offering memorandum · coldwell banker commercial devonshire realty | champaign, il | 217.352.7712...
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COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
802 W. Oregon St.,
601 S. Busey Ave.,
603 S. Busey Ave.,
Urbana, IL 61801
University of Illinois Campus Housing in Opportunity Zone
Ryan Murphy, CCIM
CBCDR Senior Advisor, Brokerage
C: 217.840.7953
O: 217.403.3379
ryan.murphy@cbcdr.com
OFFERING MEMORANDUM
601 S. Busey
603 S. Busey802 W. Oregon
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
This Confidential Investment Summary (“CIS”) is provided by Coldwell Banker Commercial Devonshire Realty (“CBCDR”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This CIS may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of CBCDR. This CIS does not constitute or pertain to an offer of a security or an offer of any investment contract. This CIS contains descriptive materials, financial information and other data compiled by CBCDR for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. CBCDR has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon CBCDR.
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.
BY ACCEPTING THIS CIS, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from CBCDR relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to CBCDR, all or any part of this CIS or the Information; (3) upon request by CBCDR at any time, you will return and/or certify your complete destruction of all copies of this CIS and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless CBCDR all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this CIS and/or any other Information concerning the Property; (5) you will not provide this CIS or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that CBCDR shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.
CONFIDENTIALITY AND RESTRICTED USE AGREEMENT
USE AGREEMENT
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
THE OFFERING
Coldwell Banker Commercial Devonshire Realty (CBCDR) is proud to exclusively offer for sale a student housing portfolio located in an Opportunity Zone at the University of Illinois at Urbana-Champaign (UIUC) containing three adjacent properties totaling 28 units and 51 beds. The portfolio provides two corner lots and is situated in a prime location one block east of Lincoln Avenue on the University of Illinois campus (51,196 students and 10,974 faculty & staff).
Two properties in the portfolio, 802 W. Oregon and 603 S. Busey, are known as the Europa House, which was considered Private Certified Housing for UIUC. Certification requirements have recently changed, so the seller has elected not to renew the certification or transition to a traditional student housing model to provide the buyer with maximum flexibility. These properties have a shared swimming pool and lower level parking garage to accommodate 28 cars.
802 W. Oregon is a three-and-a-half-story building built in 1967. The top three floors each have six, 2-bedroom units, which feature a double sink vanity in the bathroom and personal balcony. The bottom floor has one, 2-bedroom unit along with a shared resident lounge, laundry room and meeting space.
603 S. Busey is a single-story building built in 1993. The eight studio lofts feature a two-and-a-half-story cathedral ceiling, living room, bathroom, full kitchen with a breakfast bar, personal patio, and a loft level for sleeping and closet space. The building provides a shared lounge and laundry room.
601 S. Busey is a two-story house with on-site parking for seven cars. Each of the five bedrooms has an ensuite bathroom. The first floor has a spacious living room, large kitchen and additional bathroom. The basement is unfinished, but provides a washer and dryer for the residents.
OVERVIEW
PURCHASE PRICE $2,190,000
PRO FORMA GROSS ANNUAL INCOME $332,652
PRO FORMA NOI $205,578
PRO FORMA CAP RATE 9.38%
PRO FORMA GIM 6.58
TOTAL UNITS/BEDS 28 Units / 51 Total Beds
COMBINED LOT SIZE +/- 30,941 SF
ZONING R-4 & R-7
COMBINED RE TAXES $66,055
YEAR(S) BUILT Varies
OPPORTUNITY ZONE Yes
PORTFOLIO OVERVIEW
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
LOW AERIAL
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
HIGH AERIAL
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
SITE PLAN & ZONING
ZONING R-4 R-7
Max Build Height 35’ 35’
Max FAR 0.5 0.5
Max OSR 0.35 0.35
Setbacks 10-25’ (F), 5’ (S), 10’ (R)
10-25’ (F), 5’ (S), 10’ (R)
ZONINGINFORMATION
R-4 Medium Density Multiple-Family Residential District is intended to
provide areas for multiple-family dwellings at low and medium densities.
R-7 University Residential District is intended to provide areas in
proximity to the University of Illinois for dormitories and rooming houses,
which are occupied primarily by students, to insure the longevity of
architectural character and use of these existing buildings, and to protect
nearby low-density residential districts from incompatible developments.
R-4
R-4
R-7
R-7
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
AREA OVERVIEW
The city of Urbana is a highly educated community thanks in
part to the world-renowned University of Illinois at Urbana-
Champaign. Champaign County is also home to the University
of Illinois Willard Airport, Parkland College and a vibrant
collection of business, tech, financial service, and agricultural
firms. Champaign residents enjoy a robust healthcare network
with two regional hospitals (Carle and OSF) and a full
complement of specialty clinics (i.e. Christie Clinic) and
medical providers.
The subject portfolio is within easy walking distance to
academic buildings, entertainment venues, recreation and
sports facilities, and numerous restaurants and retailers. It is
located in a Qualified Opportunity Zone, which provides
potential tax incentives. The tax incentives, which are tied to
capital gains, are as follows:
• Temporary tax deferral
• Step-up in basis based on the length of time
invested in the Opportunity Fund
• Permanent exclusion (minimum hold of 10 years)
from capital gains tax accrued in the Opportunity
Funds
LOCATION
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
RENT PROJECTION
ADDRESS UNITS LAYOUT MONTHLYRENT/UNIT
TOTALMONTHLY
RENT
802 W. Oregon 19 2 bed / 1 bath $1,100.00 $20,900.00
603 S. Busey 8 Studio Lofts $685.00 $5,480.00
601 S. Busey 1 5 bed / 6 bath house $2,800.00 $2,800.00
TOTAL 28 $29,180.00
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
PROFORMA INCOME STATEMENT
REVENUE PROFORMA
Potential Rental Income $350,160
Vacancy & Credit Loss (5%) $17,508
GROSS OPERATING INCOME $332,652
OPERATING EXPENSES PROFORMA
Taxes $66,055
Management Fee (6% GOI) $19,959
Insurance $8,000
Utilities (Non-Reimbursed) $6,000
Cleaning $5,200
Maintenance/Repairs/Turnover $12,800
Lawn & Snow $600
Trash Hauling $2,500
Advertising/Marketing $960
Miscellaneous Expenses $5,000
TOTAL OPERATING EXPENSES $127,074
NET OPERATING INCOME $205,578
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
802 W. OREGON
PROPERTY 802 W. OREGON
Lot Size (SF) 15,366
Lot Size (Acres) 0.35
Year Built 1967
Zoning R-7: University Residential District
PIN 91-21-17-152-014
Taxes (2018) $39,752
Opportunity Zone
Yes
Units 19
Layout 2 Bed / 1 Bath
PROPERTY OVERVIEW
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
802 W. OREGON FLOOR PLANS
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
603 S. BUSEY
PROPERTY 603 S. BUSEY
Lot Size (SF) 7,805
Lot Size (Acres) 0.18
Year Built 1993
Zoning R:4 Medium Density Multiple-Family Residential
PIN 91-21-17-152-013
Taxes (2018) $17,839
Opportunity Zone Yes
Units 8
Layout Studio Lofts
PROPERTY OVERVIEW
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
603 S. BUSEY FLOOR PLAN
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
601 S. BUSEY
PROPERTY 601 S. BUSEY
Lot Size (SF) 7,770
Lot Size (Acres) 0.18
Zoning R:4 Medium Density Multiple-Family Residential
PIN 91-21-17-152-012
Taxes (2018) $8,464
Opportunity Zone Yes
Units 1
Layout 5 Bed / 6 Bath House
PROPERTY OVERVIEW
COLDWELL BANKER COMMERCIAL DEVONSHIRE REALTY | CHAMPAIGN, IL | 217.352.7712 CBCDR.COM
• Opportunity Zone Investment
• University of Illinois Campus
Housing Portfolio
• Three Property Portfolio with Two
Corner Lots
• 28 Units & 51 Total Beds
PROPERTY HIGHLIGHTS
CONTACT & HIGHLIGHTS
Ryan Murphy, CCIMCBCDR Senior Advisor, Brokerage
C: 217.840.7953
O: 217.403.3379
ryan.murphy@cbcdr.com
CBCDR Office
201 W. Springfield Ave., 11th Floor
Champaign, IL 61820
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