1400 North Orleans, Chicago

THE OPPORTUNITY

We present the investment opportunity in participations / shares of the fund, for the acquisition, development, and rent of the project located at 1400 North Orleans Street in Chicago, Illinois. The project will be located in the growing neighborhood of Old Town, one of the most important residential areas of the city.

The total funding will be approximately USD 43.5 million, with an additional USD 3.5 million in equity investment from DDG and Marc Realty Capital, and a bank financing of USD 52 million. The total cost of the project is USD 99 million. This offer will generate 7% annual preferential return, and an estimated IRR between 10% and 14% after the sale or recapitalization of the property, estimated for 2023.

THE DEVELOPMENT

The development will transform an old carriage barn into a 7-story, class A building of 23,708m2 that will house 254 luxury apartments for rent in Chicago’s Old Town neighborhood.

The building will have the following Amenities:

  • Parking for 89 cars.
  • Party room.
  • 24 hour gate.
  • Fitness center.
  • Pool on the top floor, with solarium and garden.
  • Tenant Storage.
  • Dog run.
  • Rental Office.
  • Business center.
  • 100 spaces bike storage room.

The property is located in a residential area recognized for its proximity to restaurants, entertainment, and shopping rides such as Oak Street, Magnificent Mile and Rush Street.

ECONOMIC GROWTH

Chicago is the third largest city in the United States, and is not only home of 3 million residents, but also has 9.5 million people within the metropolitan area. The city itself is recognized as one of the most important financial, cultural and industrial centers in the U.S. According to Site Selection magazine, Chicago isthe best metropolitan area for corporate investments, as it thrives from a combination of industries including:manufacturing, transportation, tech, R&D and green energy.

Since 2008, 83 companies have established offices in Downtown Chicago, seeking to access the talent pool ofyoung educated workers present. Based on this influx, Chicago’s Downtown area, including the city’s tech hubhave shown great signs of growth:

  • 89 of Chicago’s largest technology companies have their offices located in Downtown Chicago.
  • 7.4 million square feet have been leased to corporations since 2010.
  • Tech-giants such as Facebook, Google, Gogo and LinkedIn have arrived to the area.
  • Mead Johnson, Duracell, Wilson Sporting Goods and Amazon are soon to move to Chicago’s tech center, occupying 700,000 square feet and relocating around 3,000 jobs.
  • There are more than 54,000 people employed at digital companies in Chicago’s tech hub.

VALUE GENERATORS

DDG is an integrated real estate investment and development firm that has projects under development that areworth USD $2.0 billion. DDG offers quality services in real estate, development, construction, design, legal,finance and investment management.

DDG is highly experienced and focuses in superior construction standards. Senior management in the firm haveover 65 years of experience, and have owned, developed and managed over 2.2 million square feet of realestate projects.

Projects in New York City:

  • 532 West 20th Street in West Chelsea.
  • 171 Columbia Heights in Brooklyn Heights.
  • 41 Bond in NoHo.
  • 345 Meatpacking in Meatpacking District.
  • 325 West Broadway in SoHo.
  • 12 Warren in TriBeCa.
  • 100 Franklin in TriBeCa.
  • 180 East 88th Street on Upper East Side.

And many others in San Francisco and Florida.

Mar Realty is a commercial real estate company renown for its portfolio of office buildings in the Chicago metroarea. The company leases and manages a portfolio of 40 office properties and 1,061 multi-family units across63 buildings totaling 10 million square feet.

Marc Realty Capital is a real estate development and management company which owns real estate over everymajor asset class, representing over USD $1 billion in value. Marc Realty Capital is the division in charge ofinvestments in apartments and condos for Marc Realty.

ANTICIPATED CAPITALIZATION


  • TOTAL CAPITAL USD 99 M
  • SENIOR DEBT USD 52 M
  • EQUITY USD 47 M

ESTIMATED RETURNS


  • ESTIMATED ANNUAL IRR * 10% – 14%
  • PREFERRED RETURN ** 7%
  • INVESTMENT PERIOD *** 5 YEARS
  • MINIMUM INVESTMENT USD 50,000

* Projected returns vary according to the investment period. The returns are shown after the payment of property taxes, but before investor taxes.

** The annual preferential return will be paid semiannually when the funds are available, and will begin to accumulate on the closing date of the operation as detailed in the Supplement Offering Memorandum.

*** The investment will have the possibility of extension of 1 year at the discretion of the fund manager.

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