4 UNIT MULTIFAMILY IN SOUTH CHICAGO

Transcription

1 4 UNIT MULTIFAMILY IN SOUTH CHICAGO 8724 S. MUSKEGON AVE. CHICAGO, IL Marco Cesario Advisor Jeffrey Baasch Senior Vice President SVN CHICAGO COMMERCIAL 940 WEST ADAMS STREET, SUITE 200, CHICAGO, IL OFFERING MEMORANDUM

2 PROPERTY INFORMATION 3 Property Summary Property Description LOCATION INFORMATION 6 Regional Map Location Maps Aerial Map FINANCIAL ANALYSIS 10 Financial Summary Income & Expenses Rent Roll ADDITIONAL INFORMATION 14 Additional Photos Additional Photos Additional Photos Additional Photos South Works US Steel Site Redevelopment South Works US Steel Site Redevelopment Obama Presidential Library Tiger Woods Designed Golf Course Proposal Tiger Woods Designed Golf Course Proposal DEMOGRAPHICS 24 Demographics Report Demographics Map ADVISOR BIOS 27 Advisor Bio & Contact 1 Advisor Bio & Contact 2 Back Page 8724 S. MUSKEGON AVE., CHICAGO, IL OFFERING MEMORANDUM

3 1 PROPERTY INFORMATION 8724 S. Muskegon Ave. Chicago, IL S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 3

4 Property Summary OFFERING SUMMARY Sale Price: $305,000 *Number Of Units: Cap Rate: 9.25% NOI: $28,202 Lot Size: 5,244 SF Year Built: 1921 Building Size: 4,674 SF PROPERTY HIGHLIGHTS Great Unit Mix: (2) 2 Bed 1 Bath & (2) 3 Bed 1 Bath Bonus Unit: 2 Bed 1 Bath Asset is in Great Shape Individual Furnaces & Updated Electric Coin Operated W/D for Additional Income (owned) Zoning: Market: Submarket: RT-4 Chicago South Chicago Price / SF (Bldg): $ S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 4

5 Property Description PROPERTY OVERVIEW SVN Chicago Commercial is pleased to present 8724 S. Muskegon, a 4-unit Multifamily all brick building consisting (2) 2 Bedroom 1 Bath & (2) 3 Bedroom 1 Bath units. There is a bonus unit consisting 2 bedrooms and 1 bath. The asset presents an opportunity for a qualified investor who is starting out or wants to add to their portfolio with a well located, well maintain and professional managed property. It also gives the opportunity for owner-occupied investment with it's large units to live comfortably and let the rental income pay your mortgage. The building has individual furnaces which gives the next owner the opportunity to add central air condition. Tenants pay their own electric, cooking gas and heat. Electric has all been updated with new breakers, panels, wiring, and service - there is 100 Amps servicing each unit. Hot water tank is 75 gal (2015). Roof is pitched, shingles and in good shape. The washer and dryer are owned; coined operated for additional income. This asset is priced well and in great shape! LOCATION OVERVIEW 8724 S. Muskegon is located in Chicago's south side neighborhood of South Chicago, about 10 miles southeast of The Loop and on the southern rim of Lake Michigan. It is bordered 79th Street to the north, South Chicago Avenue and the Chicago Skyway (Interstate 90), 95th Street to the south, and Lake Michigan to the east. South Chicago is the gateway neighborhood to the Calumet River and the Calumet Region. South Chicago was once the home of the US Steel Corporation which is currently vacant land of 440 acres and the potential site of a new development of up to 20,000 new homes plus retail... an estimate of a $55M to $80M development deal S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 5

6 2 LOCATION INFORMATION 8724 S. Muskegon Ave. Chicago, IL S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 6

7 Regional Map 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 7

8 Location Maps 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 8

9 Aerial Map 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 9

10 3 FINANCIAL ANALYSIS 8724 S. Muskegon Ave. Chicago, IL S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 10

11 Financial Summary INVESTMENT OVERVIEW Price $305,000 Price per Unit $61,000 GRM 6.3 CAP Rate 9.3% Cash-on-Cash Return (yr 1) % Total Return (yr 1) $17,070 Debt Coverage Ratio 1.91 OPERATING DATA Gross Scheduled Income $48,132 Other Income $885 Total Scheduled Income $49,017 Vacancy Cost $1,444 Gross Income $47,573 Operating Expenses $19,371 Net Operating Income $28,202 Pre-Tax Cash Flow $13,429 FINANCING DATA Down Payment $69,000 Loan Amount $236,000 Debt Service $14,773 Debt Service Monthly $1,231 Principal Reduction (yr 1) $3, S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 11

12 Income & Expenses INCOME SUMMARY PER UNIT Potential Rental Income $48,132 $9,626 (Less: Vacancy & Credit Losses) -$1,444 -$288 Additional Income - Laundry $885 $177 Gross Income $47,573 $9,514 EXPENSE SUMMARY PER UNIT Utility - Gas $1,139 $227 Utility - Electric $342 $68 Utility - Water / Sewer $2,516 $503 Real Estate Taxes (2016) $4,896 $979 Insurance $3,036 $607 Repairs & Maintenance* $1,250 $250 Cleaning & Decorating* $1,250 $250 Pest Control* $425 $85 Janitor* $750 $150 Management* $2,801 $560 Miscellaneous & Reserves* $966 $193 Gross Expenses $19,371 $3,874 Net Operating Income $28,202 $5,640 *Broker projections S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 12

13 Rent Roll UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) LEASE START CURRENT RENT CURRENT RENT (PER SF) 1F 3 1 1,000 Current $950 $0.95 2F 3 1 1,000 Current $883 $0.88 1R Vacant $800 $1.00 1F Current $828 $1.03 Garden Current $550 $0.85 Totals/Averages 4,250 $4,011 $ S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 13

14 4 ADDITIONAL INFORMATION 8724 S. Muskegon Ave. Chicago, IL S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 14

15 Additional Photos 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 15

16 Additional Photos 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 16

17 Additional Photos 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 17

18 Additional Photos 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 18

19 South Works US Steel Site Redevelopment 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 19

20 South Works US Steel Site Redevelopment 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 20

21 Obama Presidential Library 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 21

22 Tiger Woods Designed Golf Course Proposal 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 22

23 Tiger Woods Designed Golf Course Proposal 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 23

24 5 DEMOGRAPHICS 8724 S. Muskegon Ave. Chicago, IL S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 24

25 Demographics Report 0.5 MILES 1 MILE 1.5 MILES Total population 11,831 34,874 63,066 Median age Median age (male) Median age (female) Total households 3,634 11,750 22,893 Total persons per HH Average HH income $36,615 $42,787 $45,940 Average house value $132,513 $181,722 $191,075 Total Population - White 2,070 4,980 7,452 Total Population - Black 7,202 24,804 48,527 Total Population - Asian Total Population - Hawaiian Total Population - American Indian Total Population - Other 2,299 4,598 6,254 Total Population - Hispanic 4,371 9,271 12,816 * Demographic data derived from 2010 US Census 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 25

26 Demographics Map POPULATION 0.5 MILES 1 MILE 1.5 MILES Total population 11,831 34,874 63,066 Median age Median age (male) Median age (Female) HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES Total households 3,634 11,750 22,893 # of persons per HH Average HH income $36,615 $42,787 $45,940 Average house value $132,513 $181,722 $191,075 ETHNICITY (%) 0.5 MILES 1 MILE 1.5 MILES Hispanic 36.9% 26.6% 20.3% RACE (%) White 17.5% 14.3% 11.8% Black 60.9% 71.1% 76.9% Asian 0.0% 0.0% 0.1% Hawaiian 0.0% 0.0% 0.1% American Indian 0.1% 0.1% 0.2% Other 19.4% 13.2% 9.9% * Demographic data derived from 2010 US Census 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 26

27 6 ADVISOR BIOS 8724 S. Muskegon Ave. Chicago, IL S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 27

28 Advisor Bio & Contact 1 MARCO CESARIO Advisor PROFESSIONAL BACKGROUND As an ambitious and successful Advisor at SVN Chicago Commercial, Marco Cesario specializes in the acquisition and disposition of Investment Real Estate: Multi-Family, Mixed-Use and Retail in the greater Chicago Land area. He also has extensive experience in (re)development and Land Acquisitions. He has built a reputation as a hard-working, trustworthy and straightforward broker who uses his experience and talent to find creative solutions. Marco has a dedicated network of clients who know his work and trust his expertise at identifying and closing on prime opportunities. Marco is a true client advocate always putting the interests of his customers first. He is committed to generating long-lasting relationships while delivering exceptional results. Marco exemplifies the strong work ethic and commitment to excellence of SVN, ensuring that from beginning to end, no detail is missed. In years prior to joining SVN, Marco was extremely active in both commercial and residential brokerage with sales between six million dollars - ten million dollars annually and in land acquisitions where he has acquired over 200 acres that generated + $100 million in total sales-revenue. His expertise in market analysis enables him to qualify and quantify any site to enhance his strong negotiating capabilities. Growing up in Arlington Heights, Illinois, the groundwork for Marco s future in the real estate industry was already being set as he helped his family manage two apartment buildings 940 West Adams Street, Suite 200 Chicago, IL T C marco.cesario@svn.com his father had built in the early 1970s. Marco loves that real estate is a tangible yet creative asset that brings with it a built-in history. Marco graduated from Loyola University Chicago in 2003 with a Bachelor s Degree of Business Administration in Finance. Marco is a member of Young Real Estate Professionals, Italian American Chamber of Commerce and is currently pursuing the CCIM designation. He actively plays soccer and is an avid fan of hockey, golf and Formula 1 racing. EDUCATION Bachelors in Business Administration; majored in Finance Loyola University of Chicago Chicago, IL MEMBERSHIPS & AFFILIATIONS CCIM Chicago Association of Realtors National Association of Realtors Tutoring Chicago Italian-American Chamber of Commerce 8724 S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 28

29 Advisor Bio & Contact 2 JEFFREY BAASCH Senior Vice President PROFESSIONAL BACKGROUND Jeff Baasch serves as Senior Vice President at SVN. He is one of Chicago's premier commercial real estate professionals specializing in the sale of multifamily property in the greater Chicagoland area. Jeff has consistently ranked as top producer in commercial brokerage. His focused approach, transactional expertise and in-depth knowledge of the multifamily market has delivered superior results for his clients. Jeff is responsible for client development and oversees all aspects of the transaction process including valuation, marketing, due diligence and negotiations. With 30 years of experience in commercial real estate, Jeff offers a wealth of real estate management and transaction experience that includes investment sales, asset management, financial analysis and strategic planning. He has extensive experience with multi-family, retail, industrial, and office properties. Through providing local market knowledge with an institutional execution strategy, he leverages his competencies to assist property owners in developing comprehensive acquisition strategies and maximizing the value of their assets upon disposition. 940 West Adams Street, Suite 200 Chicago, IL T C jeffrey.baasch@svn.com Prior to joining SVN, Jeff worked for JMB Institutional Realty/Heitman Capital Management, Transwestern Commercial Services, and KPMG Peat Markwick. Jeff is a licensed real estate broker in Illinois, a Certified Public Accountant (CPA), and has a Masters in Business Administration (MBA). He received his Masters of Business Administration in Finance from the Kellstadt Graduate School of Business at DePaul University, and Bachelor of Science in Accounting from Illinois State University S. MUSKEGON AVE. CHICAGO, IL SVN Chicago Commercial Page 29

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