Seeking equity partner for 40 unit building in Chicago- 9.46 cap!

[Account Closed]

Hello!

I'm seeking an equity partner to fund the downpayment on a 40 unit building in Chicago in exchange for equity in the building. I'm including some details below. I'm happy to provide any additional details or answer any questions you may have. 

Thank you,

Jessica 

Subject Property (built in 1923)

Highlights:

1. 40 Apartments ((27) Studios, (12) One Bedrooms & (1) Two Bedroom)
2. Historic location (88% occupancy)
3. 9.46 CAP
4. Gut rehabbed and authorized permits 2003

Summary:

Price$1,869,000

Down payment (25%)$467,250

Total rentable square feet14,250

Price per SF$131.16

Price per Unit$46,725

Loan amount$1,401,750

Interest rate6%

Amortization25 yrs

NOI$176,793

Cap rate (current)9.46%

Debt services$124,608

Net cash flow after debt services$52,185

Return11.17%

Principal reduction $28,683.27

Total return$80,868

Total return %17.31%

Income and Expenses:

Income:

Gross Potential Income(current)$285,360

Vacancy/collection allowance$28,824

Effective gross income$256,824

Expenses:

Real estate taxes$18,870

Insurance$8,043

Gas$11,505

Water/sewer$11,613

Electric$2,987

Pest control$1,850

Legal$2,650

Trash removal$3,383

Repair & maintenance$5,280

Janitor$6,000

Management$7,200

Advertising$650

Total Expenses$80,031

NOI$176,793

Rehab details:

2003-2004-

Gut rehad

Authorized permits

Up to code

New copper plumbing

New electric

New gas lines including separate lines per unit

Updated all kitchens

Updated all bathrooms

2 hour rated fire doors & locks-master keyed

Refinished all hardwood floors in unit & common areas

Drywall throughout

New hot water tanks

New laundry room

Tuck pointing

Tear off roof-new modified bitumen

New windows

New back porch

Exterior wrought iron gate & fence

2010-

Boiler rebuilt

Replaced all heat exchange tubes

New R & D system

Overview:

The property is located in an affluent, middle and upper class neighborhood in Chicago. The neighborhood has a number of cultural and social offerings including professional sports teams, historical landmarks, museums, educational institutions, access to interstates and national highways and is serviced by public transportation systems. This neighborhood developed into one of Chicago's most upscale suburbs after the Civil War. Recent developments, per Chicago’s City Data, in the immediate area include the following: Many multimillion dollar TIF (tax increment financing) developments, consisting of residential units and retail space An international suburban developer is rehabbing single family homes A major chain retailer just opened its doors 3 blocks south of the subject property A commercial complex consisting of 96 mixed income units and 55,000 sq ft of retail just opened 3 blocks south A prominent architect company, that is recognized world-wide for its design innovation, will be completing a 500,000 sq ft mixed use development in 2016 In 2010, the mayor created an advisory panel to assess the potential for creating a world class technology park on a vacant 37 acre lot north of the subject property

[Wayne Brooks]

2% for maintenance, repairs, capex?  I think not.