RECM Presentation Questions

Who makes up most of the building demographic?

A mix of young professionals and families

What are some of the biggest risks regarding this property?

High taxes

When was the property originally built?

Tides construction started in 2006, occupancy in 2008

Where is the nearest train station?

One block away southeast (Millennium Station)

Why is this an attractive place to live?

Its location is perfect, being in the middle of downtown and close to plenty of businesses, restaurants, the lake, etc.

How many parking spaces are there?

670

Who is the designated public school for children living at Shoreham & Tides?

St. Ignacious high school is a private school in the area, and Ogden International School is a Chicago public school that has direct bus service from the property.

What is the Debt Coverage Ratio (DSCR) on this loan, and what does it tell the lender?

The DSCR is 1.41x, meaning the property generates $1.41 of net operating income for every $1.00 of annual debt service. Lenders typically require a minimum of 1.25x.

When was the Bright Horizons childcare center at Shoreham & Tides established, and why is it relevant?

Bright Horizons operates on-site at 360 E. South Water Street, serving children ages 2-5. It is relevant because on-site childcare is a rare amenity.

Where does Shoreham & Tides rank in pricing relative to comparable apartments in Lakeshore East?

Rents approximately 16% below the average apartment in the Lakeshore East area, positioning it competitively within the luxury submarket.

Why is the property's breakeven occupancy of 78% significant to a lender?

Current occupancy is approximately 95%, meaning occupancy could drop roughly 17 percentage points before the property fails to cover its expenses and debt service.

How does the property connect residents to downtown Chicago's Loop without going outside?

The Chicago Pedway, an underground tunnel system, connects Shoreham & Tides directly to Millennium Station and over 40 blocks of the central business district.

Who is the current owner/manager of the property?

Waterton

What type of unit is the most common?

One bedroom

When was the property last renovated?

The building is maintained and upgraded on a continuous basis rather than through one large renovation.

Where is the nearest gym?

On-site fitness center

Why is Chicago's downtown employment base important to underwriting assumptions?

Assumptions around growth and occupancy are only as strong as the demand driving them.

How would an economic downturn affect the property?

Luxury multifamily properties in urban areas are typically more resilient than lower-tier properties in a mild recession.

Who are the primary competitors to the property?

Aqua at Lakeshore East, Cascade, and North Harbor Tower

What roadway provides primary access to the property?

East South Water Street, with additional connectivity through Lower Wacker Drive, which links to major expressways.

When is public transportation most accessible for residents?

Throughout the day, with peak service during weekday commuting hours.

Where is the closest grocery store?

Mariano's, a 3-minute walk

Why are new developments continuing in this area?

Continued development suggests strong demand, low vacancy rates, and investor confidence in the long-term growth of the neighborhood.

How many stories is the property?

109 total stories across two adjacent towers (57 and 52 stories)

Who was the developer of the property?

Magellan Development Group

What time does the coffee shop in the lobby open and close (The Drunken Bean Coffee and Wine Bar)?

7am to 9pm, Sunday through Sunday

When do renter preferences shift toward or away from luxury apartments like Shoreham & Tides?

Toward luxury: economic growth, rising incomes, high mortgage rates. Away from luxury: falling employment, more attractive home-buying conditions.

Where do renters move if they leave Shoreham & Tides, and when does migration accelerate?

Renters often move to Chicago suburbs for lifestyle changes and homeownership. Migration most commonly accelerates in summer months and when mortgage rates drop.

Why is Shoreham & Tides a great spot for professionals who work in downtown Chicago?

Great location with multiple commute options, a community of young professionals, and an on-site co-working hub with desks, computers, and collaboration areas.

How long would the drive to Soldier Field, Wrigley, and the United Center be?

Soldier Field: 15 minutes, Wrigley: 30 minutes, United Center: 20 minutes

Who might be priced out of this property?

Lower-income individuals and families due to premium rents in Lakeshore East.

What mix of units are available?

Studio, 1 Bed/1 Bath, and 2 Bed/2 Bath

When does the gym open and close?

24/7

Where is the closest recreational space?

Lakeshore East Park, located across the street

Why do people choose Lakeshore East?

It combines urban convenience with quieter, green-space living compared to other downtown areas.

How walkable is the neighborhood?

Walk Score 98/100 — Walker's Paradise, car not needed for daily errands.

Who might find this building less appealing despite its location and amenities?

People who prefer a quieter or more affordable living environment.

What is the implied cap rate?

5.78%

When are the pool hours?

Open from 10am to 6pm

How far away is the lakefront?

5 to 10 minute walk from Lake Michigan, with great views.

Why can living in a large high-rise impact a resident's sense of community?

More residents make it harder to form a sense of community compared to smaller housing options where you see the same neighbors more regularly.

How do the amenities at Shoreham & Tides shape how residents spend their free time?

On-site amenities like the pool and gym encourage residents to spend more of their free time within the complex.

Who do you call if something breaks in your apartment?

Residents contact the on-site maintenance team, known for being extremely prompt and responsive.

What are the rental price ranges at Shoreham & Tides?

Approximately $2,200 to $4,500 per month, depending on unit size and floor level.

When does the leasing office open and close?

Monday–Friday 10am–6pm, Saturday 10am–5pm, Sunday 12pm–5pm

Where is Millennium Park in relation to Shoreham & Tides?

Approximately a 10-minute walk (about 0.4 miles) southwest of the property.

Why does the property have both "Shoreham" and "Tides" in its name?

The property is two separate towers — Shoreham and Tides — that share amenities and the same Lakeshore East location.

How do residents at Shoreham & Tides get their packages delivered?

Via a Luxer Package Room, a secure automated locker system that notifies residents when their package arrives.