Investment Overview

Marcus & Millichap is pleased to present Mallard Point Apartments, a 173-unit multi-family apartment community located in the southwest suburb of Channahon, Illinois, just 50 miles from downtown Chicago, near the intersection of Interstate 55 and 80. Channahon is on the north side of the Illinois River, which is the confluence of the Des Plaines and Kankakee rivers and has several access points for boating, water skiing, and fishing. There are also miles of hiking and biking trails along the historic Illinois and Michigan canal. Due to its proximity to both Interstate 55 and 80, the Channahon / Minooka area has become a prime center for large warehouse distribution centers for the entire Midwest. Trader Joes, Grainger, Macy's, Caterpillar, Amazon, Target, Walmart as well as several other large corporations have opened large distribution or manufacturing facilities in the area. These large corporations have helped to spur the many new retail developments all throughout the Channahon / Minooka region. Mallard Point at 27741 West Drake Drive offers 51 one-bedroom / one-bathroom units ranging from 766 square feet to 797 square feet, 26 two-bedroom / one-bathroom units with 967 square feet and 96 two-bedroom / two-bathroom units ranging from 1,074 square feet to 1,143 square feet. These luxury apartments feature well-designed floor plans that offer contemporary interior features and spacious living spaces with private entries. Apartments include full-size washers and dryers, gas fireplaces (in select units), soaking bathtubs, direct access garages (in most buildings) and large walk-in closets. The property also features a clubhouse with a state-of-the-art fitness center, business center, swimming pool, sand volleyball and tennis courts. Mallard Point is a premier rental community in Channahon, and has continued to play a role in the growth of the Channahon / Minooka area. This property’s location, in one of the fastest growing counties in the state of Illinois, has capitalized with continued rental increases and a strong historical occupancy. Financing: It is anticipated that the sale of Mallard Point Apartments will include the placement of new first mortgage financing. In the event there is a desire to assume the existing first mortgage, the details are as follows: First Mortgage: A first mortgage in the approximate amount of $16,00,000 was originated on November 1, 2015. The mortgage is insured by HUD pursuant to Section 223(f) of the National Housing Act and secured by a deed of trust on the land and premises of the Project. The mortgage bears interest at a rate of 2.51% per annum and matures on October 1, 2050. The mortgage is fully amortized over the term of the loan. Monthly payments of principal and interest in the amount of $58,506 are due on the first of each month. The balance of the first mortgage as of October 1, 2024 is approximately $13,396,739.26. As of that date there is approximately 26 years of remaining term and remaining amortization. In addition, there is a mortgage insurance premium (MIP) of approximately .60% per annum. The MIP escrow amount for the month of November, 2024 is $6,781.45. There is no pre-payment penalty for the existing first mortgage, however, the mortgage could be assumed by a qualified buyer through the HUD transfer of physical assets process.