COURTESY PLAZA GROCERY SHADOW ANCHORED 5160 South Pulaski Road Chicago, Illinois 60632 Orange Line - Pulaski Stop 1,545,861 Annual Total Entries Opening 2019
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Offering Memorandum Visit our website swpropertyadvisors.com COURTESY PLAZA GROCERY SHADOW ANCHORED 5160 South Pulaski Road Chicago, Illinois 60632 Orange Line - Pulaski Stop 1,545,861 Annual Total Entries Opening 2019 S Pulaski Rd 35,400 VPD Midway International Airport Subject Property Orange Line - Pulaski Stop 1,545,861 Annual Total Entries S Pulaski Rd 35,400 VPD INVESTMENT HIGHLIGHTS Courtesy Plaza | Grocery Shadow Anchored 5160 South Pulaski Road, Chicago, Illinois 60632 Rare Opportunity to Acquire Infill Grocery Shadow Anchored Property in Country’s Third Largest MSA | Over 161,000 People Living Within a Two-Mile Price $7,900,000 Radius Cap Rate 8.40% Price/ SF $186.56 Anchored by a New 15-Year Blink Fitness Gross Leasable Area 42,346 SF Year Built 1987 100 Percent Occupied by Excellent Mix of Service, Lot Size 3.74 Acres +/- Food, Medical and Daily Needs Tenancy Parcel Numbers 19-10-408-044-0000 Parking 383 Surface Spaces +/- High-Visibility Site Located Along Heavily Traveled Pulaski Road | Traffic Counts of 35,400 Vehicles per Day VITAL DATA Signalized Intersection Offering Full Ingress/Egress Current Rent - Annualized from 6/1/2019 $835,341 Total Reimbursements $266,277 Property Sits on Large 3.74-Acre Lot with 183 Vacancy/Collection Allowance (4% GPI) $44,065 Deeded Parking Spaces and Cross Access Parking Effective Gross Income $1,057,553 for an Additional 220 Spaces | 403 Total Expenses $394,291 NOI $663,262 Located One and a Half Miles Away From Midway International Airport PROPOSED FINANCING 300 Feet from CTA Orange Line Pulaski Station | LT V 70% 1,545,861 Total Annual Entries Interest Rate | Amortization 5.25% | 25 Years Down Payment $2,370,000 First Trust Deed/Mortgage $5,530,000 Debt Service $397,661 Debt Coverage Ratio 1.67 Net Cash Flow After Debt Services | Return % $265,601 | 11.21% Principal Reduction $109,957 Total Return | Return % $375,558 | 15.85% Shadow Heavily Near CTA Airport Anchored Traveled Station Nearby RENT ROLL Rent Schedule SF % of Base Lease % of Renewal Lease Tenant /Suite # Start End Monthly Annual Rent/ Leased Total SF Term (Yrs) Period Changes on Increase Total Rent Options Type Rent Rent SF La Michoacana 3,100 7.32% 7/18/2018 7/31/2023 5 Years Base Current $2,583 $31,000 $10.00 - 4% 1, 5-Year Net Retail, Suite 101 - 8/1/2020 $2,842 $34,100 $11.00 10% - 8/1/2021 $3,100 $37,200 $12.00 9% - 8/1/2022 $3,358 $40,300 $13.00 8% Option 1 8/1/2023 $3,459 $41,509 $13.39 3% Notes: Admin fee not to exceed 10 percent of CAM, including insurance. All Family Dental 3,000 7.08% 4/1/2016 3/31/2021 5 Years Base Current $5,250 $63,000 $21.00 - 8% 2, 5-Year Gross Retail, Suite 102 - 4/1/2019 $5,375 $64,500 $21.50 2% - 4/1/2020 $5,500 $66,000 $22.00 2% Option 1 4/1/2021 $5,625 $67,500 $22.50 2% - 4/1/2022 $5,750 $69,000 $23.00 2% Notes: N/A Blink Fitness 12,571 29.69% 4/1/2019 3/31/2034 15 Years Base Current $12,571 $150,852 $12.00 - 19% 3, 5-Year Net Retail, Suite 103 - 4/1/2024 $13,828 $165,937 $13.20 10% - 4/1/2029 $15,211 $182,531 $14.52 10% Option 1 4/1/2034 $16,740 $200,885 $15.98 10% Option 2 4/1/2039 $18,417 $220,998 $17.58 10% Notes: Rent commencement date is estimated. Admin fee not to exceed 10 percent of CAM. Rent commencement date is the date that is 52 months following the commencement date. Seller will escrow the amount of base rent from the time of closing to the rent commencement date for the benefit of the buyer. The additional rent commencement date shall be the date tenant opens for business to the general public in substantially the entire premises. Additional rent includes real estate taxes, CAM, insurance and administrative fees. Teddy Bear Day Care 6,093 14.39% 12/1/1990 11/30/2021 31 Years Base Current $8,703 $104,434 $17.14 - 13% 1,5-Year Net Retail, Suite 105-06 Option 1 12/1/2021 $10,008 $120,099 $19.71 15% Notes: Admin fee not to exceed 10 percent of CAM, including insurance. CosmoProf 2,507 5.92% 5/1/2006 4/30/2021 15 Years Base Current $3,552 $42,619 $17.00 - 5% 1, 5-Year Net Retail, Suite 107 - 5/1/2021 $4,231 $50,767 $20.25 19% Notes: Admin fee not to exceed 10 percent of CAM, including insurance. RENT ROLL Tenant /Suite # SF % of Start End Base Lease RentRent ScheduleSchedule % of Renewal Lease LeasedSF Total% of SF BaseTerm Lease (Yrs) Total% ofRent RenewalOptions LeaseType Tenant /Suite # Start End Period Changes on MonthlyMonthly AnnualAnnual Rent/Rent/ Increase Leased Total SF Term (Yrs) Period Changes on Increase Total Rent Options Type RentRent RentRent SFSF Nail Yes 1,225 2.89% 12/5/2005 3/31/2023 17 Years Base Current $2,500 $30,000 $24.49 - 4% 1, 5-Year Gross Retail, Suite 108 - 4/1/2019 $2,550 $30,600 $24.98 2% - 4/1/2020 $2,601 $31,212 $25.48 2% - 4/1/2021 $2,652 $31,826 $25.98 2% - 4/1/2022 $2,706 $32,473 $26.51 2% Notes: N/A United States of America (Navy, 4,343 10.26% 9/1/1988 5/31/2024 36 Years Base Current $12,986 $155,832 $35.88 - 19% See Notes Modified Marines, Army) Retail, Suite 109,110,112, 114 - 6/1/2019 $14,224 $170,688 $39.30 10% Notes: Tenant to pay pro rata of real estate taxes over base amount of $22,410 and pro rata of CAM over $51,204. Lease to be automatically renewed unless terminated with 30 days witten notice. Check 'N Go 1,505 3.55% 4/1/1997 3/31/2020 23 Years Base Current $2,457 $29,484 $19.59 - 4% None Net Retail, Suite 111 - 4/1/2019 $2,531 $30,368 $20.18 3% Notes: Admin fee not to exceed 25 percent of CAM, including insurance. Alexander Gold & Diamonds 1,344 3.17% 1/1/2019 12/31/2021 3 Years Base Current $2,016 $24,192 $18.00 - 3% 1, 5-Year Net Retail, Suite 113 - 1/1/2020 $2,128 $25,536 $19.00 6% - 1/1/2021 $2,240 $26,880 $20.00 5% Option 1 1/1/2022 $2,352 $28,224 $21.00 5% - 1/1/2024 $2,464 $29,568 $22.00 5% Notes: Admin fee not to exceed 10 percent of CAM Great Clips 1,225 2.89% 3/15/2017 4/30/2022 5 Years Base Current $2,395 $28,739 $23.46 - 4% 2, 5-Year Net Retail, Suite 115 - 6/1/2019 $2,443 $29,313 $23.93 2% - 6/1/2020 $2,492 $29,900 $24.41 2% - 6/1/2021 $2,541 $30,498 $24.90 2% Option 1 6/1/2022 $2,618 $31,412 $25.64 3% Notes: Admin fee not to exceed 10 percent of CAM, including insurance. RENT ROLL Rent Schedule SF % of Base Lease % of Renewal Lease Tenant /Suite # Start End Monthly Annual Rent/ Leased Total SF Term (Yrs) Period Changes on Increase Total Rent Options Type Rent Rent SF Mezquite Express 3,406 8.04% - 11/30/2023 124 Years Base Current $6,652 $79,820 $23.44 - 10% 1, 5-year Gross Retail, Suite 116-117 - 12/1/2019 $7,603 $91,234 $26.79 14% - 12/1/2021 $8,409 $100,906 $29.63 11% - 12/1/2023 $5,109 $61,308 $18.00 -39%* - 12/1/2024 $5,750 $69,003 $20.26 13% Notes: *Percentage rent to be any gross sales over $900,000 multiplied by five percent. This lease turns net in option period. Tenant will pay its pro rata share of real estate tax, CAM and insurance starting in option period. Cricket Wireless 765 1.81% 2/1/2018 1/31/2022 4 Years Base Current $2,250 $27,000 $35.29 - 3% 1, 5-Year Net Retail, Suite 118 - 2/1/2019 $2,288 $27,450 $35.88 2% - 2/1/2020 $2,341 $28,091 $36.72 2% - 2/1/2021 $2,388 $28,653 $37.45 2% Option 1 2/1/2022 $2,435 $29,226 $38.20 2% Notes: Tenant pays pro rata share of real estate taxes over base year of 2016 ($246,833). Tenant pays pro rata share of CAM over base year 2017. Admin fee not to exceed 10 percent of CAM, including insurance. Casa De Empeno 1,262 2.98% 3/1/2004 2/29/2020 16 Years Base Current $3,427 $41,129 $32.59 - 5% 1, 5-Year Net Retail, Suite 119 - 3/1/2019 $3,529 $42,353 $33.56 3% Option 1 3/1/2020 $3,636 $43,627 $34.57 3% - 3/1/2021 $3,745 $44,940 $35.61 3% - 3/1/2022 $3,858 $46,290 $36.68 3% Notes: Admin fee not to exceed 25 percent of CAM, including insurance. Occupied 42,346 100% $808,100 $19.31 Vacant 0 0% $0 $0.00 Total 42,346 100% $808,100 $19.31 CASH FLOW YEAR ONE - ANNUALIZED FROM 6/1/2019 Base Rent Current Per SF Occupied Space $835,341 $19.73 Available Space $0 - Gross Potential Rent $835,341 $19.73 Expense Reimbursements Real Estate Taxes $185,820 $4.39 CAM/Insurance/Admin Fee $80,457 $1.90 Total Expense Reimbursements $266,277 $6.29 Gross Potential Income $1,101,617 $26.01 Vacancy/Collection Allowance (4% GPI) $44,065 $1.04 Effective Gross Income $1,057,553 $24.97 Expenses Real Estate Taxes $265,295 $6.26 Insurance $21,592 $0.51 CAM $81,403 $1.92 Management Fee $26,000 $0.61 Total Expenses $394,291 $9.31 Net Operating Income $663,262 $15.66 CAM EXPENSE BREAKDOWN CAM Current Per SF Security $24,799 $0.59 Parking Lot $12,474 $0.29 Snow Removal $11,200 $0.26 Lot Sweeping $9,230 $0.22 Water $7,756 $0.18 Fire Protection $5,451 $0.13 Landscaping $2,777 $0.07 Janitorial $2,400 $0.06 Electric $2,066 $0.05 Gas $1,099 $0.03 Exterminating $928 $0.02 Electric $650 $0.02 Plumbing $295 $0.01 Permits $200 $0.00 Supplies $78 $0.00 Total CAM $81,403 $1.92 SITE PLAN Super Mall Day Care Teddy Bear Teddy La Michoacana All Family DentistryAll Family Cosmo Prof Nail Yes Navy Recruiting Center Navy Recruiting Center Marines Recruiting Center Alexander Gold & Diamonds Army Recruiting Center Mezquite Express Casa De Empeno AERIAL Edwards Archer Park Elementary School Curie Park S Archer Ave 19,800 VPD Orange Line - Pulaski Stop 1,545,861 Annual Total Entries Subject Property Solorio Academy High School S Cicero Ave 80,950 VPD Hernandez Middle School Socorro Sandoval John Hancock Elementary School High School Midway International Airport S Pulaski Rd 35,400 VPD AERIAL S Pulaski Rd 35,400 VPD REGIONAL MAP Lake Michigan Subject Property LOCATION HIGHLIGHTS | CHICAGO MSA Courtesy Plaza | Grocery Shadow Anchored 5160 South Pulaski Road, Chicago, Illinois 60632 Third Largest City