chicago, il 23 unit walk up in lakeview 924 w newport …
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NEIGHBORHOOD OVERVIEW
924 W NEWPORTCHICAGO, IL
924 W NEWPORT AVENUE
PRESENTED BY:
SEAN CONNELLYMANAGING DIRECTOR [email protected]
A M U L T I - F A M I L Y I N V E S T M E N T O F F E R I N G
MARK KURGANINVESTMENT BROKER [email protected]
2 3 U N I T W A L K U P I N L A K E V I E W
924 W NEWPORT AVENUE
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Confidentiality & Disclaimer ContentsAll materials and information received or derived from 33 Realty, LLC its directors, officers, agents,advisors, affiliates and/or any third party sources are provided without representation or warranty asto completeness , veracity, or accuracy, condition of the property, compliance or lack of compliancewith applicable governmental requirements, developability or suitability, financial performance of theproperty, projected financial performance of the property for any party’s intended use or any and allother matters.
Neither 33 Realty, LLC its directors, officers, agents, advisors, or affiliates makes any representation orwarranty, express or implied, as to accuracy or completeness of the any materials or informationprovided, derived, or received. Materials and information from any source, whether written or verbal,that may be furnished for review are not a substitute for a party’s active conduct of its own duediligence to determine these and other matters of significance to such party. 33 Realty, LLC will notinvestigate or verify any such matters or conduct due diligence for a party unless otherwise agreed inwriting.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify allinformation and to conduct their own inspections and investigations including through appropriatethird party independent professionals selected by such party. All financial data should be verified bythe party including by obtaining and reading applicable documents and reports and consultingappropriate independent professionals. 33 Realty, LLC makes no warranties and/or representationsregarding the veracity, completeness, or relevance of any financial data or assumptions. 33 Realty, LLCdoes not serve as a financial advisor to any party regarding any proposed transaction. All data andassumptions regarding financial performance, including that used for financial modeling purposes,may differ from actual data or performance. Any estimates of market rents and/or projected rentsthat may be provided to a party do not necessarily mean that rents can be established at or increasedto that level. Parties must evaluate any applicable contractual and governmental limitations as well asmarket conditions,vacancy factors and other issues in order to determine rents from or for theproperty.
Legal questions should be discussed by the party with an attorney. Tax questions should bediscussed by the party with a certified public accountant or tax attorney. Title questions should bediscussed by the party with a title officer or attorney. Questions regarding the condition of theproperty and whether the property complies with applicable governmental requirements should bediscussed by the party with appropriate engineers, architects, contractors, other consultants andgovernmental agencies. All properties and services are marketed by 33 Realty, LLC in compliance withall applicable fair housing and equal opportunity laws.
924 W NEWPORTCHICAGO, IL
TABLE OF CONTENTSTABLE OF CONTENTS
924 W NEWPORT AVECHICAGO, IL
EXECUTIVE SUMMARY
ADDITIONAL PHOTOS
NEIGHBORHOOD DATA
RETAILER MAP
FINANCIAL SUMMARY
INCOME AND EXPENSES
RENT ROLL
UNIT TYPE
FLOOR PLANS
SALES COMPS
SALES COMPS MAP
SALES COMPS SUMMARY
RENT COMPS SUMMARY
RENT COMPS MAP
DEMOGRAPHICS MAP & REPORT
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33 Realty LLC (“33”) is pleased to announce the opportunity to acquire 924 W Newport (“the property”) ararely available walk-up building in Chicago’s Lakeview Neighborhood. The property is located in an idealneighborhood for young professionals who want to experience all that the famous northsideneighborhood has to offer. Whether it be the vibrant night life, gourmet dining options, accessibility topublic transportation, proximity to Lake Michigan, or walkability to Wrigley Field, the property is a perfectbase camp for any young professional to explore the best that Chicago has to offer.
The property provides an investor a unique opportunity to acquire an asset that has undergone asubstantial renovation as well as implementation of professional management services. Recentimprovements to the property include:
• Renovation of all kitchens with granite counter tops, dishwashers and granite counters• Renovation of bathrooms with pedestal sinks, tile floor and tile shower surrounds• Dark stain and refinishing of original hard wood floors or vinyl replacement• Addition of closet organizers• Addition of in-unit washer and dryer• New electrical service, drop and runs• Addition of Butterfly keyless entry system• New leases signed to roll off in prime rental season• Implementation of ratio utility billing system (‘RUBS”) for existing tenants
The property has an excellent current unit mix of one (1) two-bedroom, one-bathroom unit; sixteen (16)one-bedroom, one-bathroom units; and six (6) studio units. The property presents an investor theopportunity to acquire a turn key asset with incredible density in one of Chicago's most sought afterlocations. Additionally, an investor could maximize current vacant basement space to add a bike roomor amenity room for the property.
924 W NEWPORT AVECHICAGO, IL
EXECUTIVE SUMMARY
PROPERTY SUMMARY
EXECUTIVE SUMMARY
List Price: $5,200,000
Number Of Units: 23
Cap Rate: 5.75%
Proforma Cap Rate: 5.92%
NOI: $298,957
Proforma NOI: $307,837
Lot Size: 50 X 120
Building Size: 16,000 SF
Zoning: RM-5
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924 W NEWPORT AVECHICAGO, IL
ADDITIONAL PHOTOS
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NEIGHBORHOOD OVERVIEW
924 W NEWPORT AVECHICAGO, IL
INVESTMENT HIGHLIGHTS TURN-KEY OPPORTUNITY: This 23 unit walk up building in Lakeview was recently updated in 2016. Renovations included new kitchens and baths, refinished hardwood floors, in-unit washer/dryers, and updated electrical service.
EXCELLENT TRANSIT: 924 W Newport Ave offers residents easy access to excellent transportation options. The CTA Red line Addison stop is only a few blocks away, giving the site walk/tranist/bike scores of 93/86/87 on the popular ratings site WalkScore.com which correlate to “Walker’s Paradise,” “Excellent Transit” and “Very Bikable.”
A+ LOCATION: The property is exceptionally well located just steps from endless shopping, restaurants, and entertainment, easy access to the “L” and just blocks from Wrigley Field home of the 2016 World Series Champions - the Chicago Cubs.
BIKE SCORE:87
TRANSIT SCORE: 86
WALK SCORE: 93
WRIGLEY FIELDHome of the 2016 World Series Champions - the Chicago Cubs
BELMONT HARBORChicago’s largest harbor (800+ slips) and views of Lincoln Park
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INVESTMENT OVERVIEW CURRENT PROFORMA
Price $5,200,000 $5,200,000
Price per Unit $226,086 $226,086
Gross Rent Multiplier ("GRM") 12.64 12.22
CAP Rate 5.75% 5.92%
Cash-on-Cash Return (yr 1) 4.76% 5.44%
Total Return (yr 1) $124,744 $133,624
Debt Coverage Ratio 1.26 1.30
OPERATING DATA CURRENT PROFORMA
Gross Scheduled Income $411,288 $425,640
Other Income $13,080 $13,080
Total Scheduled Income $412,030 $425,951
Vacancy Cost ($12,338) ($12,769)
Gross Income $412,030 $425,951
Operating Expenses $113,073 $118,114
Net Operating Income $298,957 $307,837
Pre-Tax Cash Flow $61,828 $70,708
FINANCING DATA CURRENT PROFORMA
Down Payment $1,300,000 $1,300,000
Loan Amount $3,900,000 $3,900,000
Debt Service $237,129 $237,129
Debt Service Monthly $19,760 $19,760
Principal Reduction (yr 1) $62,916 $62,916
924 W NEWPORT AVECHICAGO, IL
FINANCIAL SUMMARY
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INCOME SUMMARY CURRENT PROFORMA
Rental income $411,288 $425,640
Other income (move in fees, pet fees, etc) $2,700 $2,700
Utility reimbursements $10,380 $10,380
Vacancy (3%) ($12,338) ($12,769)
TOTAL INCOME $412,030 $425,951
EXPENSE SUMMARY CURRENT PROFORMA
Taxes $29,782 $34,249
Insurance* $7,000 $7,000
Repair & Maintenance $11,500 $11,500
Turnover $4,140 $4,140
Cleaning & Snow Removal $5,500 $5,500
Garbage & Recycling* $3,000 $3,000
Gas* $12,000 $12,000
Electric* $2,000 $2,000
Water* $5,000 $5,000
Management Fees (4%)* $16,451 $17,025
Leasing Fees $9,200 $9,200
Capital Reserves $7,500 $7,500
OPERATING EXPENSES $113,073 $118,114
NET OPERATING INCOME $298,957 $307,837
924 W NEWPORT AVECHICAGO, IL
INCOME & EXPENSES
*Indicates actual expense. R&M estimated at $500/unit. Leasing fees assume 40% turnover with $1000 leasing fee. Turnover cost assumes 40% turnover at $450 per turn.
924 W NEWPORT AVECHICAGO, IL
RENT ROLL
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UNITNUMBER
UNITBED
UNITBATH
LEASESTART
LEASEEND
CURRENTRENT
MARKETRENT
GDE 2 1 08/01/2018 07/31/2019 $1,925 $1,980
GDW 1 1 08/12/2018 08/11/2020 $1,450 $1,475
101 1 1 07/22/2019 06/30/2020 $1,525 $1,570
102 1 1 06/01/2019 05/31/2020 $1,550 $1,595
103 1 1 02/01/2017 04/30/2020 $1,410 $1,595
104 1 1 10/01/2018 09/30/2019 $1,500 $1,595
105 1 1 08/01/2019 07/31/2020 $1,525 $1,570
106 0 1 08/01/2018 07/31/2019 $1,175 $1,195
107 0 1 03/01/2019 03/31/2020 $1,150 $1,195
201 1 1 07/01/2018 06/30/2020 $1,500 $1,570
202 1 1 05/15/2019 05/31/2020 $1,500 $1,595
203 1 1 04/01/2019 03/31/2020 $1,550 $1,595
204 1 1 06/01/2017 05/31/2020 $1,550 $1,595
205 1 1 03/20/2017 04/30/2020 $1,550 $1,570
206 0 1 05/19/2019 05/31/2020 $1,225 $1,225
207 0 1 02/09/2017 03/31/2020 $1,199 $1,225
301 1 1 07/01/2019 06/14/2020 $1,525 $1,570
302 1 1 06/01/2018 05/31/2020 $1,525 $1,595
303 1 1 07/01/2019 06/30/2020 $1,575 $1,595
304 1 1 05/01/2017 07/31/2019 $1,525 $1,595
305 1 1 06/01/2018 06/30/2020 $1,515 $1,570
924 W NEWPORT AVECHICAGO, IL
RENT ROLL
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UNITNUMBER
UNITBED
UNITBATH
LEASESTART
LEASEEND
CURRENTRENT
MARKETRENT
306 0 1 09/01/2019 08/31/2020 $1,250 $1,250
307 0 1 06/01/2018 08/31/2019 $1,175 $1,250
Parking x6 $900 $900
$34,274 $35,470
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UNIT TYPE SUMMARY
924 W NEWPORT AVECHICAGO, IL
Studios1 bed, 1 bath2 bed, 1 bath
6161
26.1%69.6%4.3%
$1150-1250$1410-1575
$1925
UNIT TYPE COUNT % TOTAL RENT
Totals/Averages 23 100% $34,274
UNIT TYPE
STUDIO & TWO BEDROOM FLOOR PLANS
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FLOOR PLAN SUMMARY
924 W NEWPORT AVECHICAGO, IL
ONE BEDROOM FLOOR PLANS
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SUBJECT PROPERTY
Chicago, IL 60657924 W Newport
UNIT TYPE # UNITS % OF
Studios 6 26.1
1 bed, 1 bath 16 69.6
2 bed, 1 bath 1 4.3
TOTAL/AVG 23 100%
$5,200,000Sale Price: 1920Year Built:
16,000 SFBuilding SF:
23No. Units:$226,087Price / Unit:
12.67GRM:
1106 W NEWPORT
Chicago, IL 606571106 W Newport
UNIT TYPE # UNITS % OF SIZE SF
1 bed, 1 bath 24 100 550
TOTAL/AVG 24 100% 550
Apartment quality units. Long term owner, current rents undermarket.
$6,025,000Sale Price: 1919Year Built:
16,950 SFBuilding SF:
24No. Units:$251,041
15.04GRM:08/31/2018Closed:
1
1 663 W MELROSE
Chicago, IL 60657663 W Melrose
UNIT TYPE # UNITS % OF SIZE SF
1 bed, 1 bath 18 100 650
TOTAL/AVG 18 100% 650
Condo deconversion with 12 exterior parking spots. Units in goodto excellent condition.
$4,400,000Sale Price:
12,000 SFBuilding SF:
18No. Units:
Year Built: 1974
Price / Unit: $244,444
GRM: N/A -
Condo Deconversion11/05/2018
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2
924 W NEWPORTCHICAGO, IL
SALE COMPS
Closed:
Price / Unit:
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Chicago, IL 60657926 W George St
UNIT TYPE # UNITS % OF
1 Bd / 1Ba 6 46.2
2 Bd / Ba 6 46.2
3 Bd / 1Ba 1 7.7
TOTAL/AVG 13 100%
$3,875,000Sale Price: 1924Year Built:
11,264 SFBuilding SF:
13No. Units:$298,076Price / Unit:11.56GRM:
10/22/2018Closed:
3
3 1301 W CORNELIA
Chicago, IL 606571301 W Cornelia Avenue
UNIT TYPE # UNITS % OF
1 Bed, 1 Bath 7 53.8
2 bed, 1 bath 6 46.2
TOTAL/AVG 13 100%
The apartment building at Cornelia & Lakewood is comprised of(7) 1 bed & (6) 2 bed apartments.
$3,975,000Sale Price: 1916Year Built:
14,000 SFBuilding SF:
13No. Units:$305,769Price / Unit:
13.38GRM:01/11/2019Closed:
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4
924 W NEWPORTCHICAGO, IL
SALE COMPS
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SUBJECT PROPERTY PRICE BLDG SF PRICE/UNIT GRM # OF UNITS CLOSE
924 W NewportChicago, IL 60657
$5,200,000 16,000 SF $226,087 12.67 23 N/A
SALE COMPS PRICE BLDG SF PRICE/UNIT GRM # OF UNITS CLOSE
11106 W Newport1106 W NewportChicago, IL 60657
$6,025,000 16,950 SF $251,041 15.04 24 08/31/2018
2663 W Melrose663 W MelroseChicago, IL 60657
$4,400,000 12,000 SF $244,444 N/A 18 11/05/2018
3926 W George St926 W George St Chicago, IL 60657
$3,875,000 11,264 SF $298,076 11.56 13 10/22/2018
41301 W Cornelia1301 W Cornelia AvenueChicago, IL 60657
$3,975,000 14,000 SF $305,769 13.38 13 01/11/2019
TOTALS/AVERAGES PRICE BLDG SF PRICE/UNIT GRM # OF UNITS
$4,568,750 13,554 SF $268,750 13.38 17
924 W NEWPORTCHICAGO, IL
SALE COMPS SUMMARY
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924 W NEWPORT AVECHICAGO, IL
SALE COMPS MAP
924 W Newport Ave | Chicago, IL 60657SUBJECT PROPERTY
1
1106 W NewportChicago, IL 60657
1106 W NEWPORT
2
663 W MelroseChicago, IL 60657
663 W MELROSE
3
926 W George StChicago, IL 60657
4
1301 W Cornelia AvenueChicago, IL 60657
1301 W CORNELIA
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924 W Newport Ave | Chicago, IL 60657SUBJECT PROPERTY
13640 N Pine Grove AveChicago, IL 60613
3640 N PINE GROVE 2611 W Patterson AveChicago, IL 60613
611 W PATTERSON 33421 N Elaine PlChicago, IL 60657
3421 N ELAINE PL 4663Chicago, IL 60657
663 W MELROSE
924 W NEWPORT AVECHICAGO, IL
RENT COMPS MAP
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RENT COMPS SUMMARY
924 W NEWPORT AVECHICAGO, IL
924 W Newport
3640 N Pine Grove
611 W Patterson
3421 N Elaine Pl
663 W Melrose
$1,275
$1,350
$1,675
$1,700
PROPERTY Studio 1/1
RENT COMPS SUMMARY
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POPULATION 0.25 MILES 0.5 MILES 1 MILE
Total population 6,188 22,776 89,430
Median age 28.8 29.0 30.7
Median age (Male) 29.4 30.1 31.6
Median age (Female) 27.5 27.7 29.6
HOUSEHOLDS & INCOME 0.25 MILES 0.5 MILES 1 MILE
Total households 3,075 11,940 49,447
# of persons per HH 2.0 1.9 1.8
Average HH income $109,592 $107,113 $100,496
Average house value $479,796 $453,033
* Demographic data derived from 2010 US Census
924 W NEWPORT AVECHICAGO, IL
DEMOGRAPHICS MAP & REPORT