PropertyType: Business Opportunity
Target County: Cook County
Describe Your Need
11815 S. Peoria, Chicago
11727 S. Peoria, Chicago
12235 S. Racine ave, Chicago
10904 S. State St, Chicago
10417 S. State St, Chicago
346 W. 115th St, Chicago
346 W. 117th St, Chicago
12156 S. Parnell Ave, Chicago
This is one investor. Currently the rents are low. He is moving everyone out, and will be placing new tenants. Rents will range between 1,600 and 2.100 per month. At 160,000 per door, it ends up being around a ten cap for his package. There are guaranteed rental companies such as the Center for Housing and Health who place tenants and they are currently paying $1,740
The next group is a separate owner:
10040 South Vernon Chicago 190,000
11837 South Wallace Chicago 170,000
11527 South LaSalle Chicago 160,000
13318 South Riverdale Chicago 80,000
1418 West 112th Street Chicago 170,000
17 West 109th Street Chicago 150,000
307 West 117th Street Chicago 140,000
35 East 99th Place Chicago 160,000
21 East 117th Place Chicago 190,000
Same rents would apply here. The prices here are the as is appraised value. Some of these tenants would like to stay, so we could raise rents and let them stay. Most have been given notice to vacate already.
We have a management company in place, and would rent these up as well, or your client could do that and we just deliver rent ready for them. Most of the properties have been upgraded or fully renovated or in the process of being done.
So, it’s a total of 17 properties.
Total package is 2,690,000
Gross pro forma rent using 1,850 as the average rent is $377,400. Expenses at 30% for a net operating income of $264,180. Puts the total package at a 9.8% cap rate.
We have an 18th property at 11705 South Racine, but that is on the market so it may sell, that would be a third owner (we are doing the management on his property)