McCLURG COURT
TWO TOWERS • 1,061 UNITS • 43,000 SF COMMERCIAL VALUE-ADD MULTIFAMILY INVESTMENT OPPORTUNITY
STREETERVILLE • DOWNTOWN CHICAGO ILLINOIS MEDICAL 55 DISTRICT 290
WILLIS OHIO / ONTARIO 90/94 TOWER SPUR RAMP 90/94 WEST LOOP RIVER NORTH JOHN AON HANCOCK CENTER LOOP CENTER 110 MILLION SF OFFICE WATER 610,000 JOBS TOWER GALTER PLACE PAVILION ANN & ROBERT NW HOSPITAL H. LURIE VISTA TOWER OUTPATIENT CHILDREN’S OLSON HOSPITAL PAVILION FEINBERG PAVILION GOLD COAST UNDER CONSTRUCTION / 2020 PAVILION
PRENTICE WOMEN’S McCLURG COURT HOSPITAL SHERLEY RYAN NEW EAST SIDE ABILITYLAB
SIMPSON QUERREY E. PEARSON STREET ONE BENNETT PARK FUTURE NW BIOMEDICAL COMPLETED / 2019 MEMORIAL RESEARCH CENTER E. CHICAGO AVENUE HOSPITAL OPENING JUNE 2019 DEV. SITE
WACKER DRIVE LAKE SHORE PARK STREETERVILLE 680 N.
E. ONTARIO STREET ONTARIO E. E. ERIE STREET LAKE SHORE DRIVE abbot NORTHWESTERN hall CHICAGO CAMPUS CHICAGO LAKEFRONT TRAIL FEINBERG SCHOOL OF MEDICINE
CHICAGO RIVER NORTHWESTERN PRITZKER FORMER SCHOOL OF LAW SPIRE SITE KELLOGG SCHOOL OF MANAGEMENT LAKE SHORE DRIVE E. ILLINOIS STREET E. OHIO STREET E. GRAND AVENUE LAKE SHORE DRIVE
LAKE MICHIGAN DUSABLE PARK OHIO STREET BEACH
McCLURG COURT DEAL POINTS A WORLD-CLASS VALUE-ADD OPPORTUNITY • WORKFORCE HOUSING IN A CLASS A LOCATION Moran & Company is pleased to present an exclusive listing for the sale of McClurg Court. McClurg Court consists of two towers with ground level • IDEAL FOR BUYERS LOOKING FOR EFFICIENCIES retail located in the affluent Streeterville neighborhood in downtown CREATED THROUGH CRITICAL MASS Chicago. This world-class location is surrounded by The Magnificent Mile, the Chicago River, the Gold Coast, Lake Michigan and Navy Pier. • SUPPLY IS VIRTUALLY NON-EXISTENT WHILE The Property is adjacent to the ever expanding Northwestern Memorial DEMAND DRIVERS ARE ACCELERATING Hospital Campus, Shirley Ryan AbilityLab®, the new Simpson Querry Biomedical Research Center, the downtown campuses of both • LOW BASIS AT 50% OF REPRODUCTION COST Northwestern University, The University of Chicago, multiple grocery stores including Whole Foods, the city’s best restaurants, and the most • DIRECT ACCESS TO THE ALMOST 20,000 exciting new hotels and retailers in the city. EMPLOYEES, STAFF AND STUDENTS AT THE NEIGHBORING NORTHWESTERN MEMORIAL McClurg Court is available for purchase for the first time since MEDICAL CAMPUS 2006. For the past 13 years, the Property has benefited from • BENEFITS FROM DOWNTOWN CHICAGO’S institutional ownership and professional management, resulting in STRONG JOB MARKET, WHICH HAS GROWN a very well-maintained physical asset with a significantly upgraded ALMOST 25% OVER THE PAST 5 YEARS and expanded amenity package including improvements to all common areas, installation of a sprinkler system, and a new exterior • “WALKER’S PARADISE” WITH A WALK SCORE® curtain wall at the podium structure. All units are available for OF 99 AND TRANSIT SCORE® OF 100 upgrade, making McClurg Court among the most attractive value- add opportunities in the country today.
2 McCLURG McCLURG COURT COURT THE OPPORTUNITY McCLURG COURT’S COMPETITIVE POSITION The downtown Chicago housing market has been under-supplied for the past 10 years because household deliveries fell below the prior 10-year trend while job growth flourished like never before. Developers could not meet demand for new household formation even as market fundamentals, capital flow, and municipal support for rental housing were more favorable than ever. This lack of housing has resulted in record-setting demand easily absorbing peak apartment deliveries in 2017.
Approximately 40% of the rental market is upper income and 55% of the market is in the affordable and workforce housing range. With a majority of new rental product targeting the upper end, it is clear the shortage of affordable and workforce housing is expanding the fastest PROPERTY SUMMARY with little hope of new development meeting this massive under-supply. PROPERTY NAME McCLURG COURT Given its rent structure, McClurg Court is well positioned to meet the SITE ADDRESS 333 E. Ontario Street Chicago, Illinois 60610 demand from the largest and fastest growing segment of renters who earn 70% to 100% of area median income. Foreseeable supply COUNTY Cook in downtown Chicago is mostly limited to the South Loop and to SUBMARKET Streeterville (Chicago) extravagant developments catering to the highest wage earners with LAND AREA 103,365 SF (2.37 Acres) rents setting new heights, further enhancing McClurg Court’s strong 26,193 SF (0.60 Acres) (25%) competitive position as the best workforce housing option in downtown FEE SIMPLE Chicago. LEASEHOLD 77,172 SF (1.77 Acres) (75%) NUMBER OF BUILDINGS 2 High-Rise Towers w/ Podium Amenities STORIES 45 each YEAR BUILT 1972
UNIT SUMMARY APARTMENT UNITS 1,061 AVERAGE UNIT SIZE (SF) 739 TOTAL SIZE (SF) 784,020
COMMERCIAL SUMMARY NUMBER OF COMMERCIAL SPACES 15 TOTAL COMMERCIAL SF 42,910 COMMERCIAL OCCUPANCY 94%
PARKING SUMMARY PARKING - RESIDENTIAL GARAGE 174 (0.16 per unit) PARKING - COMMERCIAL GARAGE 223 PARKING - TOTAL 397 UNIT MIX UNIT MIX UNIT % AVG TOTAL SUMMARY COUNT UNIT SF SF STUDIO 251 24% 545 136,773 CONVERTIBLE 258 24% 619 159,573 1BD/1BA 459 43% 801 367,769 2BD/2BA 84 8% 1,243 104,412 2BD/2BA+DEN 2 0% 1,905 3,810 PENTHOUSE 7 1% 1,669 11,683 TOTALS / AVGS 1,061 100% 739 784,020
3 VALUE-ADD OPPORTUNITIES OVERVIEW Current ownership has spent over $30 million on capital expenditures at McClurg Court over the past five years. This amount was spent on physical improvements and common area upgrades, not on unit interior upgrades. While all units have been upgraded in some form over the past 20 years, including approximately 271 units upgraded with stainless steel appliances and granite countertops approximately 5-7 years ago, it can be assumed that all units at McClurg Court are viable upgrade candidates. With the recently renovated amenities and common areas, McClurg Court’s 1,061 units available for revenue-generating interior unit upgrades, makes it a generational value-add opportunity in one of Chicago’s premier neighborhoods.
OPPORTUNITIES TO UPGRADE UNIT INTERIORS
NEW COUNTERTOPS TILE BACKSPLASH NEW APPLIANCES Upgrade with quartz Add new tile backsplash Upgrade appliance countertops package to stainless steel
NEW CABINETS NEW HARDWARE Upgrade with 42” Upgrade hardware designer cabinets NEW FLOORING Add designer plank flooring throughout the unit
KITCHEN
NEW FLOORING Add designer plank flooring throughout the unit NEW CABINETS Upgrade cabinets, NEW SHOWER countertops, Upgrade shower/bath lighting and fixtures and tile
BEDROOM BATHROOM
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VALUE-ADD OPPORTUNITIES McCLURG’S WALL-TO-WALL GLASS AND SKIM COAT CEILINGS PROVIDE A MODERN CANVAS ON WHICH TO UPGRADE AND MODERNIZE WITH PREMIUM FINISHES
NEW FLOORING Add designer plank flooring throughout the unit
LIVING ROOM
OPPORTUNITIES TO UPGRADE AMENITIES The current owner renovated all residential hallways, refinished the residential entrances and lobbies, renovated the leasing center, created a new entertainment room and clubroom, added a large bike storage area, created a sports lounge and yoga studio adjacent to the fitness center, created dynamic laundry rooms, and completely redesigned the outdoor amenity deck. With all of these improvements, opportunities still exist for additional upgrades, including repurposing a portion of or all of three regulation indoor tennis courts and the Property’s large storage rooms on the second floor. With an exceptional location and a large mixed- use space with which to work, the market will reward investors for additional improvements throughout McClurg Court.
INDOOR PAVILION WITH THREE REGULATION TENNIS COURTS
5 MARKET-LEADING AMENITY PACKAGE
INDOOR SWIMMING POOL YOGA STUDIO / INTEGRATED FITNESS ON DEMAND
RENOVATED LOCKER ROOMS UPGRADED FITNESS CENTER OUTSTANDING AMENITIES OUTSTANDING AMENITIES
SPORTS LOUNGE FIRST FLOOR CLUBROOM/WORKROOM
THREE FULL-SIZE INDOOR TENNIS COURTS ENTERTAINMENT ROOM WITH KITCHEN AND TVS
6 McCLURG McCLURG COURT COURT 15,000SF SUNDECK WITH LOUNGE AREAS, PERGOLA, AND NEW FIRE PIT
NEW PERGOLA WITH KITCHENETTE, TV, AND SEATING BRAND NEW GRILLING STATIONS
NEW BOCCE BALL COURT NEW FIRE PIT OUTSTANDING AMENITIES OUTSTANDING AMENITIES
NEW PACKAGE LOCKERS ON-SITE BOCKWINKELS OPEN 7 DAYS/WEEK
RESIDENTIAL HEATED GARAGE ON-SITE BIKE STORAGE AND MAINTENANCE
7 McCLURG COURT IS COMPETITIVELY POSITIONED FOR STRONG RENT GROWTH COMPETITIVE POSITION IN STREETERVILLE FAVORS RENT GROWTH Since 2013, seven luxury apartment buildings delivered 2,920 new BY THE units in the Streeterville submarket. These projects include One Bennett Park, Moment, 465 N Park, Optima Chicago Center, North NUMBERS Water, 500 Lake Shore Drive, and Optima Signature. All properties MAY 2019 except One Bennett Park and 465 N Park are stabilized. McClurg Court enjoys a favorable competitive position within the Streeterville rental market. As a vintage apartment building with LEASED over 1,000 units, McClurg Court offers an affordable, amenity rich living experience in a neighborhood dominated by newer luxury RENT $1,852 high-rise towers. McClurg Court could not be better positioned to meet the demand from the largest and fastest growing segment of renters with rents affordable to those earning 70% to 100% of area median income. McClurg Court serves a dire need while also being opportunistic, given the exceptional unit layouts with prominent LEASED wall-to-wall windows, the world-class Streeterville location and RENT PSF $2.51 exceptional amenity package. An analysis of comparable rents per square foot demonstrate McClurg Court’s opportunity to capture strong rent growth, since the Property features the second lowest average rent per square foot, $2.51 PSF, among the competition. Most new competitors are achieving average rents per square foot well above what McClurg is achieving. Rents in excess of $4.00 PSF are achieved in this submarket because Streeterville enjoys the best location in the City of Chicago. With direct access to Michigan Avenue retail, the Northwestern Hospital System, and high quality jobs in the Loop, this location features the top resident demographics in Chicago, and will continue to demonstrate strong absorption and rent growth in the future.
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NEWEST PROPERTIES McCLURG (2013-2019) COURT 444 UNITS 279 UNITS 1,061UNITS 2,920UNITS 739 AVG SF 937AVG SF* $1,852 AVG LEASED RENT $3,505AVG RENT* 325UNITS $2.51AVG LEASED RENT PSF 490UNITS $3.74AVG RENT PSF*
490UNITS PREVIOUS GENERATION 398UNITS (2000s) 500UNITS
481UNITS 961UNITS 949 AVG SF $2,777AVG RENT $2.93 AVG RENT PSF
VINTAGE 263UNITS 480UNITS (1970s-1990s) 1,925UNITS TOTAL 783AVG SF STREETERVILLE $2,081AVG RENT 567 UNITS 5,806UNITS $2.66AVG RENT PSF 892AVG SF $2,955AVG RENT 615UNITS $3.31AVG RENT PSF 480UNITS
9 WORLD CLASS LOCATION
CONVENIENT LOCATION IN STREETERVILLE McClurg Court offers unmatched walkability in Streeterville, Chicago’s premier neighborhood for stable job growth, top entertainment destinations, top-of-market housing, and convenient access to the best of downtown Chicago. Streeterville, known for its high concentration of renowned restaurants, hotels, shopping and entertainment venues, is one of the most affluent neighborhoods in Chicago.
McClurg Court enjoys a best-in-class location within Streeterville, given its proximity to one of the largest medical districts in the country, a premier shopping destination, and only one block west of Chicago’s famed lakefront with numerous parks, trails, and beaches. The MCCLURG COURT IS ADJACENT TO ONE immediate area also includes some of Chicago’s finest housing, further OF THE LARGEST MEDICAL DISTRICTS IN supporting the long-term viability of this neighborhood as Chicago continues to grow. THE COUNTRY, WITHIN BLOCKS OF ONE OF THE PREMIER SHOPPING DESTINATIONS IN The Streeterville neighborhood is a stable and consistently growing job THE WORLD, AND ONLY ONE BLOCK WEST market in Chicago because it has become the premier medical district OF CHICAGO’S FAMED LAKEFRONT WITH in the Midwest. The neighborhood is home to the ever expanding NUMEROUS PARKS, TRAILS, AND BEACHES. Northwestern Memorial Hospital, the new Ann and Robert H. Lurie Children’s Hospital, the Shirley Ryan AbilityLab®, the Chicago campus of Northwestern University including the Feinberg School of Medicine, and all the ancillary medical and institutional businesses servicing to this world-class medical district. In addition, the Northwestern Pritzker School of Law is located within blocks of McClurg Court.
In just the last 20 years, downtown Chicago has achieved a critical mass of civic amenities and residential population that is rapidly accelerating. The population growth has fueled the development of internationally-acclaimed attractions and day-to-day amenities.
WALKABILITY McClurg Court is a “Walker’s Paradise” with a Walk Score® of 99. McClurg Court also enjoys a Transit Score® of 100, which is “Rider’s Paradise”, meaning this location represents world-class public transportation access, and a Bike Score® of 83, which is “Very Bikeable”.
WALK TRANSIT BIKE SCORE® SCORE® SCORE® 99 100 83 WALKER’S PARADISE RIDER’S PARADISE VERY BIKEABLE
Walkable neighborhood amenities include abundant restaurants and bars, coffee and sandwich shops, neighborhood and full-service grocers, arts and health centers, shopping, and entertainment venues. Michigan Avenue, River North, the Gold Coast, the New East Side, Millennium Park, and Chicago’s Loop are all within walking distance, as are a new Whole Foods grocery store, Starbucks, Target, abundant fast-casual dining options including Panera Bread, Corner Bakery, and Chipotle, plus a W Hotel, a new Loews Hotel, an AMC movie theater, IMAX at Navy Pier, and Lake Michigan’s spectacular parks, paths, and beaches.
10 McCLURG McCLURG COURT COURT
DOWNTOWN CHICAGO MEDICAL CAMPUS OF NORTHWESTERN MEDICINE
Me ori al ospital
Memorial Hospital C IC GO ENUE N 211 E. nn rentice Northwestern Universit OU ER L E OE RI E L E Chicago Ro ert . Lurie Children s Wo en s Fein erg chool of Medicine, MIC IG N NORTHWESTERN 737 N. Michigan ospital ospital ellogg chool of Manage ent, MEMORIAL HOSPITAL Offices of Chicago and ritzker chool of Law U ERIOR REE AFFILIATED PHYSICIANS CHICAGO AVENUE Ro ert . Lurie 1,900 arking Olson Medical 333 E. uron 150 E. hirle R an ilit La Ann & uron uperior avilion Research urchased NW N EMPLOYEES 211 E.& STAFF Prentice uron Center 242LA edsKE l 1.2M F 7,000 Chicago Robert H. Lurie Offices Northwestern University Opened 2017 Children’s Women’s URON REE MICHIGAN RANKED737 N. Michigan HOSPITAL IN HospitIL al HospitalE Feinberg School of Medicine
#1 EN U rkes of Chicago Northwestern Me orial ospital Fa il OUTER LAKE SHORE DRIVE ite Owned NW for INNER LAKE SHORE DRIVE 680 N. N
avilion Galter Fein erg G Future evelop ent Lake hore rive SUPERIOR avilio STREEn T avilion Offices MIC I
ERIE REE Robert H. Lurie NORTHWESTERN FEINBERG 645 N. 25R9 ehabili arkingtation arking herle 446 E. Parking A Olson Michigan Medical East ErieInstitu teErie Erie R an Ontario 150 E. Huron Superior Pavilion Offices Research Outpatient SCHOOL OF MEDICINE of ChicagoOntario Ontario ilit La Offices Huron Center
ON RIO REE E
1,130,000 SF E UR R HURON STREET UR i pson uerre
CO io edical Research Center G CO IR E R
STUDENTS U 370M ro ect l 2,000 o s 3,300 L N Arkes C
R 600,000 F hase I 2019 C I
Northwestern Memorial Hospital N CL I M VENU Family F 600,000 F hase II 680 N. $400M ANNUAL RESEARCH O IO REE Pavilion Galter Feinberg Lake Shore Drive GA N A Pavilion Pavilion 330M Northwestern Medicine 541 N. Outpatient Facilit Fair anks MICHI Opened 2014 l 900 o s Offices ANN & ROBERT H. LURIE ERIE STREET Northwestern Me orial ospital 645 N. 259 7 Entrance 11 Northwestern Me orial 16 THEFein e BESTrg and Galter NEIGHBOR avilionsParking ANC ParkingAPARTMENT250 DE. uperio r PROPERTY t. CAN ealth HAVECare u an Resources 645 N. Michigan ve. CHILDREN’SMichigan HOSPITAL East Erie 541 N. Fair anks Court 1 Main drive-through entrance Ro ert . Lurie 446 1E.7 rkes Fa il avilion McClurg Court is located Erie among Erie one of the largest and1 7mostth Floor prominent medical campuses Parking251 E. u Bron t. Ontario OntariCoo prehensive Cancer Center Ontario 1,300+ PHYSICIANS in 2theE e rcountry.genc epart e nThet campus of Northwesternof Northwestern Universit Medicine 12 t oneincludes Institute of s hospital,chiatr office,676 N. aint Cparking,lair t. 250 E. uperior t. 250 E. Erie t. 18 and outpatient services and research spaceONTARI Oon STR overEET 208 acresEntrance of land in the Streeterville neighborhoodI ag ofing Cedowntownnter T Onterie Center 4,000 EMPLOYEES Galter avilion Corner of Chicago venue 676 N. aint Clair t. EE 446 E. Ontario t. Chicago. The campus is homeand toFair anks the Co ur fourt major medical pavilions of Northwestern
TR 3 tone Institute of s chiatr OURT 19 OURT 13 Memorial201 E. u ro Hospitaln t. (NMH) and its directly-related entities including Prentice680 N. L ak Women’se hore rive PEDIATRIC SPECIALTIES S C 70 IR S Other Loca tions 211 E. Chicago ve. 4 LA Hospital, the 259 Erie Outpatient Care Pavilion, the new Simpson Querry renti ce Biomedical ulator Clinic 9 259 East Erie t. UR G C 14 201 E. uron t. 680 N. Lake hore rive BANK
Entrance and parking CL 737 N. Michigan ve . IR NT C Research Center, medical and back-office space in six buildings, plus land holdings for 5 Ro ert . Lurie Co prehensive Cancer Entrance on Chicago venue evelop ental MC AI reoperative Clinic Center of NorthweFA stern Universit Evaluation Clinic S future development. The campus17th Fisloo ralso home to separate but related entities including 675 N. aint Clair Ot.HIO STREET 15 680 N. Lake hore rive 150 E. uron t. SHIRLEY RYAN the a eNorthwestern a urger University Feinberg10 Olson avilio nSchool of Medicine, the Ann and Robert H. Lurie 675 N. aint Clair t., Fifth Floor ulator urger Center Children’s Hospital of Chicago, 7the10 N. FaShirleyir anks Cour Ryant AbilityLab® (fka Rehabilitation Institute ABILITYLAB® 541 N. rentice Wo en s ospital ixth Floor of Chicago), andFa theirbank downtowns Chicago campus of Northwestern University including the 6 Main drive-through entrance $550M ABILITYLAB HOSPITAL Pritzker250 E. upeSchoolrior t. of Law. The campus is home to over approximately 12,000 employees and staff, 3,200 physicians, and 4,000 medical students, fellows, residents, and law 1.2M SF OPENED MARCH 2017 Northwestern Memorial Hospital students. Since 2007, five major new development projects totaling $2.6 billion in ●7 Entrance ●11 Northwestern Memorial ●16 Physician offices 950+Feinberg and STAFFGalter Pavilions 250development E. Superior St. have added overHealthCare 7,400 newHuman jobs Resources to the campus.645 N. Michigan Ave. 541 N. Fairbanks Court ●1 Main drive-through entrance Robert H. Lurie 17 Arkes Family Pavilion 17th Floor ● 500251 E.NEW Huron St. JOBS Comprehensive Cancer Center Physician offices ●2 Emergency Department of Northwestern University ●12 Stone Institute of Psychiatry 676 N. Saint Clair St. 250 E. Superior St. Administrative offices 250 E. Erie St. 18 Northwestern Memorial and outpatient services ● 8 Entrance Imaging Center ● Onterie Center PRITZKERGalter Pavilion SCHOOL OF LAW Corner of Chicago Avenue 676 N. Saint Clair St. 446 E. Ontario St. and Fairbanks Court AT3 NORTHWESTERNStone Institute of Psychiatry 19 Physician offices ● 13 Physician offices ● 201 E. Huron St. ● 680 N. Lake Shore Drive Other Locations 211 E. Chicago Ave. 700+4 Physician STUDENTS offices Prentice Ambulatory Clinic ● 9 259 East Erie St. 14 Physician offices 201 E. Huron St. ● ● 680 N. Lake Shore Drive 190 FACULTY Entrance and parking 737 N. Michigan Ave. 5 Robert H. Lurie Comprehensive Cancer (Entrance on Chicago Avenue) Developmental ● Preoperative Clinic Center of Northwestern University Evaluation Clinic #12 RANKED LAW SCHOOL 17th Floor 15 675 N. Saint Clair St. ● Physician offices 680 N. Lake Shore Drive 150 E. Huron St. Same Day Surgery ●10 Olson Pavilion Ambulatory Surgery Center 675 N. Saint Clair St., Fifth Floor 259 PAVILION OUTPATIENT SHIRLEY RYAN ABILITYLAB SIMPSON QUERREY RESEARCH 710 N. Fairbanks Court Prentice Women’s Hospital Sixth Floor 11 ●6 Main drive-through entrance 250 E. Superior St. McCLURG COURT
THE INVITATION Moran & Company invites you to explore this exciting investment opportunity. All prospective purchasers desiring complete sales materials Peter W. Evans should sign the Confidentiality Agreement and send it to Pete Evans [email protected] at [email protected]. The sales materials will be available 312.407.6711 electronically for downloading/printing on the Moran & Company website Chicago Office: (www.moranandco.com). A hard copy of the Offering Memorandum will be One North Franklin, Suite 700, Chicago, IL 60606 mailed to you upon request. To schedule a property tour, please call Pete Evans at 312.407.6711. Phone 312-407-6700 No warranty or representation, expressed or implied, is made as to the accuracy or completeness of the information www.moranandco.com contained herein. No legal obligation shall arise by reason of the distribution of this summary statement.
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