Prime Wicker Park Repositioning Opportunity

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.

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 - #1E 750 $1,295 $1.73 9/1/2016 1638 N Marshfield - #1W 750 $1,295 $1.73 7/22/2016 1732 W LeMoyne - #CH 600 $1,500 $2.50 6/16/2016 1642 N Marshfield - #2R 550 $1,385 $2.52 6/16/2016 1615 N Winchester - #1 1,000 $1,800 $1.80 6/9/2016 1523 N Elk Grove - #G 900 $1,300 $1.44 Average 702 $1,578 $2.30

1754-1760 W NORTH AVENUE – CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 10 MARKET OVERVIEW

TWO BEDROOMS – 35 UNITS SURVEYED

UNIT MARKET MARKET DATE RENTED PROPERTY ADDRESS SIZE (SF) RENT / MO. RENT/SF 4/6/2018 1810 W Wabansia - #2 725 $1,900 $2.62 4/3/2018 1641 N Paulina - #3F 850 $2,300 $2.71 3/21/2018 1625 W Beach - #2 1,000 $1,900 $1.90 2/26/2018 1739 N Damen - #3E 550 $1,550 $2.82 1/23/2018 1412 N Ashland - #3 1,200 $1,700 $1.42 1/19/2018 1467 N Milwaukee - #2F 1,100 $1,650 $1.50 1/12/2018 1645 W Wabansia - #CH 1,000 $1,650 $1.65 10/30/2017 1624 N Wood - #3 950 $2,000 $2.11 10/10/2017 1713 W North - #1R 950 $1,700 $1.79 9/20/2017 1816 N Wood - #3 900 $1,950 $2.17 8/16/2017 1807 W North - #2F 725 $2,250 $3.10 8/10/2017 1514 N Honore - #2A 1,000 $2,125 $2.13 7/21/2017 1625 W Beach 1,000 $1,300 $1.30 6/29/2017 1719 N Wood - #2 550 $1,400 $2.55 6/15/2017 1608 W North - #3 1,200 $1,600 $1.33 6/9/2017 1640 W Bloomingdale - #1 1,200 $2,490 $2.08 6/6/2017 1746 W Julian - #3F 1,200 $1,780 $1.48 5/26/2017 1528 N Ashland - #3F 950 $1,700 $1.79 5/25/2017 1644 N Marshfield - #1R 675 $1,800 $2.67 5/10/2017 1641 N Paulina - #2F 750 $2,200 $2.93 4/18/2017 1641 N Paulina - #3R 850 $2,300 $2.71 4/12/2017 1618 W LeMoyne - #2 750 $1,450 $1.93 3/21/2017 1608 W North - #2 1,200 $1,500 $1.25 1/30/2017 1619 W Julian - #2 1,250 $2,000 $1.60 1/17/2017 1742 W North - #2 1,200 $2,200 $1.83 1/9/2017 1615 N Wood - #1R 700 $1,800 $2.57 12/13/2016 1615 N Wood - #2R 650 $1,850 $2.85 11/20/2016 1719 N Wood - #2 525 $1,300 $2.48 11/7/2016 1816 N Wood - #2 950 $1,600 $1.68 10/19/2016 1719 N Wood - #3 525 $1,300 $2.48 9/12/2016 1441 N Elk Grove - #2S 800 $2,000 $2.50 8/4/2016 1414 N Ashland - #2F 800 $2,300 $2.88 7/25/2016 1500 N Elk Grove - #1C 1,000 $2,250 $2.25 6/20/2016 1652 W Pierce - #1 900 $2,000 $2.22 6/9/2016 1652 W Pierce - #2 900 $2,000 $2.22 Average 899 $1,851 $2.16

1754-1760 W NORTH AVENUE – CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 11 MARKET OVERVIEW

Retail Market Rent Survey

AVAILABLE ADDRESS ASKING RENT ($) RENT TYPE SPACE

1555-57 N Milwaukee $45.00 NNN 1,790 SF

1401-07 N Milwaukee $37.50-$60.00 NNN 3,420 SF

1630-32 N Milwaukee $45.00 M/G 2,000 SF

1639 N Milwaukee $33.00 NNN 3,000 SF

1640-52 N Milwaukee $35.00 NNN 1,710 SF

1621-23 W North $30.00 NNN 1,000 SF

2125 W North $35.00 NNN 14,782 SF

2204 W North $28.80 M/G 1,500 SF

2321 W North $29.00 NNN 1,271 SF

1623 N Damen $28.00 NNN 4,000 SF

1522 N Ashland $27.50 NNN 3,360 SF

1617 N Ashland $31.00 M/G 1,200 SF

1754-1760 W NORTH AVENUE – CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 12 MARKET OVERVIEW

Recent Multifamily Sales

AVG DATE PROPERTY UNITS TOTAL PRICE ($) PRICE PER SF ($) PRICE PER UNIT CAP RATE SF

3/28/18 1545 W North Ave 30 1,065 $12,150,000 $318.77 $405,000 -

2/21/18 1537 N Leavitt St 5 902 $1,150,000 $254.99 $230,000 5.58%

11/14/17 2111 W Caton St 19 725 $4,244,000 $282.93 $223,368 5.57%

10/18/17 2111 N Western Ave 8 742 $1,450,000 $278.85 $181,250 6.40%

9/8/17 1414 N Noble St 10 1,060 $3,300,000 $447.64 $330,000 5.98%

8/30/17 1851 N Winnebago 5 1,420 $2,650,000 $373.24 $530,000 -

8/30/17 1855 N Winnebago 5 1,420 $2,571,000 $362.11 $514,200 6.14%

8/21/17 1821 N Hermitage 6 666 $1,470,000 $367.50 $245,000 6.24%

8/2/17 1435 N Ashland 8 1,700 $2,375,000 $189.77 $296,875 7.00%

5/9/17 1657 N Milwaukee Ave 36 759 $26,280,000 $486.67 $730,000 -

4/11/17 2341 W Charleston 5 881 $1,350,000 $306.40 $270,000 -

12/20/16 1885 N Winnebago 8 500 $3,170,000 $792.50 $396,250 -

11/21/16 1457 N Bell 5 1,080 $1,375,000 $254.63 $275,000 -

11/8/16 1501 N Bell 5 1,304 $1,025,000 $157.11 $205,000 -

10/18/16 1930 N Damen 6 750 $1,000,500 $222.33 $166,750 -

1754-1760 W NORTH AVENUE – CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 13

Confidentiality & Disclaimer Statement

This Offering Memorandum contains select information pertaining to the business and affairs of the property at 1754-1760 W North Avenue, Chicago, IL. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Tyler Hague from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of 1754-1760 W North Avenue, Chicago, IL. or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

1754-1760 W NORTH AVENUE – CHICAGO, IL | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 14