SEALED BID DEADLINE: NOVEMBER 20TH

Valuation  Monetization  Advisory
www.hilcorealestate.com
REAL ESTATE AUCTION – OFFERING MEMORANDUM
Income-Producing Mixed Used Building
1575 – 1577 W. Ellinwood Street, Des Plaines, IL
Parcel 1 Includes: Retail Building with 2nd Floor Apartments
Parcel 2 Includes: Fully-Leased Warehouse Space
SEALED BID DEADLINE: NOVEMBER 20TH
Contents
• Introduction & Inspection Dates
• Property Information
• Historical Financials
• Property Pictures
• Terms of Sale
2
Introduction & Inspection Dates
This offering is for a 15,000+/- SF retail building with second floor apartments and fully-leased warehouse space on a 18,632 SF site. These prime
buildings are located in the heart of downtown Des Plaines. The site is located close to numerous transportation options, steps from the Des
Plaines Metra station and local PACE bus service, less than one mile from the entrance ramp to I-294, and just five miles from the O’Hare
International Airport.
Property Highlights Include:
- 12,800+/- SF Retail Building
- Excellent exposure with Downtown District
- Second Floor Apartments
- Fully-Leased 1,800 SF Warehouse
Included in this offering memorandum is detailed property information, financial information, pictures, and the Terms of Sale. A virtual deal
room has been created which contains additional due diligence information to review prior to participating in the auction. Access to the virtual
deal room will be provided upon receipt of a signed Access Order Form located at the end of this document.
Property Inspections:
The property will be available for inspection on October 30th, November 6th and 13th at 1:00 PM.
Auction Information:
Sealed Bid Deadline:
Certified Funds Required to Bid:
Buyer’s Premium:
Call for More Information:
Steve Madura
847.504.2478
[email protected]
3
November 20, 2014 by 5:00 pm Central Time, delivered to the offices of Hilco Real
Estate, 5 Revere Drive, Suite 320, Northbrook, IL. Attn: Steve Madura, or via email to
[email protected]
$5,000 individually; $10,000 together
A 10% Buyer’s Premium will be added to the high bid price per the Terms of Sale.
Jeff Azuse
847.418.2703
[email protected]
1575 – 1577 W. Ellinwood Street, Des Plaines, IL – Property Information
Built in the 1920s, these prime mixed use buildings total approximately 15,000 square feet and sits in the heart of
downtown Des Plaines, IL. The property contains 12,800 square feet of retail space formerly occupied by Oliveti’s Italian
Restaurant, and features a large outdoor dinning courtyard, banquet hall, and two leased second floor apartments (3
bdrm/1.5 bath & 2 bdrm/1 bath). The property also includes a 1,800 square foot warehouse currently leased to a local
construction/landscaping company with on-site parking for approximately 10 vehicles. The property offers excellent
exposure, good pedestrian traffic and exciting redevelopment potential. The property is also adjacent to the Des Plaines
Metra Station. Downtown Des Plaines is undergoing a redevelopment phase, with the trend moving towards dense mixeduse developments with retail commercial on the ground floor and residential units above, as evident through Metropolitan
Square and other mid-rise developments in the immediate area.
Parcel ID:
09-17-421-026 and 032
Total Site Size:
18,632SF
Property Description:
Type:
Mixed Use with 2nd Floor Apartments & Fully-Leased Warehouse space
Year Constructed:
1920s with renovations periodically to portions of the building
Zoning:
C-5 District – The purpose of the C-5 Central Business District is to protect Downtown
Des Plaines by permitting only those uses appropriate to its character. This district
offers a wide range of commercial retail services and promotes mid-rise development.
Retail Building with 2nd Floor Apartments
Banquet Area
Fully-Leased Warehouse
Improvements:
4
1575 – 1577 W. Ellinwood Street, Des Plaines, IL – Property Information
Property Description Continued:
Utilities:
Water, sewer, gas and electricity are available at the property. Providers include
ComEd, Nicor and AT&T.
Real Estate Taxes:
2013 - $46,751.50
Foundation:
Majority slab on poured concrete footings
Structural:
Masonry
Exterior Finish:
Brick
Roof Covering:
Membrane covered with bituminous and aggregate material
HVAC:
The property is heated and cooled by forced air heating and air conditioning units.
Electric & Plumbing:
The electrical and plumbing systems and fixtures are assumed to be adequate for this
size property.
Parking:
The property does have on-site parking for approximately 10 vehicles.
5
1575 – 1577 W. Ellinwood Street, Des Plaines, IL – Financial Summary
Est. Rent Roll (2014):
Units
Monthly Rent
Unit 2E (2Bd/1.5 Bath)
$975 (Term 7/1/14—6/30/15)
Unit 2W (3Bd/2Bath)
$1,150 (Term 6/1/14—5/31/15)
Warehouse
$1,800 (Term 9/30/14—9/30/17)
Banquet Hall
Currently Vacant
Restaurant
Currently Vacant
Current Gross Monthly Rent
$3,925
Annualized Gross Rent
$47,100
Disclaimer: The above financial information has been obtained from the Seller and is subject to inspection and verification by all parties who are
relying on it to formulate their bid. No liability for its inaccuracy, errors, omissions, is assumed by the Seller or its agents. See the more detailed
information and leases in the Virtual Deal Room.
6
1575 – 1577 W. Ellinwood Street, Des Plaines, IL– Survey
7
1575 – 1577 W. Ellinwood Street, Des Plaines, IL – Pictures
8
1575 – 1577 W. Ellinwood Street, Des Plaines, IL– Pictures
9
1575 – 1577 W. Ellinwood Street, Des Plaines, IL – Location Map
10
1575 – 1577 W. Ellinwood Street, Des Plaines, IL – Aerial Map
11
TERMS OF SALE
AUCTION FORMAT: These properties will be sold via sealed bid auction. Qualifying sealed bids are due on November 20, 2014 by 5:00 pm
Central Time, delivered to the offices of Hilco Real Estate, 5 Revere Drive, Suite 320, Northbrook, IL 60062. Attention: Steve Madura or via email
to [email protected].
BUYER’S PREMIUM: A 10% Buyer’s Premium will be charged to the successful buyer at the auction. The Buyer’s Premium is equal to ten (10%)
of the bid price. This amount is added to the bid price and together equals the Total Purchase Price.
CERTIFIED FUNDS OR WIRE TRANSFERRED FUNDS ARE REQUIRED: Certified funds in the amount of $5,000 if bidding on only one property and
$10,000 if bidding on both properties, as an initial down payment are required to bid at the auction. Checks are to be made payable to Hilco
Real Estate. No third party checks will be accepted. Wiring instructions are available for download at HilcoRealEstate.com. Upon the Seller's
acceptance of the Purchase and Sale Agreement, the check will be deposited as earnest money as provided in the Purchase and Sale Agreement.
AUCTION PROCEDURE - RESERVE OFFERING: The properties are being offered with reserve, subject to the Seller’s acceptance. Bidders may
choose to bid on a single property individually or both properties together. The Seller will have five (5) business days to review the high bid(s)
and decide whether to accept the offer.
12
TERMS OF SALE
INSPECTION: These Properties is being offered for sale in its existing “As-Is, Where-Is” condition subject to the terms of the Purchase and Sale
Agreement. The Purchaser may not rely upon any disclosures, representations or warranties other than those provided in the Purchase and Sale
Agreement. We recommend you thoroughly inspect the Properties prior to the auction. Those inspecting the Properties assume all risk
associated with any inspection.
DOCUMENTS AVAILABLE: A Virtual Deal Room has been assembled and includes the Purchase and Sale Agreement, detailed Property
information, copies of the real estate tax bill and other applicable information. To gain access to the virtual deal room please fill out the Order
Form at the end of this document and email it to [email protected]. Seller, Seller’s Broker and Auctioneer shall not be liable for any inaccuracy
contained in any reports furnished to buyers originating from third party experts.
REQUIREMENTS OF THE SUCCESSFUL HIGH BIDDER: The successful high bidder will be required to sign the Purchase and Sale Agreement within
24 hours after the conclusion of the auction deadline, acknowledging the purchase and either the $5,000 or $10,000 certified check or wiretransfer as initial down payment will be deposited. The initial down payment MUST be increased to 10% of the purchase price by cashiers or
certified check or wire-transfer within three (3) business days following Seller’s acceptance. The increased amount must be in certified or wired
funds made payable to the Escrow Agent as described in the Purchase and Sale Agreement. All registering bidders may also be asked to sign a
statement that the bidder has inspected the Properties and reviewed documents related to the Properties and the Auction.
BACK-UP BIDDER: The next highest bid below the Successful High Bidder is considered a Back-Up Bidder and may be invited to sign the approved
Purchase and Sale Agreement in the amount of their Total Purchase Price within 24 hours after the conclusion of the auction and their earnest
money will be deposited. The Back-Up Bidder’s Initial Down Payment will be held until the High Bidder increases their earnest money to 10% of
the Purchase Price which is due 3 business days from the auction, at which time it will a) be returned to the Back-Up Bidder upon escrow’s
receipt of the Winning Bidder’s additional earnest money or b) become immediately non-refundable upon default of Winning Bidder; then the
Back-Up Bidder will be notified by escrow that the Seller has accepted their Purchase and Sale Agreement. If the Back-Up Bidder’s Initial Down
Payment is less than 10% of its Total Purchase Price, then it MUST be increased to 10% of its Total Purchase Price by cashier's check or wired
funds within three (3) business days of notification by escrow.
CLOSING DATE: The Standard Closing Date shall be on or before 30-days from Seller’s Acceptance.
POSSESSION: Possession will be delivered either at Closing or subject to the terms of the Purchase and Sale Agreement.
13
TERMS OF SALE
AUCTION INFORMATION CENTER: Representatives of Hilco Real Estate, LLC can be reached at our Auction Information Center, to answer your
questions, satisfy requests for information, and assist you in any other way possible. PLEASE DO NOT HESITATE TO CALL US AT ANY TIME WE
CAN BE OF HELP. We have found that the most successful method of answering technical questions (which may require research) is for you to
email ([email protected]) or fax the questions to us. We can then research them and can usually respond either immediately or within a few
hours. The Seller has requested that neither brokers, nor prospective buyers, contact the Seller directly.
Telephone (847) 418-2700 I Fax (847) 714-1289
PROPERTY CONDITION: The property is being sold on an "AS-IS, WHERE-IS" basis. We invite you and your experts (e.g., inspectors, contractors,
engineers, roofers) to inspect the property. We have provided several viewings to allow you sufficient time to investigate the site, review and
obtain all pertinent property information, and speak with auction representatives about the auction process.
TITLE: The Purchase and Sale Agreement describes the condition of title to be delivered at closing.
ATTORNEY REVIEW: We recommend all bidders have the Agreement and the Virtual Deal Room documents reviewed by the bidder’s attorney
prior to bidding. The Terms of this Sale are governed by the terms of the Purchase and Sale Agreement and if there is any conflict between these
“Terms of Sale” and such Purchase and Sale Agreement (the “Agreement”), the Purchase and Sale Agreement shall in all instances prevail.
AGENCY DISCLOSURE: Hilco Real Estate, LLC, and all other licensees employed by or associated with the Broker and Auctioneer represent the
Seller in the sale of this property.
DISCLAIMER: TO THE EXTENT THERE ARE ANY INCONSISTENCIES BETWEEN THE INFORMATION CONTAINED HEREIN AND ANY INFORMATION
CONTAINED IN OTHER MARKETING MATERIALS, THE INFORMATION IN THE VIRTUAL DEAL ROOM SHALL PREVAIL. HOWEVER, THE PURCHASE
AND SALE AGREEMENT SHALL GOVERN AND PREVAIL WITH REGARD TO THE TERMS AND CONDITIONS OF THE SALE OF THE PROPERTY.
The Seller and Auctioneer and their agents assume no liability for inaccuracies, errors or omissions in the auction marketing materials, including
the Virtual Deal Room. ALL SQUARE FOOTAGE, DIMENSIONS, PROPERTY DESCRIPTIONS, AND TAXES IN THIS AND OTHER MARKETING MATERIALS
ARE APPROXIMATE. This offering may be withdrawn, modified or canceled without notice at any time. This is not a solicitation or offering to
residents of any state where this offering is prohibited by law.
14
BROKER PARTICIPATION
BUYER’S AGENT COMPENSATION: Hilco Real Estate will pay an approved buyer’s broker, upon closing, a fee equal to 2% (two percent) of the
High Bid Price paid by his or her client. In order to be eligible for compensation, the buyer’s agent must hold an active real estate license in the
state in which the property is located, or possess a valid real estate license and act in conformance with the laws for paying a referral fee to an
out of state broker as promulgated by the state in which the property is located, and register the client by letter sent via email to
[email protected] or overnight carrier to Hilco Real Estate, 5 Revere Drive, Suite 320, Northbrook, Illinois 60062, Attention: Steve Madura, or
hand delivered to a Hilco Real Estate representative during one of the viewings. The receipt of the letter by Hilco Real Estate will be
acknowledged in writing. The letter must contain a signed acknowledgement of the Buyer’s Agency relationship by the client. This registration
letter must be received before any inspection of the property by the client, and no later than three (3) business days prior to the Bid Deadline.
The Buyer’s Agent must register in person with the client during an onsite inspection. All registrations will be acknowledged in writing and the
Buyer’s Agent must include the registration acknowledgment letter with the submission of the bid. No oral registrations will be accepted. No
agency relationship will be recognized for a client who has been previously contacted by the Seller, or agents. Referral fees are based on the
High Bid Price at Closing. The Seller has provided a dual commission arrangement for the sale of this property in this offering. If an Agent has
not met all of these requirements, no compensation will be paid, even if the Agent’s client purchases the property.
15
For Access to the Virtual Due Diligence Deal Room Please fill out the form on the following page or Call or Email:
Steve Madura
(Direct) 847-504-2478
(Cell) 630-400-1123
[email protected]
Hilco Global Headquarters
5 Revere Drive, Suite 320
Northbrook, IL 60062 USA
www.hilcorealestate.com
Hilco Global Offices and Resources, Worldwide
Chicago | Boston | Detroit | Grand Rapids | New York | Los Angeles | Atlanta | Birmingham | Charlotte | Oakland Phoenix
| Seattle | San Diego | United Kingdom (London, Leeds, Birmingham) | Toronto | Mexico (Mexico City, Guadalajara,
Monterrey, Villahermosa, Irapuato) | Sao Paulo | Singapore | Hong Kong | Bangkok | Sydney
16
VIRTUAL DEAL ROOM ACCESS FORM
Access to the Virtual Deal Room, can be obtained by calling the Project Manager at 847.418.2700, or by faxing this form to 847.897.0826, or by emailing it to [email protected].
Please fill out this form and execute the Confidentiality Agreement.
HILCO REAL ESTATE, LLC
5 Revere Drive, Suite 320
Northbrook, IL 60062
847.418.2700 Fax 847.897.0826 [email protected]
Windsor
AirportStreet
Hotel
1575
– 1577Atlanta
W. Ellinwood
5010 Old National
Atlanta, GA 30349
DesHighway,
Plaines, IL
Mailing Address
Name
Company
Address
City
State
Zip Code
Telephone
Email Address
CONFIDENTIALITY AGREEMENT
The undersigned agrees to the following:
The undersigned states that they are requesting this information only for the purpose of evaluating the property for possible purchase and further states that they will not disclose
the information in the Virtual Deal Room to anyone other than legal or financial advisors of the undersigned without the written consent of Seller.
Signature(s):
17
Date:
_______