1539 w devon offering

8/13/2019 1539 W Devon Offering

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DISCLAIMER

The information contained in this offering is proprietary and confidential and intendedonly for the use of the party receiving it from Kiser Group. It is not to be distributed towithout the written approval of Kiser Group.

The purpose of this offering is to provide summary information to prospectiveinvestors and to establish a preliminary level of interest in the property. THEINFORMATION IS NOT A SUBSTITUTE FOR A THOROUGH DUE DILIGENCEINVESTIGATION BY A PROSPECTIVE INVESTOR. The offering is not intended to becomprehensive or to contain all the information needed or required by a prospectiveinvestor. All financial projections are based on assumptions and predictions and maythus be subject to material variation.

Neither Kiser Group nor the Owner nor any of their respective agents, employees,officers, or principals have made or will make any REPRESENTATION OR WARRANTY,EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF THEINFORMATION in the offering, including but not limited to number of legal units,income and expenses of the property; projected financial performance of theproperty; size and square footage of the property; presence or absence of contaminating substances, lead, PCB's or asbestos; compliance with State, Federal,Municipal or other local regulations; compliance with the Americans with DisabilitiesAct; existence of lead-based paint hazards; physical condition or age of the property orimprovements; suitability for prospective investors' intended use; or financial

condition or occupancy plans of tenants.

ALL POTENTIAL INVESTORS ARE RESPONSIBLE TO TAKE APPROPRIATE STEPS TO VERIFYALL INFORMATION SET FORTH HEREIN AND CONDUCT THEIR OWN THOROUGH DUEDILIGENCE BEFORE PURCHASING THE PROPERTY. Potential investors assume all risk forany inaccuracies or inconsistencies.


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STATE OF ILLINOIS AGENCY AND DUAL AGENCY DISCLOSURE

Kiser Group has designated a Kiser Group Agent/Licensee to represent the Owner of the subject property in

the sale of that property. That designated agent is the listing agent for the property. If there is no otherKiser Group agent/licensee or cooperating broker representing the Buyer, the listing agent will also bedeemed to represent the Buyer in the transaction, unless the Buyer states in writing otherwise.

As a potential Buyer of the property, you should be informed that Illinois requires the following disclosureand consent regarding dual agency:

Representing more than one party to a transaction presents a conflict of interest since both clients may relyupon the agent/licensees advice and the clients respective interests may be adverse to each other.Agent/Licensee will undertake this representation only with the written consent of ALL clients in thetransaction. Any agreement between the clients as to a final contract price or terms and other terms is aresult of negotiations between the cl ients acting in their own best interest and on their own behalf.

Buyer hereby acknowledges that Agent/Licensee has explained the implications of dual representation,including the risks involved, and understands that Buyer has been advised to seek independent advice from

its advisors or attorneys before signing any documents in this transaction.WHAT AN AGENT/ LICENSEE CAN DO FOR CLIENTS WHEN ACTING AS A DUAL AGENT:1. Treat all clients honestly. 2. Provide information about the property to the buyer. 3. Disclose all latentmaterial defects in the property that are known to the Agent/Licensee. 4. Disclose financial qualification ofthe buyer to the seller. 5. Explain real estate terms. 6. Help the buyer arrange for property inspections. 7.Explain closing costs and procedures. 8. Help the buyer compare financing alternatives. 9. Provideinformation about comparable properties that have sold so both clients may make educated decisions onwhat price or terms to accept or offer.

WHAT AN AGENT/LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN ACTING AS A DUAL AGENT:1. Confidential information that Agent/Licensee may know about a client, without that clients permission. 2. The price or terms the seller will take other than the listing price or terms without permission of the seller. 3. The price or terms the buyer is willing to pay without permission of the buyer. 4. A recommended orsuggested price or terms the buyer should offer. 5. A recommended or suggested price or terms the seller

should counter with or accept.If either client is uncomfortable with this disclosure and the dual representation please let Agent/Licenseeknow.You are not required to accept a dual agency representation. By accepting a dual agency relationship, youunderstand this form and voluntarily consent to Agent/Licensee acting as a dual agent (that is, to representBOTH the seller and buyer) should that become necessary.

STATE OF ILLINOIS DISCLOSURE REGARDING CONTEMPORANEOUS OFFERS

A Kiser Group Agent/Licensee is permitted under Ill inois state law to show alternative properties toprospective buyers and to show properties in which a client is interested as a buyer to other prospectivebuyers. Accordingly, the Kiser Group Agent/Licensee representing you as a potential buyer for a propertymay also be showing that property to other potential buyers and making or preparing contemporaneous

offers or contracts to purchase that property for other buyers. If you request to be represented by a differentagent/licensee, you shall be referred to another designated agent of Kiser Group.


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DISCLOSURE AND CONSENT TO DUAL AGENCY(DESIGNATED AGENCY)

NOTE TO CONSUMER: THIS DOCUMENT SERVES THREE PURPOSES. FIRST, IT DISCLOSES THAT A REAL ESTATE LICENSEE MAYPOTENTIALLY ACT AS DUAL AGENT, THAT IS, REPRESENT MORE THAN ONE PARTY TO THE TRANSACTION. SECOND, THISDOCUMENT EXPLAINS THE CONCEPT OF DUAL AGENCY. THIRD, THIS DOCUMENT SEEKS YOUR CONSENT TO ALLOW THEREAL ESTATE LICENSEE TO ACT AS A DUAL AGENT. A LICENSEE MAY LEGALLY ACT AS A DUAL AGENT ONLY WITH YOURCONSENT. BY CHOOSING TO SIGN THIS DOCUMENT, YOUR CONSENT TO DUAL AGENCY REPRESENTATION IS PRESUMED.

The undersigned __________________________________________, (Licensee), may undertake a dual(insert name(s) of Licensee undertaking dual representation)

representation (represent both the seller or landlord and the buyer or tenant) for the sale or lease of property. Theundersigned acknowledge they were informed of the possibility of this type of representation. Before signing thisdocument please read the following:

Representing more than one party to a transaction presents a conflict of interest since both clients may relyupon Licensees advice and the clients respective interests may be adverse to each other. Licensee will undertake thisrepresentation only with the written consent of ALL clients in the transaction.

Any agreement between the clients as to a final contract price and other terms is a result of negotiations

between the clients acting in their own best interests and on their own behalf. You acknowledge that Licensee hasexplained the implications of dual representation, including the risks involved, and understand that you have beenadvised to seek independent advice from your advisors or attorneys before signing any documents in this transaction.

WHAT A LICENSEE CAN DO FOR CLIENTS WHEN ACTING AS A DUAL AGENT

1. Treat all clients honestly.2. Provide information about the property to the buyer or tenant.3. Disclose all latent material defects in the property that are known to the licensee.4. Disclose financial qualification of the buyer or tenant to the seller or landlord.5. Explain real estate terms.6. Help the buyer or tenant to arrange for property inspections.7. Explain closing costs and procedures.8. Help the buyer compare financing alternatives.9. Provide information about comparable properties that have sold so both clients may make educated

decisions on what price to accept or offer.

WHAT LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN ACTING AS A DUAL AGENT

1. Confidential information that Licensee may know about a client, without that clients permission.2. The price or terms the seller or landlord will take other than the listing price without permission of the seller

or landlord.3. The price or terms the buyer or tenant is willing to pay without permission of the buyer or tenant.4. A recommended or suggested price or terms the buyer or tenant should offer.5. A recommended or suggested price or terms the seller or landlord should counter with or accept.

If either client is uncomfortable with this disclosure and dual representation, please let Licensee know. You arenot required to sign this document unless you want to allow the Licensee to proceed as Dual Agent in this transaction.

By signing below, you acknowledge that you have read and understand this form and voluntarily consent toLicensee acting as a Dual Agent (that is, to represent BOTH the seller or landlord and the buyer or tenant) should thatbecome necessary.

CLIENT: ____________________________________ CLIENT: _________________________________

Date: ______________________________________ Date: ___________________________________

LICENSEE: __________________________________ Date: ___________________________________


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1539 W Devon OfferingProperty Description

1539 W Devon is a fully occupied fourteen unit SRO property that is made up of twelve(12) residential units and two commercial spaces on Devon Avenue. The propertyconsists of eight (8) efficiency units with shared bathrooms, three (3) efficiency units withkitchenettes and shared bathrooms, and one larger studio apartment with a private bath. There is also a two-car garage in the rear that is currently leased.

The property just received updated porches on a repair and replace permit, has a newhard-wired fire alarm system, newer boiler, and updated electrical. The roof was torn offand replaced approximately ten years ago.

The residential tenancy in the building is long-term, with some tenants having been inthe building for over 10 years. Because of this, the property runs more like a typical

apartment building than an SRO property. The opportunity with this asset is to acquire aproperty that will cash flow significantly higher than a straight-forward apartmentproperty in the surrounding area, with the opportunity to convert into a higher endapartment property down the road.

The information contained herein has been secured by sources believed to be reliable. Kiser Group, however, makes no representation orwarranty, expressed or implied, as to the accuracy of the information. Buyer assumes all risk for any inaccuracies.


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1539 W Devon OfferingMap

The information contained herein has been secured by sources believed to be reliable. Kiser Group, however, makes no representation or warranty,expressed or implied, as to the accuracy of the information. Buyer assumes all risk for any inaccuracies.


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1539 W Devon OfferingPricing & Cash Flow

Number of Units: 14 Price/Unit: $37,500

Net Rentable Square Feet: 6,150 Price/SF: $85

Year Built: 1915 Zoning: B1-1

Lot Dimensions: 30'x115'

CASH FLOW

Gross Operating Income $94,713 5.54 GRM $96,761 5.43 GRM

Total Expenses $38,994 41.17% Expense Ratio $39,737 41.07% Expense Ratio

Net Operating Income $55,719 10.61% Cap Rate $57,024 10.86% Cap Rate

Debt Service* $23,674 2.35 DCR $23,674 2.41 DCR

Cash Flow $32,045 20.35% Cash Return $33,350 21.17% Cash Return

*Proposed Financing

Equity $157,500 30%

First Mortgage $367,500 70%

Interest Rate 5.00%

Amortization 30

$525,000

Current End of Year 1 Proforma

1539 W Devon

The information contained herein has been secured by sources believed to be reliable. Kiser Group, however, makes no representation or warranty, expressed or implied,as to the accuracy of the information. Buyer assumes all risk for any inaccuracies.


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1539 W Devon OfferingIncome & Expense Detail

INCOME Current Annual Monthly Annual Monthly

Gross Scheduled Rent $96,540 $8,045 (see rent roll) $98,696 $8,225Scheduled Gross Income $99,540 $8,295 $101,696 $8,475

Estimated Vacancy 5.00% $4,827 $402 5.00% $4,935 $411

Gross Operating Income $94,713 $7,893 $96,761 $8,063

EXPENSE Annual Per Unit Per NRSF Annual Per Unit Per NRSFTaxes $7,412 $529.43 $1.21 $7,634 $545.31 $1.24Insurance $3,500 $250.00 $0.57 $3,605 $257.50 $0.59Gas $6,500 $464.29 $1.06 $6,695 $478.21 $1.09

Electric $1,550 $110.71 $0.25 $1,597 $114.04 $0.26Water $1,000 $71.43 $0.16 $1,030 $73.57 $0.17Scavenger $1,000 $71.43 $0.16 $1,030 $73.57 $0.17Fire Alarm $350 $25.00 $0.06 $361 $25.75 $0.06Management* $4,586 $327.55 $0.75 $4,688 $334.86 $0.76 Janitor * $4,200 $300.00 $0.68 $4,200 $300.00 $0.68Decorating* $2,800 $200.00 $0.46 $2,800 $200.00 $0.46Maint/Repairs* $3,150 $225.00 $0.51 $3,150 $225.00 $0.51Reserves* $2,030 $144.96 $0.33 $2,030 $144.96 $0.33Miscellaneous* $917 $65.51 $0.15 $918 $65.59 $0.15Total Expense $38,994 $2,785 $6.34 $39,737 $2,838.37 $6.46Expenses - Net of Taxes $2,256 $5.14 $2,293.06 $5.22

Net Operating Income $55,719 $57,024*Brokers estimate of expense

End of Year 1 Proforma

The information contained herein has been secured by sources believed to be reliable. Kiser Group, however, makes no representation or warranty, expressed orimplied, as to the accuracy of the information. Buyer assumes all risk for any inaccuracies.


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1539 W Devon OfferingRent & Unit Analysis

Number of Units Unit Type Unit SF Minimum Rent Maximum RentAverage Monthly

Rent/UnitAverage Monthly

Rent/SFAverage Monthly

Rent/UnitAverage Monthly

Rent/SF% Increase Ab

Current Ren

8 Efficiency 150 $430 $430 $430 $2.87 $443 $2.95 3.00%3 Efficiency+ 200 $540 $560 $550 $2.75 $567 $2.83 3.00%1 Studio 350 $565 $565 $565 $1.61 $582 $1.66 3.00%2 Commercial 2,000 $1,200 $1,200 $1,200 $0.60 $1,200 $0.60 0.00%

UNIT DATA CURRENT RENT PROFORMA RENT

Efficiency57%

Efficiency+22%

Studio7%

Commercial14%

Unit Type Proportion

Efficiency19%

Efficiency+10%

Studio6%

Commercial65%

Square Footage Proportion

The information contained herein has been secured by sources believed to be reliable. Kiser Group, however, makes no representation or warranty, expressed or implied, as to the accuracy ofthe information. Buyer assumes all r isk for any inaccuracies.


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1539 W Devon OfferingRent Roll

Unit Unit Type SFCurrent

Rent

GrossScheduled

Rent/Month

Gross Potential MarketRent/Month (see Rent

Survey)

1 Efficiency 150 $430 $430 $4432 Efficiency 150 $430 $430 $4433 Efficiency 150 $430 $430 $4434 Efficiency 150 $430 $430 $4435 Efficiency 150 $430 $430 $4436 Efficiency 150 $430 $430 $4437 Efficiency 150 $430 $430 $4438 Efficiency 150 $430 $430 $4439 Efficiency+ 200 $540 $540 $567

10 Efficiency+ 200 $540 $540 $56711 Efficiency+ 200 $560 $560 $56712 Studio+Bath 350 $565 $565 $582

1537 Store 2,000 $1,200 $1,200 $1,2001539 Store 2,000 $1,200 $1,200 $1,200

Total 6,150 $8,045 $8,045 $8,225Average 439 $575 $575 $587

*1537 is occupied by Seller, who would like to lease-back at closing

**1539 is a gross lease with 2 years left on term.

The information contained herein has been secured by sources believed to be reliable. Kiser Group, however, makes no representation orwarranty, expressed or implied, as to the accuracy of the information. Buyer assumes all risk for any inaccuracies.


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Kiser Group1628 W. Montrose Ave.Chicago, IL 60613

Tel 773-293-5000Fax 773-293-5001

www.kisergroup.com

1539 w devon offering

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