4 unit multifamily in south chicago · 4 unit multifamily in south chicago 8724 s. muskegon ave....

SVN | CHICAGO COMMERCIAL | 940 WEST ADAMS STREET, SUITE 200, CHICAGO, IL 60607 OFFERING MEMORANDUM

4 UNITMULTIFAMILY INSOUTH CHICAGO8724 S. MUSKEGON AVE.CHICAGO, IL 60617

Marco [email protected]

Jeffrey BaaschSenior Vice [email protected]

Demographics ReportDemographics Map

ADVISOR BIOS 27Advisor Bio & Contact 1Advisor Bio & Contact 2Back Page

PROPERTY INFORMATION 3Property SummaryProperty Description

LOCATION INFORMATION 6Regional MapLocation MapsAerial Map

FINANCIAL ANALYSIS 10Financial SummaryIncome & ExpensesRent Roll

ADDITIONAL INFORMATION 14Additional PhotosAdditional PhotosAdditional PhotosAdditional PhotosSouth Works US Steel Site RedevelopmentSouth Works US Steel Site RedevelopmentObama Presidential LibraryTiger Woods Designed Golf Course ProposalTiger Woods Designed Golf Course Proposal

DEMOGRAPHICS 24

OFFERING MEMORANDUM| 8724 S. MUSKEGON AVE., CHICAGO, IL 60617

1 PROPERTYINFORMATION8724 S. Muskegon Ave.Chicago, IL 60617

8724 S. MUSKEGON AVE. CHICAGO, IL 60617 SVN | Chicago Commercial |

OFFERING SUMMARYSale Price: $305,000

*Number Of Units: 4 + 1

Cap Rate: 9.25%

NOI: $28,202

Lot Size: 5,244 SF

Year Built: 1921

Building Size: 4,674 SF

Zoning: RT-4

Market: Chicago

Submarket: South Chicago

Price / SF (Bldg): $65.25

PROPERTY HIGHLIGHTS

• Great Unit Mix: (2) 2 Bed 1 Bath & (2) 3 Bed 1 Bath

• Bonus Unit: 2 Bed 1 Bath

• Asset is in Great Shape

• Individual Furnaces & Updated Electric

• Coin Operated W/D for Additional Income (owned)

Property Summary



SVN Chicago Commercial is pleased to present 8724 S. Muskegon, a 4-unit Multifamily allbrick building consisting (2) 2 Bedroom 1 Bath & (2) 3 Bedroom 1 Bath units. There is abonus unit consisting 2 bedrooms and 1 bath. The asset presents an opportunity for aqualified investor who is starting out or wants to add to their portfolio with a well located,well maintain and professional managed property. It also gives the opportunity forowner-occupied investment with it's large units to live comfortably and let the rentalincome pay your mortgage. The building has individual furnaces which gives the nextowner the opportunity to add central air condition. Tenants pay their own electric, cookinggas and heat. Electric has all been updated with new breakers, panels, wiring, and service -there is 100 Amps servicing each unit. Hot water tank is 75 gal (2015). Roof is pitched,shingles and in good shape. The washer and dryer are owned; coined operated foradditional income. This asset is priced well and in great shape!

PROPERTY OVERVIEW

8724 S. Muskegon is located in Chicago's south side neighborhood of South Chicago, about10 miles southeast of The Loop and on the southern rim of Lake Michigan. It is bordered79th Street to the north, South Chicago Avenue and the Chicago Skyway (Interstate 90),95th Street to the south, and Lake Michigan to the east. South Chicago is the gatewayneighborhood to the Calumet River and the Calumet Region. South Chicago was once thehome of the US Steel Corporation which is currently vacant land of 440 acres and thepotential site of a new development of up to 20,000 new homes plus retail... an estimate ofa $55M to $80M development deal.

LOCATION OVERVIEW

Property Description

2 LOCATIONINFORMATION8724 S. Muskegon Ave.Chicago, IL 60617



Regional Map


Location Maps


Aerial Map

3 FINANCIALANALYSIS8724 S. Muskegon Ave.Chicago, IL 60617



INVESTMENT OVERVIEW

Price $305,000Price per Unit $61,000GRM 6.3CAP Rate 9.3%Cash-on-Cash Return (yr 1) 19.46 %Total Return (yr 1) $17,070Debt Coverage Ratio 1.91

OPERATING DATA

Gross Scheduled Income $48,132Other Income $885Total Scheduled Income $49,017Vacancy Cost $1,444Gross Income $47,573Operating Expenses $19,371Net Operating Income $28,202Pre-Tax Cash Flow $13,429

FINANCING DATA

Down Payment $69,000Loan Amount $236,000Debt Service $14,773Debt Service Monthly $1,231Principal Reduction (yr 1) $3,641

Financial Summary


*Broker projections.

INCOME SUMMARY PER UNIT

Potential Rental Income $48,132 $9,626(Less: Vacancy & Credit Losses) -$1,444 -$288Additional Income - Laundry $885 $177

Gross Income $47,573 $9,514

EXPENSE SUMMARY PER UNIT

Utility - Gas $1,139 $227Utility - Electric $342 $68Utility - Water / Sewer $2,516 $503Real Estate Taxes (2016) $4,896 $979Insurance $3,036 $607Repairs & Maintenance* $1,250 $250Cleaning & Decorating* $1,250 $250Pest Control* $425 $85Janitor* $750 $150Management* $2,801 $560Miscellaneous & Reserves* $966 $193

Gross Expenses $19,371 $3,874

Net Operating Income $28,202 $5,640

Income & Expenses


UNITNUMBER

UNITBED

UNITBATH

UNITSIZE (SF)

LEASESTART

CURRENTRENT

CURRENTRENT (PER SF)

1F 3 1 1,000 Current $950 $0.95

2F 3 1 1,000 Current $883 $0.88

1R 2 1 800 Vacant $800 $1.00

1F 2 1 800 Current $828 $1.03

Garden 2 1 650 Current $550 $0.85

Totals/Averages 4,250 $4,011 $0.94

Rent Roll

4 ADDITIONALINFORMATION8724 S. Muskegon Ave.Chicago, IL 60617



Additional Photos


South Works US Steel Site Redevelopment


Obama Presidential Library


Tiger Woods Designed Golf Course Proposal

5DEMOGRAPHICS8724 S. Muskegon Ave.Chicago, IL 60617



0.5 MILES 1 MILE 1.5 MILES

Total population 11,831 34,874 63,066

Median age 28.1 33.2 36.0

Median age (male) 25.8 30.6 32.8

Median age (female) 29.2 35.2 38.4

Total households 3,634 11,750 22,893

Total persons per HH 3.3 3.0 2.8

Average HH income $36,615 $42,787 $45,940

Average house value $132,513 $181,722 $191,075

Total Population - White 2,070 4,980 7,452

Total Population - Black 7,202 24,804 48,527

Total Population - Asian 1 13 46

Total Population - Hawaiian 0 11 53

Total Population - American Indian 6 44 103

Total Population - Other 2,299 4,598 6,254

Total Population - Hispanic 4,371 9,271 12,816

* Demographic data derived from 2010 US Census

Demographics Report


POPULATION 0.5 MILES 1 MILE 1.5 MILES

Total population 11,831 34,874 63,066

Median age 28.1 33.2 36.0

Median age (male) 25.8 30.6 32.8

Median age (Female) 29.2 35.2 38.4

HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES

Total households 3,634 11,750 22,893

# of persons per HH 3.3 3.0 2.8

Average HH income $36,615 $42,787 $45,940

Average house value $132,513 $181,722 $191,075

ETHNICITY (%) 0.5 MILES 1 MILE 1.5 MILES

Hispanic 36.9% 26.6% 20.3%

RACE (%)

White 17.5% 14.3% 11.8%

Black 60.9% 71.1% 76.9%

Asian 0.0% 0.0% 0.1%

Hawaiian 0.0% 0.0% 0.1%

American Indian 0.1% 0.1% 0.2%

Other 19.4% 13.2% 9.9%

* Demographic data derived from 2010 US Census

Demographics Map

6 ADVISOR BIOS8724 S. Muskegon Ave.Chicago, IL 60617


940 West Adams Street, Suite 200Chicago, IL 60607T 312.756.7895C [email protected]

PROFESSIONAL BACKGROUND

As an ambitious and successful Advisor at SVN | Chicago Commercial, Marco Cesario specializes in the acquisition and disposition of Investment Real Estate: Multi-Family, Mixed-Use

and Retail in the greater Chicago Land area. He also has extensive experience in (re)Development and Land Acquisitions. He has built a reputation as a hard-working, trustworthy

and straightforward broker who uses his experience and talent to find creative solutions. Marco has a dedicated network of clients who know his work and trust his expertise at

identifying and closing on prime opportunities.

Marco is a true client advocate – always putting the interests of his customers first. He is committed to generating long-lasting relationships while delivering exceptional results.

Marco exemplifies the strong work ethic and commitment to excellence of SVN, ensuring that from beginning to end, no detail is missed.

In years prior to joining SVN, Marco was extremely active in both commercial and residential brokerage with sales between six million dollars - ten million dollars annually and in

land acquisitions where he has acquired over 200 acres that generated + $100 million in total sales-revenue. His expertise in market analysis enables him to qualify and quantify any

site to enhance his strong negotiating capabilities.

Growing up in Arlington Heights, Illinois, the groundwork for Marco’s future in the real estate industry was already being set as he helped his family manage two apartment buildings

his father had built in the early 1970s. Marco loves that real estate is a tangible yet creative asset that brings with it a built-in history.

Marco graduated from Loyola University Chicago in 2003 with a Bachelor’s Degree of Business Administration in Finance. Marco is a member of Young Real Estate Professionals,

Italian American Chamber of Commerce and is currently pursuing the CCIM designation. He actively plays soccer and is an avid fan of hockey, golf and Formula 1 racing.

EDUCATION

Bachelors in Business Administration; majored in Finance

Loyola University of Chicago

Chicago, IL

MEMBERSHIPS & AFFILIATIONS

CCIM

Chicago Association of Realtors

National Association of Realtors

Tutoring Chicago

Italian-American Chamber of Commerce

MARCO CESARIO

Advisor


Advisor Bio & Contact 1

940 West Adams Street, Suite 200Chicago, IL 60607T 312.676.1873C [email protected]

PROFESSIONAL BACKGROUND

Jeff Baasch serves as Senior Vice President at SVN. He is one of Chicago's premier commercial real estate professionalsspecializing in the sale of multifamily property in the greater Chicagoland area. Jeff has consistently ranked as topproducer in commercial brokerage. His focused approach, transactional expertise and in-depth knowledge of themultifamily market has delivered superior results for his clients. Jeff is responsible for client development and overseesall aspects of the transaction process including valuation, marketing, due diligence and negotiations.

With 30 years of experience in commercial real estate, Jeff offers a wealth of real estate management and transactionexperience that includes investment sales, asset management, financial analysis and strategic planning. He hasextensive experience with multi-family, retail, industrial, and office properties. Through providing local market knowledgewith an institutional execution strategy, he leverages his competencies to assist property owners in developingcomprehensive acquisition strategies and maximizing the value of their assets upon disposition.

Prior to joining SVN, Jeff worked for JMB Institutional Realty/Heitman Capital Management, Transwestern CommercialServices, and KPMG Peat Markwick.

Jeff is a licensed real estate broker in Illinois, a Certified Public Accountant (CPA), and has a Masters in BusinessAdministration (MBA). He received his Masters of Business Administration in Finance from the Kellstadt Graduate Schoolof Business at DePaul University, and Bachelor of Science in Accounting from Illinois State University.

JEFFREY BAASCH

Senior Vice President


Advisor Bio & Contact 2

4 unit multifamily in south chicago · 4 unit multifamily in south chicago 8724 s. muskegon ave....

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