for fastest growing business in an inner city market, as well as the Company of the Year Award from the Kinzie Street Industrial Corridor Council for his contributions to the Near West neighborhood of Chicago. 940 West Adams Street, Suite 200 Chicago, IL T jlivaditis@svn.com When he is not chasing deals, Livaditis spends time with his wife and two daughters N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 31

32 Advisor Bio & Contact WAYNE CAPLAN Senior Vice President PROFESSIONAL BACKGROUND Wayne Caplan is a Senior Vice President for SVN Chicago Commercial, specializing in the sale and leasing of retail, investment and development properties. He has participated in commercial property transactions in excess of $500 million including many high profile transactions in the Chicago area. Wayne recently achieved SVN's prestigious Partner's Circle status for both 2014 & 2016, and was ranked number 23 & 26 respectively, among all SVN advisors nationally in gross commission volume. He also was awarded both a Platinium and Gold Commercial Real Estate Award from the Chicago Association of Realtors for excellence in sales and leasing volume for 2014 and a Platinum award in 2016 for retail sales volume. Wayne s clients range from small individual investors to large regional and national lending institutions, as well as REITs, life insurance companies, and national mixed-use developers. Additional Awards and Recognitions include being named Rookie of the Year for Inland Real Estate Sales in 2000, a top producer at Sheldon Good & Company for six years, and being among the top ten percent nationally of all SVN advisors in gross commission volume for the past nine years. Active in advocacy for the commercial real estate industry, Wayne has served as the Council Chair of Political and Regulatory Affairs for SVN. Wayne is a longtime member of the International Council of Shopping Centers (ICSC). He also served for many years on the Chicago Association of Realtors (CAR) Commercial Forum committee, of which he was the 2006 Committee Chair and has served on the prestigious Board of Directors of the 11,000+ member organization from Wayne has also served on the Commercial Committee for the Illinois Association of Realtors (IAR) and has served as a member of the National Association of Realtors (NAR) board of directors and on both it s Commercial and Commercial Legislative & Regulatory Committees. Wayne currently serves on the ICSC Government Relations Committee for Illinois. He is also active in several Chicago neighborhood groups, and serves on the Board of 940 West Adams Street, Suite 200 Chicago, IL T wayne.caplan@svn.com Directors for The Near South Planning Board in Chicago, and Beth Hillel Congregation Bnai Emunah in Wilmette. Wayne is a contributor to charities such as the American Red Cross, The Jewish United Fund and Streetwise. Wayne lives in Glenview, IL with his wife and two sons. Specialties: Investment Sales, Landlord Representation, Land and Development Consulting EDUCATION MBA - Finance & Real Estate - Northwestern University, Kellogg Graduate School of Management BA - Computer Science - New York University MEMBERSHIPS & AFFILIATIONS Present - Member - International Council of Shopping Centers (ICSC) Present - Member - National Association of Realtors (NAR) Present - Member - Illinois Association of Realtors (IAR) Present - Member - Chicago Association of Realtors (CAR) Present - Member - Psi Upsilon Fraternity - Delta Chapter - New York University Member - Beth Hillel Congregation Bnai Emunah - Wilmette, IL 2834 N. SOUTHPORT CHICAGO, IL SVN Chicago Commercial Page 32

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