COMMERCIAL DEVELOPMENT SUMMARY
The Chicago Urban Development LLC is a commercial real estate development company that focuses on commercial development in the Chicagoland area. Our business model is to acquire undervalued commercial real estate and transform them into highly profitable sustainable commercial properties.
1. FIND UNDERVALUED COMMERCIAL REAL ESTATE WITH UNDER 50% OCCUPANCY IN HIGH CONENTRATED, AFFLUENT AREAS
We find commercial real estate with 20-50% ARV, located in affluent urban areas with a high concentration of business professionals.
3. WE INTEGRATE OUR BUSINES MODEL TO INCREASE THE OCCUPANCY TO 100%, FURTHERING ITS INCREASE IN VALUE WITH A +NET OPERATING INCOME
We integrate our business model of hotel, hospitality and event space and we customize it to appeal to the area demographic population which will increase the Net Operating Income and the value of the property.
2. WE REHAB THE PROPERTY TO ENSURE AN IMMDEIATE INCREASE IN VALUE
Most of the properties that we identify have some level of distress. In these instances, with our development team, we rehab the property to bring it to our high standards which will immediately increase its value.
4. WE INSTALL OUR EXPERIENCED HOTEL AND HOSPITALITY MANAGEMENT TEAM TO MANAGE THE OPERATIONS AND REAL ESTATE TO ENSURE ITS LONG-TERM SUSTAINABILITY
Once we integrate our business model into the commercial real estate to bring it to full occupancy it will be managed by our team of management professionals in hotel, hospitality and real estate.
PROPERTY REQUIREMENTS
THE RIGHT SIZE - 35,000sf-85,000sf
We look for commercial properties that are between 35,000sf-85,000sf. This square foot range allows us enough square space to install our business model which is a mixed use commercial operation.
THE RIGHT LOCATION - AFFLUENT URBAN CENTERS
Our portfolio will consist of properties that are in affluent urban centers ensuring that the market can support growth and sustainability.
THE RIGHT CAPACITY - LESS THAN 50% OCCUPIED
Our ideal properties will have at least less than 50% occupancy of commercial tenants. This will ensure an immediate increase of value with the property with the installation of our business model.
THE RIGHT PRICE - MARKET VALUE OR BELOW
Our properties must be at market value or less. Our real estate brokerage firm does due diligence to ensure that our properties are purchased at a fair to great rate.
AREAS OF INTEREST
Downtown, South Loop, West Loop, Bronzeville
Comprised of Affluent Residents
Located Near 4 Major Interstates
Near Public Transportation
Safe Communities
TARGET AREA DETAILS
The Loop areas are a lively hub of classic bars and diverse restaurants. Home to Chicago’s commercial core, it is the second largest commercial business district in North America and contains the headquarters and regional offices of several global and national businesses, retail establishments, restaurants, hotels, and theaters, as well as many of Chicago’s most famous attractions.
AVERAGE HOUSHOLD INCOME
The average household income in these areas is $97,528.41, which makes this a affluent community.
MEDIAN AGE
The median age in these areas is 33.6 years. This is a demographic that supports the hospitality industry.
POPULATION
The population in these areas is 48.47% Male and 51.53% Female, giving this community a healthy balance in gender.
HOUSING UNITS
The housing units currently stand at 11,278, with a substantial growth in housing in the past 10 years.
TRANSPORTATION
Our projects are near all of major public transit lines, making our project highly accessible.
INTERSTATE HIGHWAYS
Our properties are generally less than one mile from many of the major interstate highways (I-290, I-90/94, I-90/94East, I-55
TOURIST ATTRACTIONS
Close proximity Lake Michigan, the Museum Campus, Downtown Chicago Attractions, McCormick Place, Soldier Field
Retail/Commercial
Many major retail establishments and hospitality businesses and restaurants are in walking distance.
POTENTIAL COMMERCIAL PORTFOLIO
PROPERTY 1 - SOUTH LOOP
2.3 MILLION
SQUARE FOOTAGE - 40,000 SF
CURRNT OCCUPANCY - Vacant
CURRENT NOI - NA
PROPERTY 2 - BRONZEVILLE
5.4 MILLION
SQUARE FOOTAGE - 60,000 SF
CURRENT OCCUPANCY - 100%
CURRENT NOI - 0
PROPERTY 3 - WEST LOOP
18 MILLION
SQURE FOOTAGE - 86,000 SF
CURRNT OCCUPANCY - 58%
CURRENT NOI - $350,000
PROPERTY 6 - SOUTH LOOP
REQUESTING OFFER
SQUARE FOOTAGE - 36,282 SF
CURRENT OCCUPANCY - 93%
CURRENT NOI - $812,343
PROPERTY 5 - DOWNTOWN LOOP
4.9 MILLION
SQUARE FOOTAGE - 45,000 SF
CURRNT OCCUPANCY - 78%
CURRENT NOI - TBD
PROPERTY 4 - RIVER NORTH
REQUESTING OFFER
SQUARE FOOTAGE - 68,000 SF
CURRENT OCCUPANCY - 50%
CURRENT NOI - TBD
PROPERTY # 1 BUSINESS MODEL
THE GUEST HAUS
This multi-faceted business model consist of a boutique hotel and hospitality can be integrated into any of the identified commercial development properties, converting them into profitable mix-use commercial developments.
DEVELOPMENT TEAM
CONSTRUCTION MANAGEMENT
Construction Works BLvett, JV Inc. is a collaboration of two of the leading full service general contracting/ construction management firms. They’ve both have built solid reputations for comprehensive management controls, highly competitive pricing, and a bottom-line commitment to quality.
ARCHITECT
Specializing in Hospitality Design - International & Domestic, Restaurant, Resort Planning, Spa, Hotel, Lounge, Gaming, Entertainment, Retail, and Commercial
(POTENTIAL) CONSTRUCTION COMPANY
JE Dunn is an industry leader in the application of preconstruction technology, virtual design and construction, and other emerging construction technologies.
HOTEL/HOSPITALITY/BUSINESS MANAGEMENT TEAM
Woodmont Lodging's Client Services Group delivers financial results to third party owners through advisory engagements, asset management services and property management services.
$5
Million
Total Budget for the South Loop Project
2.3 for property acquisition, 2.3 investment from current owner, 5.0 for loan collateral, 2.0 for rehab, 1.0 for furniture and fixtures, 2.0 operating capital
NEXT STEPS
Here are the steps that we'll be taking to get this project underway.