Expert Access:

8326-54 S. Ellis Ave. Opportunity – 56 Unit Property

Chicago, IL, 60619
See on the map $4,000,000
  • EquityBuild Inc. Property

Property Summary

This is a group of four buildings, each containing 14 units.

The apartments are good sized and in good condition, and have lots of closet space. Each unit has air conditioning -- a feature not typically seen in the Chicago market. Another rare attribute is that the property offers parking for every unit.

One building's roof will be repaired, and the other three roofs will be replaced. Each building will have an electrical overhaul, including an increase in service and new in-unit breaker panels for each unit. Three of the water heaters and all of the boilers will be replaced. Corrective masonry work will be done where needed. Units will receive affordable, as-needed upgrades to optimize rental revenue.

24 of the property's 56 units will be targeted for CHA voucher tenants.

The buildings are situated on a quiet, residential side street immediately across from a small park in Chicago's East Chatham neighborhood. It is easy walking distance to 27-acre Avalon Park, with its gymnasium, fitness center, swimming pool, playground, track, volleyball and tennis courts.

The property is close to the busy retail corridors of 83rd Street and Cottage Grove Avenue with their complement of restaurants, shops, schools and churches. The buildings are convenient to public transportation. The property is only a few hundred feet from the 83rd St/Avalon Park Metrarail station, and bus stops are also nearby.

Our analysis indicates that the property will generate more than enough revenue to cover mortgage payments on the building as well as all of the property's operating expenses, and still return positive cash flow. This is why we consider this multi-unit building to be an excellent investment opportunity.

The property is priced at $4,000,000.

More Information

Proposed Terms

Property Type
56 units
Refers to the kind of property, including the number of units in the building.
Total Purchase Price
$4,000,000
The combined price to buy the building plus estimated building renovation costs.
Projected Cash Outlay
$1,113,104
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)
12.22%
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
16.92%
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
31.13%
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)
8-Studio, 36- 1BR/1BA,12- 2BR/1BA
This describes how many units contain a specified number of bedrooms and bathrooms.
Monthly Gross Income (per unit)
$625-1,000, $725-925, $900-1,050
The range of monthly rents that will be charged to tenants in each unit configuration.
Gross Potential Rent (annual/monthly)
$570,734/ $47,561
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
$49,795
The annual tax amount for the property.
Leasing Commissions
$3,572
No Description found!
Insurance
$15,845
This is the estimated annual cost for insuring the property.
Gas - Heat
$28,000
This is the estimated cost for these utilities, based on individual properties.
Electric
$2,800
This is the estimated cost for these utilities, based on individual properties.
Water
$22,400
This is the estimated cost for these utilities, based on individual properties.
Trash
$4,200
This is the estimated cost for these utilities, based on individual properties.
Snow Removal/Landscaping
$4,200
No Description found!
Pest Control
$2,800
This is the estimated cost for these utilities, based on individual properties.
Legal
$2,800
No Description found!
Repairs and Maintenance
$28,000
The estimated cost for repairs and maintenance within a year.
G and A
$11,200
No Description found!
Management Fee – 5%
$28,537
No Description found!
Net Operating Income (annual/monthly)
$366,589/ $30,549
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)
$131,418/ $10,952
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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