1714

WEST DIVISION

1714 WEST DIVISION | CHICAGO IL - VALUE ADD MIXED USE OPPORTUNITY

CONFIDENTIAL OFFERING PREVIEW

CONFIDENTIAL OFFERING PREVIEW

1714 WEST D IVISIO N

EXECUTIVE SUMMARY
Cushman & Wakefield of Illinois presents developers and investors with the opportunity to acquire

FINANCIAL SUMMARY

1714 West Division Street, Chicago, Illinois 60622 (the Property) located in Chicagos Wicker Park

Purchase Price

community. Through the redevelopment of the existing structure from a vacant warehouse to a mixed-

Projected Financing

$9,238,912

Equity

$4,974,799

Total Capitalization

$14,213,710

use retail and residential building, a new owner can capitalize on the emerging market trends in one
of Chicagos most popular urban neighborhoods. The project includes full architectural plans and
designs, a comprehensive construction bid, and completed pre-development work that will transform

$7,350,000

Projected Stabilized NOI Projection

$858,979

Projected Stabilized Unlevered Return

6.04%

the Property into a four story, multi-family and retail income producing investment. The recently

Projected Stabilized Leveraged Cash-on-Cash

10.87%

revised zoning to B3-3 will allow for the development of 24 individual apartment units totaling 18,294

Projected Leveraged IRR

19.45%

SF and 6,705 SF of ground floor retail. Rising land costs have made ground up projects of similar size

Equity Multiple

1.6x

and scale more economically and financially challenging.

INVESTMENTS HIGHLIGHTS

PROPOSED UNIT SUMMARY

UNIT TYPE

FLOOR

FORMER WAREHOUSE CONVERSION TO RESIDENTIAL AND RETAIL: The planned re-development

Retail

1st
Subtotal:

6,705

Total # Commercial Units:

6,705

Studio

2nd

will convert the timber loft warehouse property to residential loft-style apartments and ground floor
retail. Utilizing the 90+ linear feet of frontage along Wicker Parks active entertainment and restaurant
neighborhood, 6,705 square feet of retail will be built to accommodate single or two-tenant layouts
and cater to a wide range of retail uses. Utilizing the new zoning (B3-3), there is potential for 24 new
apartments, comprised of studios, 1 & 2 bedrooms, including the addition of a fourth floor which will
feature an outdoor terrace accessible to the southern facing units. The transit-oriented development
(TOD) will not require any parking, due to the location near the CTAs Blue Line L station on Division

1 Bedroom

and by providing bike parking of approximately 24 spaces in the lower level.

PROJECT READY: A demolition permit and foundation permit have already been secured. A building

1 Bedroom w/ Terrace

permit is in process awaiting approval for a zoning variance related to the rear-yard setback which is
fully expected to be approved.

NUMBER OF UNITS

SIZE (SQ FT)

3rd

4th

Subtotal:

2nd

3rd

4th

Subtotal:

2nd

3rd

4th

1,998

6,542

Subtotal:

2nd

TIMELINE: With most of the pre-development work already completed, the conversion and stabilization

3rd

of the property is only expected to take approximately 20-24 months. Once stabilization has been

4th

Subtotal:

7,425

24

18,294

2 Bedroom

achieved the asset may be sold or recapitalized utilizing permanently structured debt.
CAPITAL STRUCTURE: The total project cost, including the acquisition cost of $7.35MM, along with
construction and development costs, is expected to be $14.21MM. This assumes the utilization of short
term construction financing of 65% loan to value and an equity requirement of $4.97MM.

Total # Residential Units:

24

2,329

CONFIDENTIAL OFFERING PREVIEW

1714 WEST D IVISIO N

PROPERTY
DESCRIPTION

B3 - COMMUNITY SHOPPING DISTRICT

Shopping centers, large

stores, and retail storefronts, often along major
streets. Allows more types
of business than B1 and
B2 districts. Apartments
permitted above the ground
floor.

SUBJECT PROPERTY

1714

West

is

3-story,

brick

exterior

faade

commercial building located along the north side

of West Division Street in Chicagos bustling Wicker
Park neighborhood. The current square footage,
including a lower level, totals approximately 32,000
square feet in gross building area. The property is
zoned B3-3 (allowing for residential and retail use)
and the improvements are built on a rectangular
shaped parcel of land approximately 9,333 square
feet in size.

PROJECT DATA

BUILDING SIZE
Ground Floor:

8,342 SF

Second Floor:

8,512 SF

Third Floor:

8,512 SF

Fourth Floor:

6,491 SF

Rooftop Deck
Total SF:

798 SF
32,655 SF

NUMBER OF UNITS PLANNED

Studio

1 BR

12

2 BR

Total Number of Units:

24

ORDINANCE

ACTUAL

REMARKS

Zoning

B3-3

B3-3

Revised Zoning

Lot Area

9,333

Maximum Floor Area Ratio

3.5

3.5

Total Building Area

32,665

32,655

Building Height

65'

55'

Top of Roof Deck

Grade Elevation

n/a

15.35

Ground floor = 0'-0" = 15.35 CCD

Off Street Loading

Ground Floor Retil under 10,000 SF

Off Street Parking

1 per dwelling unit

Per T.O.D. Ordinance parking for 25 bikes provided

Landscaping

Existing to remain

Height and Area Limitations

Height: 4 stories
Area: 13,600/flr

Height: 4 stories
Area: 13,600/flr

8,000 SF (.85) (2) = 13,600 SF

Revised Zoning with T.O.D. bonus

CONFIDENTIAL OFFERING PREVIEW

1714 WEST D IVISIO N

STACKING PLAN
4th Floor

3
Unit m
droo
2 Be SF
5
6
8

2
Unit m
roo
1 Bed SF
780

1
Unit m
droo
2 Be SF
850

5
Unit m
roo
1 Bed SF
6
79

6
Unit m
roo
1 Bed SF
788

3rd Floor

1
Unit m
dro
2 Be SF
890

3
Unit
io
Stud F
S
9
0
5

2
Unit
io
Stud F
S
0
49

twell

Ligh

2nd Floor

1
Unit m
dro
2 Be SF
0
89

2
Unit
io
Stud F
S
490

twell

Ligh

y
Part

Room

oor
Outd ce
Terra

4
Unit m
roo
1 Bed SF
728
9
Unit m
roo
1 Bed SF
690

8
Unit m
roo
1 Bed SF
8
5
6

5
Unit m
droo
2 Be SF
985

6
Unit m
roo
1 Bed SF
5
0
8

7
Unit m
droo
2 Be SF
970

3
Unit
io
Stud F
S
509

4
Unit m
roo
1 Bed SF
745

4
Unit m
roo
1 Bed SF
8
2
7

8
Unit m
roo
1 Bed SF
658

9
Unit m
roo
1 Bed SF
690
6
Unit m
roo
1 Bed SF
805

7
Unit m
droo
2 Be SF
970

/
ding
Loa eiving
Rec

5
Unit m
droo
2 Be SF
985

h
Tras orage
St
Bike
.
Elev
om
. Ro Room
Mail

Elec

Ground Floor
il
Reta

e
Spac

by
Lob

CONFIDENTIAL OFFERING PREVIEW

1714 WEST D IVISIO N

FLOOR PLANS
RECEIVING

TRASH

BIKE
STORAGE

RETAIL
SPACE

Basement

Ground Floor
PROPOSED
BIKE PARKING

ELEC.
ROOM

AND STORAGE AREA

MAIL
ROOM

LOBBY

UNIT 1
2 BEDROOM
890 SF

UNIT 2
STUDIO
490 SF

UNIT 4
1 BEDROOM
728 SF

UNIT 1
2 BEDROOM
850 SF

UNIT 3
2 BEDROOM
885 SF

UNIT 2
1 BEDROOM
780 SF

BALCONY

LIGHTWELL

2nd & 3rd Floor

UNIT 3
STUDIO
509 SF

UNIT 9
1 BEDROOM
690 SF

4th Floor

UNIT 8
1 BEDROOM
658 SF

UNIT 6
1 BEDROOM
788 SF

UNIT 5
1 BEDROOM
796 SF

UNIT 6
1 BEDROOM

PARTY ROOM

805 SF

UNIT 7
2 BEDROOM
970 SF

UNIT 4
1 BEDROOM
745 SF

UNIT 5
2 BEDROOM
985 SF

OUTDOOR
TERRACE

CONFIDENTIAL OFFERING PREVIEW

1714 WEST D IVISIO N

WICKER PARK OVERVIEW

RESIDENTIAL MARKET

TYPICAL RENTS
Studio

$1886

Wicker Park is one of Chicagos most dynamic urban

$1800-2625

neighborhoods with a concentration of progressive

2 Bedrooms

$1975-3100

fashion, dining, and music experiences. Residents and

3 Bedrooms

$2395-4500

visitors can find almost anything they would need or

4+ Bedrooms

$4695-5000

1 Bedroom

Source: Domu

want on Division Street or Milwaukee Avenue, including

independent boutiques, national, international and
unconventional chain retailers and pop up stores.
Restaurants and a vibrant night life include offerings

DEMOGRAPHICS

1 MILE

3 MILE

5 MILE

from a wide range of cuisine types as well as wine and cocktail bars, live music venues and clubs.

Employees

28,666

763,662

934,829

Wicker Park apartments can be found in subdivided 19th-century mansions, vintage walk ups and

Total Population

59,800

514,060

1,149,689

new construction condominiums buildings.

Total Households

28,949

251,049

494,043

Public Transportation is another convenience of Wicker Park. The Blue Line el train stops at the six-

30,386

279,979

551,272

95.3%

89.7%

89.6%

4.7%

10.3%

10.4%

Average Household Income

$104,332

$107,007

$88,409

Median Household Income

$67,068

$64,810

$53,065

Per Capita Income

$50,648

$52,649

$38,386

Housing Units
Total Housing Units
Occupied Housing Units
Vacant Housing Units

corner intersections of Milwaukee, Division, and Ashland and Milwaukee, Damen, and North. It's a
short ride to downtown and a direct trip to Chicagos O'Hare International airport. The expressway
is also nearby, approximately one half mile to the east.

Household Income

Population Trend
2000

60,413

502,134

1,179,843

2010

58,217

500,012

1,122,968

-3.6%

-0.4%

-4.8%

2015B

59,800

514,060

1,149,689

2020

60,381

526,822

1,167,566

1.0%

2.5%

1.6%

Change 2000 to 2010

Change 2015B to 2020

LOCATION HIGHLIGHTS

Located in the heart of Chicagos Wicker Park Neighborhood

Situated just off the busy intersection of Division/Ashland/Milwaukee
Strong Demographics: Over 514,000 people in a 3-mile radius with an average household
income exceeding $107,000

Younger demographic and denser residential population than other neighborhood retail
submarkets, such as Lincoln Park

Local shops and restaurants attract visitors from all over the city
Just steps from the CTA Blue Line stop at Division, Ashland, and Milwaukee with over 2.2M
entries in 2015

CONFIDENTIAL OFFERING PREVIEW

1714 WEST D IVISIO N

SURROUNDING RETAIL MAP

Floyds 99 Barbershop
Free People Showroom

Wicker
Park

Nori Sushi
Oiistar
Saieda
Reckless Records
Filter CafeNori Sushi
Iron Cycles Bike Shop-

Transit Tees
Whiskey Business
Cheesies
Harolds Chicken Shack
Halloween Hallway
Hi-Style Furniture

The Den Theatre

Milwaukee Furniture _
Super Design Furniture
Kokorokoko
Falafel & Grill
Copy Max

Jewel-Osco
P
Ka R rop
ne eu ag
la nio an
Br n
d
Du
e W a
de 7-E akf ea
le
as r
I
v
W Fo en t C
al
lu
gr rgo
b
ee t L
ns LC

Smoke Times
Smoke Daddy
Taus Food &
BBQ
Drink
Mad Style
Parlor Pizza Bar Dynamic Studio

Mac's
Gold Star Bar
Ouest
Lifeway Kefir Shop

LaSalle II
School

Lowes

Ulta Beauty
Potbelly
Pet Supplies Plus
TOZI KOREAN BBQ
BMO Harris Bank
US Post Office

Em

B
po arr
riu ys
N A
m Dr
A ak nti
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St nge ed a que rca gs
an liq n
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da ue d F aco e B
ar
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as
r a ut us
nd iqu
F
e
B. As urn
Gr
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ha Bim ian itu
ill
fik
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Th Bel asin ian ery . Bim
e mo R Ea
Ar
e
k nt A sta tery
Th
u
rif rmy ran
tS
t
ho
SUBJECT PROPERTY
p

Caffe Streets
Mana Food Bar
Alliance Bakery
Zakopane

Gallery Aesthete
Wicker Park Fitness
The Anthem Bar Chicago
Black Bull

Shuga Records
Bank of America

Chase Bank
ALDO Outlet

Bangers
Buck's & Lace

FedEx
Pizza Metro
Starbucks
Holiday Jones Hostel

Ashland Ave : 18,700 VPD

Scone City

Psychobaby
Nina
Rite Liquors
Wendy's

CVS Pharmacy
The Bedford

Division St : 12,900 VPD

Intelligentsia Coffeebar
PNC Bank

Milwaukee Ave: 10,400 VPD

1714
WEST DIVISION

CONTACT INFORMATION
MICHAEL MARKS

EVAN HALKIAS

NICHOLAS KANICH

Senior Director | Capital Markets

Senior Director | Capital Markets

Director | Capital Markets

michael.marks@cushwake.com

evan.halkias@cushwake.com

nicholas.kanich@cushwake.com

312.470.2317

312.470.2318

312.470.1811