Planned renovations for this building by EquityBuild's warrantied contractor team will include repair and update as needed to the building systems along with a thoughtful renovation to the unit interiors that will include refinishing the hardwood floors, kitchen and bathroom updating along with fresh paint. Once that work is affordably completed, the anticipated low maintenance and fact that tenants pay their own utilities mean that the building's ongoing operating costs will be low.
The units are unusually large – 800-1200 sq ft for the 2BRs, 1400 sq ft for the 3BRs – with good storage space and hardwood floors. Finishes to the units will be above average once renovations are concluded, which will make them attractive to desirable tenants, particularly to renters eligible for CHA vouchers who are targeted for 10 of the building's 15 units, in order to maximize revenue.
The property is located on a lovely, tree-lined street in the western side of Jackson Park Highlands, a more affluent enclave of the South Shore neighborhood.
Just one block from 542-acre Jackson Park with its golf course, gym, yacht club and three harbors, the building is also near the South Shore golf course and the Nature Sanctuary on Lake Michigan, as well as historic, 183-acre Oak Woods Cemetery.
The property is close to shops, restaurants, churches and schools, and is less than two miles from the campus of the University of Chicago. Public transportation is easily accessible - with bus stops just down the street and both the Stony Island and 67th Street Metra stations within easy walking distance.
The property is priced at $1,375,000.
These numbers are for the first year of stabilized operation (year 2 of ownership) unless otherwise noted.
|Property Type||15 units|
|Total Purchase Price||$1,375,000|
|Total Cash Commitment||$330,229|
|Full Stabilized Cap Rate (Based on Purchase Price)||14.43%|
|Projected Refi/Resale Cap Rate Used in Model||8.00%|
|Area Market Cap Rate||7.00-8.00%|
|Cash on Cash Return, Year 3||16.52%|
|Avg. Internal Rate of Return, Year 7||24.37%|
|Proposed Unit Configuration (BRs/BAs)||13- 2BR/1BA, 2- 3BR/1BA|
|Monthly Gross Income (per unit)||$950-1,150, $1,050-1,300|
|Gross Potential Rent (annual/monthly)||$199,375/$16,615|
|Real Estate Taxes||$12,482 ($832/unit)|
|Leasing Commissions||$4,057 ($270/unit)|
|Gas - Boiler||$1,483 ($99/unit)|
|Snow Removal/Landscaping||$1,113 ($74/unit)|
|Pest Control||$742 ($49/unit)|
|Repairs and Maintenance||$9,000 ($600/unit)|
|Management Fee – 5%||$9,088 ($606/unit)|
|Net Operating Income (annual/monthly)*||$126,260/ $10,522|
|Free Cash Flow (annual/monthly)||$41,942/$3,495|
EquityBuild will handle all elements of this transaction to their successful conclusion. EquityBuild has tremendous experience in this area, having completed more than 600 transactions in the past 10 years. We provide the rehab, property management and the expertise needed to get the property financed and refinanced, resulting in a highly productive, cash flow producing investment property that will enhance your portfolio.
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.