Price: $660,000 ($45 PSF) Cap: 8.77% · 2018-03-01 · Burr Ridge Downers Grove Homewood Lockport...

OFFERING MEMORANDUM

715 E. STATE STREET, GENEVA, ILMIXED-USE OPPORTUNITY

• Price: $660,000 ($45 PSF)• Cap: 8.77%

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715 E. STATE STREET

AGENCY DISCLOSURE: Prospective purchasers are hereby notified that ACO Commercial, Inc., through George J. Toscas & Edward N. Bluemel II, is acting as an agent of the seller of the property, and any information given by prospective purchasers to ACO Commercial, Inc. may be disclosed to the seller.©2018 ACO Commercial, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

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INTRODUCTION

AREA DESCRIPTION

DEMOGRAPHICS

AERIAL MAP

PROPERTY DESCRIPTION

SURVEY

CURRENT RENT ROLL

PRO FORMA INCOME STATEMENT

RENT COMPARABLES

SALE COMPARABLES

CONFIDENTIALITY AGREEMENT

TA B L E O F C O N T E N T S

3ACO Commercial, Inc. • 2502 N. Clark Street • Suite 200 • Chicago, IL 60614O: 312-638-9950 • F: 312-546-4776 • www.acocommercial.com

715 E. STATE STREET

INVESTMENT SUMMARYPrice $660,000Pro Forma NOI $57,889Proforma Cap Rate 8.77%Total SF 14,000Price/SF $45Year Built 1950 / 1997Parking 12+ surface spacesLot Size 22,696 SF

ACO Commercial is pleased to offer, for sale, 715 E. State Street in Geneva, IL.

The Subject property is located on E. State Street (Route 38) in the western Chicago suburb of Geneva, IL. The parcel consists of approximately 22,696 square feet and is zoned B-4.

The Property is currently improved with a retail/apartment all masonry building in the front portion and a cinder-block retail building in the rear. The front portion of the building, built in 1950, consists of two stories, each approximately 4,500 square feet. The first floor contains commercial space with frontage on State Street. The commercial space has no interior supporting walls, only those which can all be knocked down to open up the space. The second floor houses four apartments (approximately 1,150 SF each).

The rear portion of the building consists of a 5,000 SF single-story retail building that was added to the Property in 1997. The Property is equipped with a hardwired fire alarm system with radio signal to monitoring company.

Owner invested over $15,000 in improvements in last nine months, including tuckpointing, resurfacing of parking lot, painting of west and north exterior walls, new windows and new laminate flooring and paint in one of the residential units.

The property is currently 100% occupied and is being offered for $660,000 ($45/SF).

INVESTMENT HIGHLIGHTS• 100% occupancy• Large apartment units• Value-add opportunity• Freshly paved and striped front parking lot

I N T R O D U C T I O N


715 E. STATE STREET

Located in the heart of Geneva, just a few blocks east of the vibrant downtown shopping district, this Property offers high visibility in the East State Street (Route 38) corridor. The site boasts two full access points directly on State Street, which has a traffic count of 23,100 cars per day.

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MILES

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Wilson

Main

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Kirk

State

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oute

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Property

OrlandPark

CiceroLombard

Northbrook

Lemont

Evanston

BurrRidge

DownersGrove

Homewood

Lockport

Chicago

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Frankfort

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715 E. STATE ST

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Geneva

MelroseParkWheaton

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Plainfield

Joliet

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ArlingtonHeights

Palatine

Elgin

Naperville

Matteson

CrystalLake

LakeZurich

BuffaloGrove

Aurora

Warrenville

Batavia

Batavia

St.Charles

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A R E A D E S C R I P T I O NA R E A D E S C R I P T I O N


715 E. STATE STREET

Radius 1 Mile 3 Mile 5 MilePopulation:2022 Projection 8,771 54,755 120,4552017 Estimate 8,600 53,622 118,1762010 Census 8,539 52,919 116,2062017 Population by Race:White 8,222 50,053 108,602Black 66 1,258 2,914American Indian and Alaska Native 12 151 460Asian 176 1,399 4,455Native Hawaiian and Pacific Islander 11 34 73Other 113 727 1,6712017 Population by Hispanic Origin 778 4,831 19,235Households:2022 Projection 3,315 21,022 42,1232017 Estimate 3,249 20,583 41,3012010 Census 3,229 20,329 40,641Owner Occupied 2,624 15,137 32,178Renter Occupied 626 5,445 9,1232017 Avg Household Income $100,073 $109,024 $116,8622017 Med Household Income $78,782 $87,106 $93,7122017 Households by Household Inc:Income less than $25,000 379 2,653 4,354Income $25,000 - $50,000 794 3,257 6,282Income $50,000 - $75,000 492 3,213 6,346Income $75,000 - $100,000 390 2,413 4,901Income $100,000 - $125,000 395 3,778 5,025Income $125,000 - $150,000 273 1,715 3,652Income $150,000 - $200,000 344 2,118 5,103Income $200,000+ 281 2,436 5,638

Rear View of Retail

Interior Retail

D E M O G R A P H I C S


715 E. STATE STREET

A E R I A L M A P


715 E. STATE STREET

The property faces E. State Street, with one front entrance into the first floor commercial space. A door in the rear portion of the commercial space enters into the adjacent rear retail space. The rear retail has one overhead, drive-in door and one entrance door to the north. The building is also accessible via a side entrance on the west. The apartment units on the second floor are accessible via a secured entryway on the west side of the building.

The front retail space and apartments share two hot water boilers, heating through baseboards in the apartments and forced air ventilation to the retail space. The retail area also uses several sleeve units for additional heating and cooling. Two independent, forced-air, ceiling-mounted units heat the rear retail space. The landlord pays for heating gas, but electricity powering the hot water pumps to all apartment units is individually metered. Air conditioning is provided via two sleeve/window units in each apartment, and three sleeve units in the retail space.

Hot water is supplied via individual, electric water heaters for each apartment unit, and one for the retail space.

The Property has separate utility metering to all apartment units, front retail space, and rear retail. Apartments and front retail space have fuse boxes. The rear retail utilizes circuit breaker panels.

Address 715 E. State Street, Geneva, ILLand: Fee Simple ownership: 22,696 SF Municipal: Kane county; City of Geneva; B-4 Zoning Offering Type Mixed-UseFrontage 100% frontage on State StreetPIN Number(s) 12-02-404-015Real Estate Taxes (2017) $18,424.72 Zoning B-4Year Built 1950 / 5,000 SF addition in 1997GLA 14,000 SFParking Approximately 12+ Surface SpacesUtilities All utilities are in place and available to the

site. Construction: The 10,000 square foot, 2 story structure

features masonry construction with face brick facade, on a concrete slab. The newer, 4,000 square foot rear retail space is cinder-block construction.

Roof: Building has a tar & paper flat roof. Fire Protection: Hardwired fire alarm with radio signal to

monitoring company. Apartments overlooking rear retail equipped with fire shutters.

P R O P E R T Y D E S C R I P T I O N


715 E. STATE STREET

S U R V E Y


715 E. STATE STREET

Unit SF of GLA Pro Rata % Rent PSF Monthly Rent

Annual Rent

Lease Type

LeaseExpiration

One-Bed Apartment 1,100 7.86% $8.18 $750 $9,000 Gross MTM

One-Bed Apartment 1,100 7.86% $8.18 $750 $9,000 Gross MTM

Two-Bed Apartment 1,200 8.57% $8.50 $850 $10,200 Gross MTMTwo-Bed Apartment 1,200 8.57% $10.00 $1,000 $12,000 Gross 1/31/19Euphoria Emporium - East Storefront 2,200 15.71% $10.91 $2,000 $24,000 Gross 12/14/20Positively Posh - West Storefront 2,200 15.71% $5.45 $1,000 $12,000 Gross MTMPositively Posh - Rear 5,000 35.71% $5.04 $2,100 $25,200 Gross MTMTotal/Average 14,000 100% $7.24 $8,450 $101,400

C U R R E N T R E N T R O L L


715 E. STATE STREET

Unit SF of GLA Pro Rata % Rent PSF Monthly Rent Annual Rent

One-Bed Apartment 1,100 7.86% $9.27 $850 $10,200 1

One-Bed Apartment 1,100 7.86% $9.27 $850 $10,200 1

Two-Bed Apartment 1,200 8.57% $10.00 $1,000 $12,000 1Two-Bed Apartment 1,200 8.57% $10.00 $1,000 $12,000 1Euphoria Emporium - East Storefront 2,200 15.71% $10.91 $2,000 $24,000 1Positively Posh - West Storefront 2,200 15.71% $5.45 $1,000 $12,000 1Positively Posh - Rear 5,000 35.71% $5.04 $2,100 $25,200 1Total/Average 14,000 100% $7.54 $8,800 $105,600

Adjustments to Gross Potential IncomeVacancy/Credit Loss 5.00% ($440.00) ($5,280) 1Effective Gross Income $8,360 $100,320EXPENSESReal Estate Taxes ($1,535.39) ($18,425) 3Insurance ($333.33) ($4,000) 2Gas and Electricity ($567.50) ($6,810) 1Water and Sewer ($265.00) ($3,180) 1Scavenger (Apartments Only) ($83.33) ($1,000) 1Apartment Turnover ($83.33) ($1,000) 2Apartment R&M ($166.67) ($2,000) 2Snow Removal ($83.33) ($1,000) 2Management Fees 5.00% ($418.00) ($5,016) 2Total Expenses ($3,535.89) ($42,431)Net Operating Income $57,8891. Actual figures from ownership2. ACO Commercial Estimate based on market average for comparable properties.3. From County Website

FINANCINGLoan Amount $462,000Down Payment: $198,000Loan Type Proposed NewInterest Rate 5.00%Term 7 YearsAmortization 25 YearsLoan to Value 70%DSCR: 1.79x

P R O F O R M A I N C O M E S TAT E M E N T


715 E. STATE STREET

1 Bedrooms

Address 321 James St., #301Geneva, IL

27 N. 2nd St., #2N Gene-va, IL

1700 Riverside Ave.St. Charles, IL

108 S. 4th Ave. St. Charles, IL

Unit Type 1Bed/1Bath 1Bed/1Bath 1Bed/1Bath 1Bed/1BathDate Rented 9/12/17 8/16/17 2/1/17 1/16/17Rented Price $1,000 $995 $1,260 $1,100# of Building Units N/A 2 1 1Unit SF AVG: 661 500 750 700 692Monthly Rent PSF AVG: $1.68 $2.00 $1.33 $1.80 $1.59Year Built 1955 1867 N/A 1910

R E N T C O M PA R A B L E S

2 Bedrooms

Address 1421 Walnut Hill Ave.St. Charles, IL

228 N. 6th St. Geneva, IL

412 Anderson Blvd., #2AGeneva, IL

313 E. State St. Geneva, IL

Unit Type 2Bed/2Bath 2Bed/1Bath 2Bed/1Bath 2Bed/1BathDate Rented 10/27/17 10/21/17 3/7/17 2/23/17Rented Price $1,400.00 $1,300.00 $1,400.00 $1,200.00# of Building Units 1 2 2 3Unit SF AVG: 975 1,000 950 1,050 900Monthly Rent PSF AVG: $1.36 $1.40 $1.37 $1.33 $1.33Year Built 1994 1857 1941 N/A


715 E. STATE STREET

S A L E C O M PA R A B L E S

Address 227 S. 3rd St.Geneva, IL

619 W. Main St.Saint Charles, IL

1106-08 W. Main St.Saint Charles, IL

2901 W. Main St.Saint Charles

227 W. Wilson St.Batavia, IL

Sale Date 9/1/17 3/14/17 2/17/17 1/15/17 8/22/16

Distance to Subject 1.1 Miles 2.9 Miles 3.3 Miles 4.5 Miles 4.8 Miles

Property Type Retail Office Office/Residential Office Storefront

# of Stories 3 3 2 1 1

Building SF 15,000 12,000 4,450 14,219 2,777

Lot SF 14,760 7,044 10,825 97,914 3,942

Sale Price $1,450,000 $565,000 $330,000 $650,000 $210,000

$/SF AVG: $67.85 $96.67 $47.08 $74.16 $45.71 $75.62

Year Built 1985 N/A 1920 / 1978 1980 N/A

Description 100% occupied, three-story, multitenant, retail building. 7.9% cap rate. Historic downtown location.

Two-story, retail/office building with one residential unit in rear. Included 20 parking spaces

Two, stand-alone buildings on a single parcel. One building is a 3,234 SF two-story frame building containing a front, street-level retail/office unit, and three residential income units. The other building is a 1216 SF brick building. The main level contains a large reception area, three windowed offices, a snack nook, and a washroom.

Former location of St. Charles Classic Motors. Included 100 parking spaces

Ground floor commercial buildin, for single- or two-tenant use.

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715 E. STATE STREET

This is a confidential memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of 715 E. State Street, Geneva, Illinois. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and ACO Commercial, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. Neither the Owner nor ACO Commercial, Inc., nor any of their respective directors, officers, affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By your acceptance and review of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or ACO Commercial, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or ACO Commercial, Inc.

In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to ACO Commercial, Inc.

F O R M O R E I N F O R M AT I O N

P L E A S E C O N TA C T:

George J. Toscas Managing Broker312-638-9950 x [email protected]

Edward N. Bluemel IIVice President312-638-9950 x [email protected]

ACO Commercial, Inc.2502 N. Clark Street Suite 200Chicago, IL 60614O: 312-638-9950www.acocommercial.com

©2018 ACO Commercial, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

CONFIDENTIALITY AGREEMENT

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Price: $660,000 ($45 PSF) Cap: 8.77% · 2018-03-01 · Burr Ridge Downers Grove Homewood Lockport...

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