2048 N. Whipple St. Chicago, IL 60647 Offered at: $479,000. OFFERING MEMORANDUM Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 1 4/6/18
TABLE OF CONTENTS INVESTMENT HIGHLIGHTS. 3 MARKET HIGHLIGHTS.. 3 FINANCIAL ANALYSIS AS MULTI-UNIT...4 IMAGES..5 AERIAL VIEW...13 SALE COMPARABLES SINGLE FAMILY..14 CTA STATION MAP...16 CRIME MAP..17 LOCAL RESTAURANTS AND BARS.18 DEMOGRAPHICS.19 DISCLAIMER.21 Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 2 4/6/18
INVESTMENT HIGHLIGHTS: Logan Square beauty, with full brick construction! Great investment! Listed at a 5.6% cap rate (8.5% after rehab!) as multi-unit. Great single family conversion candidate! Homes on the block have sold for up to $1M. Recent work includes new windows, roof, skylights, tuckpointing, paint, and new concrete porch. Upon rehab the rents are projected at $56,000 annually. Large 25 x150 lot with 2-car garage. Operate as a 2-flat plus in-law (or get variance) for highest rent or rehab into a luxurious owner s duplex up with first floor rental income. Immediate Airbnb business potential with just light rehab and decorating needed. Highest potential value is a single-family conversion. ($700,000+) Submarket has strong demographics with high incomes, a growing population and high renter/buyer demand. MARKET HIGHLIGHTS: Located on a beautiful block with several new and rehabbed single family homes and 2-Flats. Near The 606 / Bloomingdale Trail, California Blue Line CTA Station (11 minute walk per Google Maps), and the neighborhoods of Bucktown, West Town, Wicker Park and Lincoln Park. The Palmer Square area of Logan Square is attractive for renters and home buyers alike with great access to transportation, shopping, parks, recreation and nightlife. Rapidly developing area with household growth of 10% (2,500 new HH s) within one mile since 1990. HH s projected to grow another 5% (1,500 HH s) over the next 5 years. Over the past 24 months the average single family home on the block sold for over $800,000 within 12 days of market time for higher than the list price. See page 15 for data. Multi-unit buildings nearby sold for an average of $550,000 at 101% of list price within 27 days on the market. The average masonry multi-unit building sold for over $650,000 1. 1 Per MLS search of 2-3 Unit properties with three bathrooms within approximately ½ mile of the Subject building that sold in the last 24 months. Mathematical averages of 18 selected of 20 buildings returned (excludes Subject and one outlier). Data available upon request. Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 3 4/6/18
FINANCIAL ANALYSIS AS MULTI-UNIT* RENT ROLL: Unit Type Current As Is Projected Rehab Projected Unit 1 2 BR / 1 BA Vacant $1,100 $1,550 Unit 2 2 BR / 1 BA Vacant $1,200 $1,650 Unit 3 1 BR / 1 BA Vacant $800 $1,100 - $3,100 $4,300 P & L: INCOME EXPENSES 2018 (As Is) 2018 (Rehab)** Rent Income $37,200 $51,600 Misc Income $400 $650 Vacancy (3%) ($1,116) ($1,548) $36,484 $50,702 Property Tax $6,318 $6,318 Insurance $1,000 $1,500 Water/Sewer/Garbage $1,200 $1,200 Utilities - Electric & Gas $0 $0 Maint & Repairs $1,000 $1,200 $9,518 $10,218 NOI $26,966 $40,494 Indicated Cap Rate: 5.6% 8.5% Debt Service*** $20,581 $20,581 Cash Flow $6,385 $19,903 Add back principal pmts $6,316 $6,316 Total Return $12,700 $26,219 Total Return on Equity 11% 22% * Income and expense based on Owner projections. ** Rehab rents assume remodeled kitchens, baths, updating HVAC, separating electric and gas and metering water. *** 75% LTV, 30-Year mortgage at 4% interest with PP of $479,000. Note: Neither Owner nor Agent make any representations about the legality of the 3 rd floor unit. Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 4 4/6/18
IMAGES: Façade Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 5 4/6/18
Streetscape 2048 N Whipple 2 nd Floor Living Room First Floor Living Room Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 6 4/6/18
1 st Floor Kitchen Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 7 4/6/18
1 st Floor Kitchen (facing opposite) 1 st Floor Bathroom Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 8 4/6/18
2 nd Floor Kitchen 2 nd Floor Bathroom Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 9 4/6/18
2 nd Floor Bedroom 3 rd Floor Kitchen/Dining Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 10 4/6/18
3 rd Floor Bathroom 3 rd Floor Bedroom Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 11 4/6/18
Skyline and Streetscape View From Third Floor Bedroom Garage Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 12 4/6/18
Aerial View Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 13 4/6/18
Sale Comparables Single Family: Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 14 4/6/18
Single Family Comparables Address Beds (+Bsmt)/ Baths List Price Sale Price SP/LP % Market Time Sale Date 2109 N Whipple 2(+1)/2.1 575,000 600,000 104.4% 1 5/13/2016 2035 N Whipple 5/3.1 799,000 775,000 97% 9 11/1/2016 2024 N Whipple 3(+1)/3.1 899,900 899,900 100% 9 12/12/2016 2013 N Whipple 3(+2)/3.1 974,900 975,000 100.01% 28 3/16/2018 Average: 812,200 812,475 100.03% 12 Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 15 4/6/18
Short walk to the California CTA Station: Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 16 4/6/18
Low Crime Rate: Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 17 4/6/18
Near Chicago s Trendiest Restaurants and Bars (19 within 1 mile): 2048 N. Whipple Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 18 4/6/18
DEMOGRAPHICS: 1.5-Mile 1-Mile 0.5-Mile Description 0.5 Miles 1 Miles 1.5 Miles POPULATION BY YEAR Population (4/1/1990) 23,880 86,952 167,233 Population (4/1/2000) 23,145 87,450 174,320 Population (4/1/2010) 19,372 73,946 151,760 Population (1/1/2017) 19,413 73,882 151,855 Population (1/1/2022) 20,222 76,950 158,164 Percent Growth (2017/2010) 0.21-0.09 0.06 Percent Forecast (2022/2017) 4.17 4.15 4.15 Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 19 4/6/18
HOUSEHOLDS BY YEAR Households (4/1/1990) 6,810 26,020 50,328 Households (4/1/2000) 7,323 28,069 55,583 Households (4/1/2010) 7,617 28,314 56,137 Households (1/1/2017) 7,693 28,517 56,609 Households (1/1/2022) 8,094 29,994 59,537 Percent Growth (2017/2010) 1 0.72 0.84 Percent Forecast (2022/2017) 5.21 5.18 5.17 GENERAL INCOME CHARACTERISTICS Median Household Income ($) 53,735 57,046 57,252 Average Household Income ($) 77,395 84,201 84,291 Footnotes: Easy Analytic Software All other data are derived from the US Census and other official government sources. Consumer Expenditure data are derived from the Bureau of Labor Statistics. All estimates are as of 1/1/2017 unless otherwise stated. Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 20 4/6/18
DISCLAIMER: This Offering memorandum is not intended to provide a necessarily accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective purchasers may need or desire. All financial projections are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and the Agent and therefore may be subject to material and adverse variations. The Offering Memorandum does not constitute an indication that there has been no change in the business or affairs of the Property since the date of preparation of the Offering Memorandum. An opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. Neither the Owner nor the Agent nor any of their respective officers, agents or principals has made or will make any representations or warranties, expressed or implied, as to the accuracy or completeness of the Offering Memorandum or any other oral or written information provided by any of them, and no legal commitment or obligation shall arise by reason of the Offering Memorandum or such other information. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Listing agent has a financial interest in the property. Neither Owner nor Agent is making any warranties or representations of any kind, express or implied, with respect to the information contained in this Offering Memorandum. Offered By: Brian E. Moore, ARNI - 312-342-8938 - bmoore@divisionstreetcapital.com Page 21 4/6/18