S. INGLESIDE AVENUE

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1 S. INGLESIDE AVENUE S. INGLESIDE AVENUE CHICAGO, IL Frank Micklin Advisor Jim Sears Senior Vice President Reid Bennett, CCIM Senior Vice President

2 PROPERTY INFORMATION 3 Property Summary Complete Highlights Additional Photos Additional Photos LOCATION INFORMATION 8 Location Overview Regional Map Location Maps Aerial Map Retailer Map FINANCIAL ANALYSIS 14 Financial Summary Income & Expenses SALE COMPARABLES 17 Sale Comps Sale Comps Summary Sale Comps Map DEMOGRAPHICS 22 Demographics Map ADVISOR BIOS 24 Advisor Bio & Contact Advisor Bio & Contact Advisor Bio & Contact Back Page S. INGLESIDE AVENUE S. INGLESIDE AVENUE, CHICAGO, IL OFFERING MEMORANDUM

3 1 PROPERTY INFORMATION S. Ingleside Avenue Chicago, IL S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 3

4 Property Summary OFFERING SUMMARY Sale Price: $495,000 Number Of Units: 12 Cap Rate: 9.23% NOI: $45,695 Lot Size: 7,564 SF Year Built: 1950 Building Size: 6,250 SF Zoning: RS-3 PROPERTY OVERVIEW Subject property is a three story, walk-up style apartment building consisting of 12-1 bedroom, 1 bath. Property is currently 100% occupied. LOCATION OVERVIEW Property located in East Chatham neighborhood on the south side of Chicago. Ashe Elementary is 3 blocks south and Hirsch High school is 6 blocks south. The 94 Expressway is 1 short mile that runs north to downtown and South to 57. PROPERTY HIGHLIGHTS Peerless hot water heat Strong occupancy Clean, quiet building Owner owned laundry equipment Price / Unit: $41, S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 4

5 Complete Highlights SALE HIGHLIGHTS Peerless hot water heat Strong occupancy Clean, quiet building Owner owned laundry equipment S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 5

6 Additional Photos S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 6

7 Additional Photos S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 7

8 2 LOCATION INFORMATION S. Ingleside Avenue Chicago, IL S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 8

9 Location Overview CHATHAM NEIGHBORHOOD Chatham, a neighborhood that has been called the jewel of the Southeast Side of Chicago, is a pleasant residential community with a vibrant commercial strip. Chatham s strong social cohesion is evinced by its numerous block clubs and community groups working to keep the community strong.the residential locale is characterized by bungalows and two-flats, and its commercial hub along 79th Street claims some of the city s most successful African American-owned businesses. Restaurants serving up Caribbean jerk chicken, smoky barbecue and soul food done right are not hard to come by, and fixtures like Dat Donut offer some unusual options like the Big Dat, a donut as big as a Frisbee. WHITNEY YOUNG BRANCH LIBRARY ADDITION & RENOVATION Renovation plans include a 3,000-5,000 square foot expansion, bringing the branch to 14,000-16,000 square feet. The renovated facility will feature an early learning center for children, a YOUmedia digital media lab for teens, new state-of-the-art furniture and equipment, additional meeting and study spaces, refreshed collections, ADA accessibility throughout the building and a computer commons that will add computer capacity. The legacy building will be retrofit for energy-efficient mechanical systems and improved lighting. The nearly $12 million investment will be completed by CHATHAM CLUB HOMES The Chatham Club is a late 90s development of 143 single-family homes in the West Chesterfield neighborhood, part of the larger Chatham neighborhood on Chicago's south side. Twelve distinct plans were created to offer a wide range of home sizes containing from two to five bedrooms. Optional finished basements, a variety of formal and informal family spaces, and detached two car garages were some of the many options offered to permit buyers a high degree of customization. The exteriors were differentiated with combinations of brick and stucco and various recessed entries that recall typical Chicago bungalow features S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 9

10 Regional Map S. Ingleside Avenue S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 10

11 Location Maps S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 11

12 Aerial Map S. Ingleside Avenue S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 12

13 Retailer Map S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 13

14 3 FINANCIAL ANALYSIS S. Ingleside Avenue Chicago, IL S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 14

15 Financial Summary INVESTMENT OVERVIEW Price $495,000 Price per Unit $41,250 GRM 5.3 CAP Rate 9.2% Cash-on-Cash Return (yr 1) % Total Return (yr 1) $30,081 Debt Coverage Ratio 1.89 OPERATING DATA Gross Scheduled Income $92,700 Other Income - Total Scheduled Income $92,700 Vacancy Cost $4,635 Gross Income $88,065 Operating Expenses $42,370 Net Operating Income $45,695 Pre-Tax Cash Flow $21,561 FINANCING DATA Down Payment $123,750 Loan Amount $371,250 Debt Service $24,134 Debt Service Monthly $2,011 Principal Reduction (yr 1) $8, S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 15

16 Income & Expenses INCOME SUMMARY PER UNIT Gross Income $92,700 $7,725 Less 5.0% Vacancy -$4,635 -$386 Gross Income $88,065 $7,338 EXPENSE SUMMARY PER UNIT Real Estate Taxes $6,739 $561 Gas $10,100 $841 Electric $1,430 $119 Insurance $3,900 $325 Water $4,517 $376 Scavenger $1,800 $150 * Repairs $2,500 $208 * Decorating $2,500 $208 * Management (6%) $5,284 $440 * Janitor $3,600 $300 Gross Expenses $42,370 $3,530 Net Operating Income $45,695 $3, S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 16

17 4 SALE COMPARABLES S. Ingleside Avenue Chicago, IL S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 17

18 Sale Comps SUBJECT PROPERTY S. Ingleside Avenue, Chicago, IL Sale Price: $495,000 Lot Size: 7,564 SF Year Built: 1950 Building SF: 6,250 SF Price PSF: $79.20 No. Units: 12 Price / Unit: $41,250 Cap: 9.23% GRM: 5.34 NOI: $45, S. ELLIS AVENUE Chicago, IL Sale Price: $715,000 Year Built: 1963 Building SF: 7,592 SF Price PSF: $94.18 No. Units: 11 Price / Unit: $65,000 Closed: 09/13/ S. ELLIS AVENUE Chicago, IL Sale Price: $720,000 Year Built: 1927 Building SF: 10,900 SF Price PSF: $66.06 No. Units: 16 Price / Unit: $45,000 Closed: 10/14/ S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 18

19 Sale Comps S. ELLIS AVENUE Chicago, IL Sale Price: $2,425,000 Year Built: 1963 Building SF: 40,000 SF Price PSF: $60.63 No. Units: 56 Price / Unit: $43,303 Closed: 02/06/ S. COTTAGE GROVE AVENUE Chicago, IL Sale Price: $340,000 Year Built: 1928 Building SF: 11,550 SF Price PSF: $29.44 No. Units: 8 Price / Unit: $42,500 Closed: 02/07/ S. COTTAGE GROVE AVENUE Chicago, IL Sale Price: $470,000 Year Built: 1964 Building SF: 7,662 SF Price PSF: $61.34 No. Units: 12 Price / Unit: $39,166 Closed: 02/23/ S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 19

20 Sale Comps Summary SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT # OF UNITS S. Ingleside Avenue S. Ingleside Avenue Chicago, IL $495,000 6,250 SF $79.20 $41, SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT # OF UNITS CLOSE S. Ellis Avenue Chicago, IL S. Ellis Avenue Chicago, IL S. Ellis Avenue Chicago, IL S. Cottage Grove Avenue Chicago, IL S. Cottage Grove Avenue Chicago, IL $715,000 7,592 SF $94.18 $65, /13/2017 $720,000 10,900 SF $66.06 $45, /14/2016 $2,425,000 40,000 SF $60.63 $43, /06/2017 $340,000 11,550 SF $29.44 $42, /07/2017 $470,000 7,662 SF $61.34 $39, /23/2017 PRICE BLDG SF PRICE/SF PRICE/UNIT # OF UNITS CLOSE Totals/Averages $934,000 15,541 SF $60.10 $45, S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 20

21 Sale Comps Map SUBJECT PROPERTY S. Ingleside Avenue, Chicago, IL S. ELLIS AVENUE 1 Chicago, IL 8143 S. ELLIS AVENUE 2 Chicago, IL S. ELLIS AVENUE 3 Chicago, IL 8209 S. COTTAGE GROVE AVENUE 4 Chicago, IL S. COTTAGE GROVE AVENUE 5 Chicago, IL S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 21

22 5 DEMOGRAPHICS S. Ingleside Avenue Chicago, IL S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 22

23 Demographics Map POPULATION 0.5 MILES 1 MILE 1.5 MILES Total population 13,764 41,267 81,341 Median age Median age (male) Median age (Female) HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES Total households 6,301 17,906 33,855 # of persons per HH Average HH income $36,247 $41,900 $46,073 Average house value $176,165 $174,758 $182,853 * Demographic data derived from 2010 US Census S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 23

24 6 ADVISOR BIOS S. Ingleside Avenue Chicago, IL S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 24

25 Advisor Bio & Contact FRANK MICKLIN Advisor PROFESSIONAL BACKGROUND Frank Micklin serves as an advisor for SVN Chicago Commercial multi-family group, focusing on Chicago's south and west sides. He offers more than 20 years of brokerage experience as well as unique hands-on operational experience to his clients. Frank graduated from the University of Illinois - Chicago with a Bachelor's Degree in Finance. That knowledge continues to serve him well in the analysis of the properties he takes to market. A family man, Frank resides in the southwest suburbs with his wife and two daughters. In his free time he is an avid billiards player. 940 West Adams Street, Suite 200 Chicago, IL T C frank.micklin@svn.com S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 25

26 Advisor Bio & Contact JIM SEARS Senior Vice President PROFESSIONAL BACKGROUND Jim Sears serves as Senior Vice President of SVN Chicago Commercial. An active broker in Illinois and Indiana, Sears brings more than 25 years of industry experience and more than $350 million in completed transactions to the Chicago-based team. His clients have included Freddie Mac, Citibank, Northern Trust, Harris Bank, ShoreBank, and Park National to a name a few. His unique approach of partnering with each of his brokers in the marketing and sale of properties creates both a supportive work environment and a motivated, cooperative team dedicated to best serving the interests of their clients. 940 West Adams Street, Suite 200 Chicago, IL T C jim.sears@svn.com A graduate of the University of Miami (FL) with a BBA in Accounting, Sears first worked for the Big Eight firm of Price Waterhouse in Chicago as a tax specialist with an emphasis in real estate. Seeking a more entrepreneurial experience, Sears then began his real estate career with long time mentor and friend, Jack Fisher, with whom he eventually co-founded the firm of Fisher/Sears and Associates, Inc. in Desiring a national platform which utilizes state-of-the-art technology and marketing tools, Sears merged the firm with SVN in March S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 26

27 Advisor Bio & Contact REID BENNETT, CCIM Senior Vice President PROFESSIONAL BACKGROUND Reid Bennett, CCIM serves as National Council Chair of Multifamily Properties for SVN International and a Senior Vice President for SVN - Chicago Commercial. As a licensed managing broker, he focuses primarily on the sale of apartment communities across the Midwest. Reid prides himself on understanding the nuances and analysis of multiple unit apartment dwellings, student housing communities & low-income Section 8 & Section 42 communities. In 2016 Reid received the Partners Circle Award from SVN where he was ranked #25 among all SVN advisors across the nation. A graduate from the University of Iowa, Reid also has achieved the highly coveted designation of Certified Commercial Investment Member (CCIM). 940 West Adams Street, Suite 200 Chicago, IL T C reid.bennett@svn.com Also active in his community, Reid is the Development Chair for River North Residents Association (RNRA) where he works in conjunction with developers and area residents to foster responsible development in one of Chicago s most active and desirable neighborhoods. Prior to merging with SVN, Reid worked with condominium converters as well as large apartment complex buyers & sellers. He procured numerous multi-million dollar deals across the Midwest. Embodying the spirit of SVN, Reid fully utilizes the national platform and collaborative efforts to best perform for his clients on a global level. Specialties: Multifamily Apartment Complexes, Low Income Housing, Student Housing, Senior Housing MEMBERSHIPS & AFFILIATIONS Certified Commercial Investment Member (CCIM) - Designee Real Estate Investment Association (REIA) - Member National Association of Realtors (NAR) - Member River North Residents Association (RNRA) - Development Chair S. INGLESIDE AVENUE CHICAGO, IL SVN Chicago Commercial Page 27

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