offering memorandum - loopnet...marketing analytics offering summary underwriting between the...

2513-17 W. Peterson Ave. Chicago, IL

Bob Petrich Boardwalk CRE, President

direct: 708-917-3333

[email protected] www.boardwalkcre.com

Offering Memorandum

mailto:[email protected]

BEST PLACE

FAMILIES AWARD

AWARD WINNING

COMMUNITY

FOUR TENANTS

GROWING

POPULATION

BUSY

INTERSECTION

STRONG

DEMOGRAPHICS

Property Overview

Commercial Retail building consisting of four tenants that has outstanding

frontage and visibility on Peterson. Heavy traffic near intersection 0f

Western and Peterson.

Northwest City is located just outside Chicago’s central business district to

the west, and contains a multitude of public transportation options for office

users. It represents one of the larger office submarkets in Chicago,

accounting for nearly 4% of the metro’s office inventory. While the

submarket is denser and more built-up than many of Chicago’s suburban

submarkets, it is not quite as developed as some of Chicago’s downtown

submarkets.

In effect, the development landscape includes a healthy portion of ground-

up development coinciding with conversions of older assets. One such

conversion, The Fields, delivered in 16Q2, and represented the largest new

office completion in Northwest City’s history. The Fields’ targeted appeal

to loft office users highlights another trend in a submarket with a growing

tech industry.

While the Fields remains mostly vacant as of 18Q2, rumors of a future

occupier have been circulating, suggesting the 300,000 SF vacant space will

soon fill up. Vacancies remain fairly healthy, and now sit about 200 basis

points above the submarket historical average. Rent growth continues to be

strong, coming off five consecutive years with at least 3% growth, and

asking rents are now nearly 15% above their prerecession peak. Consistent

with the recent metro trend, inventory turnover fell off a bit in 2017-18, but

pricing continues to climb.

Table of Contents

Property Details

Photos

Local Map

Aerial Map

Marketing Analytics

Offering Summary

Underwriting Analysis

Income Expense

Rent Roll

Market Overview

Demographics

Sales Comps

Contact

Confidentiality Disclaimer

Boardwalk Commercial Real Estate (Real Estate Broker) has information contained in

such documents that will not be passed under any circumstances to another intermediary

or broker or trader or any other company or private person who is not an end buyer

without specific written consent of Boardwalk CRE is generating the information herein.

NOT TO CIRCUMVENT

The parties hereby legally, wholly and irrevocably bind themselves and guarantee to one

another that they shall not directly or indirectly interfere with, circumvent or attempt to

circumvent, avoid, bypass or obviate each other’s’ interest, or the interest or relationship

between the parties, by means of any procedures, sellers, buyers, consultants, dealers,

distributors, financial instructions, or other actions whatsoever for the purpose of

changing, increasing or avoiding, directly or indirectly, payments of established or to-be

established fees, commissions, or other continuance of pre-established relationships, or to

intervene in un-contracted relationships with intermediaries, entrepreneurs, legal counsel,

or to initiate any buy/sell or any transactional relationship that bypasses one of the parties

in favor of another individual or entity, in connection with the subject transaction or

project or any related future transaction or project.

NOT TO DISCLOSE / CONFIDENTIALITY

The parties shall use all reasonable efforts to protect the information given to it pursuant

to this and to keep it confidential, using a standard of care no less than the degree of care

that the party would be reasonably expected to employ for his own similar confidential

information. Parties may disclose the information only to those persons who have a need

to know the information. Prior to disclosing the information to employees, independent

contractors, or necessary third parties, the party shall issue appropriate instructions to

them to satisfy its obligations herein and obtain their agreement to receive and use the

information on a confidential basis on the same conditions as contained.

Property Details

Property Address 2513-17 W Peterson Ave

City/State Chicago, IL

Number of Units 4

Building Size SF 7,400

Lot Size SF 12,483

Year built 1940

Zoning B-3

Parking Street & Back

Number of Stories 1

Investment Overview Property Details

Visit our website at:

www.boardwalkcre.com The information contained herein has been secured by sources believed to be reliable. Boardwalk CRE however makes no

representation or warranty, expressed or implied as to the accuracy of the information. Buyer assumes all risks any inaccuracies.

Marketing & Analytics

Real-time Market Data

We offer comprehensive and research-driven, real-time market data using our current

database of assets, buyers and sellers, and pricing information. Our real estate marketing

statistics, listings and inventory data generates up-to-date comps in the Chicago-land

market.

Reporting and Analytics

Boardwalk CRE is experienced in marketing analytics and reporting tools to provide

evaluations and clear understanding of the property through powerful offering

memorandums and marketing presentations.

Lead Generation

Boardwalk CRE has proven experience in the planning and execution online marketing

campaigns to boost visibility and successfully generate real estate leads.

A Comprehensive Marketing Strategy

Our powerful internal marketing system includes MRED for Property Detail reports,

CoStar, Loopnet along with direct mail and email campaigns. We create a real estate

marketing plan that will achieve more results thru our website, social media platforms

and specialized applications.

Web-based Strategies

Boardwalk CRE has over 25 years’ experience in commercial real estate. Through our

powerful database and custom series of web-based tools, we have automated applications

designed to produce full offering memorandums in high-quality professional formats.

We use our social media reach to increase campaign success.

Personal Touch

We believe in the personal touch as real estate is still a people business. Our clients'

concerns and their achievement of goals is our top priority. We are ready to sit down

with our client, have coffee and analyze their property in detail.

Offering Summary

Price $825,000

Cap Rate 9.02%

Net Operating Income $74,391

Number of Units 4

Price per SF $111

Building Size SF 7,400

Lot Size SF 12,483

Offering Summary




Underwriting

Price $825,000

Down Payment $206,250

Mortgage $618,750

Interest Rate 5.00%

Amortization Years 25

Net Operating Income $74,391

Cap Rate 9.02%

Debt Service $43,406

Debt Coverage Ratio 1.71

Net Cash after Debt Service $30,985

Cash on Cash 15.02%

Principal Reduction 1st Year $12,758

Total Return $43,743

Internal Rate of Return 21.21%

Loan To Value 75%

Loan Amount $618,750

Interest Rate 5.00%

Amortization Years 25

Underwriting




Income Expense

Current Per SF

Base Rent

Occupied Space $113,400 $15.32

Vacant Space $0 $0.00

Gross Potential Rent $113,400 $15.32

Reimbursements

CAM $0 $0.00

Real Estate Taxes $0 $0.00

Insurance $0 $0.00

Management Fee $0 $0.00

Total Reimbursements $0 $0.00

Gross Potential Income $113,400 $15.32

Vacancy 5% $5,670.00 $0.77

Gross Income $107,730 $14.56

Expenses

CAM $4,790 $0.65

Real Estate Taxes $21,840 $2.95

Insurance $2,400 $0.32

Management Fee $4,309 $0.58

Total Expenses $33,339 $4.51

Net Operating Income $74,391 $10.05

Income/Expense




Rent Roll

Tenant Square feet Beginning Date Expiration Date Lease Term Monthly Rent

Café Hwa Won 2100 1/1/2014 12/31/2018 5 year $3,125

Asian Food Market 1100 12/1/2016 11/30/2021 5 year $1,500

Celestial Church 3100 1/1/2017 12/31/20121 4 year $3,250

Peterson Pharmacy 1100 1/15/2015 1/1/2018 1 year $1,575

Monthly $9,450

Annual Rent $113,400

Rent Roll




Market Overview

Demographics

Sales Comps

708-917-3333

[email protected]

boardwalkcre.com

For additional information on this property please contact:

Bob Petrich

President

Boardwalk Commercial Real Estate

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