4319 MAIN STREET M A I N S T R E E T P H I L A D E L P H I A, P E N N S Y L V A N I A

Transcription

1 4319 MAIN STREET M A I N S T R E E T P H I L A D E L P H I A, P E N N S Y L V A N I A

2 CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap MNET Activity ID: Y ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

3 4319 MAIN STREET EXCLUSIVELY LISTED JONATHAN MASSARO PHILADELPHIA OFFICE Tel: (215) Fax: (215) PHILIP SHARROW PHILADELPHIA OFFICE Tel: (215) Fax: (215) SAAM TASHAYYOD PHILADELPHIA OFFICE Tel: (215) Fax: (215) MARCUS & MILLICHAP REAL ESTATE INVESTMENT SERVICES OF SEATTLE, INC. LICENSE # RB062197C 2005 MARKET ST, STE 1510 PHILADELPHIA, PA Tel: (215) MARK TAYLOR - BROKER OF RECORD LICENSE # RM OFFICES NATIONWIDE

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5 4319 MAIN STREET TABLE OF CONTENTS PROPERTY DESCRIPTION Investment Overview Zoning Map and Definition...5 Aerial...6 Property Photos FINANCIAL ANALYSIS Offering Summary Tenant Overview...14 Income & Expenses...15 NEIGHBORHOOD Demographic Summary Market Forecast...19 Neighborhood Attractions...20 OFFICES NATIONWIDE

6 PROPERTY DESCRIPTION M A I N S T R E E T P H I L A D E L P H I A, P E N N S Y L V A N I A

7 4319 MAIN ST MANAYUNK MAIN STREET INVESTMENT OVERVIEW PRIME CORNER MIXED-USE PROPERTY 8.35% CAP RATE CORPORATE NNN RETAIL LEASE WITH INCREASES RENOVATED BOUTIQUE OFFICE SPACE TRANSIT ORIENTED LOCATION ATTRACTIVE FINANCING AVAILABLE Marcus and Millichap is pleased to offer to qualified buyers the opportunity to purchase the fee simple interest of 4319 Main Street. The mixed-use asset is located on a prime corner of Manayunk, one of Philadelphia s most progressive neighborhoods. The CMX 2.5 asset is currently divided into two units. The street-front retail space houses Insomnia Cookies, a corporate backed NNN lease currently on year three of an escalating ten year base term. The remainder of the building is currently owneroccupied. Ownership is flexible to either leasing back the space or vacating the premise at close of escrow. The renovated boutique office space encompasses the first, second, and third floors with a private, landscaped entrance on Cotton Street. The interior features a blend between modern and original finishes throughout. Manayunk is strategically located just off of the Schuylkill Expressway, a couple miles Northwest of Center City, Philadelphia. Manayunk attracts bikers, shoppers, and foodies all year round given its robust and lively Main Street. The bulk of the resident base is young professionals and graduate students driven by Saint Joe s and Philadelphia University. PROPERTY DESCRIPTION. 2

8 MAIN ST MANAYUNK PROPERTY SUMMARY THE OFFERING Property Addresses 4319 Main Street Philadelphia, PA Property Type Multifamily Assessor s Parcel Number SITE DESCRIPTION Number of Units 2 Number of Buildings 1 Number of Stories 3 Rentable SF 3,520 Parking Street Landscaping On Street Topography Urban UTILITIES Water Electric Gas CONSTRUCTION Exterior Parking Surface Roof MECHANICAL HVAC Fire Protection Public Tenant None Stone Asphalt New - Flat Central Air Conditioning/ Electric Heat Hardwired

9 4319 MAIN ST MANAYUNK PROPERTY DESCRIPTION. 4

10 MAIN ST MANAYUNK ZONING CMX-2.5 is defined as a pedestrian-friendly neighborhood commercial corridor. Residential uses are prohibited along ground floor frontage. Maximum of two dwlling units are permitted for lots less than 1,440 square feet. A max of three dwelling units are permitted for lots that are 1,440-1,919 square feet. A minimum of 480 sqaure feet is required per dwelling unit for the lot area in excess of 1,919 square feet. ZONING DETAILS Max. Occupied Area Intermediate: 75% Corner: 80% Min. Front Yard Dept Min. Side Yard Width Built to front lot line 5 ft. if used ZONING DETAILS Min. Rear Yard Dept Max. Height Min. Cornice Height The greater of 9 ft. or 10% of Lot Depth 55 ft. 25 ft.

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12 4319 MAIN ST MANAYUNK 7. PROPERTY DESCRIPTION

13 4319 MAIN ST MANAYUNK PROPERTY DESCRIPTION. 8

14 4319 MAIN ST MANAYUNK 9. PROPERTY DESCRIPTION

15 4319 MAIN ST MANAYUNK PROPERTY DESCRIPTION. 10

16 FINANCIAL ANALYSIS M A I N S T R E E T P H I L A D E L P H I A, P E N N S Y L V A N I A

17 MAIN ST MANAYUNK 4319 MAIN STREET OFFERING SUMMARY Price $700,000 Down Payment 25% / $175,000 Price/SF $ Rentable SF 3,520 SF Office Rentable SF 2,880 SF Retail Rentable SF 640 SF Number of Units 1 Commercial, 1 Office Number of Stories 3 VITAL DATA CAP Rate - Current 8.35% Net Operating Income - Current $58,475

18 FINANCING & RENT ROLL UNIT MIX 4319 MAIN ST MANAYUNK 13 PROPOSED FINANCING FIRST TRUST DEED Loan Amount $525,000 Interest Rate 4.25% Amortization 25 Years Term 5 Year With 5 Year Reset Debt Coverage Ratio 1.44 RETAIL 18% Rent Roll UNIT UNIT TYPE SF CURRENT RENT PRO FORMA RENT FIRST FLOOR Retail 640 $25,452 $26,220 SECOND/THIRD FLOOR Office 2,880 $42,000 $42,000 **potential leaseback OFFICE 82% PRICING & RENT ROLL. 13

19 MAIN ST MANAYUNK TENANT OVERVIEW Insomnia Cookies was born out of the dislike of heavy meals late at night, love of food delivery, and the realization that by the time you get hungry at night, nothing is open The concept was founded by Seth Berkowitz in 2003 from his dorm room while attending the University of Pennsylvania. Today with more than 90 store locations and growing, Insomnia Cookies offers many varieties of delicious cookies delivered warm from the oven right to your door. Our retail stores open at 9 am and delivery starts at 10 am until late into the night; 3am. The menu includes a variety of cookies, brownies and ice cream. Locations for Insomnia Cookies are typically within delivery distance of a university, targeting college students and the millennial generation who thrives on convenience. The company currently does not offer franchise opportunities and fully controls the operations of each of it s locations. LEASE ABSTRACT Base Term Options Lease Type Increases Gross Leaseable Area 10 Years (2) Five Year Options NNN 3% Annual Increases Through Base + Options 640 SF RENT SCHEDULE 11/20/13-05/19/14 $ /20/14-11/19/15 $1, /20/15-11/19/16 $2, /20/16-11/19/17 $2, /20/17-11/19/18 $2, /20/18-11/19/19 $2, /20/19-11/19/20 $2, /20/20-11/19/21 $2, /20/21-11/19/22 $2, /20/22-11/19/23 $2, /20/23-11/19/24 $2,533.54

20 INCOME & EXPENSES 4319 MAIN ST MANAYUNK 15 INCOME RETAIL CURRENT PRO FORMA Gross Potential Rent $25,452 $26,220 Expense Reimbursements Real Estate Tax 22% / $777 22% / $777 Special Services Tax 22% / $105 22% / $105 Insurance 22% / $590 22% / $590 EFFECTIVE GROSS INCOME $26,924 $27,692 INCOME OFFICE CURRENT PRO FORMA Gross Potential Rent $42,000 $42,000 Vacancy 5.0% / $2, % / $2,100 EFFECTIVE GROSS INCOME $39,900 $39,900 INCOME COMBINED CURRENT PRO FORMA $66,824 $67,592 EXPENSES CURRENT PRO FORMA Real Estate Taxes $3,536 $3,536 Insurance $2,686 $2,686 Refuse Collection $300 $300 Repairs and Maintenance $1,000 $1,000 License Fees $100 $100 Special Service District Tax $477 $477 Contract Services $250 $250 TOTAL EXPENSES $8,349 $8,349 % of EGI 12.6% NET OPERATING INCOME CURRENT PRO FORMA $58,475 $59,243

21 NEIGHBORHOOD M A I N S T R E E T P H I L A D E L P H I A, P E N N S Y L V A N I A

22 DEMOGRAPHIC SUMMARY 4319 MAIN ST MANAYUNK 17 Population In 2016, the population in your selected geography is 26,269. The population has changed by 1.29% since It is estimated that the population in your area will be 26, five years from now, which represents a change of 0.99% from the current year. The current population is 50.51% male and 49.49% female. The median age of the population in your area is 30.84, compare this to the US average which is The population density in your area is 8, people per square mile. Race and Ethnicity The current year racial makeup of your selected area is as follows: 89.15% White, 4.93% Black, 0.02% Native American and 2.86% Asian/Pacific Islander. Compare these to US averages which are: 70.98% White, 12.77% Black, 0.19% Native American and 5.25% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 3.14% of the current year population in your selected area. Compare this to the US average of 17.53%. Households There are currently 11,963 households in your selected geography. The number of households has changed by 6.98% since It is estimated that the number of households in your area will be 12,256 five years from now, which represents a change of 2.45% from the current year. The average household size in your area is 2.19 persons. Housing The median housing value in your area was $229,413 in 2016, compare this to the US average of $185,104. In 2000, there were 7,284 owner occupied housing units in your area and there were 3,898 renter occupied housing units in your area. The median rent at the time was $623. Income In2016, the median household income for your selected geography is $57,491, compare this to the US average which is currently $54,148. The median household income for your area has changed by 29.76% since It is estimated that the median household income in your area will be $64,417 five years from now, which represents a change of 12.05% from the current year. The current year per capita income in your area is $35,477, compare this to the US average, which is $29,638. The current year average household income in your area is $77,726, compare this to the US average which is $77,468. Employment In2016, there are 10,861 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 71.60% of employees are employed in white-collar occupations in this geography, and 28.00% are employed in blue-collar occupations. In 2016, unemployment in this area is 5.12%. In 2000, the average time traveled to work was minutes. Source: 2016Experian

23 MAIN ST MANAYUNK DEMOGRAPHIC SUMMARY POPULATION 1 Miles 3 Miles 5 Miles 2020 Projection Total Population 26, , , Estimate Total Population 26, , ,674 HOUSEHOLDS 1 Miles 3 Miles 5 Miles Total Population 26, , ,674 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2020 Projection Total Households 12,256 70, , Estimate Total Households 11,963 69, ,793 Average (Mean) Household Size HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units 2020 Projection 12,256 70, , Estimate 12,572 75, ,990 Owner Occupied 6,829 36, ,527 Renter Occupied 5,134 33, ,266 Vacant 609 5,706 29,196 Persons In Units 2015 Estimate Total Occupied Units 11,963 69, ,793 1 Person Units 33.37% 38.47% 34.50% 2 Person Units 36.09% 31.90% 29.09% 3 Person Units 16.02% 14.11% 16.00% 4 Person Units 10.01% 9.41% 10.76% 5 Person Units 3.06% 3.81% 5.37% 6+ Person Units 1.45% 2.30% 4.27%

24 2017 MARKET FORECAST 4319 MAIN ST MANAYUNK 19 NMI Rank 30, down 2 places Higher vacancy triggered a two-place fall forphiladelphia inthe Index. Employment up 1.7% Following a job gain of 54,000 workers last year, the Philadelphia workforce will add 49,000 employees in2017, anincrease of 1.7 percent. Construction 5,700 units Developers completed 5,900 rentals in This year, the inventory of apartments will expand by 5,700 units, 2,300 of which will come online in Center City. Vacancy up 40 bps The considerable volume of completions in 2017 will raise vacancy 40 basis points this year to 4.7 percent following no change last year. Rent up 4.5% After a climb of 5.4 percent in 2016, the projected average effective rent of $1,304 per month in2017 marks a 4.5 percent increase. Investment Assets in Center City will receive the most investor interest as its status as an employment hub and entertainment district draws a deep pool of renters. Dealshere typicallytrade at caprates in the low-5 percent band.

25 MAIN ST MANAYUNK NEIGHBORHOOD ATTRACTIONS LEXINGTON AVE 3 WESTMINSTER CEMETERY 2 SCUYLKILL RIVER GREEN LANE MANAYUNK STATION LEVERING STREET SCHUYLKILL EXPY MITCHELL STREET MANAYUNK AVE 10 TERRACE STREET ROXBOROUGH AVE SHURS LANE CRESSON STREET MAIL STREET 7 # NAME TYPE 1 Smiley s Cafe Restaurant 2 Lucky s Last Chance Restaurant 3 Greg s Kitchen Restaurant 4 Sweet Elizabeth s Cakes Bakery 5 The Couch Tomato Bistro Restaurant 6 Volo Coffeehouse Coffee House 7 Old Eagle Tavern Restaurant/ Bar 8 The Goat s Beard Restaurant 9 Riverside Pizza Restaurant 10 Manayunk Brewery Brewery 11 Winnie s LeBus Manayunk Restaurant 12 Han Dynasty Restaurant 13 Taqueria Feliz Restaurant 14 Jake s & Cooper s Wine Bar Restaurant/ Bar 15 Bourbon Blue Restaurant 16 Yanako Restaurant 17 Kildare s Irish Pub Restaurant/ Bar 18 Laxmi Indian Grille Restaurant 19 Cactus Restaurant & Bar Restaurant/ Bar 20 Manayunk Arts Festival Festival 21 Manayunk StrEAT Festival Festival 22 The Grape Room Nightlife 23 Cherry Rose Cafe Nightlife 24 North Light Community Center 25 Whirled Peace Cafe Community WEST LAUREL HILL CEMETERY

26 4319 MAIN STREET M A I N S T R E E T P H I L A D E L P H I A, P E N N S Y L V A N I A JONATHAN MASSARO PHILADELPHIA OFFICE Tel: (215) Fax: (215) Jonathan.Massaro@MarcusMillichap.com PHILIP SHARROW PHILADELPHIA OFFICE Tel: (215) Fax: (215) Philip.Sharrow@MarcusMillichap.com SAAM TASHAYYOD PHILADELPHIA OFFICE Tel: (215) Fax: (215) Saam.Tashayyod@MarcusMillichap.com MARCUS & MILLICHAP REAL ESTATE INVESTMENT SERVICES OF SEATTLE, INC. LICENSE # RB062197C Tel: (215) MARK TAYLOR - BROKER OF RECORD LICENSE # RM423708