40 Vernon Street - Taunton OM

14-UNIT APARTMENT BUILDING

FOR SALE $1,200,000

CONFIDENTIAL OFFERING MEMORANDUM

TAUNTON, MA

303 Congress Street | Boston, MA 02210 | 617.457.3400 | www.naihunneman.com I

EXCLUSIVE SALES AGENT

HIGHLIGHTS CURB APPEAL

LOCATION The property is well-located near downtown in a neighborhood known as Central Taunton. The property is located on a corner lot on Vernon Street, a quiet side street off Route 44 (Winthrop Street).

INVESTMENT

The property is professionally managed and well-maintained. The former school is an attractive brick building. The exterior grounds are nicely landscaped with seating areas, picnic table, and a raised-bed garden.

03

EXECUTIVE SUMMARY

MULTIFAMILY INVESTMENT OPPORTUNITY

NAI HUNNEMAN’S CAPITAL MARKETS GROUP has been exclusively retained to sell the Washington House Apartments located in Taunton, MA. The 14-unit apartment building is an affordable housing development for seniors and handicapped individuals. The unit mix includes ten (10) one-bedroom units and four (4) studio units located within a former schoolhouse building that was renovated in 1984. The 39,640 ± SF (0.91 acre) lot is improved with the brick apartment building and includes off-street parking for fourteen vehicles. WASHINGTON HOUSE APARTMENTS IS AVAILABLE FOR SALE WITH AN ASKING PRICE OF $1,200,000.

UNIT MIX

# OF UNITS

SIZE (SF)

$/MONTH

1-bedroom units

10

670 550

$1,022

Studio units

4

$889

TOTALS

14

8,900

$13,776

PROJECT BASED SECTION 8 Washington House Apartments currently has an existing Section 8 Project-based contract, providing subsidy for all 14 (100%) of the residential units. The 20-year contract began on 10/19/2014 and shall expire on 10/18/2034. The rental income includes monthly housing assistance payments and a portion paid by the tenants. The tenant’s portion represents 30% of their annual income.

RECENT IMPROVEMENTS The building has been well-maintained and there have been several large capital improvements made in recent years including new windows, new heating system, and painting in 2015; and roof/tower repairs made in 2008. The improvements cost over $120,000.

CASH FLOW INVESTMENT Washington House Apartments is a great

opportunity for an investor to purchase a fully occupied apartment building with existing cash flow. Upside exists through potential future rent increases and efficient management of expenses.

40 VERNON STREET / TAUNTON, MA

05

MARKET OVERVIEW

BOSTON

4.7 MILLION POPULATION

With the ninth-largest GDP in the country, and fifteenth-largest in the world, Metro Boston is an economic powerhouse and one of the nation’s centers for education, finance, tourism, healthcare, life sciences, and technology. The region is home to 12 Fortune 500 Companies; and some of its largest employers include Brigham and Women’s Hospital, Massachusetts General Hospital, John Hancock, Boston University, and Liberty Mutual. Greater Boston boasts a population of 4.7 million – ranking it one of the largest metropolitan areas in the United States. A vibrant history, numerous cultural attractions, five professional sports teams, and some of the best shopping in the world keep more than 15 million tourists coming to the metro area annually. The 80+ colleges and universities in the region are anchored by world-class institutions such as Harvard and MIT, and provide a large pool of talented young workers who remain attracted to the area’s burgeoning innovation economy, solid employment prospects, above-average wages, and amenities. As a worldwide leader in science and tech-based industries , the metro area continues to benefit from healthcare and biotech research and development. Armed with a strong entrepreneurial spirit and highly educated workforce, prospects for growth in Greater Boston are solid.

MEDICAL 30+HOSPITALS INCLUDING MASS GENERAL, RANKED #1 HOSPITAL IN THE U.S.

TOURISM 15 MILLION VISITORS ANNUALLY

EDUCATION 94.5 COLLEGE STUDENTS PER 1,000 RESIDENTS

TRANSPORTATION 5 MILLION RESIDENTS & 175 TOWNS SERVICED BY THE MBTA LOGAN AIRPORT MAINTAINS 50 NON-STOP INTERNATIONAL FLIGHTS DAILY

VENTURE CAPITAL FUNDING $2.7 BILLION (YEAR-TO-DATE)

40 VERNON STREET / TAUNTON, MA

18

40 VERNON STREET

24

44

495

118

44

138

24

79

24

138

140

195

24

103

6

140

07

MARKET OVERVIEW

THE PROPERTIES ARE CENTRALLY LOCATED WITH EASY ACCESS TO AREA HIGHWAY AND LOCAL AMENITIES. Home to over 56,000 residents and just a 45-minute drive to both Boston and Providence, Taunton is one of Massachusetts’ “Gateway Cities,” a mid-sized city transitioning from its historic identity as an industrial powerhouse for more than 150 years to a new, 21st century role. Once revered as a central hub of the silver industry in the 19th century, Taunton is still home to some of Massachusetts most prominent industries. The city’s economy is now centered on semiconductor, silicon, and electronics manufacturing and is home to several corporate headquarters. Area businesses generate over 23,000 jobs, with the Myles Standish Industrial Park accounting for than 4,000 distribution jobs. General Dynamics, Morton Hospital, United Liquors, and Agar Supply Company top the list of Taunton’s largest employers. Transportation options are vast and varied here, with several State Routes (138, 140, 24, and 44) and I-495 running through the city. Local and regional bus service is also available via GATRA and Bloom Bus. TAUNTON

40 VERNON STREET / TAUNTON, MA

09

PROPERTY OVERVIEW

PROPERTY INFORMATION LOT SIZE:

39,640 ± SF (0.91 acres) lot

UTILITIES:

The improved site is served by municipal water & sewer, electricity, natural gas, telephone, and cable TV.

PARKING:

Off-street parking for approximately 14 vehicles.

ZONING:

URD – Urban Residential District

CURRENT USE:

Affordable rental housing for low-income elders and handicapped residents

UNIT MIX:

Ten (10) one-bedroom/1-bathroom units approximately 650 ± SF and four (4) studio/ 1-bathroom units approximately 550 ± SF

YEAR BUILT:

Schoolhouse built circa 1897 and renovated into apartments in 1984

CONSTRUCTION:

Concrete and stone foundation, wood frame structure, brick exterior façade

ROOF:

Pitched roof with areas of slate, asphalt shingle, and rubber roofing. Roof and tower structure repairs made in 2008.

WINDOWS:

Harvey-Almond vinyl replacement windows added in 2015

HVAC:

Gas-fired hot water boilers feeding hot water baseboard units. Heat and hot water is paid by the landlord.

ELECTRICITY:

Electricity is separately metered and paid by the tenant

LAUNDRY:

There is a common laundry room with coin-operated washers and dryers

ACCESS:

Entry to the building is through unit intercom buzzer system. Units have emergency pull cords

40 VERNON STREET / TAUNTON, MA

FINANCIAL ANALYSIS RENT ROLL

UNIT TYPE

UNIT SIZE SF

HAP PORTION

TENANT PORTION

TOTAL RENT

EFFECTIVE DATE

UNIT

PROGRAM

01

Studio

550

Sec 8

643

246

$889

3/1/2018

02

Studio

550

Sec 8

696

193

$889

10/19/2017

03

Studio

550

Sec 8

676

213

$889

4/1/2018

04

1-bed

670

Sec 8

732

290

$1,022 11/1/2017

05

1-bed

670

Sec 8

624

398

$1,022 10/19/2017

06

1-bed

670

Sec 8

685

337

$1,022 10/19/2017

07

1-bed

670

Sec 8

773

249

$1,022 10/19/2017

08

Studio

550

Sec 8

768

121

$889

12/1/2017

09

1-bed

670

Sec 8

619

403

$1,022

1/1/2018

10

1-bed

670

Sec 8

792

230

$1,022 10/19/2017

11

1-bed

670

Sec 8

689

333

$1,022

2/1/2018

12

1-bed

670

Sec 8

668

354

$1,022 10/19/2017

13

1-bed

670

Sec 8

527

495

$1,022

1/1/2018

14

1-bed

670

Sec 8

702

320

$1,022 10/19/2017

TOTAL

8,900

$13,776

11

INCOME & EXPENSES

2016

2017

2018

Total Revenue

$161,374

$163,374

$167,312

EXPENSES

$/YEAR

$/YEAR

$/YEAR

Electricity

$4,447

$4,582

$4,719

Water/Sewer

$8,266

$13,511

$13,916

Natural Gas

$7,946

$10,010

$10,310

Trash Removal

$1,303

$2,398

$2,470

Grounds/Landscaping

$5,198

$2,740

$2,822

Snow Removal

$4,033

$4,580

$4,717

Fire Protection

$602

$180

$185

Real Estate Taxes

$10,785

$10,398

$10,710

Insurance

$7,105

$5,753

$5,926

TOTAL EXPENSES

$49,685

$54,152

$55,777

* Revenue for 2016 and 2017 are actual collections. The 2018 Revenue is a projection of $165,312/year in rental revenue ($13,776/mth) and $2,000/year projected for laundry income.

** Expenses for 2016-2017 are actual fixed expenses less variable (repairs/management/miscellaneous) costs. Prospective buyers can make their own assumptions regarding management and maintenance expenses. 2018 expenses are taken from 2017 and grown by 3%.

40 VERNON STREET / TAUNTON, MA

14-UNIT APARTMENT BUILDING

INVESTMENT SERVICES

CARL CHRISTIE Executive Vice President 617.457.3394 cchristie@naihunneman.com

DAN McGEE Assistant Vice President 617.457.3266 dmcgee@naihunneman.com

303 Congress Street Boston, MA 02210 617.457.3400 www.naihunneman.com

Disclaimer: Information included or referred to herein is furnished by third parties and is not guaranteed as to its accuracy or completeness.  You understand that all information included or referred to herein is confidential and furnished solely for the purpose of your review in connection with a potential purchase of the subject property. Independent estimates of pro forma income and expenses should be developed by you before any decision is made on whether to make any purchase.  Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual documents to which they relate.  The asset owner(s), their servicers, representatives and/or brokers, including but not limited to NAI Hunneman and their respective agents, representatives, affiliates and employees, (i) make no representations or warranties of any kind, express or implied, as to any information or projections relating to the subject asset(s), and hereby disclaim any and all such warranties or representations, and (ii) shall have no liability whatsoever arising from any errors, omissions or discrepancies in the information.  Any solicitation for offers to purchase the subject asset(s) is subject to prior placement and withdrawal, cancellation or modification without notice.