Chicago Office

Cushman & Wakefield has been retained by Quarterra (“The Sponsor”) as the exclusive advisors to arrange $56.1M in Limited Partner (“LP”) equity for 1657 North Shermer Road (“The Project”) located in Northbrook, Illinois. The 318-unit, 5-story Texas wrap multifamily development will be downtown Northbrook’s first Class A rental community and only transit-oriented development (TOD) to date. The 284,388 NRSF Project will feature a series of courtyards including a large pool deck with grilling stations, native landscaping, and large outdoor patios for ground level units. The project is fully designed and entitled. Construction is expected to commence in Q4 2024 with completion in Q3 2026.

The 10.4-acre site is master planned into three areas: 7.2 acres for Sponsor’s 318-home multifamily building, 1.5 acres for Sponsor’s 6,500 SF retail outparcel, and 1.7 acres for a 48-unit supportive housing building. The Sponsor is purchasing the supportive care land as part of the overall land purchase and will immediately donate it to local supportive housing developer, Housing Opportunity Development Corporation (HODC). The supportive housing component is not a part of the opportunity, but adheres to Northbrook’s Inclusionary Housing Ordinance required of the overall development. The 6,500 SF retail pad will be constructed as a shell with the intention of leasing the space to a high-end destination restaurant user or comparable use. The sponsor has already received several LOIs from vetted groups for the retail space. The community will have 477 parking stalls for a ratio of 1.5 stalls per home. Most of the parking is within the conditioned parking garage, with approximately 68 surface stalls flanking the road that circles the site. The Northbrook Metra train station is 1,500 feet north of the site, which provides a direct and easy commute to downtown Chicago.

This Project presents a rare investment opportunity in the highly affluent North Shore sub-market where high-density multifamily projects were historically pushed to the northeast section of downtown. This optimal location gives close proximity to Metra, parks, restaurants, shopping, and high-end single-family communities in Chicago’s North Shore.

AM 1980 is a 132-unit boutique luxury apartment community at the entrance of Chicago’s vibrant Logan Square neighborhood, a market that has outperformed downtown Chicago submarkets over the last 18 months. Conveniently located just steps from the Western Blue Line CTA stop and surrounded by premier retailers, this property is ideally situated to capture demand from a growing demographic of high-income renters in Logan Square; with household income increasing 39% since 2019. Offering immediate access to over 796,000 employees in downtown Chicago and the O’Hare office market via the Blue Line, AM 1980 is perfectly positioned for today’s urban commuter.

GROWING POPULATION OF HIGH-EARNING RENTERS IN LOGAN SQUARE

Average household (HH) income within 0.5 miles of AM 1980 of $178k is 1.6x above the Chicago average. 57% of Logan Square is renter occupied. Average home values have increased 45% since 2019 to $537k.

ROBUST SUBMARKET FUNDAMENTALS

Rents in Logan Square grew 5.5% in 2023 and occupancy averaged 96%. The massive supply/demand imbalance continues to give landlords pricing power.

IDEALLY SITUATED IN A TRANSIT-ORIENTED LOCATION WITH HIGH BARRIERS TO ENTRY

One minute from the Western Avenue Blue Line CTA stop; residents can travel to downtown in 18 minutes and to O’Hare in 35 minutes. Residents also have convenient access to I-94 via Armitage and immediate access to bike trails on Milwaukee Ave.

GROWTH OF LOGAN SQUARE

Thriving retail submarket with 8 grocery chains and 15 Michelin-recognized restaurants. Recent investments include an $88M overhaul of historic Congress Theatre, as well as a community plaza with more walking and bike trails, in addition to the popular 606 trail.

Bantr Neenah, a 58-unit furnished apartment community in Neenah, WI, is strategically positioned as a premier flexible term rental option centrally located near major area employers. The property was originally built in 1965 as seniors housing, and was redeveloped in 2022 as a market rate apartment building offering flexible leasing options. This lease structure (3 to 12+ months), targets traveling workers and tenants seeking convenience and flexibility. The average medium-term lease is six months, and is currently achieving a $168 premium over long-term leases.

Bantr Neenah offers an investor the opportunity to acquire the asset outright or recapitalize a majority of the equity and become a partner with the existing operator. Bantr Management is experienced with medium-term rentals and is willing to stay on board in an acquisition or recapitalization event.

BOOST INCOME WITH FURNISHED MID-TERM RENTAL PREMIUMS

Current mid-term rentals are seeing a $168 premium. 25% of the asset is on mid-term leases. New ownership can expand that percentage to increase NOI without any capital investment

HEDGE RISK WITH MID-TERM LEASES

Ownership can adapt to market demands by increases or decreasing the % of mid-term to long-term leases while maintaining high occupancy and cash flow

DIFFERENTIATED OFFERING OVER AIRBNB, FURNISHED FINDER & EXTENDED STAYS FOR TRAVELING PROFESSIONALS

Bantr Neenah provides mid-term rentals that cost 59% less than extended stay hotels, while offering a sense of community with events and amenities like gyms, co-working space, and communal kitchens that Furnished Finder and Airbnb do not provide

OPPORTUNITY TO ACQUIRE PROPERTY OUTRIGHT OR RECAPITALIZE WITH EXISTING PARTNERSHIP

Current ownership and developer, Bantr, is open to either a sale or recapitalization. They would prefer to stay on as manager and be able to provide mid-term management expertise with strong leasing relationships with local employers

CENTRALLY LOCATED NEAR MAJOR AREA EMPLOYERS

Major national firms like Kimberly-Clark, Neenah Foundry, Plexus, and ThedaCare are within a 10-minute drive of Bantr Neenah, providing ample contract-based job opportunities

PROVEN CONCEPT ACROSS 6 LOCATIONS

The Bantr brand has proven to be a successful brand across 6 locations in North Central Wisconsin with 424 units

The Fairway, a 167-unit, 298-bed student-centric housing community, enjoys a strategic position near Purdue University’s bustling campus. With over 52,000 students within walking distance, The Fairway is poised to capture demand from an expanding student base seeking an attainable rental price point compared to new-construction properties.

The Fairway was originally constructed in the 1960s and had a third phase delivered in 2007. In 2018, all 12 buildings received extensive renovations, including brand-new appliances, in unit washer/dryer, upgraded flooring, stylish countertops, and modern cabinets. The property boasts ample amenities, including a pool, hot tub, fitness center, community room, and fenced dog park.

THE PROPERTY

a. Recently renovated units featuring in unit washer/dry, stainless-steel appliances, vinyl plank flooring, quartz countertops and modern cabinets

b. Full amenity package featuring a pool, hot tub, fitness center, community room, and fenced dog park

c. Well positioned just one mile from Top 10 Nationally Ranked Purdue University - over 52,000 students and 18,000+ employees

d. Immediate access to top retailers including grocers Walmart, Fresh Thyme, and Aldi, along with major convenience stores Walgreens and CVS

THE MARKET

a. Caters to growing student base – Purdue University saw 7% YOY growth in applications in 2023, and 82% growth since 2013

b. 9.6% rent growth in 2023 at Purdue with 97% occupancy, averaging 5.8% rent growth over the last five years

THE UPSIDE

a. 100% leased for 2024/2025 school year - demonstrates demand for lower-cost student housing with a captive tenant base

b. Ability to significantly increase rents via value-add program by improving property condition, rejuvenating amenities, and furnishing the units

The Illiana is a 32-unit, boutique elevator multifamily property located in one of the fastest growing submarkets in the Midwest. Offering efficient two-bedroom floor plans and covered parking, The Illiana is positioned to capture demand from a growing population base of high income renters looking for Class A finishes with little newly built rental product in the market.

The Illiana was developed in 2020, delivering unmatched apartment quality to Whiting. Demand for this product is demonstrated by the property being 100% occupied today. The Illiana attracts residents looking for immediate access to Chicago (24-minute drive, 40-minute train), coupled with the high quality of life and lower cost of living in Northwest Indiana.

CHICAGO LAKEFRONT SUBURB WITH ATTAINABLE COST OF LIVING

a. Whiting is strategically positioned along Lake Michigan, offering residents a high quality of life with a more affordable cost of living than other Chicago suburbs

b. 18.4% more affordable than Chicago

c. Less than 30-minute commute to Chicago

d. South Shore Line Expansion - Recently completed $650m rail transit project

ABILITY TO CAPTURE UPSIDE WITH LONG-TERM RENT GROWTH POTENTIAL

a. In-place master lease presents long-term opportunity to increase rents on 38% of units - currently 34% below in-place rents for market units

b. Best Product in a Growing Market – Despite Lake County growing 2.8% since 2019 (2x the national and Indiana average), there is a lack of new construction apartments with just 1% of inventory built after 2010

c. Strong Population Base - Current tenants at The Illiana have an median HH Income of $82k

d. North Lake County’s thriving market dynamics continue into Q1 2024 with Class A rent growth at 13% YOY and occupancy at 98.3%

e. 100% Occupied

TIF

a. 100% tax abatement through 2031 creates tax certainty for foreseeable future

NORTHWEST INDIANA - BUSINESS FRIENDLY ENVIRONMENT

a. Indiana’s pro-business environment actively encourages corporate expansions and relocations

b. #1 State in the Midwest for doing business

c. #1 State to start a business in the US according to Forbes

d. 37 foreign-owned businesses across 17 countries plan to invest $20.6Bn+ and create 8,500+ jobs in Indiana with average wages of $83,000+

The Malt House is a 118-unit, boutique elevator multifamily property located in one of the fastest growing submarkets of downtown Milwaukee. The Malt House is positioned to capture demand from young urban renters, offering attainable rents relative to new-construction product with all the perks of Class A living - a model that is impossible to replicate today.

The Malt House was redeveloped in 2021, delivering an unmatched product in the rental market with an industrial aesthetic, luxury finishes and robust amenities. The property is positioned for more operationally focused ownership, as the market continues to show demand for this product type, with rents growing 6.8% on new leases and 5.3% on renewals since September.

EXTENSIVE RENOVATION OFFERED WELL BELOW REPLACEMENT COST

a. Current ownership underwent a 5-year conversion project, delivering the property to market in 2021

b. Unique industrial aesthetic with Class-A unit finishes including stainless steel appliances, white shaker cabinets, granite countertops, and white subway tile backsplash

c. Robust amenity package including atrium, co-working lounge, game room, fitness center, movie theatre room and rooftop deck

UNIQUE RENTAL PRODUCT CATERING TO YOUNG PROFESSIONAL TENANT BASE LOOKING FOR HIGH-END LIVING AT ATTAINABLE RENTS

a. Attainable rents offered at a 15% discount to Class A product in the submarket

b. Strong recent lease trade outs – 6.8% on new leases and 5.3% on renewals since September

c. Large floor plans – Average unit size 19% larger than comp set average

d. Top tier amenities comparable to new-construction product

ASSET IMMEDIATELY ADJACENT TO MASSIVE DEER DISTRICT PUD AND TOP DOWNTOWN MILWAUKEE DESTINATIONS

a. Deer District Development (since 2019) – 1.3b sf of entertainment, 1,000 residential units, 600 hotel keys and 200k sf of office space

b. Part of Brewery District Redevelopment – $300m investment across 16 repurposed historically significant buildings totaling 850k sf

c. Accessible to Marquette Campus (11,600 students), Iron District development ($160m in 2025), and Lake Michigan

MILWAUKEE EMPLOYERS

a. Northwestern Mutual - $1b campus across two buildings and 5,000 employees

b. Six Fortune 500 HQs and additional six Fortune 1000 HQs

c. Walking distance to over 87,000 professionals in Milwaukee CBD