40 UNIT SRO + COMMERCIAL SPACE

Transcription

1 FOR SALE MULTI-FAMILY 40 UNIT SRO + COMMERCIAL SPACE 3022 S. Archer Avenue Chicago, IL PRESENTED BY: PROPERTY HIGHLIGHTS DAWN OVERSTREET,, PH.D. Located on a thriving retail & residential street Senior Advisor Just 2 blocks from CTA's Ashland Ave "L" stop dawn.overstreet@svn.com Potential to expand room count on 4th floor Brand new boiler, newer roof, full basement Parking lot next to property is open to residents High Cash Flow Investment Opportunity

2 DISCLAIMER The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.

3 TABLE OF CONTENTS 1. PROPERTY INFORMATION 4 Executive Summary 5 Location Description 6 2. LOCATION INFORMATION 7 Location Maps 8 Retailer Map 9 Aerial Map 10 Zoning Map FINANCIAL ANALYSIS 12 Financial Summary 13 Income & Expenses ADDITIONAL INFORMATION 15 Additional Photos 16 Additional Photos DEMOGRAPHICS 18 Demographics Map 19 Graphic Profile ADVISOR BIOS 23 Advisor Bio & Contact 1 24 Back Page 25

4 1 PROPERTY INFORMATION

5 SECTION 1 PROPERTY INFORMATION Executive Summary SALE OVERVIEWVIEW SALE PRICE: $1,200,000 NUMBER OF UNITS: 41 CAP RATE: 12.47% NOI: $149,630 BUILDING SIZE: 12,500 SF YEAR BUILT: 1868 ZONING: C1-2 PROPERTY DESCRIPTION This 40-Room SRO plus Commercial Space has loads of additional space, which makes it appealing for both affordable buyers and investors. A finished basement with washer/dryer, brand new boiler, newer roof, 80 gallon hot water heater, and fire alarm system consistent with the SRO requirements. The vacant 4th floor attic features an open floor plan with windows and exposed brick, which could be developed into additional income-producing rooms. The commercial/residential space is a two story duplex loft that can serve as both an owner or live-in manager's unit and retail space creating further income potential. A large parking lot adjacent to the property is owned by the city and open for residents to use. LOCATION OVERVIEWVIEW Ideally located in the Bridgeport neighborhood with public transportation, restaurants, Mariano's, Target, and coffee shops walking distance from this property. U.S. Cellular Field and Chinatown are just 1 mile away. This ethnically diverse neighborhood is a happening commercial, entertainment, and arts destination. Bridgeport is increasingly environmentally friendly with streetscaping projects including new pavers, sidewalks, bike racks, and trash receptacles. In addition is an increasing number of parks with native vegetation and wetlands, cat walks, and views of downtown from the manmade summit affectionately called "Mt. Bridgeport." 5

6 SECTION 1 PROPERTY INFORMATION Location Description LOCATION OVERVIEWVIEW Ideally located in the Bridgeport neighborhood with public transportation, restaurants, Mariano's, Target, and coffee shops walking distance from this property. U.S. Cellular Field and Chinatown are just 1 mile away. This ethnically diverse neighborhood is a happening commercial, entertainment, and arts destination. Bridgeport is increasingly environmentally friendly with streetscaping projects including new pavers, sidewalks, bike racks, and trash receptacles. In addition is an increasing number of parks with native vegetation and wetlands, cat walks, and views of downtown from the manmade summit affectionately called "Mt. Bridgeport." 6

7 2 LOCATION INFORMATION

8 SECTION 2 LOCATION INFORMATION Location Maps 8

9 SECTION 2 LOCATION INFORMATION Retailer Map 9

10 SECTION 2 LOCATION INFORMATION Aerial Map 10

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12 3 FINANCIAL ANALYSIS

13 SECTION 3 FINANCIAL ANALYSIS Financial Summary INVESTMENT OVERVIEWVIEW Price $1,200,000 Price per Unit $29,268 GRM 5.2 CAP Rate 12.47% Cash-on-Cash Return (yr 1) % Total Return (yr 1) $114,019 Debt Coverage Ratio 2.62 OPERATING DATA Gross Scheduled Income $232,800 Other Income $21,600 Total Scheduled Income $254,400 Vacancy Cost $23,280 Gross Income $231,120 Operating Expenses $81,490 Net Operating Income $149,630 Pre-Tax Cash Flow $92,624 FINANCING DATA Down Payment $300,000 Loan Amount $900,000 Debt Service $57,006 Debt Service Monthly $4,750 Principal Reduction (yr 1) $21,395 13

14 SECTION 3 FINANCIAL ANALYSIS Income & Expenses INCOME SUMMARY 40 $485 $232,800 Duplex/Commercial Space (Estimated Market Rent) $21,600 Vacancy and Collection Loss (10%) -$23,280 GROSS INCOME $231,120 EXPENSE SUMMARY Real Estate Taxes (2014) $12,897 Insurance $14,000 Gas $8,000 Electric $8,000 Water $5,250 Scavenger $3,180 Management Fee (6%) $13,867 Repairs and Maintence $11,640 Reserves $4,656 GROSS EXPENSES $81,490 NET OPERATING INCOME $149,630 14

15 4 ADDITIONAL INFORMATION

16 SECTION 4 ADDITIONAL INFORMATION Additional Photos 16

17 SECTION 4 ADDITIONAL INFORMATION Additional Photos 17

18 5 DEMOGRAPHICS

19 SECTION 5 DEMOGRAPHICS Demographics Map POPULATION 0.5 MILES 1 MILE 1.5 MILES TOTAL POPULATION 8,619 29,270 86,190 MEDIAN AGE MEDIAN AGE (MALE) MEDIAN AGE (FEMALE) HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES TOTAL HOUSEHOLDS 3,268 10,704 30,218 # OF PERSONS PER HH AVERAGE HH INCOME $48,869 $51,767 $50,096 AVERAGE HOUSE VALUE $260,920 $279,887 $302,282 * Demographic data derived from 2010 US Census 19

20 Graphic Profile 3022 S Archer Ave, Chicago, Illinois, Prepared by Esri Ring: 0.5 mile radius Latitude: Longitude: Population by Race 2015 Population by Age 4,000 3,500 3,000 2,500 2,000 1,500 1, % 2.5% 0.7% 33.2% 17.4% 2.7% 17.2% 14.1% 7.6% 13.4% 18.0% 12.4% 6.3% 11.1% < White Black Am.Ind. Asn/Pac Other Two Percent Hispanic Origin: 35.0% Households 2015 Home Value 3,500 2,901 3,040 3, % 3,000 2,500 2,000 1,500 1, % 15.8% 6.8% 5.9% 5.5% <$100K $ K $ K $ K $ K $500K+ Census Annual Growth Rate Percent Population Households Median Household Income Owner Occupied Housing Units Household Income Percent <$15K $15K-$25K $25K-$35K $35K-$50K $50K-$75K $75K-$100K $100K-$150K $150K-$200K $200K Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and February 18, Esri Page 1 of 3

21 Graphic Profile 3022 S Archer Ave, Chicago, Illinois, Prepared by Esri Ring: 1 mile radius Latitude: Longitude: Population by Race 2015 Population by Age 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, % 29.4% 21.3% 2.4% 0.6% 2.8% White Black Am.Ind. Asn/Pac Other Two+ 18.2% 14.0% 7.8% 12.7% 19.0% 6.5% 10.3% 11.5% < Percent Hispanic Origin: 43.8% Households 2015 Home Value 14,000 12,000 10,275 10,808 11, % 10,000 8,000 6,000 4,000 2, % 16.9% 6.6% 6.0% 6.0% <$100K $ K $ K $ K $ K $500K+ 0 Census Annual Growth Rate Percent Population Households Median Household Income Owner Occupied Housing Units Household Income Percent <$15K $15K-$25K $25K-$35K $35K-$50K $50K-$75K $75K-$100K $100K-$150K $150K-$200K $200K Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and February 18, Esri Page 2 of 3

22 Graphic Profile 3022 S Archer Ave, Chicago, Illinois, Prepared by Esri Ring: 1.5 mile radius Latitude: Longitude: Population by Race 2015 Population by Age 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, % 2.8% 0.9% 21.1% 27.9% 3.1% White Black Am.Ind. Asn/Pac Other Two+ 19.1% 14.2% 8.5% 12.0% 19.5% 10.2% 6.7% 9.7% < Percent Hispanic Origin: 55.8% Households 2015 Home Value 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 29,873 31,696 33, % 28.2% 17.8% 7.9% 7.0% 6.7% <$100K $ K $ K $ K $ K $500K+ 0 Census Annual Growth Rate Percent Population Households Median Household Income Owner Occupied Housing Units Household Income Percent <$15K $15K-$25K $25K-$35K $35K-$50K $50K-$75K $75K-$100K $100K-$150K $150K-$200K $200K Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and February 18, Esri Page 3 of 3

23 6 ADVISOR BIOS

24 SECTION 6 ADVISOR BIOS Advisor Bio & Contact 1 Dawn Overstreet, Ph.D. Senior Advisor SVN Chicago Commercial Dawn Overstreet, Ph.D. serves as Senior Advisor for SVN Chicago Commercial, specializing in multi-family apartment complexes with a focus on SRO (Single Room Occupancy) properties. She has a working knowledge of this asset class as well as an expertise of the SRO Ordinance. Overstreet gained significant experience in the acquisition and disposition of investment properties through acquiring, selling, and managing her own investment properties for 15+ years. She and her team have an overall record of proven performance and boast a rich catalog of more than sixty years of experience in commercial real estate. Prior to joining SVN, Overstreet served in higher education leadership positions at The University of Notre Dame, Boston College, and Loyola University Chicago. Phone: Fax: Cell: dawn.overstreet@svn.com Overstreet earned her B.B.A. from the University of Notre Dame Mendoza College of Business and her M.A. and Ph.D. from Boston College. She enjoys visiting her family in the Northwest, being outdoors on her bike, and traveling the world. She works with Senior Vice President Reid Bennett. Address: 940 West Adams Street, Suite 200 Chicago, IL

25 PRESENTED BY: DAWN OVERSTREET,, PH.D. Senior Advisor All SVN Offices Independently Owned & Operated 2014 All Right Reserved