For more information contact: Managing Director ejordan@northeastpcg.com Bradley Balletto Regional Manager (203) 307-1574 bballetto@northeastpcg.com Mallory Chila Licensed Associate 203-307-2578 mchila@northeastpcg.com Eight (8) Unit Apartment Building Rooming House w/ Seven (7) Rooms and One (1) Apartment Recent Capital Improvements Phone: Fax: (617) 830-0496 800 Boylston Street Boston, MA 02199 www.northeastpcg.com
Table of Contents Real Estate Investment Details... 3 Property Description... 4 Maps and Aerials... 5 Executive Summary... 6 Unit Mix Report... 7 Income and Expense Summary... 8 Biography... 10
Real Estate Investment Details Analysis Analysis Date March 2017 Property Property Property Address Year Built 1966 Grove Street Apartments Purchase Information Property Type MultiFamily Purchase Price $790,000 Units 16 Total Rentable Sq. Ft. 8,480 Financial Information Down Payment $366,117 Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $540,000 30 years 30 years 4.75% $2,817 Income & Expenses Gross Operating Income $125,556 Monthly GOI $10,463 Total Annual Expenses ($62,128) Monthly Expenses ($5,177) Contact Information ejordan@northeastpcg.com Bradley Balletto (203) 307-1574 bballetto@northeastpcg.com Mallory Chila 203-307-2578 mchila@northeastpcg.com The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions. page 3 of 10
Property Description is.52 acres of land improved with an 8-unit apartment building and a 7 room plus 1 apartment rooming house. All apartments are one bedroom units. Recent capital improvements include new furnaces and hot water heaters in 2007 along with new kitchens and bathrooms that were done as the units turned over in the past 6 years. Almost all the windows have been recently replaced. page 4 of 10
Maps and Aerials page 5 of 10
Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $790,000 Investment - Cash $366,117 First Loan $540,000 INVESTMENT INFORMATION Purchase Price $790,000 Price per Unit $49,375 Price per Sq. Ft. $93.16 Income per Unit $8,696 Expenses per Unit ($3,883) INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $139,140 Total Vacancy and Credits ($13,584) Operating Expenses ($62,128) Net Operating Income $63,428 Debt Service ($33,803) Cash Flow Before Taxes $29,625 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 8.09% Debt Coverage Ratio 1.88 Capitalization Rate 8.03% Gross Rent Multiplier 5.68 Gross Income / Square Feet $16.41 Gross Expenses / Square Feet ($7.33) Operating Expense Ratio 49.48% page 6 of 10
Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 8 1 Bedroom 650 $815 $6,520 $850 $6,800 8 Rooming House 410 $600 $4,800 $715 $5,720 16 8,480 $11,320 $12,520 UNIT MIX UNIT MIX SQUARE FEET 1 Bedroom Apartment Rooming House 1 Bedroom Apartment Rooming House UNIT MIX INCOME UNIT MIX MARKET INCOME 1 Bedroom Apartment Rooming House 1 Bedroom Apartment Rooming House page 7 of 10
Income and Expense Summary INCOME Actual Per Unit Pro-Forma Per Unit Gross Potential Rent $135,840 $8,490 $150,240 $9,390 Less: Vacancy ($13,584) ($849) ($7,512) ($470) Misc. Income $3,300 $206 $4,380 $274 Effective Gross Income $125,556 $7,847 $147,108 $9,194 OPERATING EXPENSES Actual Per Unit Pro-Forma Per Unit Property Management Fee $6,278 $392 $7,512 $470 Replacement Reserves $4,000 $250 $4,000 $250 Building Insurance $7,450 $466 $7,450 $466 Repairs & Maintenance $6,000 $375 $6,000 $375 Taxes - Real Estate $25,500 $1,594 $25,500 $1,594 Utility - Electricity $3,950 $247 $3,950 $247 Utility - Gas $3,950 $247 $3,950 $247 Utility - Water & Sewer $5,000 $313 $5,000 $313 Total Expenses ($62,128) ($3,883) ($63,362) ($3,960) Net Operating Income $63,428 $3,964 $83,746 $5,234 page 8 of 10
Income and Expense Summary UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Pro-Forma Total 1 Bedroom Apartment 8 $9,780 $78,240 $10,200 $81,600 Rooming House 8 $7,200 $57,600 $8,580 $68,640 TOTALS 16 $135,840 $150,240 INVESTMENT SUMMARY Price: $790,000 Year Built: 1966 Units: 16 Price/Unit: $49,375 RSF: 8,480 Price/RSF: $93.16 ANNUALIZED INCOME Actual Pro-Forma Gross Potential Rent $135,840 $150,240 Less: Vacancy ($13,584) ($7,512) Misc. Income $3,300 $4,380 Effective Gross Income $125,556 $147,108 Less: Expenses ($62,128) ($63,362) Net Operating Income $63,428 $83,746 Debt Service ($33,803) ($33,803) Net Cash Flow after Debt Service $29,625 $49,943 Principal Reduction $8,333 $8,333 Total Return $37,958 $58,276 Lot Size: 0.52 acres Floors: 1 Cap Rate: 8.03% Pro-Forma Cap Rate: 10.6% GRM: 5.68 Pro-Forma GRM: 5.11 FINANCING SUMMARY Loan Amount: $540,000 Down Payment: $366,117 Loan Type: Fixed Interest Rate: 4.75% Term: 30 years Monthly Payment: $2,817 ANNUALIZED EXPENSES Actual Pro-Forma Property Management Fee $6,278 $7,512 Replacement Reserves $4,000 $4,000 Building Insurance $7,450 $7,450 Repairs & Maintenance $6,000 $6,000 Taxes - Real Estate $25,500 $25,500 Utility - Electricity $3,950 $3,950 Utility - Gas $3,950 $3,950 Utility - Water & Sewer $5,000 $5,000 Total Expenses $62,128 $63,362 Expenses Per RSF $7.33 $7.47 Expenses Per Unit $3,883 $3,960 DCR: 1.88 page 9 of 10
Biography Professional Bio WHO WE ARE Northeast Private Client Group is the fastest-growing mid market investment sales firm in the Northeast. We provide unmatched results by combining specialized market intelligence with a relationshipbased marketing strategy that caters to our individual clients needs. Our experienced team is at the forefront of sourcing and transacting mid-market investment opportunities between Boston and New York, offering clients local submarket intelligence and rich industry expertise. Our collaborative and research-driven solutions are tailored to meet the individual needs of investors and property owners across the Northeast who are looking to buy, sell or exchange mid-market properties, including mixed-use, multifamily, retail and office assets. We have a proven track record of matching our clients with qualified buyers of multifamily and commercial properties. Throughout all market cycles, our team works closely with building owners to help meet their needs for preserving capital, repositioning assets, growing returns and maximizing value. We are your strategic partner, offering the accessibility, commitment and knowledge necessary to effectively achieve your goals. With offices in Connecticut, Massachusetts and New York, Northeast Private Client Group delivers institutional quality support to our mid-market clients. This highly-disciplined process is just one of the many reasons we have earned the CoStar Power Broker designation year after year. page 10 of 10