Spring Hill Apartments - Somerville

CONFIDENTIAL OFFERING MEMORANDUM

EXCLUSIVE SALES AGENT

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

151-163 SUMMER STREET

FOR SALE: CALL FOR OFFERS

EXCLUSIVELY OFFERED BY:

INVESTMENT SERVICES

CARL CHRISTIE Executive Vice President, Principal 617.457.3394 cchristie@naihunneman.com DAN MCGEE Sales Associate 617.457.3266 dmcgee@naihunneman.com ANDREW KAEYER Principal 617.457.3207 akaeyer@naihunneman.com

FINANCING

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.

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

2

CONTENTS 3

EXECUTIVE SUMMARY

4

INVESTMENT HIGHLIGHTS

5

LOCATION & MARKET OVERVIEW 6

PROPERTY OVERVIEW

12

FINANCIAL ANALYSIS

22

EXECUTIVE SUMMARY Neighborhood Charm & Urban Living Rolled into One

The NAI Hunneman Capital Markets Team has been exclusively retained to sell the Spring Hill Apartments, a 106-unit portfolio in Somerville, MA. This unique offering presents investors with the opportunity to acquire a stabilized portfolio, with value-add potential, in an outstanding urban location. The portfolio includes three (3) adjacent buildings located, on a combined 1.12 ± acres, in the Spring Hill section of Somerville. 151-163 Summer Street is available for acquisition, on a “free and clear” basis. The offering is without an asking price.

PORTFOLIO SUMMARY

BUILDING

STUDIO 1-BED 2-BED 3-BED 4-BED TOTALS

44 Central Street / 151-153 Summer Street

6 2 1 9

1

1 7 6

1 0 6 7

0 0 1 1

9

155-157 Summer Street

59 15 75

68 29

163 Summer Street

TOTALS

14

106

4

INVESTMENT HI GHLI GHTS

RARE OPPORTUNITY Rare opportunity to obtain a sizable multifamily portfolio (106 units) in Somerville - one of metro Boston’s hottest rental markets. TRUE GENERATIONAL REAL ESTATE This is the first time this family-owned portfolio has been available for sale. The same family were the original builders for 155-163 Summer Street back in the 1920’s. The buildings have been managed and well-maintained by the owners. OUTSTANDING LOCATION The buildings have visibility and frontage on Summer Street in the Spring Hill neighborhood of Somerville. This area is centrally located between Union Square and Porter Square. According to walkscore.com , the site has a walk score of 87 (Very Walkable) for its access to transportation, restaurants, entertainment, and shopping. Future transit options will be improved when the new Green Line extension is completed in the next several years. The future Gilman Square T-stop near Somerville High School will be a 10 ± minute walk. Currently it is only a 20 minute walk to the Porter Square Red line T stop. STABILIZED INVESTMENT WITH VALUE ADD OPPORTUNITIES The buildings are stabilized and cash flowing with very little vacancy. There are below market rents offering immediate upside potential. Also, many larger units have the potential to add an extra bedroom and further increase rents. EXCELLENT CURB APPEAL 155-157 Summer is a five-story brick building with a nicely landscaped open court yard and attractive interior detail. 163 Summer Street is a six-story brick building with an enormous 4-bedroom penthouse with views of the Boston skyline. 151 Summer Street (The Historic John Hiat House) constructed in 1891, is well maintained, and located prominently on the corner of Summer Street and Central Street. LENDING ENVIRONMENT Interest rates remain at historic lows and multifamily assets enjoy privileged access to credit.

FINANCIAL SUMMARY

OCCUPANCY:

99%

CURRENT GROSS INCOME @ 100%:

$2,077,980

ESTIMATED NET OPERATING INCOME: $1,367,429

POTENTIAL FINANCING AVAILABLE:

3.6-3.8% (7-10 year rate)

5

LOCATI ON / MARKET OVERVIEW Metro Boston Market Boston has long been considered one of the most innovative cities in the world with a resilient economy, excellent infrastructure, and dozens of internationally renowned universities. The city, and neighboring Cambridge, are home to more than 20 colleges, including two of the highest ranked universities in the world: Harvard and M.I.T. Boston also boasts a world class healthcare system with more than 30 hospitals and research facilities such as Massachusetts General Hospital, Brigham & Women’s, and Beth Israel Deaconess Medical Center.

Boston is also supported by its strong performing high technology sector, which has posted significant job gains and has helped drive the state’s innovative “knowledge-based” economy. Massachusetts’ steady production of goods and services, a common measure of economic growth, is supported by a high concentration of manufacturing and technology firms within the region. This, in addition to a large education and health care sector accounts for more than 20% of all jobs within the region.

EMPLOYMENT Continued, non-cyclical, growth in the education and health services industries has kept the Massachusetts’ unemployment rate at 4.7%, lower than the national average of 5.4% (April 2015). Financial services and hospitality employment are both on the rise, indicating a future increase in demand for office and hotel space as businesses rehire and consequently expand. The large number of universities in the Greater Boston area provides not only a steady supply of highly trained workers, but also a boom in the overall employment rate as they continue to expand research and development.

4.7%

5.4% NATIONAL Unemployment Rate

MASSACHUSETTS’ Unemployment Rate

6

TRANSPORTATION The City of Boston benefits from convenient access to all of New England’s desirable destinations. Its geographic position is supported by an excellent highway system, nearby airports, and convenient railroad service. The Massachusetts Bay Transportation Authority (MBTA) has four rapid transit lines, three streetcar lines, 13 commuter rail lines, 167 bus and trackless trolley routes, as well as ferry services in the Greater Boston area. Amtrak also operates rail lines out of South & North Stations that run the entire eastern seaboard.

RETAIL Boston is consistently recognized as one of the top retail destinations in the country with its affluent, sophisticated population attracting world-renowned brands. Average consumer expenditures in Greater Boston are more than 15% higher than the national average at $56,703 per household. Boston’s universities attract thousands of young people to the city each year, bringing new shoppers to the area. These students, plus the 18.3 million annual visitors to the area,

Boston Area Total Spending $10.7 BILLION

Employers will generate 50,000 new

support an already vibrant local retail environment. Student retail spending in the area stands at roughly $2 billion annually while total spending has reached $10.7 billion.

payrolls in 2015, increasing

local jobs by 1.9%, adding to the 48,000 positions and 1.8% gain in 2014.

7

LOGAN INTERNATIONAL AIRPORT

LOCATI ON / MARKET OVERVIEW Somerville

CHARLESTOWN

The city of Somerville is located just two miles northwest of Boston. As of the 2010 US Census the city had a population of 75,754 people making it the most densely populated municipality in New England and the 15th most densely populated city in the U.S. Somerville has been experiencing a resurgence over the last 30 years which started when the MBTA’s Redline reached Davis Square in 1984. The growth really began during the biotech and high-tech booms of the mid-to-late 90’s when areas like Cambridge became an epicenter that spread out to neighboring communities adding jobs and the need for more housing. The tech boom helped with the revitalization, but Somerville continued to evolve on its own over the next 20 years. Today, Somerville is well known as a destination city for a younger demographic seeking an urban location with trendy restaurants, bars, music venues, an active art community, and housing within close proximity to Mass Transit.

WINTER HILL

PROSPECT HILL

Livability.com recently named Somerville #9 in the Best Downtowns in the U.S.

The evolution of Somerville into its present day status has been well documented. Davis Square, just a short drive from the subject property, has been called one of the most hip places in the U.S. for young college grads and professionals to live. Livability.com recently named Somerville #9 in the Best Downtowns in the U.S. saying “Municipal leaders from as far away as China have visited Somerville, hoping to learn more about how this city has achieved vibrancy, growth and the “hip” factor. This Boston suburb has quickly become a New England “it” town, attracting a young, creative class of workers who has helped to spur redevelopment in neglected parts of the city.“ The Boston Globe , Boston Magazine , and The New York Times have all recognized Somerville’s resurgence, and recently the Huffington Post cited Somerville calling it the Brooklyn of Massachusetts. In addition, Somerville has been recognized for its effective local government. In 2006, the Boston Globe named it the best run city in Massachusetts and in 2015 Somerville received the All-America City Award from the National Civic League.

8

BOSTON

CAMBRIDGE

HARVARD SQUARE

UNION SQUARE

SOMERVILLE

44 CENTRAL STREET / 151-153 SUMMER STREET 155-157 SUMMER STREET 163 SUMMER STREET

CENTRAL STREET

SPRING HILL

SUMMER STREET

TO DAVIS SQUARE T STATION (1.2 MILES)

9

Neighborhood The subject properties are located in the Spring Hill section of Somerville, which is situated between Porter Square and Union Square. Spring Hill is centrally located and is only a short distance to many destinations in the area.

LOCATI ON / MARKET OVERVIEW

163 SUMMER STREET

155-157 SUMMER STREET

DAVIS SQUARE

1.2 miles 1.4 miles 2.9 miles

HARVARD SQUARE

MIT

ASSEMBLY SQUARE

3 miles

CAMBRIDGESIDE GALLERIA

3.6 miles

Spring Hill is a mostly residential neighborhood which was built up between the 1840’s and early 1900’s and features a variety of Greek Revival, Victorians, and Gothic Revival homes. The Spring Hill Historic District stretches from Summer, Central, Atherton, and Spring Streets and includes 151 Summer Street.

TO DAVIS SQUARE T STATION (1.2 MILES)

MBTA REDLINE

TRANSPORTATION 151-163 Summer Street is accessible by car via the I-93 exit near Route 28 (McGrath Highway) and Route 38 (Mystic Ave.). The drive from Summer Street to downtown Boston is approximately 15 minutes (5 ± miles). For public transportation there are several options near the property. There is a bus stop on Avon Street (2 minute walk) providing access to Kendall/MIT via Union Square. The closest T-stop is the Porter Square Station which is a short bike ride away and only a 20 minute walk from the subject property. In the next several years the Green line extension will be completed providing even more transit options for Somerville. The future Gilman Square T-stop near Somerville High School will be a 10 ± minute walk from Summer Street. As a whole Somerville has excellent transportation and is very walkable. According to the 2014 national Walk Score ratings, Somerville is now the 7th most walkable city and the 9th most transit-friendly city in the nation, regardless of population size. Walk Score ranks cities based on walking routes, nearby amenities, and pedestrian friendliness. In addition, the National Association of City Transportation Officials (NATCO) have added Somerville to its prestigious affiliate member list, which includes just 18 member cites and 12 affiliate members nationwide.

10

RENTALS Somerville’s dense population and land constraints makes it more difficult to add new housing, but developers continue to search for locations to add high end apartments and capitalize on Somerville’s popularity. The most notable of which is the Assembly Square redevelopment district. The new construction, completed in 2014, resulted in a new Orange Line T-station between Wellington and Sullivan Square. The mammoth $1.5 billion mixed-use project will include residential apartments, retail and office space, and a hotel. Current tenants in Assembly Row include Le Creuset, Reebok, Adidas, Express, AMC Theatres, Saks Fifth Avenue, and the 45,000 SF Legoland. The forthcoming phase 2 of the project will include 730,000 SF of office space for Partners Healthcare campus, another 447 apartments, a 155-room hotel, 137 condos, and a linear park – all scheduled to open in early 2017. Existing apartments at Assembly Square include Avalon at Assembly Row (253 units) built in April 2014 and AVA Somerville (250 units) built in January 2015. Their average asking rents are listed below and representative of the high end of the Somerville’s Class A rental market. In addition Maxwell’s Green, built in 2012, is listed below and sold in April 2014 for $87 million ($472,826) at a reported 4.5% cap rate.

44 CENTRAL STREET / 151-153 SUMMER STREET

CENTRAL STREET

SUMMER STREET

AVALON AT ASSEMBLY AVA SOMERVILLE

MAXWELLS GREEN

AVERAGE RENT

AVERAGE RENT

AVERAGE RENT

STUDIO

$2,317

$1,988

$2,301

1-BED 2-BED

$2,873

$2,539

$2,955

$3,948

$3,072

$3,701

Avg. $4.01/SF

Avg. $3.47/SF

Avg. $3.53/SF

Somerville is now the 7th most walkable city and the 9th most transit- friendly city in the nation, regardless of population size. –WalkScore.com

A survey of apartment buildings in Somerville, as reported by Costar, listed 2,908 existing units and 135 under construction. The reported vacancy rate was 1.4% the lowest of a 5-year average of 3.2%. An MLS rental search produced 84 apartments rented since January 2014 within ½ mile of the property. These are the averages.

AVERAGE $/MONTH

AVERAGE $/SF

1-BED 2-BED 3-BED 4-BED

$1,713

$2.19

$2,160

$2.26

$2,607

$1.93

$2,960

$1.80

COMPARABLE RENTS

ADDRESS Type Price/Month Notes

3 MONMOUTH 1-bed / 1 bath $1,800 2nd floor 1-bed

25 ATHERTON 2-bed / 1 bath $2,500 Renovated schoolhouse

74 ALPINE 3-bed / 1 bath

$2,700 2-level

11

PROPERTY OVERVIEW 44 Central Street 151 Summer Street

9 UNITS TOTAL

SITE INFORMATION

LOT SIZE

10,825 ± SF lot

ZONING

RB (Residential / Business)

UTILITIES

Electric, water/sewer, gas, telephone, cable

BUILDING SPECIFICATIONS

YEAR BUILT

Circa 1891

Three-story, historic, wood frame apartment building with nine residential units

DESCRIPTION

BUILDING AREA

9,261 ± SF (gross) & 5,976 ± SF (living area) – source The Warren Group

UNIT MIX

(6) studios, (1) one-beds, (1) 2-bed, and (1) 3-bed

CONSTRUCTION

Wood-frame construction, stone foundation, wood clapboard exterior

Slate roof with a flat rubber roof section (recently replaced); the roof was improved last year with all new copper hips and valleys

ROOF

WINDOWS

Replacement windows changed over time

One central gas steam system provides heat to all units. Heat is paid by the landlord

HEATING

Each unit is separately metered for electric with circuit breakers in the units. Electricity is paid by the tenants

ELECTRICITY

HOT WATER

Central hot water system. Hot water is paid by the landlord

One very large first floor unit, a private outdoor deck on the top floor, nicely landscaped yard, attractive interior detail and woodwork.

OTHER

12

9 UNITS (STACKING CHART)

3RD FLOOR 2ND FLOOR 1ST FLOOR

44 CENTRAL STREET #6 (Large-Studio)

44 CENTRAL STREET #7 (2-bed)

#1 (Studio)

#2 (Studio)

#3 (Studio)

#4 (Studio)

#5 (Studio)

153 SUMMER STREET #1 (1-bed)

151 SUMMER STREET #1 (3-bed)

44 CENTRAL ST. #7 (2-BED)

151 SUMMER ST. (3-BED)

LIVING ROOM

KITCHEN

BATH

BEDROOM

KITCHEN

LIVING ROOM

FOYER

BEDROOM BATH BEDROOM

BEDROOM BEDROOM

SUN ROOM

13

PROPERTY OVERVIEW 163

Summer Street

29 UNITS TOTAL

SITE INFORMATION

LOT SIZE

10,825 ± SF lot

ZONING

RB (Residential / Business)

UTILITIES

Electric, water/sewer, gas, telephone, cable

BUILDING SPECIFICATIONS

YEAR BUILT

Circa 1920

DESCRIPTION

Six-story brick apartment building with twenty-nine (29) residential units

BUILDING AREA

34,537 gross and 26,175 SF living area – source The Warren Group

(1) studio, (15) one-beds, (6) two-beds, (6) three-beds, and (1) four-bed penthouse unit

UNIT MIX

CONSTRUCTION

Wood-frame construction, brick/masonry foundation, brick exterior

ROOF

Flat rubber roof approximately 5 years old

WINDOWS

All replaced with vinyl windows over a 20 years period

One central gas-fired steam heat system less than 10 years old. Heat paid by the landlord

HEATING

ELECTRICITY

Each unit is separately metered; circuit breakers in the units

HOT WATER

Four new gas fired hot water tanks. Hot water paid by the landlord

ALARMS / ENTRANCE

Hard wired fire alarm system; buzzer entrance system for all units

LAUNDRY

Coin operated laundry in the basement

There are decks on the penthouse units, most units in courtyard have balconies, except the rear units in entrance C The owner once lived in the 4-bed penthouse and had a garage parking space and elevator that went directly to the unit. The elevator is not in service. Part of the building was recently repointed (courtyard repointed 3-4 years ago) front and rear partially completed; side wall not done Units have hardwood floors, tile baths, most have kitchens added as needed over the last 20-30 years. Approximately 8 out of 106 units have not been turned over, due to long-term residents, and still have older kitchens and claw foot tubs.

OUTDOOR SPACE

GARAGE / ELEVATOR

CAPITAL IMPROVEMENTS

UNITS

14

FRONT BUILDING - 8 UNITS IN STACK

5TH FLOOR 4TH FLOOR 3RD FLOOR 2ND FLOOR 1ST FLOOR

#5P (Studio PH)

Deck

#4P (4-bed PH)

Deck

#31 (3-bed+)

#32 (3-bed+)

#21 (3-bed+)

#22 (3-bed+)

#11 (3-bed+)

#2 (3-bed+)

6 UNITS: FLOORS 1-3 (3-BED)

UNIT #4P (4-BED PH)

SUMMER STREET

BEDROOM

LIVING ROOM

LIVING ROOM

BEDROOM

BEDROOM

EXTRA ALCOVE ON FLOORS 2 & 3

BATH

1/2 BATH

BATH

BEDROOM

DINING ROOM

EAT IN KITCHEN

BEDROOM OR

BEDROOM

DINING ROOM

BEDROOM

BEDROOM

KITCHEN

PANTRY

15

PROPERTY OVERVIEW 163

A

B

Summer Street

29 UNITS TOTAL

REAR COURTYARD ENTRANCE

ENTRANCE A 6 UNITS IN STACK

ENTRANCE B 3 UNITS IN STACK

3RD FLOOR 2ND FLOOR 1ST FLOOR

#33 (1-bed)

#34 (1-bed)

#35 (2-bed+)

#23 (1-bed)

#24 (1-bed)

#25 (2-bed+)

#3 (1-bed)

#4 (1-bed)

#5 (2-bed+)

6 UNITS: FLOORS 1-3 (1-BED)

3 UNITS: FLOORS 1-3 (2-BED+) REAR

REAR

BALCONY

BALCONY

KITCHEN

LIVING ROOM

LIVING ROOM BEDROOM

BATH

BEDROOM

DINING ROOM

BEDROOM

PANTRY

KITCHEN

HALLWAY

HALLWAY

BATH

COURTYARD

COURTYARD

16

C

REAR COURTYARD ENTRANCE

ENTRANCE C 12 UNITS IN STACK

3RD FLOOR 2ND FLOOR 1ST FLOOR

#36 (2-bed)

#37 (1-bed)

#38 (2-bed)

#26 (1-bed)

#27 (1-bed)

#28 (1-bed)

#29 (1-bed)

#6 (1-bed)

#7 (1-bed)

#8 (1-bed)

#9 (1-bed)

#108 (2-bed)

TYPICAL 1-BED

COURTYARD

BALCONY

LIVING ROOM

BEDROOM

BATH

KITCHEN

17

PROPERTY OVERVIEW 155-157

Summer Street

68 UNITS TOTAL

SITE INFORMATION

LOT SIZE

22,115 ± SF lot

ZONING

RB (Residential / Business)

UTILITIES

Electric, water/sewer, gas, telephone, cable

BUILDING SPECIFICATIONS

YEAR BUILT

Circa 1920

DESCRIPTION

Five-story brick apartment building with sixty-eight residential units

68,728 ± SF (gross) & 59,955 ± SF (living area) – source The Warren Group

BUILDING AREA

UNIT MIX

(2) studios, (59) one-beds, and (7) two-beds

CONSTRUCTION

Wood-frame construction, brick/masonry foundation, brick exterior

ROOF

Flat rubber roof approximately 7 years old

Most every window (except 2) have been replaced with vinyl windows. A couple of long-term tenants have not had their windows replaced

WINDOWS

Central (Smith) gas-fired boiler provides steam heat to all the units. The landlord pays the heat

HEATING

Each unit is separately metered for electric. Units have panels with 3-4 breakers per unit

ELECTRICITY

HOT WATER

Five hot water tanks replaced within a year. Landlord pay hot water.

SMOKE ALARM

Central hard-wired alarm system

There are 2 coin-operated laundry rooms in the basement with room to expand more Some repointing has been done to approximately ½ of the building in the last 10 years. Units have hardwood floors, tile baths, most have kitchens added as needed over the last 20-30 years. Approximately 8 out of 106 units have not been turned over , due to long-term residents, and still have older kitchens and claw foot tubs. ,

LAUNDRY

CAPITAL IMPROVEMENTS

UNITS

18

STREET FRONT

157 SUMMER STREET 16 UNITS IN STACK

155 SUMMER STREET 20 UNITS IN STACK

4TH FLOOR 3RD FLOOR 2ND FLOOR 1ST FLOOR

#15F (1-bed)

#14F (1-bed+)

#15F (1-bed)

#16F(2-bed+)

#12AF(1-bed+)

#16F(1-bed+)

#12AF(2-bed+)

#14F(1-bed+)

#11F (1-bed)

#9F (1-bed+)

#10F (1-bed+)

#11F (1-bed)

#12F(2-bed+)

#12F(1-bed+)

#9F (2-bed+)

#10F(1-bed+)

#7F (1-bed)

#5F (1-bed+)

#6F (1-bed+)

#7F (1-bed)

#8F (2-bed+)

#8F (1-bed+)

#5F (2-bed+)

#6F (1-bed+)

#3F (1-bed)

#4F (1-bed+)

#1F (Studio)

#2F (1-bed+)

#3F (1-bed)

#4F (Studio)

#1F (1-bed+)

#2F (1-bed+)

SIDE

#1B (2-bed)

#2B (1-bed)

#3B (1-bed)

#4B (1-bed)

TYPICAL (2-BED)

TYPICAL (1-BED)

BEDROOM

BATH

LIVING ROOM OR BEDROOM

DINING ROOM OR BEDROOM

LIVING ROOM

HALLWAY

BEDROOM

KITCHEN

BATH

BEDROOM

LIVING ROOM

EAT-IN KITCHEN

HALLWAY

19

PROPERTY OVERVIEW 155-157

Summer Street 68 UNITS TOTAL

REAR OF BUILDING

157 SUMMER STREET 16 UNITS IN STACK

155 SUMMER STREET 16 UNITS IN STACK

#15R (1-bed) #16R (1-bed) #12AR(1-bed) #14R (1-bed) #15R (1-bed) #16R (1-bed) #12AR(1-bed) #14R (1-bed) 4TH FLOOR

3RD FLOOR 2ND FLOOR 1ST FLOOR

#11R (1-bed) #12R (1-bed)

#9R (1-bed)

#10R (1-bed) #11R (1-bed) #12R (1-bed)

#9R (1-bed)

#10R (1-bed)

#7R (1-bed)

#8R (1-bed)

#5R (1-bed)

#6R (1-bed)

#7R (1-bed)

#8R (1-bed)

#5R (1-bed)

#6R (1-bed)

#3R (1-bed)

#4R (1-bed)

#1R (1-bed)

#2R (1-bed)

#3R (1-bed)

#4R (1-bed)

#1R (1-bed)

#2R (1-bed)

TYPICAL (1-BED)

LIVING ROOM BEDROOM

BATH

KITCHEN

HALLWAY

20

21

FINANCIAL ANALYSIS Rent Roll 44 CENTRAL STREET / 151-153 SUMMER STREET

CURRENT

PROJECTED

AVG. RENT # OF UNITS

TOTALS AVG. RENT # OF UNITS

TOTALS

STUDIO

$1,279

6

$7,675

$1,500

6

$9,000

1-BED 2-BED

$1,600

1

$1,600

$1,800

1

$1,800

$1,700

1

$1,700

$2,200

1

$2,200

3-BED+

$2,000

1

$2,000

$2,800

1

$2,800

$/MONTH

$12,975

$15,800

$/YEAR

$155,700

$189,600

155-157 SUMMER STREET

AVG. RENT # OF UNITS

TOTALS AVG. RENT # OF UNITS

TOTALS

STUDIO

$1,325

2

$2,650

$1,500

2

$3,000

1-BED

$1,550

43

$66,630

$1,793

43

$77,100

1-BED+

$1,618

17

$27,505

$2,194

17

$37,300

2-BED

$1,809

6

$10,855

$2,500

6

$15,000

$/MONTH

$107,640

$132,400

$/YEAR

$1,291,680

$1,588,800

163 SUMMER STREET

AVG. RENT # OF UNITS

TOTALS AVG. RENT # OF UNITS

TOTALS

STUDIO

$1,210

1

$1,210

$1,500

1

$1,500

1-BED 2-BED

$1,546

15

$23,195

$1,800

15

$27,000

$1,782

3

$5,345

$2,200

3

$6,600

2-BED + 3-BED +

$1,933

3

$5,800

$2,500

3

$7,500

$2,283

6

$13,700

$2,800

6

$16,800

4-BED

$3,300

1

$3,300

$3,800

1

$3,800

$/MONTH

$52,550

$63,200

$/YEAR

$630,600

$758,400

PORTFOLIO

NOTES: Current income is based on existing rents. Projected income assumes an increase to full market rents from renovations and or by converting units with extra rooms (dining) into bedrooms. Operating Expenses were projected based on 2014 operations and estimates of industry standards. Professional Fees ($78,986.50) were excluded assuming a new operator may not hire outside agents to lease apartments. Repairs & Maintenance ($391,062.74) actual was removed and a 5% (of EGR) estimate was projected, since there was no breakdown on what % was non-recurring capital expenditures. A $400/unit capital reserve was added. Expenses under the Projected Column were grown by 3% inflation.

CURRENT

PROJECTED

44 CENTRAL

$155,700

$189,600

155-157 SUMMER

$1,291,680

$1,588,800

163 SUMMER

$630,600

$758,400

TOTALS

$2,077,980

$2,536,800

22

INVESTMENT HI GHLI GHTS 23

Cash Flow Analysis

CURRENT

PROJECTED

INCOME

$/MONTH $/YEAR $/MONTH $/YEAR

44 Central St. / 151-153 Summer St.

$12,975

$155,700

$15,200

$189,600

155-157 Summer St.

$107,640 $1,291,680

$134,000 $1,588,800

163 Summer Street

$52,550

$630,600

$61,900

$758,400

Storage $25/mth (155-157 & 163) (est. @ 75% rented)

$675

$8,100

$675.00

$8,100

Laundry Income (est. @ $200/unit) POTENTIAL GROSS REVENUE

$1,767

$21,200 $1,766.67

$21,200

$2,107,280

$2,566,100

Vacancy Rate (% of EGI)

0.00%

0

3% (76,983)

EFFECTIVE GROSS REVENUE (EGR)

$2,107,280

$2,489,117

OPERATING EXPENSES

$/Unit

$/Year

$/Unit

$/Year

Utilities

$1,320

$139,892

$1,359

$144,089

Landscaping

$123

13,010

$126

13,401

Trash Removal

$130

13,797

$134

14,211

Snow Removal

$31

3,300

$32

3,399

Wages & Payroll

$854

90,523

$880

93,238

Office

$15

1,609

$16

1,657

Telephone

$22

2,338

$23

2,408

Real Estate Taxes

$1,255

133,000

$1,292

136,990

Insurance

$526

55,741

$542

57,413

Management

$522

55,302

$537

56,961

Cleaning & Pest Control

$326

34,556

$336

35,592

Repairs & Maintenance (5% of EGR)

$994

105,364

$1,174

124,456

Capital Reserve ($400/unit est.)

$400

42,400

$400

42,400

TOTAL OPERATING EXPENSES NET OPERATING INCOME

$6,517

$690,829

$6,451

$726,213

$1,416,451

$1,762,904

INVESTMENT SERVICES

CARL CHRISTIE Executive Vice President, Principal 617.457.3394 cchristie@naihunneman.com DAN MCGEE Sales Associate 617.457.3266 dmcgee@naihunneman.com

FINANCING

ANDREW KAEYER Principal 617.457.3207 akaeyer@naihunneman.com

303 Congress Street Boston, MA 02210 617.457.3400 www.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.