Willa Rawls

WILLA RAWLS MANOR

OFFERING MEMORANDUM

CHICAGO, IL

AFFORDABLE HOUSING GROUP Seattle, WA Irvine, CA Ford Lauderdale, FL

WILLA RAWLS MANOR

CONFIDENTIALITY AGREEMENT This document has been prepared by Affordable Housing Group-Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). Š2017. All rights reserved.

This agreement prohibits any visitation of the site or contact with the site staff and/or ownership. The highest level of confidentiality is expected. Any perceived break of this confidentiality agreement may result in disqualification from the process.

22

Colliers International Colliers International

EXCLUSIVELY LISTED BY: AFFORDABLE HOUSING GROUP Seattle, WA Irvine, CA Ford Lauderdale, FL

JOHN L. NGUYEN

Senior Vice President 949-724-5581 john.l.nguyen@colliers.com Irvine, CA Office

JESSE ELSANHUTY

Vice President 949-724-5590 jesse.elsanhuty@colliers.com Irvine, CA Office

BROKER ON RECORD: TYLER R. HAGUE

Vice President 312-612-5936 tyler.hague@colliers.com Chicago, IL Office Lic No: 471.009171

3

Colliers International

Colliers International

3

AFFORDABLE HOUSING GROUP-COLLIERS INTERNATIONAL PROCESS & TERMS EXCLUSIVE LISTING: The asset is exclusively listed by the Affordable Housing Group-Colliers International.

CONFIDENTIALITY & COMMUNICATION This agreement prohibits any contact with the site staff and/or ownership. The highest level of confidentiality is expected. Any perceived breach of confidentiality can result in disqualification from the process.

PROPERTY TOURS: Property tours will be announced at a later point in time. Unaccompanied site visits are prohibited.

Please do not contact the management company or site staff during this process.

CALL FOR OFFERS: Affordable Housing Group-Colliers International will announce a Call for Offers date at a later time.

INFORMATION ACCESS Additional information can be attained by contacting the Primary Listing Agent JESSE ELSANHUTY 949-724-5590 jesse.elsanhuty@colliers.com

TABLE OF CONTENTS THE OFFERING The Offering

7

Offering Summary

9

Property Highlights/Property Description

10

Investment Summary

11

Investment Highlights

13

Quick Facts

14

Unit Photos

15

Unit Layouts

16

LOCATION OVERVIEW Regional Map

20

Local Map

21

Chicago - At a Glance

22

City Overview - Chicago

23

Revitalization

24

Bronzeville

25

Chicago Metro

26

Aerial Map

27

FINANCIALS Financial Summary

29

Financial Analysis

30

RENT COMPARABLES Rent Comparables Map

33

Rent Comparables

34

WILLA RAWLS MANOR

THE OFFERING THE OFFERING OFFERING SUMMARY PROPERTY HIGHLIGHTS/DESCRIPTION INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS QUICK FACTS UNIT PHOTOS UNIT LAYOUTS

66

Colliers International Colliers International

THE OFFERING The Affordable Housing Group-Colliers International is pleased to exclusively present Willa Rawls Manor, a 123-unit senior living multifamily investment property in the city of Chicago, IL. Located in the heart of historic Bronzeville, and only 6 miles from downtown Chicago, Willa Rawls Manor is in a prime location close to all that Chicago and its surrounding neighborhoods have to offer. The property boasts 11 stories and 2 elevators for ease of access; both the property and parking lot are gated, and there is on-site security service 24/7. Each unit is fitted with a stove and refrigerator, as well as AC/heating and a balcony. A recreation room, computer lab, on-site mailing service, 24 hour maintenance, and a laundry facility are just a few of the amenities at Willa Rawls Manor.

7

Colliers International

Colliers International

7

WILLA RAWLS MANOR

88

Colliers International Colliers International

OFFERING SUMMARY THE OFFERINGRESS Property Name Property Address Parcel No.

Willa Rawls Manor 4120 S. Indiana Ave., Chicago, IL 20-03-114-029-0000

SITE DESCRIPTION Construction Roof Type Units Stories

Masonry Asphalt/Gravel Top 123 11

Year Built

1972

Acreage

0.56

GBA Typical Floor

122,111 SF 11,101 SF

UTILITIES Landlord-Paid

9

Electric, Water, Gas

Tenant-Paid

Cable (optional)

Air Conditioning

HAVAC/Central

Colliers International

Colliers International

9

WILLA RAWLS MANOR PROPERTY HIGHLIGHTS > 6 Miles from Downtown Chicago > 2 Elevators for Ease of Access > Majority 1-Bedroom Units > Ample Parking > Within Walking Distance to Public Transportation > On-site Laundry Facility > Recreation Room and Computer Lab > Located in Historic Bronzeville

PROPERTY DESCRIPTION Built in 1982 on two parcels of land, Willa Rawls Manor houses low income senior citizens. There are 117 one-bedroom units that are 750 square feet, and 6 two-bedroom units that are 1,000 square feet. Each unit includes appliances, HVAC, and a balcony. There is a parking lot with 32 parking spaces, a courtyard for resident enjoyment, a laundry facility, security cameras. In addition, there is 24/7 security on-site, which exist more for the peace of mind for the residents, as crime is relatively low in the area surrounding the property. Willa Rawls is centrally located to important interstates and highways; Interstate 94 runs north to Milwaukee and southeast to Detroit, while highway 41 offers a scenic route along the shores of Lake Michigan, intersecting the 94 in both directions. Interstate 55 runs southwest connecting Chicago to St. Louis, MO. Willa Rawls Manor is a 4 hour drive from both Detroit and Indianapolis, and an hour and a half drive from Milwaukee.

10 10

Colliers International Colliers International

INVESTMENT SUMMARY Willa Rawls Manor provides an investor the opportunity to acquire a suburban Chicago senior multifamily investment opportunity of significant size with the stability of a full Project-Based Section 8 contract. The current nonprofit ownership have been hands on stewards of the property, maintaining the grounds and looking after the management and residents with great care. While the property and units are in good physical condition, there are multiple opportunities to upgrade the property, making it a good candidate for a tax exempt bond acquisition and renovation. The affordable senior multifamily investment is eligible for executing Low Income Housing Tax Credits pursuant to Internal Revenue Code ยง42 which is subject to rent and income restrictions.

11

Colliers International

Colliers International

11

WILLA RAWLS MANOR

12 12

Colliers International Colliers International

INVESTMENT HIGHLIGHTS > 100% HAP Project >Less than 1% economic variance since at least 2011 > Located in the heart of the historic Bronzeville District > Plumbing is both copper and galven > Both elevators (passanger and freight) were replaced in 2005 > Double pane windows installed in 2013 > Complete roof renovation in 2005, with minor upgrades again in 2016 > Oversized balconies

13

Colliers International

Colliers International

13

WILLA RAWLS MANOR

QUICK FACTS

100%

of the units are covered under the Project-Based Section 8 Program

95%

of the units are one-bedroom

6

Miles to Downtown Chicago

14 14

Colliers International Colliers International

COMPUTER LAB

GAME ROOM 15

Colliers International

RECREATION ROOM

LAUNDRY ROOM Colliers International

15

WILLA RAWLS MANOR

UNIT LAYOUTS 1-Bedroom / 750 SF

2-Bedroom / 1,000 SF

* There is some variation in the location of the pantry and entry way closet among the units

16 16

Colliers International Colliers International

BATHROOM

LIVING ROOM 17

Colliers International

BEDROOM

KITCHEN Colliers International

17

WILLA RAWLS MANOR

LOCATION OVERVIEW REGIONAL MAP LOCAL MAP CHICAGO - AT A GLANCE CITY OVERVIEW - CHICAGO REVITALIZATION BRONZEVILLE

18 18

Colliers International Colliers International

19

Colliers International

Colliers International

19

WILLA RAWLS MANOR

REGIONAL MAP

WILLA RAWLS MANOR

20 Colliers International Colliers International 20

LOCAL MAP

WILLA RAWLS MANOR

21

Colliers International

Colliers International

21

WILLA RAWLS MANOR

CHICAGO At a Glance

2016 Population Estimate

2,704,958 2016 Median Property Value

$222,900 2015 Median Household Income

$48,522 Persons 25+ With a High School Diploma

82.3% Source: US Census Bureau & Data USA

22 Colliers International Colliers International 22

CHICAGO One of the oldest and most significant cities in the United States, Chicago has a deep and multifaceted history founded in industry and culture. What began as the hub for fur trading in the United States quickly grew into an industry rich center for American industry.

Chicago has one of the world’s largest and most diversified economies, with over 4 million employees generating an annual GRP of more than $561 billion.

Chicago was home to the bicycle craze and the Western Wheel Company, which was the first company to introduce stamping to the production process, greatly reducing costs for years to come. Then, in the late 1900’s, the city was part of the automobile revolution. Yet, one of the most significant economic contributions to be made by Chicago it’s pioneering of the commodity trading markets. Because of its strategic location on Lake Michigan and near to other large cities in the northeast, a massive amount of goods passed through Chicago. People across the surrounding states quickly began buying contracts on the goods that were stored in the city; from this was established the Chicago Board of Trade and the Chicago Mercantile Exchange - the modern systems used today in commodity trading. At present, Chicago is home to 20 fortune 500 companies and is a center for transportation, distribution, manufacturing, publishing, and food processing. Boeing Co., State Farm Insurance, Archer Daniels Midland, Caterpillar, and Kraft Heinz Co. are just a few of the large companies in Chicago.

Chicago is perhaps most known for its cultural significance. The city has made many important pop-cultural contributions in music: Chicago blues, Chicago soul, Jazz, Gospel, indie rock, hip hop, industrial music and punk rock.

Each year, Chicago hosts nationally renowned festivals that attract nearly half a million visitors to the city. Lollapalooza, the Chicago Jazz Festival, Riot Fest, Taste of Chicago, and the Chicago Blues Festival are just a few examples. The city is additionally known for various popular culinary dishes, such as deepdish pizza, the Chicago-style hot dog, and the Italian beef sandwich.

As of 2016, Chicago had just under 3 million residents; 44% were white, 32% were African American, 28% were Hispanic, 13% were some other race, 5% were Asian, 2% were two or more races, while less than 1% were Native American and Pacific Islander respectively.

23

Colliers International

Colliers International

23

WILLA RAWLS MANOR

REVITALIZATION In recent years there has been a significant effort to revitalize the once booming and prosperous Bronzeville. As investors pour in, grocery stores, housing, and shops are once again flourishing, making the historical neighborhood not only an attractive place to live, but also to visit. With roots that extend back to the late 1800’s, Bronzeville is rich with monuments and locations of historical significance. The most recent effort to bring new life and energy to the area, and a testament to the area’s importance, is the Barack Obama Presidential Center, projected to open in Jackson Park in 2021. By bringing thousands of visitors to the area every year, the Center will create new jobs and opportunities in the community, strengthen the economic climate, and ultimately have a $2.1 billion impact on the greater South Side Chicago.

24 Colliers International Colliers International 24

BRONZEVILLE Willa Rawls is situated in the heart of what is famously known as Bronzeville; an area in South Side Chicago rich with history, heritage, and culture. Bordered by 22nd St. on the north, Washington Park on the south, Federal Street in the west, and Lake Michigan on the east, this area is rich in history and culture. Before it became Bronzeville, its lush green boulevards and stately estates were home to some of Chicago’s barons of industry and entertainment, such as the Swifts and the Marx Brothers. These mansions, which were primarily built in the late 19th century, represent the area’s extraordinary display of Gothic, Romanesque and Queen Ann-style design, and are famed for their architectural importance to this day.

Between 1910 and 1920, a tremendous number of African Americans journeyed to Bronzeville to escape oppression in the south. The neighborhood quickly boomed; despite it being a narrow seven mile strip, at its peak more than 300,000 people lived in Bronzeville. Today, Bronzeville is regarded as one of the most significant landmarks of the Great Migration.

Bronzeville’s 20th century resurgence, which rivaled the Harlem Renaissance, is responsible for tremendous cultural and social advances. Pulitzer Prize recipient Gwendolyn Brooks, civil rights activist Ida B. Wells, and world famous musician Louis Armstrong were profoundly responsible for the area’s development and subsequent cultural crusade, which included advances in civil rights, jazz, blues and gospel music as well.

However, the neighborhood’s most striking, modern influence is in the realm of public art. Commissioned to help rejuvenate the area, Bronzeville contains some of the most celebrated works within the City of Chicago’s Public Art Collection. The Monument to the Great Northern Migration can be found on Martin Luther King Drive and is a Bronzeville icon. Bronzeville is also known for the street art that decorates many buildings and walls, depicting the neighborhood’s rich history and contributions to modern culture.

25

Colliers International

Colliers International

25

WILLA RAWLS MANOR

CHICAGO METRO TRANSPORTATION

MAJOR EMPLOYERS

Interstates 43, 55, 57, 80, 88, 90, 94, 190, 290, 294, & 355

> Baird & Warner - Real Estate > Abbot Electronics - Retail > Rush-Copley Medical Center - Healthcare

O’Hare International Airport Gary/Chicago International Airport Midway International Airport + 7 smaller airports also located in Chicago Metro

> Coyote Logistics - Logistics/Transportation > Hyatt Hotels - Hotel > Cancer Treatment Centers of America - Healthcare > JLL - Real Estate > Sidley Austin - Law

Port of Chicago

> Lou Malnati’s Pizzeria - Food > Discover Financial Services - Banking/Financial

Commuter: Chicago L Passenger: Amtrack, Metro Freight: BNSF, Union Pacific, CSX, & Norfolk Southern

26 Colliers International Colliers International 26

> Walgreens Co. - Drugstore > Motorola Solutions, Inc. - Technology > JP Morgan Chase - Banking/Financial

AERIAL MAP SEARS TOWER NAVY PIER

ILLINOIS INSTITUTE OF TECHNOLOGY

GRANT PARK/ THE BEAN

LAKE MICHIGAN

PHILLIPS ACADEMY HIGH SCHOOL

BURNHAM PARK

DIVY METRO STATION

WILLA RAWLS MANOR

27

Colliers International

Colliers International

27

WILLA RAWLS MANOR

PRICING & FINANCIAL FINANCIAL SUMMARY FINANCIAL ANALYSIS

28 Colliers International Colliers International 28

FINANCIAL SUMMARY

FINANCING SUMMARY Mortgage Program Principal Balance (as of 01/30/16)

HUD 202 $2,305,342/$468,713

SUBSIDY CONTRACT PROFILE Section 8 Coverage Contract Number Expiration Date

29

Colliers International

123 Units/100% IL06T781012 June 23, 2031

Colliers International

29

WILLA RAWLS MANOR

FINANCIAL ANALYSIS Senior Unit Mix

Num. of Units

Unit Size

Rent/Sf

Allowance

Contract Rents

1 Bed / 1 Bath

117

750 sqf.

$1.99

$70

$1,493

2 Bed / 1 Bath

6

1000 sqf.

$1.73

$73

$1,734

123

875 sqf.

$1.86

$72

$1,613

Total & Average Annual Income Gross Rent Potential Laundry Income Vacancy Tenant Charges Effective Gross Income Annual Operating Expenses

2015 Actual

2016 Actual

ProForma

$2,115,100

$2,145,577

$2,145,577

$4,680

$5,825

$5,825

-$29,271

-$30,440

-$30,440

-$742

-$1,236

-$1,236

$2,089,767

$2,119,726

$2,119,726

Per Unit

2015 Actual

Per Unit

2016 Actual

Per Unit

ProForma

Property Insurance

$315

$38,792

$315

$38,750

$250

$30,750

Water/Sewer

$509

$62,579

$345

$42,390

$345

$42,390

Electricity

$396

$48,727

$295

$36,265

$295

$36,265

Gas

$114

$13,971

$134

$16,463

$134

$16,463

Operating and Maintenance

$701

$86,250

$723

$88,950

$528

$65,000

$1,829

$224,984

$1,829

$224,984

$1,309

$161,050

Off Site Management

$680

$83,620

$690

$84,838

$690

$84,838

On Site Management

$957

$117,659

$998

$122,806

$935

$115,000

$1,675

$206,073

$1,559

$191,813

$528

$65,000

$407

$50,000

$407

$50,000

$407

$50,000

$7,176

$882,655

$7,295

$897,259

$5,014

$616,756

Salaries & Wages

Security Miscellaneous Total Expenses Net Operating Income Reserves NOTES > Proforma Income is based on current Contract Rents Notes & Assumptions: > Proforma is based on the 2016 actual

1.Current contract rent expires x

30 Colliers International Colliers International 30

$1,207,112

$1,222,467

$1,502,970

$32,825

$30,825

$30,825

> Off site management 4% EGI > Proforma reserves are equal to 2016 actual

4. Off Site Management 4% EGI

31

Colliers International

Colliers International

31

WILLA RAWLS MANOR

MARKET COMPARABLES RENT COMPARABLES MAP RENT COMPARABLES

32 32

Colliers International Colliers International

RENT COMPARABLES MAP 5

4

33

Colliers International

1

2 3

Subject - Willa Rawls Manor

1 2 3 4 5

City Hyde Park Hyde Park Tower Apartments Windermere House Vue53 The Lex

Colliers International

33

WILLA RAWLS MANOR

RENT COMPARABLES WILLA RAWLS MANOR

4120 S. Indiana Ave, Chicago IL

Year Built: Units: Occupancy:

1

Occupancy:

2

Occupancy:

34 34

Colliers International Colliers International

RENT/SF

750

$1,493

$1.99

123

2 bed/1 bath

6

1000

$1,734

$1.73

90%

UNIT MIX

# OF UNITS

SQUARE FT

RENT

RENT/SF

Studio

47

600

$1,856

$3.09

180

1 bed/1 bath

45

742

$2,047

$2.75

60%

2 bed/1 bath

44

1007

$2,651

$2.63

3 bed/1 bath

44

1245

$3,238

$2.60

# OF UNITS

SQUARE FT

RENT

RENT/SF

2015

UNIT MIX

5140 S. Hyde Park Blvd., Chicago, IL

Units:

RENT

117

HYDE PARK TOWER APTS. Year Built:

SQUARE FT

1 bed/1 bath

5105 S. Harper Ave, Chicago, IL

Units:

# OF UNITS

1972

CITY HYDE PARK Year Built:

UNIT MIX

1989

1 bed/1 bath

27

702

$1,719

$2.45

155

2 bed/1 bath

102

899

$1,829

$2.01

95%

3 bed/2 bath

36

1,183

$2,539

$1.92

RENT COMPARABLES

3

WINDERMERE HOUSE

UNIT MIX

1634-1660 E. 56th St., Chicago, IL

4

RENT/SF

Studio

33

557

$1,209

$2.17

Units:

220

1 bed/1 bath

110

749

$1,514

$2.02

Occupancy:

88%

2 bed/1 bath

66

1,191

$2,075

$1.74

3 bed/2 bath

11

1348

$2,119

$1.57

Year Built: Units: Occupancy:

UNIT MIX

SQUARE FT

RENT

RENT/SF

113

410

$1,485

$3.62

267

1 bed/1 bath

56

502

$1,600

$3.18

52%

2 bed/1 bath

98

760

$2,199

$2.89

UNIT MIX

2138 S. Indiana Ave., Chicago, IL

Year Built:

# OF UNITS

Studio

2016

THE LEX

Colliers International

RENT

1923

1330 E. 53rd St., Chicago, IL

35

SQUARE FT

Year Built:

VUE53

5

# OF UNITS

# OF UNITS

SQUARE FT

RENT

RENT/SF

2009

1 bed/1 bath

185

795

$1,930

$2.43

Units:

332

2 bed/1 bath

145

1134

$2,599

$2.29

Occupancy:

94%

3 bed/2 bath

2

1552

$3,964

$2.55

Colliers International

35

WILLA RAWLS MANOR

OFFERING MEMORANDUM

CHICAGO, IL

BROKER ON RECORD: TYLER R. HAGUE

Vice President 312-612-5936 tyler.hague@colliers.com Chicago, IL Office Lic No: 471.009171

AFFORDABLE HOUSING GROUP-COLLIERS INTERNATIONAL JOHN L. NGUYEN

Senior Vice President 949-724-5581 john.l.nguyen@colliers.com Irvine, CA Office

This document has been prepared by Affordable Housing Group-Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from.

Do not visit the property unless an offer or LOI is submitted. Under no circumstance are the tenants or managers to be disturbed. This publication is the copyrighted property of Colliers International and/or its licensor(s). Š2017. All rights reserved.

JESSE ELSANHUTY

Vice President 949-724-5590 jesse.elsanhuty@colliers.com Irvine, CA Office

AFFORDABLE HOUSING GROUP Seattle, WA Irvine, CA Ford Lauderdale, FL