348-Turnpike-Street-Canton-OM

TURNPIKE STREET

CANTON, MA FOR SALE: $2,700,000

CONFIDENTIAL OFFERING MEMORANDUM

303 Congress Street | Boston, MA 02210 | 617.457.3400 | hunnemanre.com

FLEX/INDUSTRIAL INVESTMENT OPPORTUNITY

EXECUTIVE SUMMARY

Hunneman’s Capital Markets Group has been exclusively retained to sell 348 Turnpike Street, a 39,100 square foot flex/ industrial building situated on approximately 2.5 acres in Canton, Massachusetts. Current ownership has recently invested significant dollars to in various Capital Improvements, including new fire panel system (2018), and 3 new RTUs (2017) to service tenant spaces. Strategically situated off Interstate 93, 348 Turnpike Street benefits from strong accessibility, ideally positioned with strong corporate visibility, having 255 feet of frontage along

Route 138. Interstate 93 and 95 are just 3 and 4 miles away, respectively, allowing easy travel for employees coming to 348 Turnpike Street and deliveries leaving the property towards any adjacent economic hub. In addition, the property is surrounded by a wealth of amenities and strong corporate neighbors. 348 Turnpike Street presents investors with a prime investment opportunity to acquire an ideally located asset with a desirable combination of stability and upside. The property is being offered for sale with a formal asking price of $2,700,000 (±$69/SF).

39,100 SF GROSS BUILDING SIZE

2.5 ± ACRES LAND AREA

255 FEET FRONTAGE

INVESTMENT HIGHLIGHTS

STRATEGIC LOCATION

STRONG ACCESSIBI L ITY

CASH FLOW STABI L ITY

WEALTH OF AREA AMENITIES

UPSIDE POTENTIAL

FAVORABLE CAPITAL MARKET CONDITIONS

03

BOSTON MARKET OVERVIEW

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 Twelve Fortune 500 Companies; and some of it's 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 continue to rank the city as one of the top employment centers in the nation.

4.7 MI LL ION POPULATION

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

VENTURE CAPITAL FUNDING $3.7 BILLION (2017)

LOGAN AIRPORT MAINTAINS 50 NON-STOP INTERNATIONAL FLIGHTS DAILY

05

CANTON MARKET OVERVIEW

Waltham

Cambridge

0

90

Newton

9

Boston

Needham

228

Quincy

Dedham

93

Milton

3

Braintree

Norwood

Canton

95

CANTON

1

Han

Abington

LESS THAN

GREAT

STRONG

TOTAL VACANCY

30 MINUTES FROM BOSTON

PUBLIC SCHOOL SYSTEM

ECONOMY & EMPLOYMENT

7.5% (Q4 2018)

NUMEROUS AMENITIES shopping, dining & entertainment

EASY ACCESS TO DOWNTOWN on the MBTA commuter rail

Lessthan30minutesSouthwestofBoston,thetownofCantonoffersawidevarietyofamenitiesforitsinhabitants.Known foritsrichhistoryandculture,Cantonisalsohometosomeofthebestpublic-schoolinstitutionsinthestate,spendingon average$14,168perstudent,over$2,400morethantheUSaverage.Canton’seconomyhasbeentremendouslystrongin recentyears,postinganunemploymentrateofmerely3.3%,over0.6%lowerthanthenationalaverage.Inadditiontothis, futurejobgrowthinthenexttenyearsisexpectedtoincreasesignificantly,makingCantonanidylliclocationformillennials seeking employment. Over thepast year,theRoute 128South Industrialmarket hasproven tobeastrongandcompetitivedivision,withdirect vacancy rates decreasing and rents hovering around $7 per square foot.Themarket as awhole has a total inventory of over 39.6million square feetwitha total vacancy rateof 7.5% in the fourthquarter of 2018.Average asking rents remain elevatedabove$7persquarefoot,withratesrangingfrom$5-$8persquarefootforindustrialspaceand$10-$15persquare footforFlex/R&Dspace.Whiletheareamaybelackingintheperceivedsuperiorregionalaccessibilitywhencomparedto submarketslikeRoute495WestorRoute495South,Rout128Southhasbenefitedfromdemandforlast-mileusersseeking proximitytopopulationcenters inBostonandlongtheRoute128loop.Initscurrentstate,theRoute128SouthIndustrial market is an ideal region for prospective businesses.

SALES COMPARABLES

11-19 PRODUCTION ROAD WALPOLE

121 LIBERTY STREET BROCKTON

980 TURNPIKE STREET CANTON

109-129 YORK AVENUE RANDOLPH

1735 TURNPIKE STREET STOUGHTON

CANTON

CANTON

PRICE

$1,285,000

PRICE

$3,425,000

PRICE

$4,250,000

PRICE

$4,500,000

PRICE

$1,150,000

ver

SALE DATE

February-18

SALE DATE

October-17

SALE DATE

July-17

SALE DATE

June-17

SALE DATE

February-16

SIZE

15,000 SF

SIZE

41,000 SF

SIZE

60,000 SF

SIZE

63,600 SF

SIZE

15,300 SF

$/SF

$86

$/SF

$84

$/SF

$71

$/SF

$71

$/SF

$75

07

PON

GRAND SLAM DELI

BOSTON

APOAG GOLF COURSE

09

PROPERTY OVERVIEW

39,100 SF GROSS BUILDING SIZE 1958 YEAR BUILT

2.5 ACRES LAND AREA INDUSTRIAL (I) ZONING

Masonry and steel frame

STRUCTURE:

Brick, concrete and corrugated metal

FACADE:

Flat rubber membrane

ROOF:

12 years

ROOF AGE:

CEILING HEIGHT WAREHOUSE:

16'-18'

12'

OFFICE:

30 spaces (0.77 per 1,000) Four (4) loading docks 3 RTUs (installed 2017)

PARKING: LOADING:

HVAC:

UTILITIES

Eversource Eversource

ELECTRIC:

GAS:

Town of Canton

WATER & SEWER:

Fully sprinklered (updated 2018)

FIRE SAFETY:

RENT ROLL

TENANT

TERM

SQ FT

DATE ANNUAL RENT RENT / SF REIMBURSEMENT

NOTES

NEW ENGLAND ABATEMENT RESOURCES, INC. (INDUSTRIAL SAFETY & RESCUE)

Option to extend two (2) lease years at market rent. (Currently exercising Option until 4/30/2020).

5/1/13 - 4/30/18

4,433

5/1/16

$40,200

$9.07 PSF

Gross + Utilities

BOSTON RHYTHMIC - ORIGINAL

Tenant has the option to extend their lease for three (3) additional five (5) year terms at market rent.

7/1/16 - 6/30/21

5,000

$30,000 $35,000

$6.00 PSF $7.00 PSF

NNN

7/1/19

BOSTON RHYTHMIC - EXPANSION

Tenant has the option to extend their lease for three (3) additional five (5) year terms at market rent.

3/1/18 - 2/28/23

7,582

$53,074

$7.00 PSF

NNN

VANITY WORLD

Tenant reimburses $1.00 per square foot of Operating Expenses.

3/1/18 - 2/28/23

10,000

$60,000

$6.00 PSF

Modified Gross

VACANT

12,085

TOTAL OCCUPIED 27,015 69% TOTAL VACANT 12,085 31%

TOTAL BUILDING (SQ FT) 39,100 100%

ASSUMPTIONS

GENERAL ASSUMPTIONS

MARKET LEASING ASSUMPTIONS

LEASING & CAPITAL COSTS

Reporting Start Date: Vacancy Allowance: Expense Growth Rate:

11/01/18

Market Rent:

$8.00 / SF

Tenant Improvements: Leasing Commissions: Replacement Reserves:

$5.00 / SF

5.00% 3.00%

Annual Increases:

3% increase

4%

Lease Type:

NNN

$0.15 / SF / year

Term:

5 Years

Renewal Probability:

75%

Downtime:

6 Months

13

FINANCIAL ANALYSIS

Year 1 Oct-19

Year 2 Oct-20

Year 3 Oct-21

CASH FLOW LINE ITEM

Year Ending

INCOME: Base Rental Income

$271,621

$274,810

$307,829

Less: Absorption & Turnover Vacancy TOTAL RENTAL INCOME Expense Reimbursement Revenue Potential Gross Income Less: Vacancy Allowance EFFECTIVE GROSS INCOME

($40,283)

($6,088)

($21,218)

$231,338

$268,722

$286,611

$45,572

$57,359

$59,717

$276,910 ($9,512) $267,398

$326,081 ($13,866) $312,215

$346,328 ($12,271) $334,057

EXPENSES:

PSF

Snow Removal Real Estate Taxes Water & Sewer

$0.08 $1.09 $0.05 $0.22 $0.10

$3,000 $42,669 $1,955 $8,600 $3,910

$3,090 $43,949 $2,014 $8,858 $4,027

$3,183 $45,268 $2,074 $9,124 $4,148

Insurance

Electric

TOTAL OPERATING EXPENSES

$1.54

$60,134

$61,938

$63,797

NET OPERATING INCOME

$207,264

$250,277

$270,260

NOI PSF

$5.30

$6.40

$6.91

Year 4 Oct-22

Year 5 Oct-23

Year 6 Oct-24

Year 7 Oct-25

Year 8 Oct-26

Year 9 Oct-27

Year 10 Oct-28

$324,654

$342,932

$357,413

$367,574

$378,390

$390,480

$402,194

$0

($11,378)

($18,680)

($7,058)

($24,597)

$0

($13,190)

$324,654

$331,554

$338,733

$360,516

$353,793

$390,480

$389,004

$65,710

$65,494

$66,121

$70,446

$69,229

$76,176

$75,925

$390,364 ($19,518) $370,846

$397,048 ($17,067) $379,981

$404,854 ($17,783) $387,071

$430,962 ($18,270) $412,692

$423,022 ($15,042) $407,980

$466,656 ($23,333) $443,323

$464,929 ($20,004) $444,925

$3,278 $46,626 $2,136 $9,397 $4,273

$3,377 $48,024 $2,200 $9,679 $4,401

$3,478 $49,465 $2,266 $9,970 $4,533

$3,582 $50,949 $2,334 $10,269 $4,669

$3,690 $52,477 $2,404 $10,577 $4,809

$3,800 $54,052 $2,477 $10,894 $4,953

$3,914 $55,673 $2,551 $11,221 $5,102

$65,710

$67,681

$69,712

$71,803

$73,957

$76,176

$78,461

$305,136

$312,300

$317,359

$340,889

$334,023

$367,147

$366,464

$7.80

$7.99

$8.12

$8.72

$8.54

$9.39

$9.37

15

TURNPIKE STREET CANTON, MA

INVESTMENT SERVICES

Ian McKinley 617.457.3404 imckinley@hunnemanre.com

Gina Barroso 617.457.3261 gbarroso@hunnemanre.com

LEASING SERVICES

CAPITAL MARKETS

Ned Halloran 617.457.3372 nhalloran@hunnemanre.com

Leeanne Rizzo 617.457.3371 lrizzo@hunnemanre.com

Andrew Kaeyer 617.457.3207 akaeyer@hunnemanre. com

William Rand 617.457.3336 wrand@hunnemanre.com

303 Congress Street | Boston, MA 02210 | 617.457.3400 | hunnemanre.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 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.