OFFERING MEMORANDUM - LoopNet...3134-3136 WEST MARQUETTE ROAD # PROPERTY SUMMARY OFFERING SUMMARY PROPOSED FINANCING First Trust Deed Loan Amount $1,230,000 Loan Type Proposed New

3134-3136 WEST MARQUETTE ROADChicago, IL 60629

OFFERING MEMORANDUM

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to

be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other

person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to

provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of

interest in the subject property. The information contained herein is not a substitute for a thorough due diligence

investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with

respect to the income or expenses for the subject property, the future projected financial performance of the

property, the size and square footage of the property and improvements, the presence or absence of contaminating

substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the

improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or

intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure

has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding

these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the

information provided. All potential buyers must take appropriate measures to verify all of the information set forth

herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017

Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in

this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply

affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or

subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for

the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

3134-3136 WEST MARQUETTE ROAD

Chicago, IL

ACT ID Y0670454

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Property Photos

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Rent Roll Summary

Rent Roll Detail

Rent Roll Summary Commercial

Operating Statement

Pricing Detail

MARKET COMPARABLES 03Sales Comparables

MARKET OVERVIEW 04

Market Analysis

Demographic Analysis



4

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Alden-Wentworth Nursing Center 3,102

Go Airport Shuttle 2,500

Little Company of Mary Hospita 2,200

City of Chicago 2,144

Streets and Sanitation Dept 2,010

Little Co of Marys Hospital 2,000

2800 Gift Shop The 1,700

Ford 1,518

Walgreens 1,507

Holy Cross Hospital 1,380

Edsal Manufacturing Co Inc 1,300

Water Management Dept of 1,178

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2016 Estimate Pop 55,901 331,010 731,538

2016 Census Pop 55,573 328,684 724,813

2016 Estimate HH 15,133 94,770 230,924

2016 Census HH 14,986 93,753 227,570

Median HH Income $37,531 $39,756 $41,369

Per Capita Income $13,227 $15,034 $18,202

Average HH Income $48,609 $52,246 $56,797

VITAL DATA

CURRENT YEAR 1

Price $1,640,000 CAP Rate 8.72% 9.59%

Down Payment 25% / $410,000 Net Operating Income $142,973 $157,309

Loan Amount $1,230,000 Net Cash Flow After Debt Service 14.86% / $60,932 18.36% / $75,268

Loan Type Proposed New Total Return 21.51% / $88,181 25.31% / $103,768

Interest Rate / Amortization 4.50% / 25 Years

Total Rentable SF 21,300

Price/SF $77.00

Year Built 1928

5

UNIT MIX

UNIT COUNT

UNIT TYPE AVG. SFCURRENT AVG.

RENTSAVG.

RENTS/SFMONTHLY INCOME

POTENTIAL RENTS

AVG. RENTS/SF

MONTHLYINCOME

9 Studio 1 Bath 450 $537 $1.19 $4,835 $600 $1.33 $5,400

27 1 Bdr 1 Bath 500 $647 $1.29 $17,460 $700 $1.40 $18,900

SUITE COUNT

TYPE TOTAL GLA CURRENT RENT RANGECURRENT MONTHLY

INCOMEPRO FORMA

MONTHLY INCOME

5 Retail 3,750 $300 - $850 $2,650 $2,650


#

OFFERING SUMMARY

▪ Mixed-Use Property with 36 Apartments and Five Retail

▪ Convenient Access to Multiple Modes of Public Transportation

▪ High Visibility on Marquette Road with Approximately 14,500 Vehicles per Day

▪ Just North of Marquette Park

▪ Near Ford City Mall, Bedford City Square, Summit Shopping Center

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present a mixed-use property located at 3134-3136 West Marquette Road in Chicago, Illinois. The property is

located in the Chicago Lawn neighborhood and is approximately 11 miles southwest of the Chicago Loop. The area provides convenient

access to Interstate 90/94. The Ashland / 63rd CTA Station is located approximately two-and-a-half miles from the subject property. CTA bus

stops are located on Marquette Road, just footsteps away from the property. Midway International Airport is located approximately three miles

from the property.

The unit mix is comprised of nine studios, 27 one-bedroom / one-bathroom units, and five retail spaces measuring approximately 450, 500, and

750 square feet, respectively.

The property is positioned just north of Marquette Park which is the largest park on the southwest side of Chicago. Approximately three miles

southwest of the property is Ford City Mall, Bedford City Square, and Summit Shopping Center, which feature major retail stores, grocery

markets, and local and franchised restaurants. This investment offers an investor the opportunity to acquire a mixed-use asset and have the

ability to raise rents to market without the need for significant additional capital expenditures.

INVESTMENT OVERVIEW

6


#

PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $1,230,000

Loan Type Proposed New

Interest Rate 4.50%

Amortization 25 Years

Loan Term 5 Years

Loan to Value 75%

Debt Coverage Ratio 1.74

THE OFFERING

Price $1,640,000

Property Address 3134-3136 West Marquette Road, Chicago, IL

Assessors Parcel Number 19-24-124-039-0000

19-24-124-040-0000

SITE DESCRIPTION

Number of Units 41

Number of Buildings One

Number of Stories Four

Year Built/Renovated 1928

Apartments - Rentable Square Feet 17,550

Retail - Gross Leaseable Area (GLA) 3,750

Total Rentable Square Feet 21,300

Lot Size 0.27 acre(s)

Type of Ownership Fee Simple

7

PROPERTY PHOTOS


8

REGIONAL MAP


9

LOCAL MAP


10

AERIAL PHOTO


11


12

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

13

FINANCIAL ANALYSIS


14

RENT ROLL DETAIL

FINANCIAL ANALYSIS


15

RENT ROLL DETAIL

FINANCIAL ANALYSIS


16

RENT ROLL SUMMARY

FINANCIAL ANALYSIS


OPERATING STATEMENT

17

FINANCIAL ANALYSIS


PRICING DETAIL

18


19

MARKET

COMPARABLES

8


SALES COMPARABLES MAP

20


(SUBJECT)

6250 South Mozart Street

6556 South Mozart Street

6201 South Rockwell Street

6003 South Artesian

Avenue

5800 South Troy Street

3000 West 61st Street

SALES COMPARABLES

1

2

3

4

5

6

21

Avg. 12.12%

0

2

3

5

6

8

9

11

12

14

15

3134-3136

West

Marquette

Road

6250 South

Mozart

Street

6201 South

Rockwell

Street

6003 South

Artesian

Avenue

Average Cap Rate

PROPERTY NAME3134-3136 WEST MARQUETTE ROAD

SALES COMPARABLESSALES COMPARABLES SALES COMPS AVG

22


SALES COMPARABLES

Avg. $58.50

$0.00

$7.80

$15.60

$23.40

$31.20

$39.00

$46.80

$54.60

$62.40

$70.20

$78.00

3134-3136

West

Marquette

Road

6250 South

Mozart

Street

6556 South

Mozart

Street

6201 South

Rockwell

Street

6003 South

Artesian

Avenue

5800 South

Troy Street

3000

W 61st St

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

23


SALES COMPARABLES

Avg. $44,545

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

3134-3136

West

Marquette

Road

6250 South

Mozart

Street

6556 South

Mozart

Street

6201 South

Rockwell

Street

6003 South

Artesian

Avenue

5800 South

Troy Street

3000

W 61st St

Average Price Per Unit

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


24

SALES COMPARABLES

Unit Type

Offering Price $1,640,000 9 Studio 1 Bath

Price/Unit: $40,000 27 1 Bdr 1 Bath

Price/SF $77.00 5 Retail

CAP Rate 8.72%

Year Built 1928

Total Apartment Units 36

Total Commercial Suites 5

3134-3136 WEST MARQUETTE ROADChicago, IL 60629

Units Type

Close Of Escrow 6/26/2016 21 1 Bdr 1 Bath

Sales Price $1,250,000 3 Retail

Price/Unit: $52,083

Price/SF $52.00

CAP Rate 10.0%

Year Built 1930

Total Apartment Units 21

Total Commercial Suites 3

1

6250 SOUTH MOZART STREETChicago, IL 60629

Units Unit Type

Close Of Escrow: 10/10/2016 6 1 Bdr 1 Bath

Sales Price: $390,000 2 2 Bdr 1 Bath


Price/SF: $52.86

Total No. of Units: 10

Year Built: 1927

2

6556 SOUTH MOZART STREETChicago, IL 60629

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


25

SALES COMPARABLES

Units Unit Type



Price/Unit: $38,000

Price/SF: $50.67

CAP Rate: 12.37%

GRM: 4.48


Year Built: 1914

3

6201 SOUTH ROCKWELL STREETChicago, IL 60629

4

Units Unit Type




Price/SF: $61.00

CAP Rate: 14.00%


Year Built: 1925

6003 SOUTH ARTESIAN AVENUEChicago, IL 60629

Units Unit Type



Price/Unit: $40,188

Price/SF: $60.00


Year Built: 1925

5

5800 SOUTH TROY STREETChicago, IL 60629

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


26

SALES COMPARABLES

Units Unit Type



Price/Unit: $56,000

Price/SF: $74.44


Year Built: 1924

6

3000 WEST 61ST STREETChicago, IL 60629


27

MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEW

CHICAGO

Chicago-Naperville-Elgin is one of the largest metros in the nation.

Also know as the greater Chicagoland area, it is bounded to the east

by Lake Michigan, expands over a 5,000-square-mile region in

northeastern Illinois and extends into Wisconsin and Indiana. The

metro houses 9.6 million people and comprises 14 counties. The city

of Chicago contains 2.7 million residents. The greatest growth during

the past 20 years occurred in the western portion of the region. In

recent years, however, businesses are relocating back into the city to

attract young workers, supporting the development of high-rise

residential towers in the downtown Chicago.

MARKET OVERVIEW

METRO HIGHLIGHTS

THIRD-LARGEST METROPOLITAN AREA

The metro population trails only New York City and

Los Angeles in size, expanding to nearly 10 million

residents.

WEALTH OF INTELLECTUAL CAPITAL

The number of corporate headquarters in Chicago is

second only to New York City. There are 32 Fortune

500 companies based locally.

LARGE, DIVERSE EMPLOYMENT BASE

The Chicago metro employs more than 4.6 million

individuals in an array of industries, including a

growing tech sector.


28

MARKET OVERVIEWMARKET OVERVIEW

TRANSPORTATION

▪ The region’s transit network ranks among the largest and most

efficient in the world.

▪ The vast network of freeways, centralized location, the largest rail-

truck intermodal facility in the U.S., as well as the Port of Chicago

contribute to the metro’s position as a major distribution and

logistics hub.

▪ Chicago is the nation’s premier freight rail hub, with four carriers,

BNSF, Union Pacific, CSX, Norfolk Southern, servicing the region.

▪ Amtrak routes originate from Union Station, while the Metra

commuter rail and the Chicago L provide passenger service

throughout the metro area and beyond.

▪ International airports include O’Hare, Midway and Gary/Chicago.

Seven smaller airports also provide air service for the region.

MORE THAN OF ILLINOIS RESIDENTS LIVE IN

THE SUBURBS OF CHICAGO,

MANY OF WHOM COMMUTE INTO

THE CITY FOR WORK40%

17.2Million TEU’s

MOVED THROUGH METRO

IN 2015

3CHICAGO HAS

INTERNATIONAL

AIRPORTS

7FOR FREIGHT, PASSENGER

AND COMMUTER

RAIL LINES


29

MARKET OVERVIEW

ECONOMY

▪ The metro has one of the biggest economies in the nation

and is buoyed by its distribution, finance, manufacturing

operations and growing high-tech sectors.

▪ There are 32 Fortune 500 companies headquartered in the

metro including Boeing, Walgreens and McDonald’s.

▪ The area is a major global tourist and convention destination.

Last year, a record 54.1 million people visited the metro

spending $15 billion and supporting 145,000 jobs.

▪ Large tech firms such as Amazon, Groupon and Google

attract startup companies.

▪ The workforce is considered one of the most diverse and well

trained among major U.S. metros.

MAJOR AREA EMPLOYERS

Abbott Labs

Advocate Healthcare

Wal-Mart

Motorola Solutions Inc.

United Continental Holdings Inc.

Allstate Corp.

Walgreens Co.

Target Corp.

JPMorgan Chase

AT&T

SHARE OF 2016 TOTAL EMPLOYMENT

MANUFACTURING GOVERNMENT

HEALTH SERVICES

EDUCATION AND

+

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

CONSTRUCTION

PROFESSIONAL AND

BUSINESS SERVICES

OTHER SERVICES

AND UTILITIES

TRADE, TRANSPORTATION INFORMATION

* Forecast


9% 18% 6%12% 10%

4%20% 2%4% 15%

30

MARKET OVERVIEW

▪ Chicago is the third most populous metro in the U.S. and is

expected to grow by approximately 275,000 people during the next

five years.

▪ Younger professionals moving to the area for employment provide a

skilled workforce and contribute to the median age of 36.8 years,

below that of the nation.

▪ World class education institutions including Northwestern University

and the University of Chicago help provide a skilled labor pool.

Nearly 35 percent of residents age 25 and older hold a bachelor’s

degree and of these, 13 percent have also earned a graduate or

professional degree.

▪ Local homeownership of 65 percent is slightly above the national

rate of 64 percent.

QUICK FACTS

36.8

2016

MEDIAN AGE:

U.S. Median:

37.7

$62,100

2016 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

$54,500

3.5M

2016

HOUSEHOLDS:

Growth

2016-2021*:

3.5%

9.6M

2016

POPULATION:

Growth

2016-2021*:

2.9%

* Forecast

DEMOGRAPHICS


31

MARKET OVERVIEW

Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune;

Moody’s Analytics; U.S. Census Bureau

QUALITY OF LIFE

The Chicago metro has something to offer every one of its residents and visitors,

whether it is legendary blues and jazz music, cultural and educational venues,

professional sports, dining, entertainment, shopping or recreational amenities.

The Chicago area’s relative affordability is largely due to its lower housing costs. The

median home price is significantly less than in other cities of its size and is below that

of many smaller cities, including Seattle and Denver.

Cultural activities and venues underpin the metro’s cosmopolitan lifestyle. The region

is home to various well-known museums, including the world-class Field Museum,

Shedd Aquarium, Art Institute of Chicago and Adler Planetarium. The theatre scene

rivals the world’s best, and troupes, dance companies, symphony orchestras and

music venues abound.

29 MILESOF SHORELINE

$237,400MEDIAN HOME PRICE VARIOUS MUSUEMS

70

ARTS & ENTERTAINMENT


32

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2016 Experian

Created on August 2017

POPULATION 1 Miles 3 Miles 5 Miles

▪ 2021 Projection

Total Population 55,231 327,454 725,170

▪ 2016 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2016 Estimate 30,622 232,909 567,292

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

▪ 2021 Projection

Total Households 15,024 94,082 230,108

▪ 2016 Estimate


Average (Mean) Household Size 3.62 3.44 3.09

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 -0.72% -0.73% -0.35%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

▪ Occupied Units

2021 Projection 15,024 94,082 230,108

2016 Estimate 17,305 107,677 260,485

Owner Occupied 7,398 52,533 129,538

Renter Occupied 7,735 42,237 101,386

Vacant 2,172 12,908 29,561

▪ Persons In Units

2016 Estimate Total Occupied Units 15,133 94,770 230,924

1 Person Units 20.13% 20.18% 24.26%

2 Person Units 18.65% 20.51% 23.46%

3 Person Units 14.38% 16.08% 16.24%

4 Person Units 15.28% 15.68% 14.72%

5 Person Units 12.19% 11.70% 9.91%

6+ Person Units 19.37% 15.85% 11.41%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

▪ 2016 Estimate

$200,000 or More 0.81% 1.00% 1.63%

$150,000 - $199,000 1.47% 1.95% 2.77%

$100,000 - $149,000 6.72% 8.50% 9.65%

$75,000 - $99,999 9.57% 10.47% 10.73%

$50,000 - $74,999 17.61% 18.14% 17.48%

$35,000 - $49,999 16.74% 15.26% 14.27%

$25,000 - $34,999 14.15% 13.04% 12.16%

$15,000 - $24,999 13.66% 14.08% 13.74%

Under $15,000 19.27% 17.57% 17.58%

Average Household Income $48,609 $52,246 $56,797

Median Household Income $37,531 $39,756 $41,369

Per Capita Income $13,227 $15,034 $18,202

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

▪ Population By Age

2016 Estimate Total Population 55,901 331,010 731,538

Under 20 34.45% 32.96% 30.30%

20 to 34 Years 24.39% 22.69% 22.13%

35 to 39 Years 7.23% 6.93% 6.70%

40 to 49 Years 12.67% 12.72% 12.83%

50 to 64 Years 14.56% 15.58% 17.17%

Age 65+ 6.70% 9.13% 10.87%

Median Age 29.41 31.13 33.26

▪ Population 25+ by Education Level

2016 Estimate Population Age 25+ 32,088 196,477 454,996

Elementary (0-8) 17.16% 14.54% 11.29%

Some High School (9-11) 14.01% 13.71% 13.18%

High School Graduate (12) 32.31% 32.23% 31.75%

Some College (13-15) 19.98% 19.83% 20.65%

Associate Degree Only 4.84% 5.65% 5.99%

Bachelors Degree Only 7.03% 8.26% 10.00%

Graduate Degree 2.60% 3.17% 4.87%

▪ Population by Gender

2016 Estimate Total Population 55,901 331,010 731,538

Male Population 48.85% 48.68% 48.77%

Female Population 51.15% 51.32% 51.23%

33

Income

In 2016, the median household income for your selected geography is

$37,531, compare this to the US average which is currently $54,505.

The median household income for your area has changed by 1.08%

since 2000. It is estimated that the median household income in your

area will be $41,862 five years from now, which represents a change

of 11.54% from the current year.

The current year per capita income in your area is $13,227, compare

this to the US average, which is $29,962. The current year average

household income in your area is $48,609, compare this to the US

average which is $78,425.

Population

In 2016, the population in your selected geography is 55,901. The

population has changed by -4.50% since 2000. It is estimated that

the population in your area will be 55,231.00 five years from now,

which represents a change of -1.20% from the current year. The

current population is 48.85% male and 51.15% female. The median

age of the population in your area is 29.41, compare this to the US

average which is 37.68. The population density in your area is

17,760.23 people per square mile.

Households

There are currently 15,133 households in your selected geography.

The number of households has changed by -6.96% since 2000. It is

estimated that the number of households in your area will be 15,024

five years from now, which represents a change of -0.72% from the

current year. The average household size in your area is 3.62 persons.

Employment

In 2016, there are 5,666 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

44.70% of employees are employed in white-collar occupations in

this geography, and 54.99% are employed in blue-collar occupations.

In 2016, unemployment in this area is 9.09%. In 2000, the average

time traveled to work was 43.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

31.75% White, 32.97% Black, 0.02% Native American and 0.44%

Asian/Pacific Islander. Compare these to US averages which are:

70.77% White, 12.80% Black, 0.19% Native American and 5.36%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 60.76% of the current year

population in your selected area. Compare this to the US average of

17.65%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $161,360 in 2016,

compare this to the US average of $187,181. In 2000, there were

9,153 owner occupied housing units in your area and there were

7,112 renter occupied housing units in your area. The median rent at

the time was $513.

Source: © 2016 Experian

DEMOGRAPHICS

34

8


DEMOGRAPHICS

35

Documents

OFFERING MEMORANDUM - LoopNet...3134-3136 WEST MARQUETTE ROAD # PROPERTY SUMMARY OFFERING SUMMARY PROPOSED FINANCING First Trust Deed Loan Amount $1,230,000 Loan Type Proposed New