Residences at Riverwalk - Amesbury
CONDOMINIUMQUALITY, MULTIFAMILY INVESTMENT OPPORTUNITY
CONFIDENTIAL OFFERING MEMORANDUM
EXCLUSIVE SALES AGENT
303 Congress Street Boston, MA 02210 617.457.3400 www.naihunneman.com
One River Court & 24 Oak Street Amesbury, MA
This is a confidential presentation intended solely for your limited use when considering whether to pursue negotiations to acquire the property. This document and its contents are confidential and are not to be copied, circulated, or otherwise used without the express, prior written consent of NAI Hunneman Commercial. This investment brochure is subject to errors, omissions, prior sale, and withdrawal from the market without notice. The material contained in this brochure is based in part upon information supplied by the owner of the property to the best of its ability and knowledge and in part upon information obtained by NAI Hunneman Commercial from sources it deems to be generally reliable. Summaries contained herein of any legal documents are not intended to be comprehensive statements of the terms of such documents but rather only outlines of some of the principal provisions contained therein. No warranty or representation, expressed or implied, is made by NAI Hunneman Commercial or any of its subsidiaries as to the accuracy or completeness of the information. Note: This property is exclusively listed with NAI Hunneman, Brokers from other firms may not copy or disperse this property information without prior consent from the listing broker. Cooperating brokers must complete “client registration form” (available upon request). Cooperating brokers may only share this information with clients listed on the “client registration form.”
FOR FURTHER INFORMATION PLEASE CONTACT:
CARL CHRISTIE Executive Vice President/Principal 617.457.3394 cchristie@naihunneman.com DAN MCGEE Sales Associate 617.457.3266 dmcgee@naihunneman.com
HENRY D. LIEBER Sales Associate 617.457.3383 hlieber@naihunneman.com
TABLE OF Contents
INVESTMENT HIGHLIGHTS & HISTORY.................. 2
EXECUTIVE SUMMARY ........................................ 3
PROPERTY OVERVIEW......................................... 4
LOCATION OVERVIEW ....................................... 10
MARKET OVERVIEW ............................................ 15
FINANCIAL ANALYSIS ......................................... 18
1
INVESTMENT HIGHLIGHTS & HISTORY
HIGHLIGHTS 87 UNITS: Great opportunity to obtain a sizable apartment community in attractive Amesbury, Massachusetts. CLASS A PROPERTY: These two apartment buildings were completely renovated in 2006 from vacant historic mills. Building amenities include elevator access, a fitness center, luxury great room and entertainment area, a library, and computer room. The residences were developed to condo quality and represent one of Amesbury’s most desirable rental properties. The grounds are nicely landscaped and improved with outdoor amenities including a gazebo by the river, grills with picnic tables, and easy access to the adjacent Riverwalk bike path. LOCATION: The property is well located, convenient to I-495 and 95. Also, the property is near the MBTA’s commuter train in Newburyport. LENDING ENVIRONMENT: Interest rates are at all time lows and multifamily assets enjoy privileged access to credit. CASH FLOW OR CONDO: Investors can hold the property for cash flow investment or convert to condominiums, at the right time, for a profitable exit strategy.
HISTORY
These two mill buildings were constructed between the late 1800’s and early 1900’s and formed the backbone of Amesbury’s thriving manufacturing industries driven by the Powwow River. They were home to carriage makers, and most notably the Walker Auto Body and the Spofford and Smart Factory. The buildings retain the lines of historic character and have been nominated for the National Register of Historic Places status. The properties were renovated in 2006 into apartments through a historic rehab tax credit.
2
EXECUTIVE SUMMARY
LUXURY SET WITHIN HISTORY NAI Hunneman, as exclusive agent, is pleased to offer for sale the Residences at Riverwalk in Amesbury, MA. The subject property is an 87-unit luxury apartment complex consisting of two mill buildings that were completely renovated in 2006. The property offers unique apartment homes and blends historic character with modern style in an attractive setting along the Powwow River. The Riverwalk Apartments offer an excellent opportunity for investors to acquire a turn- key, Class A, investment property with a condo conversion exit strategy.
UNIT MIX
The breakdown includes sixty-nine flats at One River Court and eighteen townhouses at 24 Oak Street. The building breakdown is listed below:
ADDRESS
1 BEDS
2 BEDS
3 BEDS TOTAL UNITS RENTABLE SF
1 RIVER COURT 24 OAK STREET
17
52 16 68
0 2 2
69 18 87
66,923 23,666 90,589
0
TOTALS
17
%
19.5%
78.2%
2.3%
THE PROPERTIES OFFER A VARIETY OF ATTRACTIVE LAYOUTS INCLUDING:
1 RIVER COURT
# OF UNITS % OF TOTAL
SF
1 BED / 1 BATH FLAT 2 BED / 1.5 BATH FLAT 2 BED / 2 BATH FLAT
17
19.5%
660-980 826-1045
6
6.9%
46 69
52.9% 1,012-1,205
TOTALS
66,923
24 OAK STREET
# OF UNITS % OF TOTAL
SF
2 BED / 2 BATH TOWNHOUSE 3 BED / 2 BATH TOWNHOUSE
16
18.4% 1,107-1,368
2
2.3%
1,499-2,116
TOTALS
18
23,666
3
ONE RIVER COURT YEAR BUILT:
Originally built in 1918, the mill was converted into apartments in 2006
LOT SIZE:
2.66 ± acres
PROPERTY TYPE:
Three-story apartment building with flat units on each floor. The first floor has 19 units, the second and third floors both have 25 units
BUILDING SIZE:
66,911 ± SF (rentable area); 80,591 ± SF (gross building area) (source: The Warren Group)
CONSTRUCTION: Wood frame mill building # OF UNITS: Sixty-nine apartment units UNIT MIX:
Seventeen (17) one-bed / 1-bath; six (6) two-bed / 1.5-bath; forty-six (46) two-bed / 2-bath units There are 100+ parking spaces located in front, along the side and in the rear of the building This building contains a luxury great room with entertainment space, a classically styled library with built-in bookcases and newspaper rack, a computer with high-speed internet access, and a state-of-the-art fitness center. One River Court has elevator access to all levels. The odd numbered units on the 3rd floor have gas fireplaces and face the river. The even numbered units on the 3rd floor have glass clearstories and face the Riverwalk.
PARKING:
AMENITIES:
4
PROPERTY OVERVIEW
24 OAK STREET YEAR BUILT:
Originally built in 1885, the mill was converted into apartments in 2006
LOT SIZE:
1.88 ± acres
PROPERTY TYPE:
Three-story apartment building with duplex units. There are nine duplex units located in the back of the building that have private entrances and are located on the ground and 1st level. There are nine duplex units located on the 1st and 2nd level.
BUILDING SIZE:
23,666 ± SF (rentable area); 27,738 ± SF (gross building area) (source: The Warren Group)
CONSTRUCTION: Brick and beam mill building # OF UNITS: Eighteen apartment units UNIT MIX:
Sixteen (16) two-bed / 2-bath duplex units and two (2) three-bed / 3 bath duplex units
PARKING: AMENITIES:
30 ± parking spaces in the rear of the building
24 Oak Street contains a section with storage for tenants and is well-located close to the gazebo, river, and Riverwalk
WWW.RIVERWALKAMESBURY.COM
5
APARTMENT AMENITITES CEILING HEIGHTS: 9’ to 10’ ceiling heights as well as soaring 14’ cathedral ceilings in select units COUNTER TOPS: Granite countertops in kitchens and vanities KITCHENS: Stainless steel kitchen appliances with space saving microwaves, gas range and conventional oven, garbage disposals, electronic touch temperature controlled refrigerators, and ice makers
WASHER/DRYER: CEILING FANS:
Full size washer and dryer Ceiling fans in select units Gas fireplaces in select units Glass clearstory in select units Attractive oversized windows
FIREPLACES: CLEARSTORY: WINDOWS: FLOORING:
Carpeting in bedrooms and living rooms, ceramic tile in kitchens and baths, hardwood floors in select units Energy efficient heating and air-conditioning; gas-fired forced hot air system provides heat, electric compressor units provide central A/C Tenants pay heat, hot water, and electricity. The landlord pays common area electric and municipal water/sewer
HVAC:
UTILITIES:
6
PROPERTY OVERVIEW
BUILDING INFORMATION GREAT ROOM:
Luxury great room with high ceilings, hardwood flooring, oversized fireplace, and wet bar Classically styled library with built-in bookcases and newspaper rack
LIBRARY:
COMPUTER:
Computer with high-speed internet access
FITNESS:
State-of-the-art fitness center in One River Court and cardio machines set up in the bridge overpass
GRILLS: DECK:
Grills with picnic tables set up outside Outdoor deck with café tables Elevator access in One River Court Additional storage in 24 Oak Street
ELEVATOR: STORAGE: PARKING: ACCESS: SPRINKLERS: GAZEBO: BIKE PATH: TRASH SHOOTS:
Well-lit parking lot with 130 +/- parking spaces Controlled access entrance and security cameras Trash shoots on the upper floors of One River Court
Fully sprinklered
Gazebo by the Powwow River
Steps away from the 1.3 mile Amesbury Riverwalk rail trail. This trail will eventually be connected to a 30-mile network of trails to be developed in Amesbury, Salisbury, Newbury, and Newburyport
7
FLOOR PLANS: SAMPLE LAYOUT
8
PROPERTY OVERVIEW
9
10
LOCATION OVERVIEW
Powwow River
24 OAK STREET ONE RIVER COURT 24 Oak Street has frontage on the Powwow River. One River Court has river views on one side. Both buildings have off-street parking and easy access to the scenic Amesbury Riverwalk Bike Path.
Gazebo
River Court
Oak Street
THE PEDESTRIAN WALKWAY AND BIKE PATH provides a “greenway” along the old Boston and Main rail bed from Amesbury’s historic downtown Upper Millyard and Market Square to the Carriagetown Marketplace. There is a plan to connect this 1.3 mile rail trail with a 30-mile network of trails to be developed in Amesbury, Salisbury, Newbury, and Newburyport.
In recent years many industrial mills in New England have been converted to residential apartment buildings. Renovated mills offer a combination of historical charm and modern amenities that are attractive to residents.
QUAINT SUBURBAN COMMUNITY
Amesbury is located 43 miles north of Boston and is bordered by Merrimac, Salisbury, Newburyport, West Newbury, and New Hampshire. Amesbury was settled in 1645 and its earliest industries included mills, shipyards, and a ferry boat operation on the Merrimac River. Most colonial settlements of the time relied exclusively on agriculture but Amesbury had both agriculture and a strong maritime and industrial economy. This maritime industry later gave way to textiles, iron works, and other manufacturers that established mills along the Powwow River. The Residences at Riverwalk was home to a carriage maker and later an auto body manufacturing company. Amesbury’s industrial base formed the backbone of the city and its history is still celebrated today.
Downtown Amesbury offers visitors and residents an eclectic mix of shops, galleries, and restaurants.
11
AMESBURY IS WELL-LOCATED AT THE CROSSROADS OF I-495 AND I-95 OFFERING HIGHWAY ACCESS WEST TO LOWELL AND WORCESTER, NORTH TO PORTSMOUTH, NH AND SOUTH TO BOSTON. The Residences at Riverwalk is conveniently located close to both interstate highways. I-495 is only 1.8 miles from the property and accessible via Route 110. The Residences at Riverwalk are 1.6 miles from I-95.
The Residences at Riverwalk are close to restaurants and shopping in downtown Amesbury as well as the Carriagetown Marketplace anchored by Super Stop & Shop on Route 110.
The MBTA commuter train is located approximately 7.2 miles (15 minutes) away in Newburyport. The train station has a large parking lot and provides direct access to Boston in a little over one hour.
12
12
LOCATION OVERVIEW
THE RESIDENCES AT RIVERWALK OFFER MANY RECREATIONAL OPPORTUNITIES. State and local parks (Maudslay & Batchelder Park) are located in Amesbury and the Atlantic Ocean is only a short drive away. Hampton Beach, Salisbury Beach, and Plum Island are all close to the Residences at Riverwalk. Also, some of the best skiing in New England is only a few hours’ drive north.
All the recreational amenities of this area are enhanced by its proximity to Boston. Commuters can travel from Amesbury to Boston by car or train in little over an hour.
13
13
APARTMENT SALES SURVEY
PROPERTY NAME & ADDRESS
EXETER MILLS EXETER, NH
CHADWICK ARMS READING, MA
KIMBALL COURT WOBURN, MA
VILLAGE AT TAYLOR POND BEDFORD, MA
STONE BROOK FARMS WILMINGTON, MA
PRICE
$30,000,000
$16,200,000
$47,875,000
$49,050,000
$40,250,000
DATE
6/22/2012
12/11/2012
3/15/2012
2/5/2013
12/13/2012
# OF UNITS
161
92
256
188
203
PRICE/UNIT
$186,335
$176,086
$187,012
$260,904
$198,276
CAP RATE
6.7%
4.94%
Not available
5.2%
4.95%
NOTES
Converted mill buildings near downtown Exeter
Brick garden- style apartment complex; 100% occupied at closing
Class A brick apartment building located in Woburn, MA
Class A apartment complex built in 2008; expansion potential
Class A apartment complex; 98% occupied at closing
14
14
MARKET OVERVIEW
REGENCY PLACE WILMINGTON, MA
HAWTHORN COMMONS SALEM, MA
RIVER POINTE LAWRENCE, MA
$24,400,000
$41,800,000
$26,350,000
3/20/2012
11/17/11
4/15/2011
120
228
174
$203,333
$183,333
$151,437
5.6%
5%
5.75%
Class A brick apartment
Class A property built in 2002, 96% leased at the time of sale
Class A complex built in 1999. The 174 units are comprised of 94 (54%) 1-beds, 68 (39%) 2-beds, and 12 (7%) 3-bedroom apartments with an average unit size of 925 SF.
complex with 30 affordable units and 90 market rate units
15
15
APARTMENT RENTAL SURVEY
PROPERTY NAME & ADDRESS
THE CORDOVAN AT HAVERHILL STATION HAVERHILL, MA
HAMEL MILL LOFTS HAVERHILL, MA
RESIDENCES AT PORTWALK PORTSMOUTH, NH
RESIDENCES AT RIVERWALK
EXETER MILL EXETER, NH
MILL FALLS METHUEN, MA
1 BED- ROOM PRICE
$1,289 - $1,595
$1,215 - $1,945
$1,225 - $1,645
$1,244
$1,978
$1,020 - $1,122
SIZE (SF)
660 - 980
625 - 1,010
765 - 785
798
750
563 - 918
RENT $/SF/ YR
$1.63 - $1.95
$1.94
$1.60 - $2.10
$1.56
$2.63
$1.22 - $1.81
2 BED- ROOM
$1,475 - $2,275
$1,435 - $2,670
$1,820 - $2,120
$1,710
$2,911
$1,225 - $1,428
SIZE (SF)
826 - 1368
1,056
1,838
1,070
1,030
695 - 1,119
RENT $/SF/ YR
$1.66 - $1.79
$1.36 - $2.53/SF
$0.99 - $1.15/SF
$1.60/SF
$2.82
$1.28 - $1.76
1616
MARKET OVERVIEW
CONDOMINIUM SURVEY
ADDRESS UNIT #
25 CEDAR STREET - AMESBURY (CLARKS POND)
16
15
19
UNIT TYPE
2-bed / 1-bath 1-bed / 1-bath 2-bed / 1-bath
PRICE
$217,500 (ask)
$215,000
$381,000
LIVING AREA (SF)
1036
1,137
1,908
$/SF
$210
$189
$200
STATUS
UNDER AGREEMENT
SOLD 8/24/12
SOLD 1/11/13
ADDRESS
15 CEDAR STREET - AMESBURY
UNIT #
29
24
40
39
26
UNIT TYPE
1-bed / 1-bath 2-bed / 1-bath 2-bed / 1-bath
2-bed / 1-bath
1-bed / 1-bath
PRICE
$205,000
$205,000
$295,000
$225,000
$217,000
LIVING AREA (SF)
879
951
1,411
1,043
1,061
$/SF
$233
$215
$209
$216
$205
STATUS
SOLD 3/7/2013
SOLD 9/25/2012 SOLD 1/30/2012
SOLD 6/19/2013
SOLD 7/17/13
ADDRESS UNIT #
75 MAIN STREET - AMESBURY (CLARKS POND)
205
301
101
302
UNIT TYPE
1-bed / 1-bath
2-bed / 1-bath
1-bed / 1-bath
2-bed / 1-bath
PRICE
$170,000
$243,000
$192,000 (ask)
$259,900 (ask)
LIVING AREA (SF)
855
1,175
795
1095
$/SF
$199
$206
$241
$237
STATUS
SOLD 1/4/2013
SOLD 7/9/2012
FOR SALE
FOR SALE
ADDRESS UNIT #
60 MERRIMAC STREET - AMESBURY
806
905
701
UNIT TYPE
2-bed / 2-bath
2-bed / 2-bath
1-bed / 2-bath
PRICE
$390,000
$430,000
$395,000
LIVING AREA (SF)
1261
1507
1495
$/SF
$309
$285
$264
STATUS
SOLD 6/14/2013
SOLD 1/14/2013
SOLD 3/11/2013
1717
RENT ROLL: ONE RIVER COURT
UNIT #
FLOOR
TYPE
SIZE (SF)
BEDS
BATHS
STATUS
$/MONTH ( JULY)
$/SF
101
1
M
1,060
2
2
Occupied
$1,776
$1.68
102
1
M
1,060
2
2
Occupied
$1,776
$1.68
103
1
M
1,060
2
2
Occupied
$1,776
$1.68
104
1
M
1,060
2
2
Occupied
$1,750
$1.65
105
1
F
1,055
2
2
Model
$1,725
$1.64
106
1
F
1,055
2
2
Occupied
$1,901
$1.80
107
1
K HP
1,045
2
1.5
Occupied
$1,595
$1.53
108
1
B
727
1
1
Occupied
$1,411
$1.94
109
1
E HP
1,000
2
1.5
Occupied
$1,573
$1.57
110
1
L HP
888
1
1
Occupied
$1,370
$1.54
111
1
E HP
1,000
2
1.5
Occupied
$1,573
$1.57
112
1
M
1,060
2
2
Occupied
$1,776
$1.68
113
1
K HP
1,045
2
1.5
Occupied
$1,619
$1.55
114
1
M
1,060
2
2
Occupied
$1,776
$1.68
115
1
F
1,055
2
2
Occupied
$1,826
$1.73
116
1
M
1,060
2
2
Occupied
$1,776
$1.68
117
1
M
1,060
2
2
Occupied
$1,776
$1.68
118cr
1
I
1,048
2
2
Occupied
$1,800
$1.72
119cr
1
I
1,048
2
2
Occupied
$1,878
$1.79
201cr
2
C
980
1
1
Occupied
$1,595
$1.63
202cr
2
O
1,047
2
2
Occupied
$1,825
$1.74
203
2
M
1,060
2
2
Occupied
$1,776
$1.68
204
2
M
1,060
2
2
Occupied
$1,776
$1.68
205
2
M
1,060
2
2
Occupied
$1,776
$1.68
206
2
M
1,060
2
2
Occupied
$1,776
$1.68
207
2
F
1,055
2
2
Vacant
$1,769
$1.68
208
2
M
1,060
2
2
Occupied
$1,776
$1.68
1818
FINANCIAL ANALYSIS
UNIT #
FLOOR
TYPE
SIZE (SF)
BEDS
BATHS
STATUS
$/MONTH (JULY)
$/SF
209
2
B
727
1
1
Occupied
$1,411
$1.94
210
2
M
1,060
2
2
Occupied
$1,700
$1.60
211
2
B
727
1
1
Occupied
$1,411
$1.94
212
2
B
727
1
1
Occupied
$1,596
$2.20
213
2
A
660
1
1
Occupied
$1,289
$1.95
214
2
D
826
2
1.5
Occupied
$1,475
$1.79
215
2
A
660
1
1
Occupied
$1,289
$1.95
216
2
J
1,012
2
2
Occupied
$1,675
$1.66
217
2
B
727
1
1
Occupied
$1,411
$1.94
218
2
M
1,060
2
2
Occupied
$1,776
$1.68
219
2
B
727
1
1
Occupied
$1,411
$1.94
220
2
M
1,060
2
2
Occupied
$1,750
$1.65
221
2
F
1,055
2
2
Occupied
$1,786
$1.69
222
2
M
1,060
2
2
Occupied
$1,750
$1.65
223
2
M
1,060
2
2
Occupied
$1,976
$1.86
224cr
2
I
1,048
2
2
Occupied
$1,878
$1.79
225cr
2
I
1,048
2
2
Occupied
$2,000
$1.91
301cr
3
G
1,205
2
2
Occupied
$1,990
$1.65
302cr
3
H
1,047
2
2
Occupied
$2,120
$2.02
303
3
M
1,060
2
2
Occupied
$1,868
$1.76
304
3
M
1,060
2
2
Occupied
$1,915
$1.81
305
3
M
1,060
2
2
Occupied
$1,990
$1.88
306
3
M
1,060
2
2
Occupied
$1,840
$1.74
307
3
F
1,055
2
2
Occupied
$1,842
$1.75
308
3
M
1,060
2
2
Rented
$1,840
$1.74
309
3
B
727
1
1
Occupied
$1,482
$2.04
310
3
M
1,060
2
2
Occupied
$1,944
$1.83
1919
RENT ROLL: ONE RIVER COURT
UNIT #
FLOOR
TYPE
SIZE (SF)
BEDS
BATHS
STATUS
$/MONTH (JULY)
$/SF
311
3
B
727
1
1
Occupied
$1,482
$2.04
312
3
B
727
1
1
Occupied
$1,528
$2.10
313
3
A
660
1
1
Occupied
$1,360
$2.06
314
3
D
826
2
1.5
Occupied
$1,629
$1.97
315
3
A
660
1
1
Occupied
$1,360
$2.06
316
3
J
1,012
2
2
Rented
$1,842
$1.82
317
3
B
727
1
1
Occupied
$1,482
$2.04
318
3
M 1,060
2
2
Occupied
$1,840
$1.74
319
3
B
727
1
1
Occupied
$1,482
$2.04
320
3
M 1,060
2
2
Occupied
$1,840
$1.74
321
3
F
1,055
2
2
Vacant
$1,840
$1.74
322
3
M 1,060
2
2
Occupied
$1,840
$1.74
323
3
M 1,060
2
2
Occupied
$2,768
$2.61
324cr
3
I
1,048
2
2
Occupied
$1,900
$1.81
325cr
3
I
1,048
2
2
Occupied
$2,335
$2.23
66,923
$119,465
$1.80
2020
FINANCIAL ANALYSIS
2121
RENT ROLL: 24 OAK STREET
UNIT #
FLOOR
TYPE
SIZE (SF)
BEDS BATHS STATUS
$/MONTH $/SF
1
Ground & 1st
Duplex
1,145
2
2
Occupied $1,920
$1.68
2
Ground & 1st
Duplex
1,201
2
2
Occupied $1,775
$1.48
3
Ground & 1st
Duplex
1,216
2
2
Occupied $1,985
$1.63
4
Ground & 1st
Duplex
1,216
2
2
Occupied $1,905
$1.57
5
Ground & 1st
Duplex
1,147
2
2
Occupied $1,620
$1.41
6
Ground & 1st
Duplex
1,127
2
2
Occupied $1,700
$1.51
7
Ground & 1st
Duplex
1,107
2
2
Occupied $1,820
$1.64
8
Ground & 1st
Duplex
1,179
2
2
Rented
$1,850
$1.57
9
Ground & 1st
Duplex
1,150
2
2
Occupied $2,020
$1.76
10
1st & 2nd
Duplex
1,499
3
3
Occupied $2,725
$1.82
11
1st & 2nd
Duplex
1,365
2
2
Occupied $2,220
$1.63
12
1st & 2nd
Duplex
1,363
2
2
Occupied $2,150
$1.58
13
1st & 2nd
Duplex
1,363
2
2
Vacant
$2,220
$1.63
14
1st & 2nd
Duplex
1,368
2
2
Vacant
$2,220
$1.62
15
1st & 2nd
Duplex
1,368
2
2
Vacant
$2,220
$1.62
16
1st & 2nd
Duplex
1,368
2
2
Occupied $2,320
$1.70
17
1st & 2nd
Duplex
1,368
2
2
Vacant
$2,213
$1.62
18
1st, 2nd, Loft
Triplex
2,116
3
3
Occupied $2,430
$1.15
23,666
$37,313
222
FINANCIAL ANALYSIS
RENT ROLL: TOTALS
ONE RIVER COURT
#
%
RENTED
66
95.7
VACANT
3
4.3
69
24 OAK STREET
#
%
RENTED
14
77.8%
VACANT
4
22.2%
18
TOTALS
#
%
OCCUPIED
80
91.95%
VACANT
7
8.05%
87
2323
FINANCIAL ANALYSIS
ASSUMPTIONS
ASSUMPTIONS:
$/UNIT
$198,276
BUILDING AREA
87
Purchase Price
$17,250,000
INFLATION RATE APPLICABLE TO REVENUES INFLATION RATE APPLICABLE TO EXPENSES TERMINAL CAP RATE (APPLIED TO YEAR 2014 NOI)
2.50% New Mortgage Loan Amount
$13,800,000
2.50% Loan-to-Value Ratio
80.0%
7.25% Interest Rate on Mortgage Loan
4.25%
TRANSACTION COSTS
3.00% Amortization Period of Mortgage Loan (Years)
30
EQUITY INVESTOR'S REQUIRED RATE OF RETURN (LEVERAGED)
12.0% Loan Origination Fee
1%
2424
PRO FORMA ANALYSIS
VACANCY
RATE
9.06%
7.50%
5.00%
5.00%
5.00%
5.00%
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 6
START:
SEP-2013
SEP-2014
SEP-2015
SEP-2016
SEP-2017
SEP-2018
CASH FLOW LINE ITEM
END:
AUG-2014 AUG-2015 AUG-2016 AUG-2017
AUG-2018 AUG-2019
GROSS POTENTIAL RENT
BASE RENTAL REVENUE
$1,881,336 $1,928,369 $1,976,579 $2,025,993
$2,076,643 $2,128,559
VACANCY & TURNOVER LOSS
(170,484)
(144,628)
(98,829)
(101,300)
(103,832)
(106,428)
SCHEDULED BASE RENTAL REVENUE
$1,710,852 $1,783,742 $1,877,750 $1,924,693
$1,972,811 $2,022,131
OTHER RENTAL INCOME
13,597
13,937
13,598
13,938
13,599
13,939
EFFECTIVE GROSS REVENUE
$1,724,449 $1,797,679 $1,891,348 $1,938,631
$1,986,410 $2,036,070
OPERATING EXPENSES:
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 5
YEAR 6
% OF EGR
$/UNIT
ADMINISTRATIVE
3.14%
$622
54,076
55,428
56,814
58,234
59,690
61,182
MARKETING/ADVERTISING
1.88%
$373
32,434
33,245
34,076
34,928
35,801
36,696
PAYROLL & BENEFITS
13.02%
$2,581
224,560
230,174
235,928
241,827
247,872
254,069
ELECTRICITY
1.84%
$365
31,745
32,539
33,352
34,186
35,041
35,917
WATER & SEWER
1.03%
$204
17,774
18,218
18,674
19,141
19,619
20,110
GAS
0.51%
$101
8,802
9,022
9,248
9,479
9,716
9,959
OPERATING & MAINTENANCE *
5.11%
$1,014
88,200
90,405
92,665
94,982
97,356
99,790
REAL ESTATE TAXES
9.47%
$1,877
163,259
167,340
171,524
175,812
180,207
184,713
INSURANCE
2.61%
$517
44,995
46,120
47,273
48,455
49,666
50,908
TOTAL OPERATING EXPENSES
38.61%
$7,653
$665,845
$682,491
$699,553
$717,042
$734,968
$753,343
NET OPERATING INCOME
$1,058,604 $1,115,187 $1,191,794 $1,221,589
$1,251,441 $1,282,728
CASH FLOW BEFORE DEBT SERVICE
$1,058,604 $1,115,187 $1,191,794 $1,221,589
$1,251,441
INTEREST PAYMENT
582,003
571,920
561,401
550,426
538,975
PRINCIPAL PAYMENT
232,650
242,732
253,252
264,227
275,678
CASH FLOW AFTER DEBT SERVICE
$243,952
$300,535
$377,142
$406,937
$436,789
GROSS SALE PRICE
$17,692,793
TRANSACTION COSTS
$530,784
OUTSTANDING LOAN BALANCE
$12,531,462
NET REVERSION UPON SALE
$4,630,548
INVESTMENT PERFOMANCE MEASURES
AUG-2014 AUG-2015 AUG-2016 AUG-2017
AUG-2018
9/1/2013
CASH-ON-CASH RETURN ON EQUITY
7.1%
8.7%
10.9%
11.8%
12.7%
DEBT COVERAGE RATIO
1.30
1.37
1.46
1.50
1.54
GOING-IN CAPITALIZATION RATE
6.1%
*Note: Operating expenses are based on 2012 actual expenses. Two items were adjusted for this proforma. The actual Administrative Expense was $91,076, but included a non-recurring expense of $37,000 for an Audit. This amount was removed from our proforma. In addition Operating & Maintenance was $109,893 for 2012. A non-recurring charge of $21,693 for Decorating Supplies was removed from our proforma.
INVESTMENT PRESENT VALUE
$17,521,799
INTERNAL RATE OF RETURN
13.9%
2525
Carl Christie Executive Vice President/ Principal 617.457.3394 cchristie@naihunneman.com Dan McGee Sales Associate 617.457.3266 dmcgee@naihunneman.com Henry D. Lieber Sales Associate 617.457.3383 hlieber@naihunneman.com
All information furnished regarding property for sale or lease is from sources deemed reliable, but no warranty or representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change of price, rental or other conditions prior to sale or lease, or withdrawal without notice. 303 Congress Street | Boston, MA 02210 | 617.457.3400 | www.naihunneman.com
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