RARE OLD CITY INVESTMENT OPPORTUNITY N. 3rd. Street Philadelphia, PA

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1 RARE OLD CITY INVESTMENT OPPORTUNITY N. 3rd. Street Philadelphia, PA

2 Executive summary Executive Summary Precision Realty Group, LLC, as the exclusive agent for the owners, presents for sale 14 & 16 N. 3rd Street, Philadelphia Pa. These two buildings are located steps from the corner of 3rd and & Market Streets, ground zero in the coveted Old City commercial real estate market. This opportunity to purchase two adjoining properties offers excellent existing infrastructure that require no major construction or renovations to maximize market rents. The flexible terms in the existing retail leases allow for immediate recapture of investment and improvements. As detailed in this prospectus, the upper floors of 14 N. 3rd Street are currently apartments and the upper floors of 16 N. 3rd Street are currently full-floor office suites. An existing elevator shaft can be reused to increase appeal for both and increase rents. The Old City market has a limited supply of properties like these, especially well-located retail. The savvy investor will take advantage of this rare investment. marketed Exclusively by: Investment details Price: $2,950,000 Below Market Rents Value-add Opportunity: Large Floor Areas Well Maintained Property Large Basements In the Heart of Old City and N. 3rd. Street The City s Hot Spot for Tech, Young Professionals, Entrepreneurs and Retail This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property to your needs. 2

3 General Property details Details 14 N 3rd 16 N 3rd 16 N. 3rd. St. Number of Floors 4 4 Retail Tenant-Ground Floor + Basement Harry s Smoke Shop Old City Nails 14 N. 3rd. St. Lot Size (City data) 22.8 x X 133 Lot Area (City data) 1,336 2,727 Total Building Areas 4,240 City data 7,944 (architect s plans) Basement Areas (estimate) 1,300 2,200 Frontage (City data) Zoning CMX-3 CMX-3 Exterior Brick Brick Electric Separate Meters Separate Meters Gas Separate Meters Separate Meters Laundry 2 apartments Flooring 2-4 floor: original wide wood plank 2-4 floor: original wide wood plank HVAC Separate for each floor Separate for each floor

4 property photos

5 tenant overview Unit Rent Other Tenant Charges SF Bed/Bath Proforma $ / SF Projected Rent 14 N. 3rd. St. Smoke Shop + Basement $2,079 Water+utilities 1,200 $2.92 $3,500 2nd floor apartment $1,750 Water+utilities 1,000 1/1 $2.00 $2, th floor apartment $2,100 Vacant 2,200 3/2 $1.64 $3, N. 3rd. St. Nail Salon + Basement $2,700 Water+utilities+taxes 2,300 $2.83 $6,500 2nd floor office $2,000 Water+utilities+taxes+insure 2,300 2 bath $1.74 $4, th floor office $3,160 Vacant 2,800 2 bath $1.29 $3,600 Gross Income $13,789 Estimated Rentable SF 11,800 $23,200 5

6 income & expenses INCOME CURRENT ANNUAL CURRENT TOTALS PROJECTED ANNUAL PROJECTED TOTALS Rents $165,468 $278,400 Gross Scheduled Income $165,468 $278,400 Vacancy Rate / Loss 4.0% -$6,619 -$11,136 Effective Gross Income $158,849 $267,264 EXPENSES Administrative Insurance $12,000 $12,000 Management Fee $0 $10,691 Accounting $500 $500 Real Estate Tax 14 N 3rd $12,838 $12,838 Real Estate Tax 16 N 3rd $12,419 $12,419 Licensing/Rental Tax $150 $150 Old City District Tax $1,028 $1,028 Sub-Total $38,935 $49,625 Utilities Trash Removal $1,260 $1,260 Water/Sewer $500 $500 Electric $250 $250 Gas $0 $0 Phone line for alarm $350 $350 Alarm System $565 $565 Sub-Total $2,925 $2,925 Repairs General Repair $4,800 Sub-Total $0 $4,800 Total Expenses $41,860 $57,350 Net Operating Income $116,990 $209,914 6

7 market comparables Address Sale date Sale Price Lot Size Total SF Existing $/SF 220 Church 9/15/17 $13,400,000 7,588 50,816 $ S 2nd 4/28/17 $1,250,000 1,977 3,940 $ S 2nd 3/28/18 $2,205,000 2,772 11,088 $ S 3rd 6/6/17 $1,028,450 1,041 4,600 $ N 3rd 1/7/16 $2,394,500 1,552 9,782 $ S 3rd 6/28/16 $800,000 1,280 2,560 $ N 3rd 5/27/16 $1,200,000 1,481 5,308 $ Cherry 6/12/17 $3,000,000 3,442 10,689 $281 Average $3,159,744 2,642 12,348 $258 Subject $/SF Average Land Total SF Based on Average Value N. 3rd. St. $258 4,063 12,184 $3,148,677 7

8 site aerial N. 3rd. Street Market Street 8

9 location aerial Center City independence mall SITE Market Street old City 9

10 retail aerial 129K Daily Traffic Counts SITE Delaware River Market St. Front St. 2nd St. 3rd St. 4th St. Independence Hall 5th St. 6th St. Chestnut St. 7th St. Sansum St. Arch St. Walnut St. Washington Square Locust St. 10

11 residential development Complete Underway # Units Address Project Description St James Society Hill Towers Race St. Retail with 216 apartments N 2nd. St. 6-story with retail / 192 apartments N 2nd. St. The National N 3rd. St. The Chocolate Works Arch. St. 10-story mixed use Race St. The Wireworks Arch St. Berger Buildinge Market St. Shirtcorner with CVS Race St. 105 N 2nd. St. 18 story mixed use & 14,000 SF retail The Pottery: Redevelopment N. 3rd. St Race St. 5 story / 50 unit building N 3rd. St. Retail with 28 apartments 11

12 old city highlights Located next to Independence Mall, where the country s Founding Fathers declared liberty and built a free nation, Old City still boasts charming cobblestone streets and plenty of 18th-century charm along with an independent streak that s evident in everything from its owner-operated shops to its edgy art scene. Its proximity to the Liberty Bell, Penn s Landing and the Benjamin Franklin Bridge makes Old City, which runs from Vine Street to Walnut Street north to south and from 7th Street to the Delaware River east $89,588 Median Household Income $3OO MILLION Total Resident Income 3.9 MILLION VISITORS To Old City Sites Each Year 17,000 Jobs in Old City to west, a favorite for out-of-towners as much as for the residents who call it home. People love the neighborhood for its fashionable boutiques, great restaurants, eclectic galleries and theaters and vibrant nightlife. Especially popular are First Fridays, when art lovers fill the streets and hop from gallery to gallery. From oldcitydistrict.org 12

13 zoning cmx-3 Description: Community commercial and residential mixed use Uses permitted as of right: Household Living; Group Living; Recreation; Day Care; Educational Facilities; Fraternal Organization; Hospital;Libraries and Cultural Exhibits; Religious Assembly; Safety Services; Transit Station; Utilities and Services, Basic; Wireless Service Facility; Office; Building Supplies and Equipment; Consumer Goods (except Drug Paraphernalia and Guns); Food, Beverage, and Groceries; Pets and Pet Supplies; Sundries, Pharmaceuticals, and Convenient Sales; Wearing Apparel and Accessories; Animal Services; Assembly and Entertainment (except Amusement Arcade, Casino, and Pool or Billiards Room); Building Services; Business Support; Eating and Drinking Establishment; Financial Services (except Personal Credit Establishments); Funeral and Mortuary Services; Maintenance and Repair of Consumer Goods; Structured Parking; Personal Services (except Body Art Services); Radio, Television, and Recording Services; Visitor Accommodations; Personal Vehicle Repair Sales and Rental; Personal Vehicle Repair and Maintenance; Gasoline Station; Vehicle Equipment and Supplies Sales and Rental; Moving and Storage Facilities; Artist Studios and Artisan Industrial; Research and Development; Community Garden; Market or Community-Supported Farm Uses requiring special exception approval: Surface Parking 13