AUBURN GRESHAM MIXED-USE (16 R esidential + 7 Commercial ...€¦ · • Coin-operated laundry in...

OFFERING MEMORANDUM

AUBURN GRESHAM MIXED-USE (16 Residential + 7 Commercial)1701 W. 79TH STREET, CHICAGO, IL

$699,000($30,391 per unit)

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1701 W. 79TH STREET, CHICAGO, IL

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

3 Executive Summary

4 Exterior Photos

5 Property Description

6 Area Overview

7 Aerial View

8 Comparable Multifamily Sales

9 Current Rent Roll

10 Current Operating Statement

11-12 Apartment Interior Photos

13-14 Building Photos

15 Demographics

16 Confidentiality Agreement

AGENCY DISCLOSURE: Prospective purchasers are hereby notified that ACO Commercial, Inc., through George Toscas and Linda Hattar, 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.©2019 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.

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


E X E C U T I V E S U M M A R Y

Introduction

ACO Commercial is pleased to offer for sale this solid 23-unit mixed-use building with approximately 15,300 SF of rentable area, located in Chicago’s Auburn Gresham Neighborhood. The property contains (16) 1Bed/1Bath units (600 SF) and (7) Commercial units (750 to 900 SF).

The following capital improvements have been made since 2017:

• Upgrade plumbing system to copper

• Installation of coin-operated washers and dryers

• Replacement of main water pipe

• Eight residential units (50%) have been fully renovated

• All residential units equipped with stoves and refrigerators

• Full interior/exterior surveillance system with remote connectivity (including basements)

The property is priced for immediate sale at $30,391 per unit ($699,000) reflecting a capitalization rate of 11.45% on a current NOI.

Please contact Linda Hattar at 312-638-9950 x2 to arrange a property tour.

Investment Highlights

• Cash flowing property with below market rents

• Upside in retail units

• Renovations in 2017

• 95% occupancy in residential units

• In-building laundry

OFFERING SUMMARY1701 W. 79th Street - Chicago, IL

Offering Type Mixed-Use Residential/CommercialPrice $699,000# of Units 23 (16 residential + 7 commercial)Price/Unit $30,391Current NOI $80,024Current NOI Cap Rate 11.45%Taxes (2017) $15,176Year Built 1928



E X T E R I O R P H OTO S



Address 1701 W. 79th Street, Chicago, IL 60620

County Cook

PIN 20-31-205-008-0000

Land Area +/- 7,187 SF

GLA +/- 15,300 SF

Zoning B1-1, Neighborhood Shopping District

Real Estate Taxes $15,176 (2017)

Construction 3-story masonry and concrete building with basement

Roof Flat

Year Built 1928

UtilitiesUnits are individually metered for cooking gas and

electricity.

HeatThe property has a central steam boiler system with R&D

Control.

Hot Water Central gas fired hot water system

Parking Street

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



A R E A O V E R V I E W

Area OverviewThe subject property is situated in the Auburn Gresham neighborhood within the City of Chicago, in Cook County, in a medium density area among multi-unit buildings. Auburn Gresham is one of 77 official community areas in the City of Chicago. The Subject property is accessible by way of Interstate-94 and Interstate-57, which provide travel means to the south and southwest suburbs, and downtown Chicago, respectively. In addition, the property provides convenient access to the Metra Rock Island Line and CTA Red Line at 87th/Vincennes, 79th/Dan Ryan, and 87th/Dan Ryan Stations.

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A E R I A L V I E W



C O M PA R A B L E M U LT I FA M I LY S A L E S

Average $/Unit:$46,302

Address SUBJECT 8739 S. Racine Ave.Chicago, IL

7757 S. Paulina St.Chicago, IL

7655 S. Carpenter St.Chicago, IL

1120 W. 76th St.Chicago, IL

Property Type Mixed-use Multi-family Multi-family Multi-family Multi-family

Sale Date N/A 5/29/18 2/28/18 2/3/18 11/15/17

Sale Price $699,000 $275,000 $335,000 $350,000 $360,000

# of Units 23 8 6 10 6

# of Stories 3 3 3 3 3

Building SF 16,700 7,200 6,921 7,232 3,556

$/SF $41.86 $38.19 $48.40 $48.40 $101.24

Lot SF 7,188 9,311 3,750 7,000 5,778

$/Unit $30,391 $34,375 $55,833 $35,000 $60,000

Description • (7) retail units• (16) 1bed/1bath units• 95% occupancy - residential

units• 43% occupancy - retail units• Finished basement with

coin-operated laundry• All market tenants• New appliances in all units

• (6) 1bed/1bath units• (2) 2bed/1bath units• Each unit ha individual boiler• Porches (2008)• Roof (2004)• Tenants pay heat, cooking

gas, electricity• Unfinished basement with

three entrances

• (5) 2bed/1bath units• (1) 3bed/1bath units• Roof (2015)• All CHA tenants• Coin-operated laundry

• (7) 1bed/1bath units• (3) 2bed/1bath units• Newer appliances in most

units• Newer hot water radiant

heat• Newer hot water tank

• (3) 1bed/1bath units• (3) 3bed/1bath units• 100% occupancy• Two-car attached garage• Coin-operated laundry in

basement• Separate utilities• Plumbing (2015)• Electric (2015)• Roof (2015)• Condo quality finishes, includ-

ing hardwood floors, granite countertops, stainless/black appliances



C U R R E N T R E N T R O L LUnit TYPE SF ACTUAL RENT MARKET RENT Tenant79TH STREET #1 Retail 900 $1,050.00 $1,000.00 One Stop Foods79TH STREET #2 Retail 900 $800.00 $875.00 Tax Office79TH STREET #3 Retail 900 $890.00 $900.00 Braids by DonnaPAULINA #1 Retail 750 $0.00 $800.00 VacantPAULINA #2 Retail 750 $0.00 $700.00 VacantPAULINA #3 Retail 750 $0.00 $700.00 VacantPAULINA #4 Retail 750 $0.00 $700.00 VacantTOTAL RETAIL 5,700 $2,740.00 $5,675.00

201 1Bed/1Bath 600 $605.00 $650.00202 1Bed/1Bath 600 $605.00 $650.00203 1Bed/1Bath 600 $600.00 $650.00204 1Bed/1Bath 600 $680.00 $650.00205 1Bed/1Bath 600 $680.00 $650.00206 1Bed/1Bath 600 $580.00 $650.00207 1Bed/1Bath 600 $605.00 $650.00208 1Bed/1Bath 600 $680.00 $650.00301 1Bed/1Bath 600 $680.00 $650.00302 1Bed/1Bath 600 $605.00 $650.00

303 1Bed/1Bath 600 $595.00 $650.00304 1Bed/1Bath 600 $680.00 $650.00305 1Bed/1Bath 600 $605.00 $650.00306 1Bed/1Bath 600 $680.00 $650.00307 1Bed/1Bath 600 $680.00 $650.00308 1Bed/1Bath 600 $0.00 $650.00 JanitorTOTAL MULTI-FAMILY 9,600 $9,560.00 $10,400.00TOTAL BUILDING 15,300 $12,300 $16,075



C U R R E N T O P E R AT I N G S TAT E M E N T

Unit #of Monthly Avg Rentper Monthly AnnualType Units Rent SF SF Total1Bed/1Bath 16 $650 600 $1.08 $10,400 $124,8001701W.79thStreet-OneStop 1 $1,100 900 $1.22 $1,100 $13,2001703W.79thStreet-TaxOffice 1 $800 900 $0.89 $800 $9,6001705W.79thStreet-Braids 1 $890 900 $0.99 $890 $10,6807904S.PaulinaStreet-Vacant 1 $0 750 $0.00 $0 $07906S.PaulinaStreet-Vacant 1 $0 750 $0.00 $0 $07908S.PaulinaStreet-Vacant 1 $0 750 $0.00 $0 $07910S.PaulinaStreet-Vacant 1 $0 750 $0.00 $0 $0Total 23 $3,440 15,300 $13,190 $158,280 1

GrossPotentialRentalIncome $158,280 1

8% Vacancy/RentLoss ($1,055) ($12,662)4% Rent/CollectionLoss ($528) ($6,331)

EffectiveRentalIncome $11,607 $139,286 1

LaundryIncome $250 $3,000

EffectiveGrossIncome $11,857 $142,286 1

EXPENSES: %Gross $/SF $/Unit AnnualRealEstateTaxes(2017) 10.67% $0.99 $660 $15,176Insurance 2.97% $0.28 $184 $4,229 2

Repairs&Maintenance 4.04% $9.58 $250 $5,750 1

Management 6.00% $0.56 $371 $8,537 1

Scavenger 1.56% $0.15 $97 $2,220 2

Electric(CommonArea) 1.16% $0.11 $72 $1,650 2

Gas 9.84% $0.92 $609 $14,000 2

Water 7.38% $0.69 $457 $10,500 2

PestControl 0.14% $0.01 $9 $200 2

TotalExpenses 43.76% $4.07 $2,707 $62,262

NetOperatingIncome $80,024

1.ACOCommercialEstimatebasedonmarketaveragesforcomparableproperties.2.FiguresprovidedbyLandlord

Notes:

• Zero value has been assigned to the vacant commercial units along Paulina Street.

• Vacancy/credit loss factors projected by Broker.



A PA R T M E N T I N T E R I O R P H OTO S



B U I L D I N G P H OTO S



D E M O G R A P H I C I N F O R M AT I O N

Radius 1 Mile 3 Mile 5 MilePopulation:2023 Projection 36,602 277,770 752,2882018 Estimate 37,246 280,633 758,5172010 Census 39,391 286,381 765,7812018 Population by Race:White 347 56,966 290,444Black 36,396 217,459 443,181American Indian and Alaska Native 94 1,509 5,320Asian 50 1,080 8,441Native Hawaiian and Pacific Islander 4 92 377Other 355 3,527 10,7532018 Population by Hispanic Origin 557 42,753 195,871Households:2023 Projection 12,419 90,219 249,3212018 Estimate 12,724 91,633 252,2572010 Census 13,902 96,010 259,143Owner Occupied 6,412 50,229 137,740Renter Occupied 6,311 41,404 114,5182018 Avg Household Income $48,307 $55,253 $58,3602018 Med Household Income $35,053 $39,076 $471,3592018 Households by Household Inc:Income less than $25,000 4,799 31,751 81,826Income $25,000 - $50,000 3,274 22,349 62,161Income $50,000 - $75,000 2,323 14,347 39,330Income $75,000 - $100,000 994 9,497 27,415Income $100,000 - $125,000 511 5,822 17,763Income $125,000 - $150,000 476 3,085 9,371Income $150,000 - $200,000 200 3,242 8,870Income $200,000+ 147 1,540 5,523Source: CoStar

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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 1701 W. 79th Street in Chicago, 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:

Linda Hattar, JDVice President312-638-9950 [email protected]

George ToscasManaging Broker312-638-9950 [email protected]

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

©2019 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

A C O C O M M E R C I A L , I N C . | 2 5 0 2 N . C L A R K S U I T E 2 0 0 | C H I C A G O , I L 6 0 6 1 4 | 3 1 2 - 6 3 8 - 9 9 5 0

George ToscasManaging Broker [email protected] x1

Linda Hattar, JDVice President [email protected] x2

AUBURN GRESHAM MIXED-USE (16 R esidential + 7 Commercial ...€¦ · • Coin-operated laundry in...

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