2743 West Division Street Chicago, Il 60622

2743 WEST DIVISION STREET CHICAGO, IL 60622

Offering Memorandum

chicagoland multifamily group at CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

ACTIVITY ID

NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. INVESTMENT SALES Kyle Stengle Senior Vice President Senior Director, Multifamily & Mixed Use Group CHICAGO DOWNTOWN OFFICE Tel: (312) 327-5455 Fax: (312) 327-5410 [email protected] License: IL:475.138461

C. Parker Bell Multifamily & Mixed Use Group CHICAGO DOWNTOWN OFFICE Tel: (312) 327-5440 Fax: (312) 327-5410 [email protected] License: IL:475.174236

DEBT & STRUCTURED FINANCE Dean Giannakopoulos Senior Vice President Marcus & Millichap Capital Corporation CHICAGO DOWNTOWN OFFICE Tel: (312) 327-5423 Fax: (312) 277-6465 [email protected] Frank Montalto Director Marcus & Millichap Capital Corporation CHICAGO DOWNTOWN OFFICE Tel: (312) 327-5421 OFFICESFax: (312) NATIONWIDE277-6465 [email protected]

PROPERTY PROPERTY AND LOCATION SUMMARY 2743 WEST DIVISION STREET PROPERTY SUMMARY

Property Summary

Marcus & Millichap is pleased to present this value-add opportunity in PROPERTY SUMMARY the East Humboldt Park neighborhood of Chicago, Illinois. The property consists of a vacant retail space previously used as a restaurant and bar, and three stories of blank slate gutted units. The property features skyline and park views, and sale includes a 2AM Liquor License. The subject

VALUATION property is a one-minute walk to Chicago Transit Authority’s (CTA) 70 and 52 bus stops and a nine-minute walk to CTA’s 49 and X49 bus stops.

The neighborhood of Humboldt Park is a socially dynamic area, from the murals on every street corner to the food and restaurants featured on the Food Network and Travel Channel. In 2014, Humboldt Park was named COMPARABLES the 10th “Hottest Neighborhood” in the nation by Redfin, when no other Chicago cities made the list. Thousands of people flood Humboldt Park during the week of Riot Fest for the music, and stay for the culturally rich

history that embodies Humboldt Park.

Investment Overview

■■ Desirable East Humboldt Park Location

■■ Value-Add Opportunity

■■ Three Stories of Blank Slate Gutted Units

■■ Skyline and Park Views

■■ 2AM Incidental Liquor License Included

6 NEARBY RETAILERS

1) FLYING SAUCER 2) FAMILY DOLLAR

3) CAFE COLAO 2 3 4 4) NELLIE’S DIVISION 5) SUBWAY 6) THE CALIFORNIA CLIPPER SUBJECT PROPERTY 7) CAFE MARIE-JEANNE 5 1 8) ROOTSTOCK WINE & BEER BAR

9) DANTE’S TAVERN 11

10) FEED

11) BOEUFHAUS H 12) SPORTSMAN’S CLUB

13) EZ INN

14) DUNKIN’ 15) BACCI PIZZERIA 6 7 AUGUSTA 16) DARK MATTER COFFEE 8 9 12 17) CVS

18) KAI ZAN

19) THE BEETLE BAR AND GRILL 13

20) TACO EL JALISCIENSE CALIFORNIA

CHICAGO 20 10 18 17 WESTERN 15

16 2743 WEST DIVISION STREET PROPERTY SUMMARY

Market Overview Chicago Market PROPERTY SUMMARY

The Chicago metro has something to offer every one of its residents and visitors, whether it is legendary blues and jazz music, cultural and educational venues, professional sports, dining, entertainment, shopping or recreational amenities.

VALUATION The Chicago area’s relative affordability is largely due to its lower housing costs. The median home price is significantly less than in other cities of its size and is below that of many smaller cities, including Seattle and Denver.

Cultural activities and venues underpin the metro’s cosmopolitan lifestyle. The region

COMPARABLES is home to various well-known museums, including the world-class Field Museum, Shedd Aquarium, Art Institute of Chicago and Adler Planetarium. The theatre scene rivals the world’s best, and troupes, dance companies, symphony orchestras and music venues abound. $237,400 70 29 MILES MEDIAN HOME PRICE VARIOUS MUSUEMS OF SHORELINE ARTS & ENTERTAINMENT

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

8 VALUATION VALUATION PROPERTY

COMPARABLES VALUATION SUMMARY 2743 WESTDIVISIONSTREET 10 Financial Overview PAYMENT AMORT INT RATE EQUITY LTV LOAN AMOUNT PRICE/UNIT PRICE/SF STABILIZED GRM STABILIZED CAP ALL INCOST SOFT COSTS BUDGET PRICE/UNIT PRICE/SF PROFORMA NOI TOTAL SF LIST PRICE FINANCING PROFORMA PROFORMA $950,000 $1,325,475 $1,767,300 $441,825 $252,471 $743,000 $135,714 $130,525 -$78,246 $74,300 4.25% 7.39% $297 5,944 $160 75% 9.09 360 VALUATION PROPERTY VALUATION COMPARABLES SUMMARY 11 $2.92 $3.01 $2.92 $3.01 $2.92 $3.01 $2.83 $24.00 RENT/SF 2743 WEST DIVISION STREET DIVISION WEST 2743 $2,600 $1,850 $2,600 $1,850 $2,600 $1,850 $2,852 $16,202 PROFORMA RENT VACANT VACANT VACANT VACANT VACANT VACANT VACANT CURRENT RENT RENT ROLL RENT SF 891 615 891 615 891 615 1,426 5,944 2 1 2 1 2 1 BATH TOTAL 3 2 7 3 2 3 2 BED Retail 4F 2F 3F 4R 2R 3R UNIT Retail # OF UNITS VALUATION PROPERTY

COMPARABLES VALUATION SUMMARY 2743 WESTDIVISIONSTREET 12 CASH ONRETURN NET CASHFLOWAFTERDEBT DEBT SERVICE NET OPERATING INCOME EXPENSE PERUNIT EXPENSE RATIO TOTAL EXPENSES LEASING COMMISSIONS TURNOVER MANAGEMENT REPAIRS &MAINT CONTRACT SERVICES UTILITIES INSURANCE RE TAXES EXPENSES EFFECTIVE GROSS VACANCY GROSS REVENUE INCOME ANDEXPENSES 5% 3% PROFORMA $194,424 $130,525 $188,591 -$78,246 $52,279 $58,066 $26,403 11.83% $8,295 $5,401 $2,333 $9,430 $6,000 $1,500 $3,500 $3,500 $5,833 31% VALUATION COMPARABLES SALES AND RENT COMPARABLES SALES COMPARABLES MAP 5 6

MILWAUKEE 1) 906 NORTH WESTERN AVENUE

2) 1451 NORTH MAPLEWOOD AVENUE 2 3) 2706 WEST HADDON AVENUE 4) 1241 NORTH ARTESIAN AVENUE 5) 1754-1760 WEST NORTH AVENUE

6) 2209 WEST NORTH AVENUE 4 7) 950 NORTH WOLCOTT AVENUE SUBJECT PROPERTY DIVISION 8) 2558 WEST WALTON STREET 3

WESTERN

7 8

DAMEN

CHICAGO PROPERTY VALUATION COMPARABLES SUMMARY 15 4 6 11 $149 $268 $215 4,608 5,000 6.03% 10,430 $685,000 $171,250 $223,333 $203,636 5/22/2019 7/25/2019 7/24/2019 $1,340,000 $2,240,000 Sale Date Price # of Units Price/Unit SF Price/SF CAP Rate # of Units Price/Unit SF Price/SF Sale Date Price Sale Date Price # of Units Price/Unit SF Price/SF 2743 WEST DIVISION STREET DIVISION WEST 2743 2706 WEST HADDON AVENUE | CHICAGO, IL 60622 2706 WEST HADDON AVENUE 1754-1760 WEST NORTH AVENUE | CHICAGO, IL 60622 1754-1760 WEST NORTH AVENUE

4 1-Bed/1-Bath, 4 2-Bed/1-Bath, 3 Retail Units 6 2-Bed/1-Bath Mixed use property. 1 Retail, 1 coach house 2-Bed/1-Bath, 2 3-Bed/1-Bath. 1 Retail, 1 coach house 2-Bed/1-Bath, Mixed use property. 906 NORTH WESTERN AVENUE | CHICAGO, IL 60622 | CHICAGO, IL 906 NORTH AVENUE WESTERN

1 3 7 6 7 6 9.09 $242 $160 $237 6,360 5,944 5,266 6.30% 7.39% 6.00% $257,000 $135,714 $950,000 2/8/2019 $208,333 5/15/2019 $1,542,000 $1,250,000.00 List Price Rate Stabilized CAP Stabilized GRM # of Units Price/Unit SF Price/SF Sale Date Price CAP Rate # of Units Price/Unit SF Price/SF Sale Date Price CAP Rate # of Units Price/Unit SF Price/SF | CHICAGO, IL 60622 1451 NORTH MAPLEWOOD AVENUE | CHICAGO, IL 60622 1451 NORTH MAPLEWOOD AVENUE

SUBJECT PROPERTY SUBJECT

Sales Comparables Sales 6 2-Bed/1-Bath 1241 NORTH ARTESIAN AVENUE 2 6 COMPARABLES PROPERTY VALUATION

COMPARABLES SUMMARY 2743 WESTDIVISIONSTREET 16 6 8 Sales Comparables 1 Retail,23-Bed/2-Bath. AVENUE 2209WESTNORTH |CHICAGO,IL60647 2558WESTWALTON STREET 3 2-Bed/1-Bath,3-Bed/1-Bath |CHICAGO,IL60622 Price/SF SF Price/Unit # ofUnits Price Sale Date Price/SF SF Price/Unit # ofUnits CAP Rate Price Sale Date $1,105,000 $1,400,000 10/1/2018 2/28/2019 $368,333 $233,333 8.00% 3,750 7,206 $295 $194 3 6 7 950 NORTH WOLCOTTSTREET|CHICAGO,IL60622 950NORTH 3 1-Bed/1-Bath,2-Bed/1-Bath. Price/SF SF Price/Unit # ofUnits CAP Rate Price Sale Date COMPARABLES 12/18/2018 $1,700,000 $283,333 7.00% 5,250 $324 6

APARTMENT RENT COMPARABLES MAP NORTH

1) 2641 WEST POTOMAC AVENUE 2) 3324 WEST CRYSTAL STREET

3) 2648 WEST AUGUSTA BOULEVARD

4) 1251 NORTH CALIFORNIA AVENUE 8 5) 839 NORTH CALIFORNIA AVENUE

6) 2554 WEST AUGUSTA BOULEVARD 4 1 2 7) 2609 WEST DIVSION STREET SUBJECT PROPERTY 8) 1328 NORTH MAPLEWOOD AVENUE DIVISION 7 9) 1528 NORTH CAMPBELL AVENUE

CALIFORNIA

3 6

CHICAGO PROPERTY VALUATION COMPARABLES SUMMARY 19 1,400 $1.79 $1.63 1,200 1,200 $1.46 $2,500 $1,950 $1,750 3-Bed/2-Bath 2-Bed/1-Bath 2-Bed/1-Bath Unit Mix Feet Square Rent Rent/SF Rent Rent/SF Unit Mix Feet Square | CHICAGO, IL 60622 Unit Mix Feet Square Rent Rent/SF | CHICAGO, IL 60622 | CHICAGO, IL 60651 | CHICAGO, 2743 WEST DIVISION STREET DIVISION WEST 2743 2554 WEST AUGUSTA BOULEVARD 2554 WEST AUGUSTA 1251 NORTH CALIFORNIA AVENUE 3324 WEST CRYSTAL STREET CRYSTAL 3324 WEST Amenities include hardwood flooring throughout, in-unit laundry and quartz countertops. flooring throughout, Amenities include hardwood

Units include hardwood flooring throughout, updated kitchen with stainless steel appliances and steel appliances and updated kitchen with stainless flooring throughout, Units include hardwood Central AC and heating. granite countertops and in-unit laundry.

Amenities include hardwood flooring throughout, granite countertops and stainless steel steel granite countertops and stainless flooring throughout, Amenities include hardwood appliances.

6 4 2 850 $1.66 1,450 $1.40 2,000 $2.17 $2,400 $2,800 $1,845 2-Bed/2-Bath 3-Bed/2-Bath 2-Bed/1-Bath Unit Mix Feet Square Rent Rent/SF Unit Mix Feet Square Rent Rent/SF Unit Mix Feet Square Rent Rent/SF | CHICAGO, IL 60622 | CHICAGO, IL 60622 | CHICAGO, IL 60622 | CHICAGO, 839 NORTH CALIFORNIA AVENUE 2648 WEST AUGUSTA BOULEVARD 2648 WEST AUGUSTA Apartment Rent Comparables Rent Apartment 2641 WEST POTOMAC AVENUE 2641 WEST Condo quality units include hardwood flooring throughout, quartz countertops, stainless steel steel quartz countertops, stainless flooring throughout, hardwood Condo quality units include laundry and a back deck. in-unit appliances, stone bathrooms, unit laundry. Parking included in rent. unit laundry. Features include two balconies, hardwood flooring throughout, stainless steel appliances and in- appliances steel stainless throughout, flooring two balconies, hardwood include Features with stainless steel appliances and quartz countertops. New bathroom with high-end finishes New bathroom with stainless steel appliances and quartz countertops. Recently rehabbed property. Hardwood flooring throughout, in-unit laundry, brand new kitchen new kitchen brand in-unit laundry, flooring throughout, Hardwood property. Recently rehabbed

1 5 3 COMPARABLES PROPERTY VALUATION

COMPARABLES SUMMARY 2743 WESTDIVISIONSTREET 20 9 7

wood flooringthroughout andstainlesssteelappliances. Condo qualityapartmentincludesquartzcountertops,in-unitlaundry, attached garage,hard laundry. appliances, bathrooms with porcelain tile.Parkingincludedin rent. Large backdeck.In-unit Newly renovated property withhardwood flooringthroughout, quartzcountertops,stainlesssteel 2609WESTDIVISIONSTREET Apartment RentComparables 1528 NORTH CAMPBELLAVENUE 1528NORTH |CHICAGO,IL60622 |CHICAGO,IL60622 Rent/SF Rent Square Feet Unit Mix Rent/SF Rent Square Feet Unit Mix 2-Bed/2-Bath 3-Bed/2-Bath $2,250 $2,500 $2.25 1,000 2,000 $1.25 - 8

garage parkingspotincludedinrent. throughout, shakercabinets, newstainlesssteelapplianceswithquartzcountertopsandone Recently rehabbed property includes10-footceilings,baywindows,hardwood flooring 1328 NORTH MAPLEWOODAVENUE 1328NORTH Rent/SF Rent Square Feet Unit Mix |CHICAGO,IL60622 COMPARABLES 3-Bed/2-Bath $2,275 $1.75 1,300

NORTH 1 RETAIL RENT COMPARABLES MAP

ASHLAND

3 MILWAUKEE 1) 1755 WEST NORTH AVENUE 2) 1637 WEST GRAND AVENUE

3) 1432 NORTH WESTERN AVENUE

4) 955 NORTH ASHLAND AVENUE SUBJECT PROPERTY DIVISION

CHICAGO

2 GRAND PROPERTY VALUATION COMPARABLES SUMMARY 23 0% 0% 1879 2,400 2018 1,600 Triple Net Triple Modified Gross Year Built Year Type Rentable SF Occupancy Rentable SF Occupancy Built Year Type | CHICAGO, IL 60622 2743 WEST DIVISION STREET DIVISION WEST 2743 | CHICAGO, IL 60622 | CHICAGO, 955 NORTH ASHLAND AVENUE 1637 WEST GRAND AVENUE 1637 WEST $21/SF/Yr

1-10 year lease term, rent $22.50 SF/Yr SF/Yr $22.50 1-10 year lease term, rent

4 2 0% 0% 630 2004 1,250 1902 Triple Net Triple Modified Gross Rentable SF Occupancy Built Year Type Rentable SF Occupancy Built Year Type | CHICAGO, IL 60622 | CHICAGO, IL 60622 | CHICAGO, 1432 NORTH WESTERN AVENUE Retail Rent Comparables Retail 1755 WEST NORTH 1755 WEST AVENUE 3-10 year lease term available, space currently vacant. $28.50 Sf/Yr space currently 3-10 year lease term available, $18 SF/Yr rent. $18 SF/Yr rent.

1 3 COMPARABLES INVESTMENT SALES Kyle Stengle Senior Vice President Senior Director, Multifamily & Mixed Use Group CHICAGO DOWNTOWN OFFICE Tel: (312) 327-5455 Fax: (312) 327-5410 [email protected] License: IL:475.138461

C. Parker Bell Multifamily & Mixed Use Group CHICAGO DOWNTOWN OFFICE Tel: (312) 327-5440 Fax: (312) 327-5410 [email protected] License: IL:475.174236