REAL ESTATE AUCTION OFFERING MEMORANDUM. Includes 8 Retail Stores, 5 Apartments, Office Space, Live Theater & Banquet Facility

Transcription

1 Valuation Monetization Advisory REAL ESTATE AUCTION OFFERING MEMORANDUM Income-Producing Mixed Used Building 620 Lee Street, Des Plaines, IL Includes 8 Retail Stores, 5 Apartments, Office Space, Live Theater & Banquet Facility SEALED BID DEADLINE: NOVEMBER 20 TH

2 Contents Introduction & Inspection Dates Property Information Historical Financials Property Pictures Terms of Sale 2

3 Introduction & Inspection Dates This offering is for a prime, mixed-use building located in the heart of downtown Des Plaines. Ideally located close to numerous transportation options, this fully-leased building is steps from the Des Plaines Metra station, less than one mile from the entrance ramp to I-294, and just five miles from the O Hare International Airport. Property Highlights Include: - Fully Leased with Long Term Tenants - Gross Rental Revenue of $242,000 - Great Corner Location with Excellent Visibility - Within TIF 1 District 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 30 th, November 6 th and 13 th at 1:00 PM. Auction Information: Sealed Bid Deadline: 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. Certified Funds Required to Bid: $20,000 Buyer s Premium: A 8% Buyer s Premium will be added to the high bid price per the Terms of Sale. Call for More Information: Steve Madura smadura@hilcoglobal.com Jeff Azuse jazuse@hilcoglobal.com

4 620 Lee Street, Des Plaines, IL Property Information Built in 1922, this prime mixed use building totals approximately 28,400 square feet and sits on.26 acres in heart of downtown Des Plaines, IL. The property contains eight ground floor retail store fronts, five studio apartments, office space, a live 244-seat theater and banquet facility. Ideally located at the intersection of Route 14 (Northwest Highway) and Lee Street in the heart of Des Plaines, this three-story landmark building offers excellent exposure, high traffic counts and strong rental income. The property is also steps from the Des Plaines Metra Station. Parcel ID: Site Size: Property Description: Type: Year Constructed: Zoning: Improvements:.26+/- Acres Mixed Use Commercial Building 1922 with renovations periodically to portions of the building 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 goods and services. Three-story mixed use building Retail 8 Storefronts Apartments 5 Studios Office 8 Suites Live Theater Area 3,800+/- SF Banquet Area 2,236+/- SF (dividable) 4

5 620 Lee Street, Des Plaines, IL Property Information Cont. Property Description Continued: Utilities: Real Estate Taxes: $28, Water, sewer, gas and electricity are available at the property. Providers include ComEd, Nicor and AT&T. Foundation: Structural: Exterior Finish: Roof Covering: Interior Finish: HVAC: Electric & Plumbing: Parking: Majority slab on poured concrete footings Masonry Brick Membrane covered with bituminous and aggregate material Walls consist primarily of painted plaster or gypsum board. The ceilings are acoustic tiles. Flooring consists of carpeting or hardwood. Lightening consists of halogen fixtures suspended from the ceiling the retail storefronts, and ceiling mounted light fixtures within the office and other retail spaces. The property is heated and cooled by forced air heating and air conditioning units. The electrical and plumbing systems and fixtures are assumed to be adequate for this size property. The property does not have on-site parking; however, there is a municipal parking garage and street parking is generally available. 5

6 620 Lee Street, Des Plaines, IL Financial Summary Disclaimer: *During winter months, Pop-O-Licious (retail tenant #1460) pays an additional $100/month for heat and Studio Phinex (retail tenant #608) pays an additional $25/month for water. Disclaimer: The above financial information is subject to inspection and verification by all parties who are relying on it to formulate a bid. No liability for its inaccuracy, errors, omissions, is assumed by the Seller or its agents. We were not provided any more current financial information. 6

7 620 Lee Street, Des Plaines, IL Floor Plans-1 st Floor 7

8 620 Lee Street, Des Plaines, IL Floor Plans-2 nd Floor 8

9 620 Lee Street, Des Plaines, IL Floor Plans-3 rd Floor 9

10 620 Lee Street, Des Plaines, IL Pictures 10

11 620 Lee Street, Des Plaines, IL Pictures 11

12 620 Lee Street, Des Plaines, IL Location Map 12

13 620 Lee Street, Des Plaines, IL Aerial Map 13

14 TERMS OF SALE AUCTION FORMAT: This property 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 Attention: Steve Madura or via to smadura@hilcoglobal.com. BUYER S PREMIUM: A 8% Buyer s Premium will be charged to the successful buyer at the auction. The Buyer s Premium is equal to eight (8%) 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 $20,000, 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 property is being offered with reserve and is subject to the Seller s acceptance within five (5) business days of the auction. The winning bid must remain irrevocable by the High Bidder during this period. The Seller reserves the right to accept the final high bid at the time of the auction. The High Bidder who has bid on the property with reserve will be notified at the Auction or in writing of the Seller s decision. Failure to notify the High Bidder does not constitute acceptance by the Seller. 14

15 TERMS OF SALE INSPECTION: The Property 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 Property prior to the auction. Those inspecting the Property 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 it to info@hilcoreal.com. 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 of the conclusion of bidding, acknowledging the purchase and the $20,000 certified or cashier's check as initial down payment will be deposited. The initial down payment MUST be increased to equal 10% of the Total Purchase Price by cashiers or certified check or wire transfer within three (3) business days following Sellers acceptance. The increased amount must be provided via certified 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 Property and reviewed documents related to the Property 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 of the conclusion of the bidding 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 equal 10% of the Total Purchase Price, which is due 3 business days after Seller s acceptance, 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. The Back-Up Bidder s MUST increase their earnest money deposit to 10% of the 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. 15

16 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 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) I Fax (847) 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. 16

17 BROKER PARTICIPATION BUYER S AGENT COMPENSATION: Hilco Real Estate will pay an approved buyer s broker, upon closing, a fee equal to 1.5% (one and a half 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 to info@hilcoreal.com 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. 17

18 For Access to the Virtual Due Diligence Deal Room Please fill out the form on the following page or Call or Steve Madura (Direct) (Cell) Hilco Global Headquarters 5 Revere Drive, Suite 320 Northbrook, IL USA 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 18

19 VIRTUAL DEAL ROOM ACCESS FORM Access to the Virtual Deal Room, can be obtained by calling the Project Manager at , or by faxing this form to , or by ing it to Please fill out this form and execute the Confidentiality Agreement. HILCO REAL ESTATE, LLC 5 Revere Drive, Suite 320 Northbrook, IL Fax info@hilcoreal.com Mailing Address Name Address State Telephone Windsor 620 Atlanta Lee Street Airport Hotel Des Plaines, IL 5010 Old National Highway, Atlanta, GA Company City Zip Code 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): Date: 19