OFFERING MEMORANDUM - LoopNetimages3.loopnet.com/.../document.pdf · 2017-09-14 · OFFERING...

CHAMPLAIN COURT643 East 71st Street • Chicago, IL 60619

OFFERING MEMORANDUM

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to

be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other

person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to

provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of

interest in the subject property. The information contained herein is not a substitute for a thorough due diligence

investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with

respect to the income or expenses for the subject property, the future projected financial performance of the

property, the size and square footage of the property and improvements, the presence or absence of contaminating

substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the

improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or

intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure

has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding

these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the

information provided. All potential buyers must take appropriate measures to verify all of the information set forth

herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017

Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in

this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply

affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or

subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for

the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CHAMPLAIN COURT

Chicago, IL

ACT ID Y0670372

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Rent Roll Summary

Rent Roll Detail

Rent Roll Summary Commercial

Operating Statement

Pricing Detail

MARKET COMPARABLES 03Sales Comparables

MARKET OVERVIEW 04

Market Analysis

Demographic Analysis

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INVESTMENT

OVERVIEW

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EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Bernard Mitchell Hospital 4,150

Pullman Wheel Works Apartments 3,900

Alden-Wentworth Nursing Center 3,102

Provident Medical Center 2,533

University of Chicago 1,872

City of Chicago 1,649

Ford 1,518

Walgreens 1,496

Holy Cross Hospital 1,380

Edsal Manufacturing Co Inc 1,300

Streets and Sanitation Dept 1,191

Water Management Dept of 1,178

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2016 Estimate Pop 34,328 304,599 633,288

2016 Census Pop 33,997 302,535 628,235

2016 Estimate HH 13,561 125,052 237,258

2016 Census HH 13,348 123,379 233,718

Median HH Income $28,499 $30,106 $32,645

Per Capita Income $16,620 $20,191 $19,063

Average HH Income $41,787 $48,492 $50,301

VITAL DATA

CURRENT YEAR 1

Price $1,845,000 CAP Rate 7.75% 8.47%

Down Payment 25% / $461,250 Net Operating Income $143,018 $156,301

Loan Amount $1,383,750 Net Cash Flow After Debt Service 11.00% / $50,722 13.88% / $64,005

Loan Type Proposed New Total Return 17.64% / $81,376 20.83% / $96,068

Interest Rate / Amortization 4.50% / 25 Years

Total Rentable SF 29,550

Price/SF $62.44

Year Built 1926

5

UNIT MIX

UNIT COUNT

UNIT TYPE AVG. SFCURRENT AVG.

RENTSAVG.

RENTS/SFMONTHLY INCOME

POTENTIAL RENTS

AVG. RENTS/SF

MONTHLYINCOME

27 1 Bdr 1 Bath 650 $638 $0.98 $17,223 $700 $1.08 $18,900

10 2 Bdr 1 Bath 800 $799 $1.00 $7,986 $839 $1.05 $8,390

SUITE COUNT

TYPE TOTAL GLA CURRENT RENT RANGECURRENT MONTHLY

INCOMEPRO FORMA

MONTHLY INCOME

3 Retail 3,000 $700 - $900 $2,400 $2,400

1 Office 1,000 $1,100 - $1,100 $1,100 $1,100

CHAMPLAIN COURT

#

OFFERING SUMMARY

Four Retail Spaces, 27 One-Bedrooms, and 10 Two-Bedrooms

On-Site Laundry Facility

Convenient Access to Multiple Modes of Transportation

Close Proximity to University of Chicago

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present a mixed-use building located at 643 East 71st Street in Chicago, Illinois. The subject property is

located in Park Manor; an area on the south side of Chicago residing in the Greater Grand Crossing community. The subject property is located

approximately nine miles directly south of the Loop with convenient access to Interstate 90 and 94. The CTA 69th Red Line Station is located

one mile northwest of the subject property. CTA bus stops are conveniently located on 71st Street, which is walking distance from the property.

Additionally, Midway International Airport is approximately nine miles northwest of the property.

The unit mix is comprised of 27 one-bedroom / one-bathroom units, 10 two-bedroom / one-bathroom units, and four retail spaces. The

apartment units measure approximately 650 and 800 square feet respectively. The retail spaces measure approximately 1,000 square feet

each. The property features an on-site laundry facility.

The property is positioned on the northeast corner of Champlain Avenue and 71st Street, just west of Interstate 90. The University of Chicago,

Jackson Park, and the south shores of Lake Michigan are all within a two-and-a-half mile radius. This investment offers an investor the

opportunity to acquire a well-maintained asset with the ability to raise rents to market levels without the need for significant additional capital

expenditures.

INVESTMENT OVERVIEW

6

CHAMPLAIN COURT

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PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $1,383,750

Loan Type Proposed New

Interest Rate 4.50%

Amortization 25 Years

Loan Term 5 Years

Loan to Value 75%

Debt Coverage Ratio 1.55

THE OFFERING

Property Champlain Court

Price $1,845,000

Property Address 643 East 71st Street, Chicago, IL

Assessors Parcel Number 20-27-205-001-0000

SITE DESCRIPTION

Number of Units 41

Number of Buildings One

Number of Stories Four

Year Built/Renovated 1926

Apartments - Rentable Square Feet 25,550

Retail - Gross Leaseable Area (GLA) 3,000

Office - Rentable Square Feet 1,000

Total Rentable Square Feet 29,550

Lot Size 0.35 acre(s)

7

REGIONAL MAP

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8

LOCAL MAP

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10

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

CHAMPLAIN COURT

RENT ROLL SUMMARY

11

FINANCIAL ANALYSIS

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12

RENT ROLL DETAIL

FINANCIAL ANALYSIS

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13

RENT ROLL DETAIL

FINANCIAL ANALYSIS

CHAMPLAIN COURT

14

RENT ROLL SUMMARY

FINANCIAL ANALYSIS

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OPERATING STATEMENT

15

FINANCIAL ANALYSIS

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OPERATING STATEMENT

16

FINANCIAL ANALYSIS

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PRICING DETAIL

17

CHAMPLAIN COURT

18

MARKET

COMPARABLES

8

CHAMPLAIN COURT

SALES COMPARABLES MAP

19

CHAMPLAIN COURT

(SUBJECT)

614 East 71st Street

6857 South King Drive

435-445 East 71st Street

7508 South Essex Avenue

6250 South Mozart Street

SALES COMPARABLES

1

2

3

4

5

20

PROPERTY NAMECHAMPLAIN COURT

SALES COMPARABLES

Avg. $49.43

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

$100.00

Champlain

Court

614 East

71st Street

6857 South

King Drive

435-445

East 71st

Street

7508 South

Essex

Avenue

6250 South

Mozart

Street

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

21

PROPERTY NAMECHAMPLAIN COURT

SALES COMPARABLES

Avg. $53,729

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Champlain

Court

614 East

71st Street

6857 South

King Drive

435-445

East 71st

Street

7508 South

Essex

Avenue

6250 South

Mozart

Street

Average Price Per Unit

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM

CHAMPLAIN COURT

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


22

SALES COMPARABLES

Type

Offering Price $1,845,000 27 1 Bdr 1 Bath

Price/Unit $45,000 10 2 Bdr 1 Bath

Price/SF $62.44 3 Retail

CAP Rate 7.75% 1 Office

Year Built 1926

Total Apartment Units 37

Total Commercial Suites 4

CHAMPLAIN COURT643 East 71st Street, Chicago, IL 60619

Type

Close Of Escrow 5/22/2017 16 1 Bdr 1 Bath

Sales Price $1,227,824 5 Retail

Price/Unit $58,468

Price/SF $81.31

Year Built 1928



1

NOTES

Part of portfolio sale- Portfolio cap rate was 9.95%

614 EAST 71ST STREETChicago, IL 60619

Type


Sales Price $537,173 2 3 Bdr 1 Bath

Price/Unit $53,717 3 Retail

Price/SF $44.76

Year Built 1915



2

NOTES


6857 SOUTH KING DRIVEChicago, IL 60637

PROPERTY NAME

MARKETING TEAM

CHAMPLAIN COURT

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


23

SALES COMPARABLES

Type


Sales Price $460,434 2 Retail

Price/Unit $46,043 2 Office

Price/SF $39.35

Year Built 1900



3

NOTES


435-445 EAST 71ST STREETChicago, IL 60619

Type


Sales Price $875,000 7 2 Bdr 1 Bath

Price/Unit $58,333 2 2 Bdr 2 Bath

Price/SF $33.65 1 3 Bdr 2 Bath

CAP Rate 11.40% 3 Retail

Year Built 1923



4

7508 SOUTH ESSEX AVENUEChicago, IL 60649

Type


Sales Price $1,250,000 3 Retail

Price/Unit $52,083

Price/SF $48.08

CAP Rate 10.0%

Year Built 1930



5

6250 SOUTH MOZART STREETChicago, IL 60629

CHAMPLAIN COURT

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MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEW

CHICAGO

Chicago-Naperville-Elgin is one of the largest metros in the nation.

Also know as the greater Chicagoland area, it is bounded to the east

by Lake Michigan, expands over a 5,000-square-mile region in

northeastern Illinois and extends into Wisconsin and Indiana. The

metro houses 9.6 million people and comprises 14 counties. The city

of Chicago contains 2.7 million residents. The greatest growth during

the past 20 years occurred in the western portion of the region. In

recent years, however, businesses are relocating back into the city to

attract young workers, supporting the development of high-rise

residential towers in the downtown Chicago.

MARKET OVERVIEW

METRO HIGHLIGHTS

THIRD-LARGEST METROPOLITAN AREA

The metro population trails only New York City and

Los Angeles in size, expanding to nearly 10 million

residents.

WEALTH OF INTELLECTUAL CAPITAL

The number of corporate headquarters in Chicago is

second only to New York City. There are 32 Fortune

500 companies based locally.

LARGE, DIVERSE EMPLOYMENT BASE

The Chicago metro employs more than 4.6 million

individuals in an array of industries, including a

growing tech sector.

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MARKET OVERVIEWMARKET OVERVIEW

TRANSPORTATION

The region’s transit network ranks among the largest and most

efficient in the world.

The vast network of freeways, centralized location, the largest rail-

truck intermodal facility in the U.S., as well as the Port of Chicago

contribute to the metro’s position as a major distribution and

logistics hub.

Chicago is the nation’s premier freight rail hub, with four carriers,

BNSF, Union Pacific, CSX, Norfolk Southern, servicing the region.

Amtrak routes originate from Union Station, while the Metra

commuter rail and the Chicago L provide passenger service

throughout the metro area and beyond.

International airports include O’Hare, Midway and Gary/Chicago.

Seven smaller airports also provide air service for the region.

MORE THAN OF ILLINOIS RESIDENTS LIVE IN

THE SUBURBS OF CHICAGO,

MANY OF WHOM COMMUTE INTO

THE CITY FOR WORK40%

17.2Million TEU’s

MOVED THROUGH METRO

IN 2015

3CHICAGO HAS

INTERNATIONAL

AIRPORTS

7FOR FREIGHT, PASSENGER

AND COMMUTER

RAIL LINES

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MARKET OVERVIEW

ECONOMY

The metro has one of the biggest economies in the nation

and is buoyed by its distribution, finance, manufacturing

operations and growing high-tech sectors.

There are 32 Fortune 500 companies headquartered in the

metro including Boeing, Walgreens and McDonald’s.

The area is a major global tourist and convention destination.

Last year, a record 54.1 million people visited the metro

spending $15 billion and supporting 145,000 jobs.

Large tech firms such as Amazon, Groupon and Google

attract startup companies.

The workforce is considered one of the most diverse and well

trained among major U.S. metros.

MAJOR AREA EMPLOYERS

Abbott Labs

Advocate Healthcare

Wal-Mart

Motorola Solutions Inc.

United Continental Holdings Inc.

Allstate Corp.

Walgreens Co.

Target Corp.

JPMorgan Chase

AT&T

SHARE OF 2016 TOTAL EMPLOYMENT

MANUFACTURING GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

OTHER SERVICES

AND UTILITIES

TRADE, TRANSPORTATION INFORMATION

* Forecast

CHAMPLAIN COURT

9% 18% 6%12% 10%

4%20% 2%4% 15%

27

MARKET OVERVIEW

Chicago is the third most populous metro in the U.S. and is

expected to grow by approximately 275,000 people during the next

five years.

Younger professionals moving to the area for employment provide a

skilled workforce and contribute to the median age of 36.8 years,

below that of the nation.

World class education institutions including Northwestern University

and the University of Chicago help provide a skilled labor pool.

Nearly 35 percent of residents age 25 and older hold a bachelor’s

degree and of these, 13 percent have also earned a graduate or

professional degree.

Local homeownership of 65 percent is slightly above the national

rate of 64 percent.

QUICK FACTS

36.8

2016

MEDIAN AGE:

U.S. Median:

37.7

$62,100

2016 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

$54,500

3.5M

2016

HOUSEHOLDS:

Growth

2016-2021*:

3.5%

9.6M

2016

POPULATION:

Growth

2016-2021*:

2.9%

* Forecast

DEMOGRAPHICS

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MARKET OVERVIEW

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune;

Moody’s Analytics; U.S. Census Bureau

QUALITY OF LIFE

The Chicago metro has something to offer every one of its residents and visitors,

whether it is legendary blues and jazz music, cultural and educational venues,

professional sports, dining, entertainment, shopping or recreational amenities.

The Chicago area’s relative affordability is largely due to its lower housing costs. The

median home price is significantly less than in other cities of its size and is below that

of many smaller cities, including Seattle and Denver.

Cultural activities and venues underpin the metro’s cosmopolitan lifestyle. The region

is home to various well-known museums, including the world-class Field Museum,

Shedd Aquarium, Art Institute of Chicago and Adler Planetarium. The theatre scene

rivals the world’s best, and troupes, dance companies, symphony orchestras and

music venues abound.

29 MILESOF SHORELINE

$237,400MEDIAN HOME PRICE VARIOUS MUSUEMS

70

ARTS & ENTERTAINMENT

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PROPERTY NAME

MARKETING TEAM

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DEMOGRAPHICS

Source: © 2016 Experian

Created on July 2017

POPULATION 1 Miles 3 Miles 5 Miles

2021 Projection

Total Population 33,443 298,837 621,676

2016 Estimate


2010 Census


2000 Census


Daytime Population

2016 Estimate 24,363 255,166 518,052

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2021 Projection

Total Households 13,335 124,376 236,070

2016 Estimate


Average (Mean) Household Size 2.51 2.38 2.61

2010 Census


2000 Census


Growth 2015-2020 -1.67% -0.54% -0.50%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

Occupied Units

2021 Projection 13,335 124,376 236,070

2016 Estimate 16,850 148,854 277,539

Owner Occupied 4,635 41,821 94,483

Renter Occupied 8,926 83,231 142,775

Vacant 3,288 23,803 40,281

Persons In Units

2016 Estimate Total Occupied Units 13,561 125,052 237,258

1 Person Units 35.11% 38.84% 34.06%

2 Person Units 25.94% 25.99% 25.18%

3 Person Units 16.02% 14.84% 15.62%

4 Person Units 10.68% 9.69% 11.11%

5 Person Units 5.97% 5.34% 6.72%

6+ Person Units 6.29% 5.29% 7.32%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2016 Estimate

$200,000 or More 0.72% 2.00% 1.95%

$150,000 - $199,000 1.37% 2.23% 2.17%

$100,000 - $149,000 5.85% 6.30% 7.10%

$75,000 - $99,999 6.87% 7.35% 8.09%

$50,000 - $74,999 14.55% 14.20% 14.99%

$35,000 - $49,999 13.10% 12.53% 13.01%

$25,000 - $34,999 11.49% 11.01% 11.58%

$15,000 - $24,999 17.37% 15.31% 15.03%

Under $15,000 28.68% 29.07% 26.10%

Average Household Income $41,787 $48,492 $50,301

Median Household Income $28,499 $30,106 $32,645

Per Capita Income $16,620 $20,191 $19,063

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2016 Estimate Total Population 34,328 304,599 633,288

Under 20 29.41% 26.64% 28.11%

20 to 34 Years 19.66% 21.75% 21.29%

35 to 39 Years 5.75% 5.80% 5.97%

40 to 49 Years 12.55% 12.25% 12.44%

50 to 64 Years 19.82% 19.23% 18.51%

Age 65+ 12.83% 14.33% 13.69%

Median Age 35.80 36.34 35.49

Population 25+ by Education Level

2016 Estimate Population Age 25+ 21,889 200,339 407,751

Elementary (0-8) 2.85% 2.77% 5.82%

Some High School (9-11) 11.92% 11.97% 12.44%

High School Graduate (12) 27.58% 24.90% 27.29%

Some College (13-15) 29.74% 26.19% 24.65%

Associate Degree Only 8.43% 7.00% 6.49%

Bachelors Degree Only 13.43% 14.11% 12.37%

Graduate Degree 5.41% 11.98% 9.42%

Population by Gender

2016 Estimate Total Population 34,328 304,599 633,288

Male Population 44.38% 44.32% 45.39%

Female Population 55.62% 55.68% 54.61%

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CHAMPLAIN COURT

DEMOGRAPHICS

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OFFERING MEMORANDUM - LoopNetimages3.loopnet.com/.../document.pdf · 2017-09-14 · OFFERING...

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