outstanding investment opportunity in west town: mixed-use condo building // for sale

All information furnished is from sources deemed reliable. No representation is made as to the accuracy thereofand it is submitted subject to errors, omissions, changes, or withdrawal without notice.

212 E. Ohio St.Chicago, IL 60611

www.atcommercial.com

Multi-Family Investment Services

For more inofrmation,please contact:

WEST TOWN MIXED-USE

1358 N Western AvenueChicago, IL 60622

Kevin RocioReal Estate [email protected]

Outstanding Investment Opportunity in West Town: Mixed-Use Condo Building // For Sale

●

Nestled on the borders of Wicker Park, Ukrainian Villageand Humboldt Park.

●

4 residential condos plus 1 retail and 1 office condominium.●

Commercial Tenants pay all maintenance; residential unitspay all utilities except water and common electric.

●

Value-Add Opportunity to deconvert to mixed-useApartment Building (C1-2 Zoning)

●

Real Estate Investment Details

ANALYSIS

Analysis Date February 2014

PROPERTY

Property West Town Mixed-Use

Property Address 1358 N Western AvenueChicago, IL 60622

Year Built 1879

FINANCIAL INFORMATION

Down Payment $555,000

Federal Tax Rate 25.0%

PURCHASE INFORMATION

Property Type MultiFamily

Purchase Price $1,850,000

Fair Market Value $1,850,000

Units 6

Total Rentable Sq. Ft. 7,860

Resale Valuation 3.0% (annual appreciation)

Resale Expenses 6.0%

LOANS

Debt Term Amortization Rate Payment LO Costs

Fixed $1,295,000 30 years 30 years 4.5% $6,562

INCOME & EXPENSES

Gross Operating Income $147,861

Monthly GOI $12,322

Total Annual Expenses ($26,126)

Monthly Expenses ($2,177)

CONTACT INFORMATION

Kevin Rocio

312-506-0261

[email protected]

183301

The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projectionsand analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax orother professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting,tax or other professional area before making any decisions.

page 2 of 27

BiographyWest Town Mixed-Use


Kevin Rocio312-506-0261

PROFESSIONAL BIO

#1 Commercial Broker @properties

Highest Commercial Sales Volume, 2012 - @properties

Represented 8.7% of Total Multi-Family Sales Volume inChicago, 2012 (source: MLS $850k - $2MM, 4-units andabove)

Member, @properties Agent Advisory Board

WANT RESULTS? Kevin has been a consultant with@properties since 2011. Emerging as the Company'sMulti-Family Investment Specialist and quickly earning the

elevated Top Producer of Commercial Real Estate status, Kevin currently holds ranking as the #1Commercial Broker in @properties and the Best Agent to Work With as voted by fellow agents andstaff within the firm.

In addition to receiving recognition for his business success, Kevin continues to earn thecompliments of his clients, fellow agents and piers from other Commercial Firms. The most recentcompliment came from the Managing Director of a National Commercial Real Estate Firm whoengaged Kevin to sell two properties for a very-high profile Family Trust:

"I don't think anyone else could have produced the same results that Kevin did. Kevin continued tobring offers to the table and after a long and arduous process we were finally able to close tworesidential 6-flats. Kevin was instrumental to the success throughout the entire process. I wouldrecommend him to anyone." (This client has given @properties permission to publish thetestimonial & survey results on the Internet.)

Kevin understands the importance of providing every client with impeccable service and gettingresults! Kevin’s clients consistently conclude that they will return to Kevin for future real estateneeds and will highly recommend Kevin to family and friends who may benefit from his expertise.

Seventeen years as a Top-Producing Mortgage Banker combined with @properties MarketingPlatform, has given him a competitive advantage on how he values properties along with theinvestment opportunities they present and the way they are marketed.

page 3 of 27

Recent TransactionsWest Town Mixed-Use



MultiFamily Sale Price: $315,000

2501 W Marquette Road Cap Rate: 12.27%

Chicago, IL Price per Unit: $26,250

12 Units Year Built: 1926


4231 W Division St Cap Rate: 15.96%




3803 W Ohio St Cap Rate: 9.18%



MultiFamily Sale Price: $1,050,000

6337 N Oakley Ave Cap Rate: 8.42%








5129 W Roosevelt Rd Cap Rate: 12.10%

Cicero, IL Price per Unit: $38,636


page 4 of 27




Commercial Sale Price: $1,299,000

817 W. Lake Cap Rate: N/A

Chicago, IL Price per RSF: $158.41

8,200 RSF Year Built: 1935


2646 N Lincoln Avenue Cap Rate: 8.01%




1261 N Honore Cap Rate: 5.75%




4810 W Courtland St Cap Rate: 8.63%




5574 W Van Buren Cap Rate: 11.01%







page 5 of 27





6304 N Oakley Avenue Cap Rate: 6.88%




4420 N Winchester Ave Cap Rate: 8.50%




1301 & 21 Orleans Cap Rate: 11.07%

Detroit, MI Price per Unit: $8,562



10337A Dearlove Road Cap Rate: 6.26%

Glenview, IL Price per Unit: $82,500


page 6 of 27

Property DescriptionWest Town Mixed-Use



Outstanding Investment Opportunity in West TownMixed-Use Condominium Building // For Sale

ROC Realty Group – a division of @propertiesCommercial is pleased to present a uniqueinvestment opportunity to own a 6-unit mixed-use condominium building on busy WesternAvenue in heart of West Town. With nearly40,000 vehicles passing the traffic light corner ofWestern and Hirsch, it’s no wonder that newretail is continuously popping up; the mostrecent being the restaurant “Hash Chicago,”located directly across the street.

This mixed-use property, nestled on the bordersof Wicker Park, Ukrainian Village and HumboldtPark in the heart of West Town includes 2 commercial spaces (retail condo with basement storageand a separate office condo) plus four (3) 2BR/1BA & (1) 1BR/1BA plus den residentialcondominiums. This building was converted to condominiums back in 2005. A new contract wasrecently signed to add an income producing Billboard to the north side of the building.

Annual Expenses•Real Estate Taxes: $17,026 (Total of all six condo units)•Property Insurance: $4,000•Electric: $800•Hot Water: $1,200

Net Income: $121,735 CAP Rate: 6.58%

3-story 7,861 sq. ft. building plus rooftop deck

The investment offers an investor the opportunity to acquire a well maintained asset in a greatChicago neighborhood with tremendous upside through repositioning (de-convert) back to a mixed-use residential apartment building.

page 7 of 27

Property PhotosWest Town Mixed-Use



Stylish Urban Living: no two units alike

Prince Mini Mart Typical Living Room

Typical Dining Room Typical Kitchen

Typical Bedroom Typical Bathroom

page 8 of 27

Executive SummaryWest Town Mixed-Use



ACQUISITION COSTS

Purchase Price, Points and Closing Costs $1,850,000

Investment - Cash $555,000

First Loan $1,295,000

INVESTMENT INFORMATION

Purchase Price $1,850,000

Price per Unit $308,333

Price per Sq. Ft. $235.37

Income per Unit $25,216

Expenses per Unit ($4,354)

INCOME, EXPENSES & CASH FLOW

Gross Scheduled Income $151,299

Total Vacancy and Credits ($3,438)

Operating Expenses ($26,126)

Net Operating Income $121,735

Debt Service ($78,739)

Cash Flow Before Taxes $42,996

Total Interest (Debt Service) ($57,848)

Depreciation and Amortization ($51,457)

Taxable Income (Loss) $12,430

Tax Savings (Costs) ($3,108)

Cash Flow After Taxes $39,888

FINANCIAL INDICATORS

Cash on Cash Return Before Taxes 7.75%

Debt Coverage Ratio 1.55

Capitalization Rate 6.58%

Gross Rent Multiplier 16.14

Gross Income / Square Feet $19.25

Gross Expenses / Square Feet ($3.32)

Operating Expense Ratio 17.67%

page 9 of 27

Annualized Operating DataWest Town Mixed-Use



UNIT MIX & ANNUAL SCHEDULED INCOME

Type Units Actual Total Apartment Total

0+1 2 $17,700 $35,400 $24,000 $48,000

2+1 4 $19,800 $79,200 $22,500 $90,000

TOTALS 6 $114,600 $138,000

ANNUALIZED INCOMEActual Apartments

Gross Potential Rent $114,600 $138,000

Less: Vacancy ($3,438) ($4,140)

Misc. Income $36,699 $12,168

Effective Gross Income $147,861 $146,028

Less: Expenses ($26,126) ($21,100)

Net Operating Income $121,735 $124,928

Debt Service ($78,739) ($78,739)

Net Cash Flow after Debt Service $42,996 $46,189

Principal Reduction $20,891 $20,891

Total Return $63,887 $67,080

ANNUALIZED EXPENSES

Actual ApartmentsAccounting $100 $100

Building Insurance $4,000 $4,000

Grounds Maintenance $1,200 $1,200

Janitorial $1,800 $1,800

Taxes - Real Estate $17,026 $12,000

Utility - Electricity $800 $800

Utility - Water $1,200 $1,200

Total Expenses $26,126 $21,100

Expenses Per RSF $3.32 $2.68

Expenses Per Unit $4,354 $3,517

*Misc. Income drops by $26,330 due to dissolution of Condominium Association.

INVESTMENT SUMMARY

Price: $1,850,000

Year Built: 1879

Units: 6

Price/Unit: $308,333

RSF: 7,860

Price/RSF: $235.37

Lot Size: 2,743 sf

Floors: 3

Parking Spaces: 0

APN: Multiple

Cap Rate: 6.58%

Apartments Cap Rate: 6.75%

GRM: 16.14

Apartments GRM: 13.41

FINANCING SUMMARY

Loan Amount: $1,295,000

Down Payment: $555,000

Loan Type: Fixed

Interest Rate: 4.5%

Term: 30 years

Monthly Payment: $6,562

DCR: 1.55

page 10 of 27

Resale ReportWest Town Mixed-Use



NET PROCEEDS FROM SALE

Adjusted Basis

Basis At Acquisition $1,850,000

-Depreciation $532,527

Adjusted Basis at Sale $1,317,473

Capital Gain

Sale Price $2,486,245

-Sale Expenses ($149,175)

-Adjusted Basis at Sale $1,317,473

Gain or (Loss) $1,019,598

-Depreciation (limited to gain) $532,527

Capital Gain from Appreciation $487,071

Sales Proceeds After Tax


-Sale Expenses $149,175

-Mortgage Balance $1,037,158

Sale Proceeds Before Tax $1,299,912

-Tax On Depreciation $133,132

-Tax On Capital Gain

Sale Proceeds After Tax $1,166,781

page 11 of 27

Internal Rate of Return AnalysisWest Town Mixed-Use



BEFORE TAX IRR

Time Future Cash Flows

Initial Investment ($555,000)

End of Year 1 $42,996









End of Year 10* $1,407,417

IRR = 17.44% * ($107,505 + $1,299,912)

AFTER TAX IRR

Time Future Cash Flows

Initial Investment ($555,000)










End of Year 10* $1,252,449

IRR = 15.41% * ($85,668 + $1,166,781)

page 12 of 27

Cash Flow AnalysisWest Town Mixed-Use



Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

GROSS SCHEDULED INCOME $151,299 $158,129 $165,280 $172,765 $180,602 $188,806 $197,395 $206,388 $215,805 $225,665

Turnover Vacancy ($3,438) ($3,610) ($3,790) ($3,980) ($4,179) ($4,388) ($4,607) ($4,838) ($5,079) ($5,333)

Total Operating Expenses ($26,126) ($26,910) ($27,717) ($28,549) ($29,405) ($30,287) ($31,196) ($32,132) ($33,096) ($34,089)

NET OPERATING INCOME $121,735 $127,610 $133,772 $140,237 $147,018 $154,130 $161,592 $169,419 $177,630 $186,243

Loan Payment ($78,739) ($78,739) ($78,739) ($78,739) ($78,739) ($78,739) ($78,739) ($78,739) ($78,739) ($78,739)

NET CASH FLOW (b/t) $42,996 $48,871 $55,034 $61,498 $68,279 $75,392 $82,853 $90,680 $98,891 $107,505

Cash On Cash Return b/t 7.75% 8.81% 9.92% 11.08% 12.30% 13.58% 14.93% 16.34% 17.82% 19.37%

NET OPERATING INCOME $121,735 $127,610 $133,772 $140,237 $147,018 $154,130 $161,592 $169,419 $177,630 $186,243

Depreciation ($51,457) ($53,702) ($53,702) ($53,702) ($53,702) ($53,702) ($53,702) ($53,702) ($53,702) ($51,457)

Loan Interest ($57,848) ($56,888) ($55,884) ($54,834) ($53,736) ($52,587) ($51,386) ($50,129) ($48,815) ($47,440)

TAXABLE INCOME (LOSS) $12,430 $17,020 $24,187 $31,701 $39,580 $47,842 $56,504 $65,588 $75,113 $87,347

Income Taxes ($3,108) ($4,255) ($6,047) ($7,925) ($9,895) ($11,960) ($14,126) ($16,397) ($18,778) ($21,837)

CASH FLOW (a/t) $39,888 $44,616 $48,987 $53,573 $58,384 $63,431 $68,727 $74,283 $80,113 $85,668

Cash On Cash Return a/t 7.19% 8.04% 8.83% 9.65% 10.52% 11.43% 12.38% 13.38% 14.43% 15.44%

Footnotes: b/t = before taxes;a/t = after taxes

page 13 of 27

Unit Rent RollWest Town Mixed-Use



Unit Description Approx. Sq. Ft. Current Rent Pro Forma Rent Comments

1 0+1 1,447 $2,150 $2,500 Currently Prince Mini-Mart

2 0+1 757 $800 $1,500 Currently Maid Service

3 2+1 905 $1,900 $1,800 Currently Owner-Occupied

4 2+1 945 $950 $1,900 Below Market Rental

5 2+1 945 $1,900 $1,900 Currently Owner-Occupied

6 2+1 903 $1,850 $1,900 Currently Rented

page 14 of 27

Unit Mix ReportWest Town Mixed-Use



UNIT MIXES

Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly2 0+1 1102 $1,475 $2,950 $2,000 $4,0004 2+1 924 $1,650 $6,600 $1,875 $7,5006 5,900 $9,550 $11,500

UNIT MIX UNIT MIX SQUARE FEET

● 0+1

● 2+1

● 0+1

● 2+1

UNIT MIX INCOME UNIT MIX MARKET INCOME

● 0+1

● 2+1

● 0+1

● 2+1

page 15 of 27

Investment Return AnalysisWest Town Mixed-Use



Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Cash Flow - To Date $39,888 $84,504 $133,491 $187,063 $245,447 $308,878 $377,605 $451,888 $532,001 $617,669

Net Resale Proceeds $517,061 $567,632 $631,134 $698,621 $768,917 $842,122 $918,344 $997,690 $1,080,276 $1,166,781

Invested Capital ($555,000) ($555,000) ($555,000) ($555,000) ($555,000) ($555,000) ($555,000) ($555,000) ($555,000) ($555,000)

Net Return on Investment $1,949 $97,135 $209,625 $330,685 $459,364 $596,001 $740,949 $894,579 $1,057,277 $1,229,450

Internal Rate of Return 0.35% 8.69% 12.02% 13.59% 14.41% 14.87% 15.14% 15.29% 15.37% 15.41%

Modified IRR 0.35% 8.40% 11.27% 12.39% 12.82% 12.93% 12.88% 12.75% 12.58% 12.39%

NPV (cash flow + reversion) $5,057 $104,498 $223,035 $352,019 $490,593 $639,190 $798,265 $968,292 $1,149,768 $1,343,777

PV (NOI + reversion) $1,912,905 $2,094,249 $2,283,369 $2,480,613 $2,686,349 $2,900,959 $3,124,844 $3,358,426 $3,602,143 $3,856,456

Footnotes: a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating IncomeReversion = Amount received from the resale; Net Return on Investment = Cash Flow (a/t To Date) + Net Proceeds from Resale - Invested Capital.

page 16 of 27

On Market ComparablesWest Town Mixed-Use



Subject 1 2

1%

2%

3%

4%

5%

6%

7%

8%

Avg.

6.25

Cap Rate

Subject 1 2

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Avg.

12.7

Gross Rent Multiplier

Subject 1 2

$52,000

$104,000

$156,000

$208,000

$260,000

$312,000

$364,000

$416,000

Avg.

$341,042

Price per Unit

Subject 1 2

$49

$98

$147

$196

$245

$294

$343

$392

Avg.

$279.42

Price per Sq. Ft.

page 17 of 27




S West Town Mixed-Use1358 N Western AvenueChicago, IL 60622


Units 6

Price/Unit $308,333

Price/SqFt $235.37

Cap Rate 6.58%

Year Built 1879

GRM 12.23

# Units Unit Type

2 0+1

4 2+1

1 1656 W Chicago AveChicago, IL 60622


Units 6

Price/Unit $408,333

Price/SqFt $392.00

Cap Rate 6.5%

Year Built 1970On Market

GRM 12.8

# Units Unit Type

NOTES5 Residential & 1 Commercial Unit.

2 2459 W Augusta BlvdChicago, IL 60622


Units 4

Price/Unit $273,750

Price/SqFt $166.84

Cap Rate 6.0%

Year Built 1891On Market

GRM 12.6

# Units Unit Type

NOTES3 Residential & 1 Commercial Unit.

page 18 of 27




1 1358 N Western Avenue, Chicago, IL 60622 ($1,850,000)

A 1656 W Chicago Ave, Chicago, IL 60622 ($2,450,000)

B 2459 W Augusta Blvd, Chicago, IL 60622 ($1,095,000)

page 19 of 27

In Escrow ComparablesWest Town Mixed-Use



Subject

1%

2%

3%

4%

5%

6%

7%

8%Cap Rate

Subject

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0Gross Rent Multiplier

Subject 1

$39,000

$78,000

$117,000

$156,000

$195,000

$234,000

$273,000

$312,000

Avg.

$149,875

Price per Unit

Subject 1

$30

$60

$90

$120

$150

$180

$210

$240

Avg.

$137.03

Price per Sq. Ft.

page 20 of 27






Units 6

Price/Unit $308,333

Price/SqFt $235.37

Cap Rate 6.58%

Year Built 1879

GRM 12.23

# Units Unit Type

2 0+1

4 2+1

1 2713 W Division StChicago, IL 60622


Units 8

Price/Unit $149,875

Price/SqFt $137.03

Cap Rate N/A

Year Built 1940In Escrow

GRM N/A

# Units Unit Type

NOTES4 Residential & 4 Commercial Unit. (BUILDING IS CURRENTLY VACANT)

page 21 of 27




1 1358 N Western Avenue, Chicago, IL 60622 ($1,850,000)

A 2713 W Division St, Chicago, IL 60622 ($1,199,000)

page 22 of 27

Rent Comparables ChartsWest Town Mixed-Use



Subject 1 2 3 4 5 6

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% Avg.

100.0

Occupancy

Two Bedroom Two Bath Two Bedroom One Bath

$210

$420

$630

$840

$1,050

$1,260

$1,470

$1,680

$1,890

$2,100$2,000

$1,950

Average Rent per Unit Type

page 23 of 27

Rent ComparablesWest Town Mixed-Use




Avg Rent/rsf $14.58

RSF 7,860

Occupancy 100%

Units 6

Year Built 1879

# Units Unit Type Rent

2 0+1 $1,475

4 2+1 $1,650

1 1529 N Artesian AveChicago, IL 60622

Avg Rent/rsf $21.60

RSF 1,000

Occupancy 100%

Units 1

Year Built N/A


1 Two Bedroom Two Bath $1,800

2 1349 N WesternChicago, IL 60622

Avg Rent/rsf $25.20

RSF 1,000

Occupancy 100%

Units 1

Year Built N/A



page 24 of 27




3 1310 N ClaremontChicago, IL 60622

Avg Rent/rsf $24.00

RSF 1,000

Occupancy 100%

Units 1

Year Built N/A



4 1533 N WesternChicago, IL 60622

Avg Rent/rsf $25.20

RSF 1,000

Occupancy 100%

Units 1

Year Built N/A



5 1414 N Western AveChicago, IL 60622

Avg Rent/rsf $24.00

RSF 1,147

Occupancy 100%

Units 1

Year Built N/A


1 Two Bedroom One Bath $2,000

page 25 of 27




6 1513 N ArtesianChicago, IL 60622

Avg Rent/rsf $17.54

RSF 1,300

Occupancy 100%

Units 1

Year Built N/A


1 Two Bedroom One Bath $1,900

page 26 of 27




1 1358 N Western Avenue Chicago, IL 60622

A 1529 N Artesian Ave Chicago, IL 60622

B 1349 N Western Chicago, IL 60622

C 1310 N Claremont Chicago, IL 60622

D 1533 N Western Chicago, IL 60622

E 1414 N Western Ave Chicago, IL 60622

F 1513 N Artesian Chicago, IL 60622

page 27 of 27

Floor PlansWest Town Mixed-Use1358 N Western AvenueChicago, IL 60622

West Town Mixed-Use

