Expert Access:

5450 S. Indiana Avenue Opportunity -- 27-Unit Mixed Use Building

Chicago, IL, 60615
See on the map $3,050,000
  • EquityBuild Inc. Property

Property Summary

This superior three-story brick building features 16 two-bedroom/one-bath apartments, 6 one-bedroom/one-bath units, and 5 retail storefronts.


The building was completely gut-rehabbed in 2015. It received new electrical and plumbing throughout, and the large apartments now feature refinished hardwood floors, granite countertops, new cabinets and appliances.


Each unit has its own water heater and furnace, which are billed directly to the tenants -- reducing operating costs for the building's owner.


Light to moderate roof repairs and masonry corrections remain to be completed, but the majority of the rehab budget will go to building out the storefront retail units.


91% of the building's 22 apartments are currently rented and occupied. Going forward, half of the apartments will be targeted for CHA vouchers in order to maximize rental income.


This corner-lot building has a fantastic location: situated on a tree-lined street in Chicago's rapidly gentrifying Washington Park neighborhood.


The area is named for the 367-acre green space just three blocks away. Washington Park features a lagoon, aquatic center, arboretum and baseball, football, soccer and cricket fields. It is home to the Dyett High School for the Performing Arts, the DuSable Museum of African American History, and ground was recently broken on a new $9.8 million, 112,000 square foot tennis facility.


The property is close to shops and restaurants along the vibrant Garfield Boulevard corridor. The main campus of the University of Chicago lies directly across the park, along with the Midway Plaisance which links Washington Park to 500-acre Jackson Park, future home of the Obama Presidential Library.


The building is very convenient to public transportation, with a bus stop just outside the door and the Garfield Green Line L stop less than two blocks away. Both Soldiers Field, home of the Chicago Bears, and newly-named Guaranteed Rate Field, home of the Chicago White Sox, are just minutes away.


The total cost of the property is $3,050,000.

More Information

Proposed Terms

Property Type
27 Units
Refers to the kind of property, including the number of units in the building.
Total Purchase Price
$3,050,000
The combined price to buy the building plus estimated building renovation costs.
Projected Cash Outlay
$583,855
The amount of cash out of pocket that will be required to complete the purchase. Includes down payment and building rehab costs.
Full Stabilized Cap Rate (Based on Purchase Price)
10.30%
No Description found!
Projected Refi/Resale Cap Rate Used in Model
7.50%
No Description found!
Area Market Cap Rate
7.00-8.00%
No Description found!
Cash on Cash Return, Year 3
17.17%
Cash on cash return is the ratio of annual before-tax cash flow to the total amount of cash invested, shown as a percentage. Year 3 is once the property has reached full stabilization, and the building is fully rented.
Avg. Internal Rate of Return, Year 7
27.84%
The average value of the stream of Cash on Cash returns produced by the property through Year 7. This is the rate of return that would be required to equal the benefit of owning the property.
Proposed Unit Configuration (BRs/BAs)
16- 2BR/1BA, 6- 1BR/1BA, 5- Retail
This describes how many units contain a specified number of bedrooms and bathrooms.
Monthly Gross Income (per unit)
$900-1,200, $800-950, $900-2,500
The range of monthly rents that will be charged to tenants in each unit configuration.
Gross Potential Rent (annual/monthly)
$348,566/ $29,047
The total amount of rent the property can generate, provided all units are filled for the full year, and the mix of tenants between subsidized and non-subsidized conforms to projections.
Real Estate Taxes
$4,755
The annual tax amount for the property.
Leasing Commissions
$4,356
No Description found!
Insurance
$10,019
This is the estimated annual cost for insuring the property.
Gas - Heat
$2,700
This is the estimated cost for these utilities, based on individual properties.
Electric
$1,350
This is the estimated cost for these utilities, based on individual properties.
Water
$12,150
This is the estimated cost for these utilities, based on individual properties.
Trash
$2,700
This is the estimated cost for these utilities, based on individual properties.
Snow Removal/Landscaping
$2,700
No Description found!
Pest Control
$1,350
This is the estimated cost for these utilities, based on individual properties.
Legal
$1,350
No Description found!
Repairs and Maintenance
$16,200
The estimated cost for repairs and maintenance within a year.
G and A
$5,400
No Description found!
Management Fee – 5%
$15,894
No Description found!
Net Operating Income (annual/monthly)
$236,963/ $19,747
The amount of money generated by the property, less the regular expenses required to keep it in operation. Does not include financial costs like mortgage payments.
Free Cash Flow (annual/monthly)
$75,873/ $6,323
The amount of money generated by the property after all associated expenses have been paid, including operating and financial costs.

EquityBuild Comments

This is your opportunity to take advantage of a substantial equity position, improving cap rates, minimum cash outlay and tenants buying this high performing asset for you. And as always, the additional rehab activities by EquityBuild’s contractor teams are fully warrantied upon completion.

Call Now! (877) 978-1869 to find out more.

EquityBuild Difference

EquityBuild is a client advocate in a real estate world where we build life-long relationships to create turn-key solutions that consistently deliver double-digit returns. Real estate investment opportunities are carefully selected based on EquityBuild’s proprietary econometric model that identifies properties with strong upside and minimal risk. To learn more about EquityBuild and how you can invest directly in real estate with expert guidance and no landlord hassles please call (877) 978-1869.

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