CORNER RETAIL BUILDING FOR SALE 5900 N BROADWAY CHICAGO, IL 60660 Tim Rasmussen, CCIM Assistant Vice President 312.676.1875 trasmussen@svn.com SVN CHICAGO COMMERCIAL 940 WEST ADAMS STREET, SUITE 200, CHICAGO, IL 60607 OFFERING MEMORANDUM
Investment Summary OFFERING SUMMARY Sale Price: $1,250,000 Cap Rate: 7.74% NOI: $96,735 Building Size: 6,380 SF Renovated: 2001 Zoning: B1-2 INVESTMENT OVERVIEW 5900 N Broadway is a high visibility single story, three tenant commercial building located at the corner of Broadway and Rosedale in Chicago s Edgewater neighborhood. The 6,380-square foot building sits on an approximately 6,400 square foot site and was gut renovated in 2000. Recent upgrades were made to the roof and mechanical systems for the restaurant tenant. The projected 2018 net operating income is $96,735. Scheduled 2018 base rental for the three tenants is approximately $139,383 with projected water, sewer and real estate tax reimbursements of $13,942. Operating expenses are projected, based on 2017 actual numbers, to be $56,581. The tenants include State Farm Insurance, Broadway Cellars Restaurant, and the Edgewater Chamber of Commerce. State Farm Insurance and the Edgewater Chamber lease 1,440 square feet each, while Broadway Cellars leases 3,500 square feet. The Edgewater Chamber and Broadway Cellars have been long term tenants with leases going back since the 2000 renovation of the building. State Farm Insurance is a relatively new tenant with a lease commencement date of November 2016. State Farm and Broadway Cellars lease terms are modified gross with pass throughs for their pro-rata share of increases in real estate taxes over specified base year amounts. In addition, Broadway Cellars is responsible for 85% of the building s sewer and water bill. State Farm is on a gross lease with no additional expense pass through obligations. All three tenant s leases are subject to 3% annual rent escalations. Market: Submarket: Chicago North Edgewater The Edgewater Chamber of Commerce lease expires December 31, 2018 with no additional lease renewal options. State Farm s primary term expires November 30, 2021 with one (1) five (5) year renewal option at a rental rate based on the cumulative increased change in the Consumer Price Index. Broadway Cellars lease expires August 31, 2020. Broadway Cellars have no additional renewal rights. Price / SF: $195.92 5900 N BROADWAY, CHICAGO, IL 60660 SVN Chicago Commercial Page 2
Location Overview LOCATION OVERVIEW 5900 N Broadway is a corner, single story, multi-tenant building in the heart of Chicago's Edgewater neighborhood. Located on prime stretch of N Broadway. Surrounded by numerous new and proposed developments. 25,900 average daily traffic count. Steps away from Loyola University Chicago and premier retailers including Whole Foods, LA Fitness, CVS, Walgreen's, Ann Sather, Ethiopian Diamond, Revival Social Club, Orangetheory Fitness, Starbucks, Income Tax Restaurant, Bark Bark Club and much more. Easy access via CTA Redline (Thorndale, Bryn Mawr Stations), #36 Broadway, #147 Outer Drive Express, #151 Sheridan and #155 Devon. Incredibly dense population base of nearly 70,000 within one mile of the subject property. Immediately west of an adjacent to the property is the affluent Edgewater Glen neighborhood. Just to the south is Chicago's landmarked Lakewood Balmoral neighborhood. This highly walkable location features a walkability score of 94. 5900 N BROADWAY, CHICAGO, IL 60660 SVN Chicago Commercial Page 3
Additional Photos 5900 N BROADWAY, CHICAGO, IL 60660 SVN Chicago Commercial Page 4
Location Maps 5900 N BROADWAY, CHICAGO, IL 60660 SVN Chicago Commercial Page 5
Site Plan 5900 N BROADWAY, CHICAGO, IL 60660 SVN Chicago Commercial Page 6
Financial Summary INVESTMENT OVERVIEW 2018 Price $1,250,000 Price per SF $195.92 CAP Rate 7.7% Cash-on-Cash Return (yr 1) 11.22 % Total Return (yr 1) $49,990 Debt Coverage Ratio 1.42 OPERATING DATA 2018 Gross Scheduled Income $139,374 Other Income $13,942 Total Scheduled Income $153,316 Vacancy Cost $0 Gross Income $153,316 Operating Expenses $56,581 Net Operating Income $96,735 Pre-Tax Cash Flow $28,749 FINANCING DATA 2018 Down Payment $256,250 Loan Amount $993,750 Debt Service $67,986 Debt Service Monthly $5,665 Principal Reduction (yr 1) $21,241 5900 N BROADWAY, CHICAGO, IL 60660 SVN Chicago Commercial Page 7
Income & Expenses INCOME SUMMARY 2018 Scheduled Base Rent $139,374 Other Income - Expense Reimbursements $13,942 Gross Income $153,316 EXPENSE SUMMARY 2018 Real Estate Taxes (2016 payable 2017) $33,025 Insurance (Actual 2017) $3,270 Electricity $0 Gas $0 Water (Actual 2017) $5,308 Building Maintenance (Actual 2017) $7,165 Scavenger/Exterminator $0 Landscaping $0 Security $0 Management (based on 4% of Total Scheduled Income) $5,575 Administrative $2,238 Gross Expenses $56,581 Net Operating Income $96,735 5900 N BROADWAY, CHICAGO, IL 60660 SVN Chicago Commercial Page 8
1 DEMOGRAPHICS 5900 N Broadway Chicago, IL 60660 5900 N BROADWAY, CHICAGO, IL 60660 SVN Chicago Commercial Page 9
Demographics Report 0.25 MILES 0.5 MILES 1 MILE Total population 6,385 25,308 68,757 Median age 38.2 37.2 37.0 Median age (male) 38.8 37.8 37.8 Median age (female) 36.9 36.0 36.0 0.25 MILES 0.5 MILES 1 MILE Total households 3,320 13,332 35,342 Total persons per HH 1.9 1.9 1.9 Average HH income $59,964 $58,530 $63,347 Average house value $356,451 $372,521 $408,604 * Demographic data derived from 2010 US Census 5900 N BROADWAY, CHICAGO, IL 60660 SVN Chicago Commercial Page 10
Demographics Map POPULATION 0.25 MILES 0.5 MILES 1 MILE Total population 6,385 25,308 68,757 Median age 38.2 37.2 37.0 Median age (male) 38.8 37.8 37.8 Median age (Female) 36.9 36.0 36.0 HOUSEHOLDS & INCOME 0.25 MILES 0.5 MILES 1 MILE Total households 3,320 13,332 35,342 # of persons per HH 1.9 1.9 1.9 Average HH income $59,964 $58,530 $63,347 Average house value $356,451 $372,521 $408,604 * Demographic data derived from 2010 US Census 5900 N BROADWAY, CHICAGO, IL 60660 SVN Chicago Commercial Page 11