Subject Property: Westview Development 5.02 +/- Acres: 1803 Ramada Blvd., Collinsville, IL 3.17 +/- Acres: Vacant Land, Collinsville, IL In connection with the Westview mixed-used real estate development consisting of approximately 5.02 acres in size, located at 1803 Ramada Blvd., Collinsville, IL and owned by Westview Condos at the Collinsville Crossing, LLC ( Developer ) and the adjacent vacant real estate consisting of approximately 3.17 acres in size and owned by Cairo Terminals, LLC, the Developer and Cairo Terminals, LLC, I am pleased to present the attached Investment Proposal. The Proposal contains a detailed history of the development, an explanation of the current development plan, and the financing incentives associated with the development project. Please email or call Linda Miller at Linda@kunkelcommercial.com or (618) 444-3888 with questions. Sincerely, Linda Miller Broker Associate Kunkel Commercial Group, Inc. 784 Wall Street Suite 100A O Fallon, IL 62269 (618 444-3888 (Mobile) linda@kunkelcommercial.com
Westview Development Collinsville, Illinois I-55/I-70 3.17 Acres TIF Zone Phase III Lot 3 Lot 4 TIF Zone Redevelopment Agreement Phase I Lot 2 1.46 Acres Phase II Lot 1
Table of Contents Executive Summary 1 History and Location of the Premises 1 Objective 1 Development Plan 1 Financial Summary 1 Phase II - 13 Residential Condominiums HOA Projected Annual Income Statement after Turnover 4 Development Plan - Phase I 5 Commercial Development 5 Development Plan - Phase II 6 Residential Condominiums 7 Development Plan - Phase III and Beyond 8 Purchase Price Summary 9 Contact Information 10 Table of Contents i
Executive Summary History and Location of the Premises Located near the Hospitality District of Collinsville, Illinois (an area located at the intersection of Interstates 55/70 and Illinois Route 157, the real estate know as 1803 Ramada Blvd., Collinsville, IL has previously been home to Sonny and Char s (a well-known restaurant in the 1980s), SkyBar (an upbeat bar and dance club), and a hotel. When Westview Condos at the Collinsville Crossing, LLC (the Developer ) purchased the real estate in 2006, its desire was to create a mixed-use development to highlight the views of the Arch along the western skyline. The Developer engaged Henderson Associates to perform the design work for the loft style residential condominiums and breathtaking commercial units to compete with the upscale lofts of Washington Ave. in downtown Saint Louis, Missouri. Because this development is located along the bluffs of the Mississippi River, it offers the excitement and feel of the big city (downtown Saint Louis is only 12 miles away) and the enjoyment of the charming, small town atmosphere and rich traditions of Collinsville, according to Mayor John Miller. See A Message from Mayor John Miller, attached hereto as Appendix, page i. According to a Community Profile published by the Department of Commerce and Community Affairs on March 31, 2011, major employers in Collinsville include Community Unit School District #10 (826 employees), State of Illinois Department of Transportation (500 employees), Fairmont Race Track (500 employees), Auto Dealer s Association (228 employees), Schnuck s Market (190 employees), Walmart (412 employees), K-Mart (135 employees), and Home Depot (102 employees). There are 16 elementary schools, including 6 parochial schools, 2 junior high schools, 1 high school, 1 trade and technical school, 1 community college, and 1 university located within the community. Churches available within a 10- mile radius include 28 Protestant and 1 Catholic. Other community facilities include 16 motels/hotels, 50 restaurants, 2 public golf courses, 1 country club, 1 health club, 6 public tennis courts, and 1 public swimming pool. There is also public access to the Mississippi River. 1
Objective To sell the real estate described in this Proposal for $6.5M. Development Plan The development plan maximizes the highest and best use of the real estate, featuring a three-phase, commercial office and residential condominium development. Phase I consists of the construction of the commercial office space (identified as Lot 2 on the Plat of Survey set forth in Appendix, at page iii) containing approximately 18,000 sq ft total on two levels. Commercial Tenants, such as the Westview Wine Cellar & Bistro, offer a great atmosphere for both residents and businesses within the development to enjoy meals and drinks inside the restaurant or on the go. With approximately 8,000 square feet semifinished and available for future tenants, Phase I is still ongoing. Phase II consists of the construction of 13 residential condominiums (identified as Lot 1 on the Plat of Survey set forth in Appendix, at page iii) which feature high quality interior finish. Eleven of the 13 units are completed and ready for occupancy, as approved by the City of Collinsville. These 11 units are inclusive of all of the units on the lower level, ground level, and second level. The two remaining units, 401 and 402, for which construction is not yet completed are the penthouse units. Developer expects that the potential future owners of the units will desire custom design and construction. To date, Developer has framed the units and completed the rough plumbing for the penthouse units. Phase III consists of the construction of 15 residential condominiums (identified as Lot 3 on the Plat of Survey set forth in Appendix, at page iii) which features similar high quality interior finishes as the Phase II units. Developer owns the architectural drawings for the proposed construction on the Phase III units. Developer is also entitled to receive TIF funds, up to $520,000.00, for certain improvements in the proposed construction. 2
Financial Summary Currently, the Developer s income is generated from lease revenue relating to Phase I and Phase II of the development project. The average gross price per square foot on the commercial office units is above $14.50. This average is consistent with the current market. The Developer expects this to increase as Developer continues to obtain good credit tenants. With respect to the residential condominium units, the Developer has nine of the 11 completed units and currently under lease, with average gross rents above $10.00 per square foot. On October 29, 2012, Developer was required to turnover the residential condominium units to the Home Owners Association, (HOA); and therefore, Developer has included at page 4 a projected annual income statement for 2012 and 2013. As you can see, certain expenses (i.e. management fees, real estate taxes, etc.) do not apply to the Home Owners Association and the HOA budget reflects a zero-based budget with a capital reserve for necessary expenditures and improvements. 3
4
Development Plan - Phase I Commercial Development The two-story office condominiums contain a total of approximately 18,000 square feet, of which 8,679 is finished. As a great incentive, Tenant Westview Wine Cellar & Bistro enjoy a fabulous view of the St. Louis skyline to the west. Pictures of some of the finished offices are included in the Appendix at pages iii and iv. The interior common areas (approximately 3,305 square feet and sprinkled) consist of entries, corridors, and four (4) handicapped accessible restrooms, two on each level, and an elevator. The exterior common areas consist of outdoor patio and a paved parking lot. The remaining office condominiums are semi-finished and currently vacant. Skyline views are still available in these vacant units. Pictures of some of the unfinished offices are included in the Appendix at pages v and vi. 5
Development Plan - Phase II Residential Condominiums The phase of the development project contains 13 residential condominiums of which 11 are finished. There are 2, large units (aka, the Penthouses ) on the uppermost floor which consist of shells, so that future owners can undergo a custom build-out. The finished units feature high quality interior finishes: hardwood floors, quality carpet, ceramic tile, Marvin brand-low E insulated glass windows, maple cabinetry, granite countertops, gas fireplaces. See pictures of the residential common areas, quality interior finishes and breathtaking views in Appendix, at pages vii-xiii. Suite Description Sq. Ft. Market Rental Value Market Sale Price 102 2 Bedroom, 2 Baths (Full), Skyview 1205 $1,250.00 $195,000.00 104 2 Bedroom, 3 Baths (1 Full, 1 3/4, 1 1/2), Skyview 1370 $205,000.00 201 1 Bedroom, 2 Bath (3/4 Bath, 1 1/2 Bath) 1000 $900.00 $150,000.00 202 2 Bedrooms, 2 Baths (Full), Skyview 1205 $195,000.00 203 1 Bedroom, 2 Bath (3/4 Bath, 1 1/2 Bath) 900 $800.00 $150,000.00 204 2 Bedroom, 2 Baths (1 3/4, 1 1/2), Skyview 1305 $800.00 $195,000.00 205 1 Bedroom, 2 Bath (3/4 Bath, 1 1/2 Bath) 1000 $750.00 $150,000.00 206 2 Bedroom, 3 Bath (2 Full, 1 1/2 Bath), Skyview 1730 $1,650.00 $225,000.00 207 1 Bedroom, 2 Bath (3/4 Bath, 1 1/2 Bath) 900 $800.00 $150,000.00 209 2 Bedroom, 3 Baths (1 Full, 1 3/4, 1 1/2) 1000 $900.00 $150,000.00 302 2 Bedroom, 2 Baths (Full), Skyview 1205 $1,350.00 $195,000.00 401 Unfinished, Skyview 1860 $0.00 $95,000.00 402 Unfinished, Skyview 2090 $0.00 $95,000.00 Annualized Rental Income $110,400.00 6
Suite Description Sq. Ft. Market Rental Value Market Sale Price Sale Income (includes 401/402 As Is ) $2,150,000.00 Information herein is not warranted and subject to change without notice. We assume no liability for errors on items included in quoted price. Investment Proposal dated December 5, 2012 7
Development Plan Phase III and Beyond Notes Phase III - Lot 3 (1.01 acres) Designated for the Future 15 Residential Condominiums, this parcel sits on the highest point on the development, overlooking the skyline. There is a fully assignable Redevelopment Agreement in place for this portion of the development with a rebate value of up to $520,000.00 for various improvements. Lot 4 (1.46 acres) This parcel is not designated for any specific development, but falls within the current mixedused zoning and is suitable for both residential and commercial development. This parcel falls within the TIF zone. Additional 3.17 acres owned This adjacent parcel, which falls in the TIF Zone, is one of the highest points located on the bluffs by Cairo Terminals, LLC and has a breathtaking view equivalent to its neighbor, Westview Condos at the Collinsville Crossing, LLC. It is currently zoned multifamily with additional permitted uses as: General office, retail and restaurant allowing the potential for any future development, subject to appropriate City approvals. Investment Proposal dated April 30, 2012 8
«Organization» Purchase Price Summary Description of Real Estate Price Residential Condominium Units $2,000,000.00 Commercial Space $2,500,000.00 Future Residential Condominium $300,000.00 Assignment of TIF Redevelopment Agreement $375,000.00 Lot 4 $425,000.00 3.17 Acres $900,000.00 Total $6,500,000.00 Investment Proposal dated April 30, 2012 9
«Organization» Contact Information Linda Miller Broker Associate Kunkel Commercial Group, Inc. 784 Wall Street Suite 100A O Fallon, IL 62269 Email: linda@kunkelcommercial.com Phone: 618 444-3888 Investment Proposal dated April 30, 2012 10
A Message from Mayor John Miller (Source: http://www2.collinsvilleil.org/index.php?option=com_content&view=article&id=106&itemid=80) As Mayor, I welcome you to the City of Collinsville. Collinsville is a growing community, conveniently located at the heart of the populous Metro East area. The bluffs of the Mississippi River are an integral part of the Collinsville area with the Gateway Arch and downtown St. Louis on the horizon. This view provides a scenic panorama for the many businesses and residents of our community.residents enjoy the charming, small town atmosphere and rich traditions of Collinsville. New subdivisions, contemporary condominiums, and affordable housing build on these traditions, while demonstrating a commitment to progressive new ideas. Our unique and historic downtown offers one-of-a-kind shops and a genuine friendly atmosphere. Collinsville is located just ten interstate miles from St. Louis, Missouri. This gives Collinsville residents excellent accessibility to a wide array of employment opportunities as well as cultural and entertainment activities. Collinsville residents benefit from other offerings, including a public library; an outdoor sports complex; water park; well-kept parks; excellent shopping; state-of-theart schools; a low crime rate; and many civic and charitable organizations.business owners see Collinsville as one of the best locations in the region for operating a business. Five interstate highways surround the City making Collinsville easily accessible to other communities in the region and the nation. Visitors will be delighted with the many attractions and interesting sites that Collinsville and the surrounding area has to offer. Thousands of visitors flock yearly to Cahokia Mounds State Historic and World Heritage site which is located in Collinsville. Fairmount Park, a well known thoroughbred race track, is also a popular attraction for tourists and area residents. If you visit Collinsville, I am sure you will agree that Collinsville is an excellent location to live, work, and raise a family! Appendix i
Appendix ii
Appendix iii
Appendix iv
Appendix v
Appendix vi
Residential component of development highlighted. View of garages and a condo entrance. Appendix vii
Appendix viii
Appendix ix
Appendix x
Appendix xi
Appendix xii
Appendix xiii