City Pads Portfolio Fund Webinar

OFFERING MEMORANDUMby

City Pads Portfolio FundChicago, IL

Mixed-use property portfolioAcquisition and management by City Pads, LLC

DISCLAIMER

City Pads Portfolio Fund

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from PeerRealty, LLC and should not be made available to any other person or entity without the written consent of PeerRealty, LLC. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. PeerRealty, LLC has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, PeerRealty, LLC has not verified, and will not verify, any of the information contained herein, nor has PeerRealty, LLC conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

This information is proprietary and strictly confidential, and is intended to be reviewed only by the party receiving it from Peer Realty, LLC. It should not be made available to any other person or entity without the written consent of Peer Realty, LLC. This presentation has been prepared to provide summary information to prospective investors, and the information contained herein is not a substitute for a thorough due diligence investigation.


15-20%PROJECTED

IRR$9.5M

PERSONALGUARANTEE

for mortgage financing by sponsor’s principals.

5-7 YEARTERM

LENGTHfor most properties; however, some properties may be sold after 12 months if profits outweigh cash flow.



City Pads LLC (“City Pads”) is seeking equity commitments from investors to capitalize City Pads Portfolio Fund I LLC (the “Fund”). The Fund is raising up to $3 million in equity to acquire, own and operate a mixed portfolio of Chicago apartment buildings and retail properties. City Pads’ main principal, Andy Ahitow, is the co-founder and managing partner of Chicago Apartment Finders (“CAF”), one of the largest residential leasing brokerage in Chicago. Other principals of City Pads include Elliott Offenbach and Daniel Zivin.

Executive Summary



Through the Fund, City Pads intends to:• Locate and secure multifamily, mixed use and development opportunities in stabilized or

up and coming Chicagoland neighborhoods.• Rehabilitate building structures, mechanicals and plumbing in an attempt to minimize day

to day maintenance costs.• Rehabilitate the residential spaces of the portfolio in an attempt to maximize market rents.• Re-tenant the commercial spaces and raise rents.• Leverage the ability of CAF to see real-time trends in the market and to competitively

price rents with a minimum variance to pro forma rents.• Quickly fill buildings post-rehabilitation with the help of the presently largest leasing firm in

the city, CAF, in an attempt to minimize loss of revenue.• Once stabilized, refinance buildings with a 10-year fixed interest rate and non-recourse

loan in an attempt to protect the investments from interest rate risk.• Hold most, if not all, properties for a minimum of 5-7 years in an attempt to maximize cash

flow in improving neighborhoods. In some cases, however, properties may be sold after 12 months if the profits outweigh the cash flow

Executive Summary



The properties listed below are the properties the Fund is currently considering acquiring if it successfully raises the full amount of this offering.

1414 N. Ashland Ave, Chicago, IL - A stately-looking mixed use building on the corner of bustling Ashland Avenue, with street corner retail that is home to the Wicker Park Chamber of Commerce. There are two residential units above the commercial space and a small land parcel on the south side of building. Current zoning allows for building to go lot line to lot line and City Pads plans to utilize this to add extra space to the retail and to add a third condominium quality apartment that would duplex up. 1854 W. 18th St., Chicago, IL - A classic Chicago greystone building in the culture-rich Pilsen neighborhood. Located just a block from the EL station, the property is ideal for downtown commuters. Pilsen has seen a recent transformation into a haven dominated by students, artists, hipsters and affluent trendsetters seeking the next hot neighborhood. With 5 residential units and 1 store front, City Pads plans to rehabilitate the entire building for a long term hold.

3126-38 W. Walton St., Chicago, IL - This former condominium development was lost to its lender and later bought by the current owner. There are 16 units spread out over 4 buildings. The units all have high end finishes with laundry in-unit, a granite/stainless package, marble bathrooms. They boast common area rooftop decks with spectacular views of Chicago. City Pads is very bullish on the rents in this area, but took a conservative approach to underwriting. However, City Pads fully expects this investment to out-perform the pro forma rents with some minor upgrades to the units.

Property Summary



Property Summary

300 Madison St., Oak Park, IL - Located in a great pocket of Oak Park, Illinois The building has been partially rehabbed on a per unit basis, and City Pads plans to upgrade the remaining non-rehabbed units and to raise the rents to market. The building needs some façade work and there is one commercial space that City Pads plans to re-tenant at a higher rate once the lease expires.

747 N. May St., Chicago, IL - An ideally located TOD building close to downtown and arms throw from the Blue line EL station. This former apartment building was converted into office space by previous owner occupant. City Pads is using historical data on the building to convert back to 13 residential units without having to go through a zoning change, keeping office space on the ground floor to conform to current zoning. This building itself is in great shape with nice curb appeal and many recent improvements, reducing the amount of funds needed for construction.

2004 W. 23rd St., Chicago, IL - Leveraging the Pilsen neighborhood’s demand for quality rental properties was the key to making economic sense of this purchase. High demand is quickly pushing rents in this neighborhood to match those in the direct vicinity. City Pads plans to utilize the 4th floor attic to build out two 3 bedroom, 2 bathroom duplex units and a lower level 2 bedroom, 2 bathroom simplex unit, with condominium finishes. City Pads projects this area to grow into one of Chicago’s most sought after neighborhoods and anticipates the rents will continue to increase significantly.



The organizing partners of City Pads are Andy Ahitow, Elliot Offenbach, and Daniel Zivin. Andy, Elliot, and Daniel have acquired, invested and secured capital in a multitude of diverse investment properties for their own accounts and on behalf of partnerships over the past 25 years. City Pads’ main principal, Andy Ahitow, is the co-founder and managing partner of Chicago Apartment Finders (“CAF”), one of the largest residential leasing brokerage in Chicago.

City Pads sources potential property purchases through traditional and nontraditional avenues. Through its relationships with Chicago brokers and national brokers, City Pads is involved in the early stages of most opportunities that fit its criteria. Typically, City Pads has access to many multi-family properties available in Chicagoland, allowing for selectivity. In addition to traditional sources, City Pads is routinely approached by property owners seeking a ‘white knight’ buyer or seeking to sell a property quickly and quietly. With access to a myriad of landlords within the CAF proprietary database, City Pads is also able to work off market with owners directly. In addition to brokers and owners, City Pads has also developed a referral network with many Chicago real estate attorneys and investment bankers.

Sponsor Summary



Andy Ahitow is presently the Managing Partner and co-founder of Chicago Apartment Finders (“CAF”). Andy has devoted his leadership and entrepreneurial vision to help create one of the most successful real estate companies in Chicago. After earning his Illinois Managing Broker's License and gaining valuable experience in the Chicagoland real estate market, he partnered with his fellow Iowa graduate, Justin Elliott, to found CAF in October of 2002.

Andy was also the Director of Operations of Marc Realty Residential from 2009-2015 (a joint venture of Marc Realty and CAF formed in 2009). Andy was responsible for overseeing construction, leasing and management of the joint venture properties. Andy has thus overseen over $50,000,000 of construction projects and the leasing and management of over 1,500 rental units and 100,000 sq. ft. of office and retail.

Sponsor Summary

Andy Ahitow



Wicker Park is a neighborhood within the West Town Community and West Side district of Chicago, Illinois. The neighborhood is best known for its numerous commercial and entertainment establishments, and being a convenient place to live for downtown workers due to its proximity to public transportation and The Loop.

The Pilsen neighborhood includes the heart of Chicago’s Mexican-American community, with concentrations of independently owned shops lining 18th and 26th Streets. Four shopping centers anchored by grocery stores are located along Cermak (22nd Street).

Oak Park is a village adjacent to the West Side of the city of Chicago. It is the 29th largest municipality in Illinois as measured by population in the 2010 US Census,[1] and has easy access to downtown Chicago (the Chicago Loop) via public transportation including the CTA Blue and Green lines, buses, and Metra commuter rail. Pace buses serve the Village for travel within its borders and connecting to neighboring suburbs. As of the 2010 United States Census Oak Park had a total population of 51,878.

Market Summary



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