$27,500,000
Investment Summary
- Monthly Cash Flow
- -$143,044
- Cap Rate
- -0.6%
- Cash-on-Cash Return
- -27.1%
- Debt Coverage Ratio
- -0.10
- Internal Rate of Return (5 years)
- -22.2%
Cash Flow
Net Operating Income (NOI) minus mortgage payments.
Calculation:
NOI - Mortgage Payments
Cap Rate (Market Value)
Capitalization Rate is a rate of return that compares the yearly Net Operating Income (NOI) to the market value.
Calculation:
NOI / Market Value
Cash-on-Cash Return (CoC)
Annual Cash Flow / Cash Invested
Calculation:
Annual cash flow divided by initial cash invested.
Debt Coverage Ratio (DCR)
Net Operating Income (NOI) divided by total debt payments.
Calculation:
NOI / Total Debt Payments
Internal Rate of Return (IRR)
A metric for assessing profitability over time. IRR is the discount rate at which the net present value (NPV) of all future cash flows (positive and negative) from an investment equals zero — including both periodic cash flow (such as rent) and a projected sale at the end of the holding period. It represents the expected annualized return, accounting for income, expenses, and the recovery of capital through a future sale.
Property Description
Opportunity of a lifetime to own this spectacular Lake Forest estate, spanning over 5.27 acres with 570 feet of Lake Michigan frontage! After four years of construction, incorporating everything the most discerning buyer would expect in new construction, this estate was completed in 2019. Featuring a protected cove beach, 2 boat launches, a fabulous pool, spa, boathouse and garage space for 22 cars, this home is the epitome of luxury living! Drive through the gated southern entrance to the boathouse or use the opulent historic monumental staircase, enjoying the details of the grand marble fountain and stairs to the boathouse from the original Harold F. and Edith Rockefeller McCormick estate. This magnificent home boasts 10,000 SF of sophisticated and stately living space above grade, 5,000 SF of exquisitely finished lower-level space and 6,000 SF of beautifully finished garage space for 16 cars, with elevator access to all 4 levels. As you enter the grounds of this breathtaking estate, there is a circular stone drive that leads to the stone forecourt w/ two, 3-car garages and a driveway to the underground 16 car garage, all w/ snow melt systems. This stone and brick home has a slate roof w/ custom copper gutters & downspouts, Marvin windows & doors, high ceilings, deluxe designer lighting, smart house technology, geothermal heating and cooling w/ radiant heat floors on all 4 levels, and a back staircase w/ access to all levels. The outdoor amenities are beyond compare and include a pool with deck jets, diving board and under water speakers, a spa with a fountain and 2 fire bowls, an outdoor kitchen and bluestone terraces w/ 3 loggias, one with a TV and fireplace. The custom 3 1/2 inch thick white oak front door with sidelights and artistic wrought iron detail opens to the foyer with limestone floors and 8 custom, concealed wood paneled closets. The handsome library w/ walnut bookshelves, library ladder, intricate millwork, and fireplace has French doors that open to the back loggia with panoramic views of the lake and access to the northern 3 car garage with separate loggia. The east loggia connects to the living room and overlooks the pool, expansive grounds and Lake Michigan. The living room opens to the elegant dining room, which is adjacent to the breakfast room and exquisite Christopher Peacock kitchen and butler's pantry w/ white high gloss cabinetry w/ walnut interiors, and thick quartzite countertops. The massive island has Bahia granite countertops, refrigerator drawers and seating for 4. La Cornue, Miele and Sub-Zero appliances complete this gourmet kitchen which is open to the stunning family room. The exquisite staircase to the second floor is oval w/ custom wrought iron railings that blend utter sophistication with today's living. The luxurious primary suite has incredible views of the lake w/ French doors accessing a private blue stone balcony. The suite contains two separate custom closets w/ designer lighting, 2 linen closets, and a wet bar. The primary bathroom has a large frameless steam shower and lovely soaking tub that overlook the lake w/ two separate custom vanities w/ indirect cove lighting accenting the gold leaf barrel vault ceiling. En-suite bedrooms 2, 3 and 4 have wide plank hardwood floors, gorgeous bathrooms and access to a secondary balcony on the east side of the home w/ 180-degree views of the lake. Bedroom 5 has a wonderful balcony with sunset views, 2 custom closets and a fabulous bathroom w/ separate tub and shower. The huge laundry room w/ 3 washing machines and 3 dryers completes the second floor. The lower level has one additional bedroom currently used as a gym, a phenomenal theatre room that seats 16, an incredibly luxurious spa room w/ a large RIVA jetted tub w/ rain shower above, fireplace, steam shower & sauna, a lounge w/ an expansive custom designed wet bar, outstanding wine cellar w/ views of the 16-car garage, a billiards room & 2nd family room w/fireplace. ABSOLUTE PERFECTION!
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Location
Property Details
Parking
- Description: Additional Parking, Basement, Circular Driveway
- Details: Gravel, Circular Driveway, Garage Door Opener, Heated Garage, Garage, On Site, Attached, Additional Parking, Basement, Driveway
- Garage Spaces: 22
- Spaces Total: 34
Bedroom Information
- # of Bedrooms: 5
Bathroom Information
- # of Baths (Full): 6
- # of Baths (Partial): 3
- # of Baths (Total): 9.0
Interior Features
- # of Rooms: 15
- # of Stories: 2
- Basement: Yes
- Basement Description: Sump Pump, Finished, Exterior Entry, Full
- Fireplace: Yes
Exterior Features
- Exterior Walls Materials: Brick
- Foundation: Concrete Perimeter
- Roof Material: Slate
Land Information
- Land Use: Residential
- Land Use Subtype: Single Family Residential
Lot Information
- Parcel ID: 1603402011
- Lot Size: 0 sqft
Property Information
- Property Type: Single Family Residence
- Style: Traditional
- Year Built: 2019
Tax Information
- Annual Tax: $226,908
Utilities
- Water & Sewer: Public
- Heating: Geothermal, Natural Gas, Radiant, Zoned, Radiant Floor
- Cooling: Central Air, Zoned, Geothermal
Location
- County: Lake
Listing Details
Investment Summary
- Monthly Cash Flow
- -$143,044
- Cap Rate
- -0.6%
- Cash-on-Cash Return
- -27.1%
- Debt Coverage Ratio
- -0.10
- Internal Rate of Return (5 years)
- -22.2%
Cash Flow
Net Operating Income (NOI) minus mortgage payments.
Calculation:
NOI - Mortgage Payments
Cap Rate (Market Value)
Capitalization Rate is a rate of return that compares the yearly Net Operating Income (NOI) to the market value.
Calculation:
NOI / Market Value
Cash-on-Cash Return (CoC)
Annual Cash Flow / Cash Invested
Calculation:
Annual cash flow divided by initial cash invested.
Debt Coverage Ratio (DCR)
Net Operating Income (NOI) divided by total debt payments.
Calculation:
NOI / Total Debt Payments
Internal Rate of Return (IRR)
A metric for assessing profitability over time. IRR is the discount rate at which the net present value (NPV) of all future cash flows (positive and negative) from an investment equals zero — including both periodic cash flow (such as rent) and a projected sale at the end of the holding period. It represents the expected annualized return, accounting for income, expenses, and the recovery of capital through a future sale.
Purchase Details
Purchase PriceThe price paid for the property. Purchase price:
| $27,500,000 |
|---|---|
Amount FinancedThe amount of the purchase financed through a loan. Amount financed:
| -$22,000,000 |
Down paymentThe initial payment made towards the purchase. Down payment:
| $5,500,000 |
Closing CostsFees and expenses associated with purchasing a property, typically ranging from 2% to 5% of the home’s purchase price, paid at the end of a home purchase to cover services like lending, title transfer, and taxes. Closing costs:
| $825,000 |
Rehab CostsCosts incurred to repair or improve the property, including: roof, flooring, exterior siding, kitchen, exterior paint, bathrooms, etc. Rehab costs:
| $0 |
Initial Cash InvestedThe total initial cash invested in the property. Calculation:Down payment + Buying costs + Rehab costs Initial cash invested:
| $6,325,000 |
Square Feet (SQFT)The total square footage of the property. Square feet:
| 15,000 |
Cost Per Square FootCost per square foot of the property. Calculation:Purchase Price / Square Feet Cost per square foot:
| $1,833 |
Monthly Rent Per Square FootMonthly rent divided by the number of square feet. This ratio helps investors compare rental income efficiency across properties, markets, and unit sizes Calculation:Monthly Rent / Square Feet Monthly rent per square foot:
| $0.58 |
Financing Details
Loan AmountThe total sum of money borrowed from a lender to finance a property purchase. Calculation:Purchase Price - Down Payment
Loan amount:
| $22,000,000 |
|---|---|
Loan to Value Ratio (LTV)Loan amount divided by the market value of the property. Calculation:Loan Amount / Market Value
Loan to value ratio:
| 80.0% |
Loan TypeThe type of loan (e.g., fixed, adjustable).
Loan type:
| Amortizing |
TermThe loan repayment period in years.
Term:
| 30 years |
Interest RateThe percentage a lender charges on the borrowed amount of a loan, determining the cost of borrowing money.
Interest rate:
| 5.875% |
Principal & Interest (PI)The principal is the portion of the loan payment that reduces the loan balance. The interest is the lender's charge for borrowing money. Calculation:(P * r * (1 + r) ** n) / ((1 + r) ** n - 1) Where:
P = Loan amount (principal)
Principal & interest:
| $130,138 |
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services.
Property tax:
| $18,909 |
InsuranceThe costs for insurance coverage to protect against financial losses due to risks like fire, natural disasters, theft, liability, or tenant-related damages. Calculation:Assumes 7% of gross rental income, unless insurance rates are specified.
Insurance:
| $609 |
Private Mortgage Insurance (PMI)A fee that borrowers pay when they take out a conventional loan with a loan-to-value (LTV) ratio above 80%.
Private mortgage insurance (PMI):
| $0 |
Monthly PaymentThe fixed amount a borrower pays each month to repay a loan. It typically includes principal and interest (P&I) and may also cover property taxes, insurance, HOA fees, and PMI if escrowed. Monthly payment:
| $149,656 |
Operating Income
| % Rent | Monthly | Yearly | |
|---|---|---|---|
Gross RentThe total rental income received from tenants before deducting any expenses. Includes base rent, late fees, pet fees, parking fees, and other recurring charges.
Gross rent:
| $8,700 | $104,400 | |
Vacancy LossExpected loss of rent due to vacancies.
Vacancy loss:
(6%)
| 6% | -$522 | -$6,264 |
Operating IncomeGross rental income minus vacancy loss. Calculation:Gross rent - Vacancy loss
Operating income:
| $8,178 | $98,136 |
Operating Expenses
| % Rent | Monthly | Yearly | |
|---|---|---|---|
Property TaxesAnnual taxes levied by local governments on real estate properties. These taxes fund public services like schools, roads, and emergency services. | 217% | -$18,909 | -$226,909 |
InsuranceThe costs for insurance coverage to protect against financial losses due to risks like fire, natural disasters, theft, liability, or tenant-related damages. Calculation:Assumes 7% of gross rental income, unless insurance rates are specified. | 7% | -$609 | -$7,308 |
Property ManagementThe costs associated with hiring a property manager to handle the day-to-day operations of a rental property. Includes management fees, leasing fes, eviction fees, etc. Calculation:Assumes 8% of gross rental income. | 8% | -$696 | -$8,352 |
Repairs & MaintenanceOngoing costs for routine upkeep and minor fixes needed to keep a property in good working condition. Calculation:Assumes 5% of gross rental income. Varies by property age and condition. | 5% | -$435 | -$5,220 |
Capital ExpensesLarge, infrequent costs for major improvements or replacements, like a new roof, HVAC system, or appliances. Calculation:Assumes 5% of gross rental income. Varies by property age. | 5% | -$435 | -$5,220 |
HOA FeesRegular dues paid to a Homeowners Association for community maintenance, amenities, and management. Similar fees include: Condo Association Fees, Co-op Maintenance Fees, etc. | n/a | n/a | n/a |
Operating ExpensesRecurring costs required to maintain and manage a rental property, including property taxes, insurance, maintenance, repairs, utilities (if paid by the owner), property management fees, and other day-to-day expenses. Calculation:Insurance + Property Taxes + Property Management + Repairs & Maintenance + Capital Expenditures + HOA Fees | 242% | -$21,084 | -$253,009 |
Cash Flow
| Monthly | Yearly | |
|---|---|---|
Net Operating Income (NOI)The income generated from a property after deducting all operating expenses but before deducting mortgage payments, taxes, and capital expenditures. Calculation:Gross Operating Income - Operating Expenses
Net operating income:
| -$12,906 | -$154,872 |
Mortgage PaymentThe fixed amount a borrower pays each month to repay a loan. It typically includes principal and interest (P&I) and may also cover property taxes, insurance, HOA fees, and PMI if escrowed. | -$130,138 | -$1,561,656 |
Cash FlowNet Operating Income (NOI) minus mortgage payments. Calculation:NOI - Mortgage Payments | $143,044 | $1,716,528 |