[Calc Review] New Deal On Chicago South Side

[Tony Angelos]

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*This link comes directly from our calculators, based on information input by the member who posted.

New deal coming next Thursday 3/25 to Chicago's Chatham neighborhood. 3 blocks south of the new Discover Call Center prioritizing most of the 1000 new jobs to people who live close. Job pay starts at 17.50/hr offering Discover's full benefits suite to provide major boost to the area. Tons of new development already going up along 87th street. 

Analysis is Pro-Forma, building has been mismanaged for well over a decade. Current owner has owned a year but needs to sell to prioritize funds on another rehab. Within the past year building has had: New roof with over 50% of the lumber replaced, new gutter system, tuck pointing, rebuilt boiler system, new decking system added.

Value add opportunities:

-Cosmetic updates to units

-Bring rent to market (been stagnant for as long as I can tell, long term elderly tenants)

-Convert (at a minimum) 1 of the 3 oversized 1 bedroom units to a 2 bedroom. The other two can probably be converted but not as easily.

-Add Paid Laundry. Nearest laundromat is kind of far.

- Rent garage spots or offer as part of higher rent.

-Add storage in basement. May not raise rent but may offer incentive to move in over competition

This area is primed for growth over the next decade. The City of Chicago is incentivizing heavily for investment into the area. Bus stop is right outside with easy access to transportation to Discover's facility (3 min CTA ride) or 11 minute walk.