City Pads Portfolio Fund Webinar

OFFERING
MEMORANDUMby
City Pads Portfolio Fund
Chicago, IL
Mixed-use property portfolio
Acquisition and management by City Pads, LLC

DISCLAIMER
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
PERSONAL
GUARANTEE
for mortgage financing by
sponsor’s principals.
5-7 YEAR
TERM
LENGTH
for 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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