Chicago, Illinois - LoopNet · 2018. 6. 26. · Area Tenants Include: Walgreens, AutoZone, Advanced Auto Parts, Dollar Tree, Dunkin’ Donuts, BP, Shell, KFC, Subway and many more

5931-5939 W. North Avenue

Jason Yale Colliers International

+1 847 384 [email protected]

Chicago, Illinois

EXECUTIVE SUMMARY

Executive SummaryInvestment Highlights & Offering Summary

PROPERTY INFORMATION

Property DescriptionProperty AerialRetail MapProperty & Area Photographs

FINANCIALS

LOCATION OVERVIEW

Location OverviewArea MapDemographics Disclaimer

Table of Contents

2FOR SALE 5931-5939 W. NORTH AVENUE // Chicago // Illinois

Executive Summary

Colliers International is pleased to present for sale a 90.76% leased retail center, located at 5931-5939 W. North Avenue in Chicago, Illinois. The property is located 9 miles from the city’s central business district (CBD) and just minutes from suburban Oak Park (54,000 residents). Chicago has a population of over 2.716 million people and is the 3rd largest Metro area in the country. This property sits on North Avenue, a major East-West retail corridor, surrounded by tenants like Walgreens, AutoZone, Advanced Auto Parts, Dollar Tree, Dunkin’ Donuts, BP, Shell, KFC, Subway and more.

This high yield investment opportunity benefits immensely from its Chicago location, low price per square foot and location along North Avenue with 31,400 vehicles per day.

This 9,217 square foot, neighborhood retail center is being offered at a 10.34% cap rate or $699,000.

Executive Summary


Investment Highlights & Offering Summary• Chicago, Illinois Location (Population over 2.71 million people)

• High Yield Opportunity

• Low Price Per Square Foot

• Value Add Component in leasing up vacant space

• 31,400 Vehicles per day on North Avenue

• Area Tenants Include: Walgreens, AutoZone, Advanced Auto Parts, Dollar Tree, Dunkin’ Donuts, BP, Shell, KFC, Subway and many more.


ASKING PRICE: $699,000

CAP RATE: 10.34%

PRICE PER SF: $75.84

NOI: $72,270

BUILDING SIZE: ± 9,217 SF

LAND SIZE: ± .23 ACRES

OCCUPANCY: 90.76%

Property Information

Property Description

PROPERTY ADDRESS:

5931-5939 W. North Avenue in Chicago, Illinois 60639

GLA: +/- 9,217 SF

OCCUPANCY: 90.76%

PRICE PER SQUARE FOOT: $75.84

OFFERING PRICE: $ 699,000

YEAR ONE NOI: $ 72,270

CURRENT YIELD: 10.34%


Property Aerial


5931-5939 W. NORTH AVENUE

NORTH AVE 31,400

AUST

IN A

VE 1

4,60

0

Retail Map



31,400

14,6

00

Property & Area Photographs


Financials


5931-5939 North Avenue Chicago, ILExecutive Summary

Property Description

Total Net Rentable Area (RSF) 9,217 Analysis Start Date October 1, 2018Address 5931-5939 W North Ave Occupancy as of Analysis Start 90.24%

Chicago, IL Holding Period 10 years

Purchase Price $699,000 Loan-To-Value 75%Purchase Price per RSF $75.84 Interest Rate 4.00%Year 1 NOI $72,270 Amortization (Yrs) 30Cap Rate on In-Place Income 10.34% Equity Contribution $174,750

Gross Residual Value $833,150 10 Year Leveraged IRR 28.63%Gross Residual Value per SF $90.39Exit Cap Rate 10.34%Cost of Sale 4.00%

A10 Year Unleveraged IRR 11.91%

Unleveraged - All Cash Analysis Leveraged - w/Debt Financing(1)

1) Assumes the same disposition assumptions as the all cash analysis . Loan assumes Purchase Price plus associated fees and costs.


5931-5939 North Avenue Chicago, ILMarket Leasing Assumptions

General Assumptions

Analysis Start Date 10/1/2018 Net Rentable AreaOccupancy as of Start Date 90.24% Occupied 8,317 90.24%Holding Period 10 years Available 900 9.8%Space Type Retail Total 9,217 100.0%Reimbursements Gross

Purchase Price Annual Growth/Inflation RatePurchase Amount $699,000 Expenses 3.00%Per NRA $75.84 Property Taxes 3.00%General Vacancy 10.00%

Market Assumptions - Retail New / RenewalRenewal Probability 70.00%Market Rent $13.50 GrossMarket Escalations NoneMarket Recoveries None

Tenant Improvements $0.00Rent Abatement 1 Month GrossCommissions 3.00%

Lease Up Assumptions - Current Vacancies

#Available Space RSF Lease Start Lease End Term (Yrs) Year 1 Rent

RentEscalation Recoveries TI Free Rent (Mos)

Leasing Commissions

1 5935 900 5/1/2019 4/30/2022 3 Years $13.50/SF None Gross $0.00/SF 1 Month Gross 3.00%


5931-5939 North Avenue Chicago, ILRent Roll

Lease Lease Base RentTenant Suite Size (RSF) Bldg Share Reimbursements Commencement Expiration $/SF Escalations Options / Renewals

Ben's BBQ 5931 1,307 14.18% None 1/31/2017 12/31/2019 $18.36 None N/A

Mechanic Shop 5931 1,250 13.56% None 5/1/2016 4/30/2019 $9.12 None N/A

DJ Sub Sandwich 5933 960 10.42% None 11/1/2017 10/31/2020 $16.88 None N/A

Women's Makeup Shop 5937 900 9.76% None 11/1/2015 8/31/2021 $12.67 None N/A

*Assumed 3 Year Renewal.

Barber Shop 5939 900 9.76% None 9/1/2016 8/31/2021 $14.00 None N/A

*Assumed 3 Year Renewal.

Church 1546 1,500 16.27% None 4/1/2016 12/31/2019 $10.00 None N/A

Beauty Salon 1550 750 8.14% None 9/15/2016 12/31/2019 $14.72 None N/A

Party Planning 1552 750 8.14% None 8/1/2016 11/30/2019 $12.80 None N/A

8,317 90.24%


5931-5939 North Avenue Chicago, ILLease Expiration Schedule

Year # Expirations Rentable Area % of NRA2018 0 0 0.00%2019 5 5,557 60.29%2020 1 960 10.42%2021 2 1,800 19.53%2022 0 0 0.00%2023 0 0 0.00%2024 0 0 0.00%2025 0 0 0.00%2026 0 0 0.00%2027 0 0 0.00%2028 0 0 0.00%

1,307 960 900

1,250

900

1,500

750

3,980

0

1,000

2,000

3,000

4,000

5,000

6,000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028


5931-5939 North Avenue Chicago, ILSummarized ReturnsNet Rentable Area: 9,217

9/1/2019 9/1/2020 9/1/2021 9/1/2022 9/1/2023 9/1/2024 9/1/2025 9/1/2026 9/1/2027 9/1/2028 9/1/2029NOI $72,270 $75,731 $80,084 $77,740 $78,093 $89,908 $84,932 $82,915 $98,876 $95,686 $86,139Net CF $69,655 $70,225 $78,820 $72,454 $72,077 $88,526 $80,931 $74,489 $97,367 $92,771 $75,414

Purchase Price Cap Rate Cumulative Cash on Cash Returns$ Amount $/RSF Spread Year 3 Year 5 Year 10$753,672 $81.77 9.59% 116.07% 192.78% 423.16%$734,522 $79.69 9.84% 119.10% 197.81% 434.20%$716,321 $77.72 10.09% 122.12% 202.83% 445.23%$699,000 $75.84 10.34% 125.15% 207.86% 456.26%$682,497 $74.05 10.59% 128.18% 212.88% 467.29%$666,755 $72.34 10.84% 131.20% 217.91% 478.33%$651,723 $70.71 11.09% 134.23% 222.94% 489.36%

Exit Cap 9.59% 9.84% 10.09% 10.34% 10.59% 10.84% 11.09%Going-In Cap $898,314 $875,489 $853,795 $833,150 $813,480 $794,717 $776,800

9.59% $753,672 11.15% 10.99% 10.83% 10.68% 10.53% 10.39% 10.25%9.84% $734,522 11.57% 11.41% 11.25% 11.10% 10.95% 10.81% 10.67%

10.09% $716,321 11.98% 11.82% 11.66% 11.51% 11.36% 11.22% 11.08%10.34% $699,000 12.38% 12.22% 12.06% 11.91% 11.76% 11.62% 11.49%10.59% $682,497 12.78% 12.62% 12.46% 12.31% 12.16% 12.02% 11.89%10.84% $666,755 13.17% 13.01% 12.85% 12.70% 12.56% 12.41% 12.28%11.09% $651,723 13.56% 13.40% 13.24% 13.09% 12.94% 12.80% 12.67%

Exit Cap 9.59% 9.84% 10.09% 10.34% 10.59% 10.84% 11.09%Going-In Cap $898,314 $875,489 $853,795 $833,150 $813,480 $794,717 $776,800

9.59% $753,672 26.07% 25.79% 25.53% 25.27% 25.01% 24.77% 24.53%9.84% $734,522 27.18% 26.92% 26.66% 26.41% 26.17% 25.93% 25.70%

10.09% $716,321 28.27% 28.02% 27.77% 27.53% 27.30% 27.07% 26.84%10.34% $699,000 29.35% 29.10% 28.86% 28.63% 28.40% 28.18% 27.97%10.59% $682,497 30.41% 30.17% 29.94% 29.71% 29.49% 29.28% 29.07%10.84% $666,755 31.45% 31.22% 30.99% 30.78% 30.56% 30.36% 30.16%11.09% $651,723 32.48% 32.25% 32.04% 31.82% 31.62% 31.42% 31.23%

* Sale Price based on Year 11 NOI.

Leveraged w/Debt Financing (75.0% LTV) - Range of Internal Rate of Return (IRR) Based on Purchase Price & Exit Cap @ Disposition

Cash on Cash Returns

Sensitivity Matrix - Internal Rate of Return (IRR) Based on Purchase Price & Exit Cap @ Disposition Unleveraged All Cash Sensitivity - Range of Internal Rate of Return (IRR) Based on Purchase Price & Exit Cap @ Disposition


Investor PurchaseEnter Selling Period 10 1

5931-5939 North Avenue Chicago, IL

Dates Sep-19 Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 Sep-25 Sep-26 Sep-27 Sep-28 Sep-29Year 0 1 2 3 4 5 6 7 8 9 10 11

IncomeBase Rental Revenue $126,004 $130,974 $129,692 $132,970 $138,488 $141,773 $145,475 $151,158 $155,551 $158,342 $164,386Absorption & Turnover Vacancy -$10,106 -$10,255 -$4,504 -$7,657 -$11,234 -$2,579 -$9,056 -$14,005 -$2,818 -$6,804 -$18,555 Free Rent -$1,447 -$1,542 -$354 -$1,481 -$1,685 -$387 -$1,121 -$2,360 -$423 -$816 -$3,004

Effective Gross Income $114,451 $119,177 $124,834 $123,832 $125,569 $138,807 $135,298 $134,793 $152,310 $150,722 $142,827

Operating Expenses RE Taxes $27,865 $28,701 $29,562 $30,449 $31,362 $32,303 $33,272 $34,271 $35,299 $36,358 $37,448 Operating Expenses $14,316 $14,746 $15,188 $15,644 $16,113 $16,596 $17,094 $17,607 $18,135 $18,679 $19,240Total Operating Expenses $42,181 $43,447 $44,750 $46,093 $47,475 $48,900 $50,367 $51,878 $53,434 $55,037 $56,688

NOI $72,270 $75,731 $80,084 $77,740 $78,093 $89,908 $84,932 $82,915 $98,876 $95,686 $86,139

Leasing and Capital Costs Leasing Commissions $2,614 $5,505 $1,264 $5,285 $6,016 $1,381 $4,001 $8,426 $1,509 $2,915 $10,725Total Leasing and Capital Costs $2,614 $5,505 $1,264 $5,285 $6,016 $1,381 $4,001 $8,426 $1,509 $2,915 $10,725

Cash Flow $69,655 $70,225 $78,820 $72,454 $72,077 $88,526 $80,931 $74,489 $97,367 $92,771 $75,414

Investor Exit Cap 10.34% $0 $0 $0 $0 $0 $0 $0 $0 $0 $833,150 $0Closing Costs 4.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 ($33,326) $0Net Sales Proceeds $0 $0 $0 $0 $0 $0 $0 $0 $0 $799,824 $0

Unleveraged Cash Flow ($699,000) $69,655 $70,225 $78,820 $72,454 $72,077 $88,526 $80,931 $74,489 $97,367 $892,595 $0

Less Loan Payoff $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($417,844) $0Loan Amount $530,366Debt Service (Principal + Interest) ($30,385) ($30,385) ($30,385) ($30,385) ($30,385) ($30,385) ($30,385) ($30,385) ($30,385) ($30,385) $0Leveraged Cash Flow ($174,750) $39,271 $39,841 $48,435 $42,070 $41,693 $58,142 $50,546 $44,104 $66,982 $444,367 $0

Investor Unleveraged IRR 11.91%Unleveraged Cash Flow $898,140

Investor Leveraged IRR 28.63%Leveraged Cash Flow $700,700

Location Overview

Location Overview

AUSTIN NEIGHBORHOOD

Austin is the largest of Chicago’s 77 neighborhoods (both geographically and by population), is located on the west side of the city and is close to the Green Line and I-290. The Austin community area is made up of four neighborhoods; Galewood, The Island, North Austin and South Austin. North Avenue is a major commercial corridor for the neighborhood.

CHICAGO, IL

Chicago is the third most populous city in the United states with over 2.7 million residents. It is also the largest city in the state of Illinois and the county seat of Cook County. The property sits on the border of Oak Park. It is in close proximity to Chicago’s major airports, O’Hare International Airport (10 Miles) and Midway Airport (8 Miles). Downtown Chicago is only 9 miles from Oak Park via Eisenhower Expressway or public transportation.

The Chicago MSA is the third largest metropolitan area in the U. S. with around 10 million residents and an employment base of over 4.5 million people. Chicago is the economic and cultural capital of the Midwest, and is home to the headquarters of twenty-nine Fortune 500 corporations.

The property is located on the busy street of North Avenue, where traffic counts reach 34,000 VPD, and the North Avenue/Austin CTA stop is conveniently positioned right in front of the property. The Galewood Metra Station of Metra’s Milwaukee District/West line is located 1 mile from the subject property.


Area Map



Demographics11530 MIDLOTHIAN TURNPIKE 1 MI RADIUS 3 MI RADIUS 5 MI RADIUSPOPULATION

2000 Census 52,934 437,188 1,076,517

2010 Census 47,555 406,443 1,002,706

2018 Estimate 46,480 398,368 986,828

2023 Projection 46,005 394,498 979,119

POPULATION GROWTH

Percent Change: 2000 to 2010 -10.16 -7.03 -6.86



HOUSEHOLDS

2000 Census 15,663 141,016 357,517

2010 Census 14,979 135,758 347,366

2018 Estimate 14,885 135,144 347,793

2023 Projection 14,832 134,677 347,520

HOUSEHOLD GROWTH


Percent Change: 2010 to 2018 -0.63 -0.45 0.12


2018 EST. POPULATION BY SINGLE-CLASSIFICATION RACE COUNT % COUNT % COUNT %

White Alone 10,701 23.02 172,884 43.40 495,148 50.18

Black/African American Alone 24,856 53.48 111,898 28.09 222,759 22.57

American Indian/Alaskan Native Alone 252 0.54 2,616 0.66 5,804 0.59

Asian Alone 768 1.65 10,526 2.64 36,317 3.68

Native Hawaiian/Pacific Islander Alone 29 0.06 233 0.06 485 0.05

Some Other Race Alone 8,654 18.62 86,729 21.77 192,425 19.50

Two or More Races 1,220 2.63 13,482 3.38 33,890 3.43

2018 EST. POPULATION BY HISPANIC OR LATINO ORIGIN COUNT % COUNT % COUNT %

Not Hispanic or Latino 31,617 68.02 223,515 56.11 561,182 56.87

Hispanic or Latino 14,864 31.98 174,852 43.89 425,646 43.13

1 MI RADIUS 3 MI RADIUS 5 MI RADIUS2018 EST. OCCUPIED HOUSING BY TENURE COUNT % COUNT % COUNT %

Housing Units, Owner-Occupied 8,075 54.25 67,890 50.23 167,594 48.19

Housing Units, Renter-Occupied 6,809 45.74 67,254 49.77 180,198 51.81

2018 EST. AVERAGE HOUSEHOLD SIZE

Total Percentage 3.11 2.92 2.81

2018 EST. HOUSEHOLDS BY HH INCOME COUNT % COUNT % COUNT %

Income < $15,000 1,963 13.19 18,501 13.69 45,136 12.98

Income $15,000 - $24,999 1,862 12.51 15,446 11.43 37,471 10.77

Income $25,000 - $34,999 1,719 11.55 14,508 10.73 35,297 10.15

Income $35,000 - $49,999 2,053 13.79 18,695 13.83 47,083 13.54

Income $50,000 - $74,999 2,127 14.29 21,335 15.79 55,564 15.98

Income $75,000 - $99,999 1,566 10.52 14,432 10.68 39,377 11.32

Income $100,000 - $124,999 1,088 7.31 10,231 7.57 28,094 8.08

Income $125,000 - $149,999 720 4.84 6,727 4.98 19,045 5.48

Income $150,000 - $199,999 724 4.86 6,359 4.71 18,826 5.41

Income $200,000 - $249,999 382 2.57 3,110 2.30 9,261 2.66

Income $250,000 - $499,999 415 2.79 3,518 2.60 8,503 2.44

Income $500,000+ 265 1.78 2,283 1.69 4,137 1.19

2018 Est. Average Household Income 79,684.48 78,823.40 78,964.00

2018 Est. Median Household Income 48,695.16 50,397.97 53,369.87

2018 MEDIAN HH INC. BY SINGLE-CLASS RACE OR ETHNICITY

White Alone 87,524.80 62,201.32 63,410.25

Black or African American Alone 40,727.60 35,711.41 33,593.26

American Indian and Alaskan Native Alone 46,174.35 51,749.11 49,235.24

Asian Alone 57,867.51 83,834.90 80,599.36

Native Hawaiian and Other Pacific Islander Alone 114,062.50 63,424.00 60,334.20

Some Other Race Alone 44,085.97 46,848.70 48,624.58

Two or More Races 56,190.84 61,695.06 61,484.03

Hispanic or Latino 46,303.83 49,035.89 49,613.08

Not Hispanic or Latino 49,863.56 51,360.97 55,965.75


CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of the property at 5931-5939 W. North Avenue in Chicago, Illinois. 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 Peter Block from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representa-tion 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 the property at 5931-5939 W. North Avenue in Chicago, Illinois or in the future you discontinue such negotia-tions, 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.


Documents

Chicago, Illinois - LoopNet · 2018. 6. 26. · Area Tenants Include: Walgreens, AutoZone, Advanced Auto Parts, Dollar Tree, Dunkin’ Donuts, BP, Shell, KFC, Subway and many more