Prime Wicker Park Repositioning Opportunity
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Offering Memorandum PRIME WICKER PARK REPOSITIONING OPPORTUNITY 1754-1760 W NORTH AVE CHICAGO, IL 60622 Exclusive Agent Colliers International (“Seller’s Agent”) is the exclusive agent for the owner and seller (“Seller”) of 1754-1760 W North Avenue/1607 N Wood St in Chicago, IL (“Property”). Please contact us if you have any questions. Designated Agents The designated agents for the Seller are: Mike Senner Principal Direct +1 847 698 8234 Email [email protected] Tyler Hague Vice President Direct +1 312 612 5936 Email [email protected] Colliers International Disclaimer This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. No cooperating brokerage commission shall be paid by Colliers or the Seller. Buyer’s Broker, if any, shall seek commission compensation from the Buyer only. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2018. All rights reserved. 1754-1760 W NORTH AVENUE – CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL Table of Contents > EXECUTIVE SUMMARY ...................................................................... 1 Investment Opportunity ................................................................................................... 2 Rent Roll & Unit Mix ........................................................................................................ 4 Exterior Photographs ....................................................................................................... 5 Unit Photographs ............................................................................................................. 6 Area Map ......................................................................................................................... 7 Local Map ........................................................................................................................ 8 > MARKET OVERVIEW ........................................................................... 9 Residential Market Rent Survey .................................................................................... 10 Retail Market Rent Survey ............................................................................................. 12 Recent Multifamily Sales ............................................................................................... 13 Confidentiality & Disclaimer Statement ......................................................................... 14 1754-1760 W NORTH AVENUE – CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL Offering Memorandum 1754-1760 W North Avenue Chicago, Illinois > Executive Summary EXECUTIVE SUMMARY Investment Opportunity COLLIERS INTERNATIONAL is pleased to exclusively offer for sale, this rare value-add and repositioning INVESTMENT HIGHLIGHTS opportunity for a prime mixed-use property located at • Residential Value-Add and Retail Repositioning 1754-1760 West North Avenue in Chicago, IL. Just a potential few blocks east of Six Corners in the notable Wicker Park submarket, the Property offers the unique ability for • Affluent Submarket and Strong Demographics an investor to immediately combine and reposition the • As-Is Residential Rents 15-20% under market retail along with a value-add renovation of the 8 • apartment units in one of the strongest submarkets in Retail Rents 30% under market lows Chicago. • Absorption – Rapid absorption of new/existing inventory The property has been owned and operated by the same • Occupancy – exceptionally well occupied submarket family since 1994 and has undergone minimal unit improvements. Therefore, a significant opportunity exists to upgrade unit finishes and common areas as The Property’s proximity to area recreation and well as reposition the retail to command drastically transportation is excellent: higher rents. Comprised of 4 large one-bedroom units CTA Bus System…….............…................ Immediate and 4 sizeable two-bedroom units, the apartment CTA “L” Blue Line...…..............….............. Immediate orientation is ideal for young professionals and couples looking to live in the heart of the Wicker Park The 606 Trail………....…...........…............. 0.3 miles neighborhood. I-90 / I 94…................................................ 0.3 miles Wicker Park is one of the fast growing submarkets in Chicago Loop……………..............…......... 3.5 miles Chicago which speaks to the potential long-term rent growth and sustainability of this asset as both a minor value-add and complete repositioning candidate. WICKER PARK Boasting a diverse mix of local boutique retailers, bars and restaurants, and music and entertainment venues, the Wicker Park submarket thrives off a diverse population mix. Young urban professionals, families, and baby boomers alike take advantage of a myriad of social and cultural amenities in the area and are additionally attracted to the unique urban environment which make this one of the most desirable places to live in Chicago. With multiple commercial corridors, Wicker Park offers a diverse mix of retail, residential, and hotel properties. Residential space and street level retail dominate the main thoroughfares while side streets are lined with historic Chicago brownstones and Victorian walkups. With tree lined streets intermixed with busy bar and shopping districts, all with access to mass transit and Chicago’s popular 606 trail, it’s no wonder this submarket ranks near the top in rents and occupancy in Chicago. 1754-1760 W NORTH AVENUE– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 2 EXECUTIVE SUMMARY PROPERTY DETAILS UNIT DETAILS PROPERTY ADDRESS COMMERCIAL UNITS 1754-1760 West North Avenue 3 (3,269 SF, 30% of Total RSF) 1607 North Wood Street DWELLING UNITS Chicago, Illinois 60622 8 (7,161 SF, 70% of Total RSF) Cook County YEAR BUILT UNIT MIX 1877 (4) 1 Bedroom / 1 Bathroom – 650-750 SF (4) 2 Bedroom / 1 Bathroom – 850-950 SF TYPE UNIT AMENITIES Three Story Walk Up High Ceilings Spacious Apartments PARKING Ability to Reconfigure and Add Units 0 Spaces TAX PINS 14-31-428-049-0000 BUILDING EXTERIOR 14-31-428-050-0000 Brick Solid Masonry Construction 1754-1760 W NORTH AVENUE– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 3 EXECUTIVE SUMMARY Rent Roll & Unit Mix COMMERCIAL RENT ROLL 1754-1760 WEST NORTH AVENUE COMMERCIAL TENANTS UNIT LEASE EXP SIZE TYPE MARKET RENT ACTUAL RENT 1605 N Wood $25.00 12/31/19 700 SF Retail $21.56 (Cleaners) m/g or NNN 1754 W North $30.00 10/31/18 1,500 SF Retail $14.40 (Tatu Tatoo) m/g or NNN 1760 W North $35.00 MTM 1,000 SF Retail $25.20 (Gallery Café) m/g or NNN $30.00 $20.39 RESIDENTIAL RENT ROLL MARKET MARKET ACTUAL ACTUAL LEASE EXP UNIT TYPE SIZE RENT RENT ($ / SF) RENT RENT ($ / SF) 1607-2R 2 Bed / 1 Bath 750 SF $1,400 $1.87 $1,015 $1.35 5/31/18 1756-2F 1 Bed / 1 Bath 700 SF $1,295 $1.85 $1,295 $1.85 7/31/18 1756-2R 1 Bed / 1 Bath 650 SF $1,295 $1.99 $1,050 $1.62 4/30/19 1756-3F 1 Bed / 1 Bath 950 SF $1,450 $1.53 $1,250 $1.32 3/31/19 1756-3R 1 Bed / 1 Bath 650 SF $1,295 $1.99 $1,195 $1.84 7/31/18 1758-2F 2 Bed / 1 Bath 950 SF $1,450 $1.53 $1,450 $1.53 8/31/18 1758-3F 2 Bed / 1 Bath 950 SF $1,450 $1.53 $1,295 $1.36 8/31/18 1758-3R 2 Bed / 1 Bath 750 SF $1,400 $1.87 $1,300 $1.73 4/30/19 $1,379 $1.77 $1,231 $1.57 1754-1760 W NORTH AVENUE– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 4 EXECUTIVE SUMMARY Exterior Photographs 1754-1760 W NORTH AVENUE– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 5 EXECUTIVE SUMMARY Unit Photographs 1754-1760 W NORTH AVENUE– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 6 EXECUTIVE SUMMARY Area Map 1754-1760 W NORTH AVENUE– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 7 EXECUTIVE SUMMARY Local Map 1754-1760 W NORTH AVENUE– CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 8 Offering Memorandum 1754-1760 W North Avenue Chicago, Illinois > Market Overview MARKET OVERVIEW Residential Market Rent Survey ONE BEDROOMS – 25 UNITS SURVEYED UNIT MARKET MARKET DATE RENTED PROPERTY ADDRESS SIZE (SF) RENT / MO. RENT/SF 4/8/2018 1713 W North - #2R 900 $1,950 $2.17 3/15/2018 1612 W Beach - #2R 700 $1,575 $2.25 2/22/2018 1735 N Paulina - #321 750 $2,100 $2.80 1/16/2018 1459 N Milwaukee - #4B 800 $1,495 $1.87 12/20/2017 1623 N Hermitage - #BR 500 $1,450 $2.90 11/21/2017 1623 N Hermitage - #1F 500 $1,350 $2.70 10/9/2017 1439 N Milwaukee - #4R 640 $1,750 $2.73 9/5/2017 1612 W Beach - #1 700 $1,550 $2.21 8/18/2017 1718 W Pierce - #1F 750 $1,850 $2.47 7/8/2017 1635 W North - #1 1,000 $1,800 $1.80 7/3/2017 1642 N Marshfield - #2R 550 $1,325 $2.41 6/28/2017 1555 N Milwaukee - #25 550 $1,295 $2.35 6/23/2017 1732 W LeMoyne - #CH 600 $1,525 $2.54 6/13/2017 1442 N Paulina - #1F 600 $1,550 $2.58 5/30/2017 1442 N Paulina - #1R 550 $1,550 $2.82 5/26/2017 1612 W Beach - #GF 700 $1,475 $2.11 5/22/2017 1735 N Paulina - #321 750 $2,000 $2.67 4/25/2017 1709 N Paulina - #103 750 $1,700 $2.27 3/13/2017 1612 W Beach - #2R 700 $1,575 $2.25 9/15/2016 1638 N Marshfield -