Helios Property Management Company, ("Helios" or the "Sponsor"), is growing their distressed real estate portfolio, with a focus on diversified commercial real estate investments in the Chicago area. The principals' experience includes real estate investment, development, brokerage, leasing, management, maintenance and construction. Helios, and its affiliated companies acquire, lease, manage, value engineer, and sell selected properties. The focus of their team is to increase income (typically through increasing occupancy), strategic building management though extending leases, appropriate financing, and cutting costs through knowledge of the building, mechanical systems and construction.
Helios will undertake the management for the property and institute aggressive operations initiatives in order to right size the expenses at all properties they manage. Vendor contracts from previous ownership will typically be canceled at closing and resigned once competitive analysis is performed. Helios is confident that expenses can be reduced and maintained throughout the ownership of each property. Expense and tax reductions are critical for the economic success of most properties we manage. The end goal, is to maximize income (through occupancy) and decrease expenses - that will result in a higher net operating income and a higher valued property.
Assets Under Management*
*While Helios Property Management Company does not own any of these assets, Chet Balder, the owner and President, owns 100% of Helios Property Management Company and owns an interest in each of the properties through various limited liability companies.
Sponsor Principal Credit History:
One of the principals of the Sponsor, within the last three years, entered into a loan workout with two lenders on his personal residence, and while foreclosure did not occur, each lender did initial a foreclosure action on the property. Both actions were dismissed when the loan workout was completed (including a substantial paydown of the loan principal balance) and the reinstated loan has been paid as agreed. RealtyMogul.com's due diligence included lender reference checks with lenders the Principal has borrowed from over the last several years with RealtyMogul.com receiving what it believes was favorable lender responses on the Sponsor’s payment history as well as his management performance.
| Address: | 1600 Golf Road Rolling Meadows, IL 60008 |
| Year Built: | 1986 |
| Current Occupancy: | 91% |
| Net Rentable Area: | 255,440 square feet |
| Land Area: | 10.43 +/- acres |
| Stories: | 12 |
| Parking: | 1,022 spaces available, 4.0 per 1,000 square feet of rentable area |
| Construction Type: | Steel |
1600 Corporate Center is a high-rise office property totaling 255,440 square feet of net rentable area on a 10.43-acre site at 1600 Golf Road in Rolling Meadows, Illinois. The Property, built in 1986, is currently 91% occupied by nine tenants with Bank of America (36.3%, Fleetmatics (16.7%), Alliant Credit Union (16.6%), and HQ Global Workplace/Regus (8.5%) representing the Property's largest tenants. The exterior improvements were constructed with steel and concrete masonry. The roof is single-ply EPDM membrane with rock gravel ballast on rigid insulation over a concrete panel deck. The interior is finished with painted drywall walls and ceilings, with fixed double-glazed windows in aluminum framing. The flooring is a mix of standard commercial carpet, vinyl composition tile, and ceramic tile. Amenities at the Project include a deli and on‐site management. The Subject features 1,022 surface parking spaces (parking ratio of 4.0 per 1,000 SF).
Note that the Stacking Plan above does not include the recently executed lease to Webtrans for 1,534 SF. The tenant is expected to commence occupancy January 2016 and has a term of 65 months. Per their recently executed third amendment, Bank of America has extended their lease expiration date for all occupied space through December 2023.
The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of InvestmentThis investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor AssumptionsSponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Sponsor is obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past PerformanceAny description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of DebtA substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not RegisteredSponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment AdviceNothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments.
1031 Exchange RiskInternal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.