DESCRIPTION:
OVERVIEW
For sale is a multi-property commercial real estate portfolio comprising retail-facing service suites (“professional suite” units) for independent B2C service providers. The sale includes all owned building parcels, plus the leasing/tenant-management operation, which has maintained nearly 20 years of operating history and 96%+/- average occupancy (per seller).
This opportunity is best underwritten as a stabilized, diversified-tenant CRE investment with value-add rent upside (not a traditional owner-operator business).
WHAT YOU’RE BUYING
– Multiple owned commercial properties across several nearby towns (Chicagoland / Cook & Multi-County area)
– A proven suite-based leasing model with dozens of small tenants per location
– A low-touch management operation (can be self-managed or outsourced)
PORTFOLIO HIGHLIGHTS
– 96%+/- occupancy across the portfolio (per seller)
– Diversified tenant base (many small service professionals vs. single-tenant risk)
– Modern, clean, secure buildings in well-maintained areas
– Units designed for tenant customization with upscale interior finishes / aesthetic flexibility
– Long-standing concept with consistent leasing demand for almost 2 decades
FINANCIAL SNAPSHOT (AS PRESENTED)
– Asking Price: $5,500,000
– Annual Revenue: $971,102
– SDE: $638,644
– Real Estate Value Component: Included
– FF&E: $500,000 | Inventory: $10,000
The purchase price value of this opportunity, based on a cap rate alone applied to the full purchase price, is very good. A value calculation method that accounts for a multiple of cash flow for the business component, plus the real estate value, whether based on appraisal, market analysis, or otherwise, is another approach that strongly supports this purchase price.
VALUE-ADD / GROWTH OPPORTUNITIES
Seller indicates many units are 20% or more below market rent. Upside levers include:
– Phased rent increases at renewal (protect occupancy while resetting rates)
– Immediate mark-to-market on new leases
– Standardized pricing/rate cards across locations
– Modest, targeted improvements that support higher rents
The purchase price value of this opportunity, based on a cap rate alone applied to the full purchase price, is very good. A value calculation method that accounts for a multiple of cash flow for the business component, plus the real estate value, whether based on appraisal, market analysis, or otherwise, is another approach that strongly supports this purchase price.
OPERATIONS & MANAGEMENT
– Current ownership runs this as a low-touch, efficient leasing + property oversight model
– New owner can manage directly or hire a property management company (commonly feasible due to the model’s simplicity)
BUYER FIT
Ideal for:
– Value-add CRE investors seeking stabilized occupancy + rent reset upside
– Family offices / HNW buyers wanting durable cashflow backed by owned real estate
– 1031 exchange buyers looking for diversified, income-producing property
– Operators already in service suites / professional suites who can systematize leasing and pricing
Not ideal for:
– SBA buyers / owner-occupied financing structures
FINANCING NOTE (IMPORTANT)
This is not typically SBA-eligible due to the non-owner-occupied nature (many tenant occupants). Expect commercial real estate lending terms, often requiring ~20–30% down (varies by lender/structure). Some lenders may require a compensating balance in an account in addition to the equity injection.
REASON FOR SALE
Owner is selling to semi-retire, pursue other interests, and relocate full-time.
Listing Details
Total Sales: $971,102
SDE: $638,644
Cash Flow: $638,644
FFE: $500,000 (Included in Price)
Inventory: $10,000 (Included in Price)
Real Estate: $5,500,000 (Included in Price)
Reason For Sale:
Semi-retirement, relocation, and family obligations.
Training & Support:
This is a very straightforward operation and will require minimal training, but training will be provided in as much as needed and agreed during the purchase process.
Operation
Year Established: 2007
Location
Type of Location: Commercial
Square Footage: 17452
Facilities Information:
The gross square footage of all locations combined is approximately 17,452 square feet. The rentable square footage of all locations combined is approximately 11,168 square feet. (Home-Based) It is being run from a home base. Has physical real property as significant assets.
Summary
Historical Summary:
This is, on one hand, a real estate opportunity. The real estate components are excellent assets located in well-maintained areas. Still, it has, on the other hand, almost 20 years of professional retail service provider tenants occupying the units and has collected rent-based revenue at a consistent level with very high occupancy at each location. So, this is also a very straightforward professional service tenent-property management opportunity.
This real estate sale and commercial long-term tenants management includes multiple commercial real estate locations, comprising this group of modern retail-facing B2C cooperative professional service offices included in this sale. Each location offers spacious individual units at excellent rates, designed for personal service professionals to accommodate their customers or clients with the best attention in these upscale, professional individual or multi-office-type environments. These fully equipped offices are designed to suit your tenant’s aesthetic by utilizing beautiful interior materials tailored to each tenant’s taste. On average, approximately 1.5 dozen professionals are located at each site, serving their specific customer base. The locations are approximately 96% occupied on balance. Many tenant units at each location are as much as 20-30% below market rent, according to the seller, and can be increased by a new owner by phasing in increases over the coming years.
* Note: This is not likely an SBA loan-type opportunity, as it is not an owner-occupied business model, since dozens of other professionals occupy the units as tenants. As a result, this will likely require real estate-style commercial lending, which may mean a 20-30% down payment unless it’s entirely funded through investor/partner funds. It will also likely include, at some lenders, the requirement for an account at the institution, which may necessitate maintaining an additional 10-15% in a compensating balance account.
** The content of this summary listing information or related details as provided by the seller may be updated or revised without notice at any time once new or more current information becomes available.
Competition:
- Consistent, professional, and growing demand for modern office suites within the building layout. High-quality and well-kept building environment and operations set the standard in this case.
Potential Growth:
- Consistent, professional, and growing demand for modern office suites within the building layout. High-quality and well-kept building environment and operations set the standard in this case.
Financing/Terms:
This is not likely an SBA loan-type opportunity, as it is not an owner-occupied business model, since dozens of other professionals occupy the units as tenants. As a result, this will likely require real estate-style commercial lending, which may mean a 20-30% down payment unless it’s entirely funded through investor/partner funds. It will also likely include, at some lenders, the requirement for an account at the institution, which may necessitate maintaining an additional 10-15% in a compensating balance account.