Fox Valley Medical Center 860 E Summit

Transcription

1 :: offering memorandum Fox Valley Medical Center 860 E Summit elgin, il : : VALUE ADD INVESTMENT :: HIGH IMAGE FEATURES :: MEDICAL OFFICE WITH STABLE TENANCY

2 B uilding has a new facade with two - story, glass enclosed atrium lobby and polished granite tile. 2

3 table of contents 01 Executive Summary The Offering Investment Summary Investment Highlights Aerial 02 Area Overview Location Highlights The Market 03 Property Overview The Property Floor Plan Survey Pictures 3

4 860 e. S ummit, elgin, il EXECUTIVE SUMMARY 01 Executive Summary The Offering Investment Summary Investment Highlights Aerial 4

5 THE OFFERING Offered for sale is a 40,674 square foot medical office building. Property is currently 33% leased to 10 tenants. 70% of leased space is occupied by medical or dental tenants. Medical/dental tenants typically have lease renewal rates of 90% because moving is disruptive to patients and outfitting a new medical suite is expensive. The property is priced to sell and offers a value add investor or user/owner substantial profit from leasing the vacant space. Price is $1,499,000 or $36.87 per square foot, a fraction of replacement cost. Pro-Forma Cap Rate is 15.30% when building is 90% leased and Pro-Forma Cash on Cash return is 31.80% (assumes 65% loan at 5% interest and 30-year amortization). With over 108,000 people, Elgin is the 4th largest suburban city in the Chicago metropolitan area and one of the fastest growing. Population within 5 miles of the subject property is 179,000 and grew 10.8% since % of these people are over 55, an age group that is a strong user of medical services. Summit Avenue (Rte 58) is the extension of Golf Road, the primary commercial thoroughfare in the northwest suburbs. INVESTMENT SUMMARY Offering: Location: 40,647 square foot two-story medical office building 860 E. Summit Elgin, IL (Cook County) RE Tax: RE Tax PIN: Price: $108,000 (2015 pay 2016) $1,499,000 ($36.87 PSF) Year Built: 1977, Renovated 2005 In Place NOI: $45,536 Site: 3.05 acres In Place Cap Rate: 3.03% Zoning: Planned Area Business, Elgin, IL Project NOI: $291,837 when 90% leased Parking: 160 spaces (6.0 per 1,000 SF) Projected Cap Rate: 15.30% when 90% leased Cash on Cash: (Projected) 31.80% assumes 65% loan at 5% interest and 30- year amortization 5

6 INVESTMENT HIGHLIGHTS VALUE-ADD INVESTMENT $1,499,000 price offers buyers substantial profit from leasing the vacant space. Discounted price allows owner to lease space at rents low enough to draw tenants from competitive buildings. USER/OWNER OPPORTUNITY Building has almost 27,000 square feet of vacant space for a professional group that would rather own than rent. Buying allows the owners to control their environment, to plan for future expansion, to have other tenants pay their occu-pancy costs and to build equity for retirement. MEDICAL OFFICE HAS STABLE TENANCY 70% of space is leased to medical or dental tenants. Medi-cal and dental tenants rarely move because of the disrup-tion to their patients and the cost of relocating. Tenant retention rates average 90% nationally. Future expansion of healthcare insurance coverage and an aging population is increasing demand for this type of space. QUALITY BUILDING Special features include new façade, two-story glass en-closed atrium lobby, polished granite tile in lobby and bath-rooms and mature landscaping. Building is separately metered for electricity and has a single elevator. Tenant names are shown on pylon sign on Summit Street. FRACTION OF REPLACEMENT COST Replacement cost is estimated at $150 per square foot. Buying and redeveloping foreclosed property is the obvious choice over new construction. Subject property will always have a cost advantage over nearby buildings. 6

7 AERIAL DUNCAN DUNCAN DUNCAN DUNCAN DUNCAN DUNCAN DUNCAN DUNCAN DUNCAN 860 Summit Street Elgin, Illinois BEVERLY PRAIRIE STONE BUSINESS PARK SOUTH BARRINGTON BIG TIMBER WING IL ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE 31 ELGIN IL ROUTE 25 LIBERTY l 58 SUMMIT (A.K.A GOLF RD, EVANSTON-ELGIN RD, RTE. 58) EVANSTON-ELGIN RD, RTE. 58) HOFFMAN ESTATES BARTLETT SHOE FACTORY HIGHLAND LARKIN IL ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE ROUTE 59 BODE 20 SITE VILLA VILLA ST ST ST SCHAUMBURG HIAWATHA WAVERLY WAVERLY WAVERLY WAVERLY WAVERLY WAVERLY WAVERLY WAVERLY WAVERLY 20 US ROUTE 20 IRVING PARK STREAMWOOD SUMMIT MILES 19 This map contains information from sources we believe to be reliable, but we make no representation, warranty or guaranty of its accuracy. This map is published for the use of CBRE and its clients only. Redistribution in whole or part to any third party without the prior written consent of CBRE is strictly prohibited CB Richard Ellis, All Rights Reserved. Sources: CBRE Mapping Services; Claritas, Inc./GDT, Inc. 7

8 860 E. SUMMIT, ELGIN, IL Area Overview 02 area overview Location Highlights 8

9 LOCATION HIGHLIGHTS OFFICE BUILDING IN RETAIL LOCATION Subject property has signage on Golf Road, the most important retail corridor in the northwest suburbs. It has convenient access to I-90 at two intersections, Rte. 59 and Rte. 25. Medical and professional tenants that serve local residents need the identity, access and exposure of a retail location that will attract patients and clients. GROWTH AREA Population within a 5-mile radius grew 10.8% since 2000 to 179,000 people in Area is expected to grow another 5.1% in the next 5 years. Average household income is over $92,000. Growing affluent communities typically have good health insurance coverage and increasing demand for medical services. CHICAGO S 2ND LARGEST SUBURBAN OFFICE MARKET The Northwest Suburban office market is has over 28 million square feet and provides a large tenant base from which to draw tenants. Major business parks near the subject property are at the intersections of I-90 with Barrington Road, Rte. 59 and Rte. 31. Major employers include Sear s corporate head-quarters and Siemens Energy and Automation. STRONG BUSINESS LOCATION The suburbs in the Fox Valley are a desirable location for business due to the availability of affordable housing, skilled and educated labor, ample land and established pro-business city governments. Elgin has twice been named one of the top 10 US cities for economic development. CLOSE TO EXECUTIVE HOUSING Medical and professional practices locate near the homes of partners and key employees. Neighboring cities of Barrington, Geneva, St. Charles and Wayne offer high income communities with excellent schools and recreation-al facilities. 9

10 860 E. SUMMIT, ELGIN, IL Property Overview 03 Property Overview The Property Building Plan Survey 10

11 THE PROPERTY SPECIAL FEATURES Extra parking Three connected buildings On-site pharmacy High image features include new façade, glass enclosed atrium entrance, polished granite tiles in lobby and bathrooms Attractive mature landscaping Pylon sign on Summit (Golf) Road has tenant names Each unit is separately metered for electricity One passenger elevator SITE 3.05 acres, irregularly shaped, level at street grade and not in a flood plain Zoning is PAB, Planned Area Business in the City of Elgin Access via shared drive off of Summit (Golf Rd/Rte 58) PARKING 160 spaces (6.0 spaces per 1,000 square feet) STRUCTURE 40,647 square feet constructed in 1977 and renovated in 2005 Steel and masonry construction Floors are concrete slab Exterior walls are brick and glass Roof is flat with parapet walls. Built up assembly with gravel and tar Windows are thermopane in aluminum frames Heating is gas hot water system Air conditioning is central system roof mounted equipment 11

12 BUILDING PLAN 12

13 SURVEY * Property boundary subject to verification. 13

14 e xclusive a gents :: Sundeep Oberoi sundeep_oberoi@obertech.com :: Rahul Singh rahul_singh@obertech.com 14