For more information contact: Managing Director ejordan@northeastpcg.com Drew Kirkland Senior Associate (857) 990-6802 dkirkland@northeastpcg.com Francis Saenz Licensed Associate (857) 990-6803 fsaenz@northeastpcg.com Two Buildings Six Unit Multifamily Property One, Two & Three Bedroom Floor Plans Tenant Paid Utilities Off Street Parking Fully Occupied Value Add Opportunity 13,680 SF Lot Phone: Fax: (617) 830-0496 300 Washington Street, Suite 303 Newton, MA 02458 www.northeastpcg.com
Real Estate Investment Details Analysis Analysis Date September 2017 Property Property Property Address Year Built 1880 Village Street Multifamily Purchase Information Property Type MultiFamily Purchase Price $525,000 Units 6 Total Rentable Sq. Ft. 3,000 Financial Information Down Payment $131,250 Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $393,750 30 years 30 years 4.75% $2,054 Income & Expenses Gross Operating Income $64,980 Monthly GOI $5,415 Total Annual Expenses ($21,967) Monthly Expenses ($1,831) Contact Information ejordan@northeastpcg.com Drew Kirkland (857) 990-6802 dkirkland@northeastpcg.com Francis Saenz (857) 990-6803 fsaenz@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 2 of 10
Property Description Six Unit Multifamily Property Tenant Paid Utilities Northeast Private Client Group is pleased to present the Village Street Multifamily located at 27 Village Street in Medway, MA. Property consists of two buildings built in 1880, one building approximately 2,800 SF & the other 1,900 SF on a 13,680 SF lot. Consists of 2 one bedrooms, 3 two bedrooms and 1 three bedroom. Every unit is separately metered for all utilities. Tenants pay heat & hot water and electric. Off street parking and fully occupied. All interested and qualified parties will have an opportunity to tour the property during scheduled appointments and obtain additional information upon request. page 3 of 10
Property Photos Six Unit Multifamily Property Tenant Paid Utilities page 4 of 10
Location Map page 5 of 10
Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $525,000 Investment - Cash $131,250 First Loan $393,750 INVESTMENT INFORMATION Purchase Price $525,000 Price per Unit $87,500 Price per Sq. Ft. $175.00 Income per Unit $11,400 Expenses per Unit ($3,661) INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $68,400 Total Vacancy and Credits ($3,420) Operating Expenses ($21,967) Net Operating Income $43,013 Debt Service ($24,648) Cash Flow Before Taxes $18,365 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 13.99% Debt Coverage Ratio 1.75 Capitalization Rate 8.19% Gross Rent Multiplier 7.68 Gross Income / Square Feet $22.80 Gross Expenses / Square Feet ($7.32) Operating Expense Ratio 33.81% page 6 of 10
Pro Forma Summary INCOME Actual Per Unit Pro Forma Per Unit Gross Potential Rent $68,400 $11,400 $72,000 $12,000 Less: Vacancy ($3,420) ($570) ($3,600) ($600) Effective Gross Income $64,980 $10,830 $68,400 $11,400 OPERATING EXPENSES Actual Per Unit Pro Forma Per Unit Property Management Fee $3,420 $570 $3,600 $600 Replacement Reserves $1,500 $250 $1,500 $250 Building Insurance* $1,360 $227 $1,360 $227 Repairs & Maintenance $3,000 $500 $3,000 $500 Payroll & Contract Services $3,000 $500 $3,000 $500 Taxes - Real Estate $6,567 $1,094 $6,567 $1,094 Utility - Water $3,120 $520 $3,120 $520 Total Expenses ($21,967) ($3,661) ($22,147) ($3,691) Net Operating Income $43,013 $7,169 $46,253 $7,709 page 7 of 10
Pro Forma Summary UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Pro Forma Total Bedrooms 6 $11,400 $68,400 $12,000 $72,000 TOTALS 6 $68,400 $72,000 INVESTMENT SUMMARY Price: $525,000 Year Built: 1880 Units: 6 Price/Unit: $87,500 RSF: 3,000 ANNUALIZED INCOME Actual Pro Forma Gross Potential Rent $68,400 $72,000 Less: Vacancy ($3,420) ($3,600) Effective Gross Income $64,980 $68,400 Less: Expenses ($21,967) ($22,147) Net Operating Income $43,013 $46,253 Debt Service ($24,648) ($24,648) Net Cash Flow after Debt Service $18,365 $21,605 Principal Reduction $6,076 $6,076 Total Return $24,441 $27,681 Price/RSF: $175.00 Lot Size: 0.30 acres Floors: 2 Cap Rate: 8.19% Pro Forma Cap Rate: 8.81% GRM: 7.68 Pro Forma GRM: 7.29 FINANCING SUMMARY Loan Amount: $393,750 Down Payment: $131,250 Loan Type: Fixed Interest Rate: 4.75% ANNUALIZED EXPENSES Actual Pro Forma Property Management Fee $3,420 $3,600 Replacement Reserves $1,500 $1,500 Building Insurance* $1,360 $1,360 Repairs & Maintenance $3,000 $3,000 Payroll & Contract Services $3,000 $3,000 Taxes - Real Estate $6,567 $6,567 Utility - Water $3,120 $3,120 Total Expenses $21,967 $22,147 Expenses Per RSF $7.32 $7.38 Expenses Per Unit $3,661 $3,691 Term: 30 years Monthly Payment: $2,054 DCR: 1.75 page 8 of 10
Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 6 Bedrooms 500 $950 $5,700 $1,000 $6,000 6 3,000 $5,700 $6,000 UNIT MIX UNIT MIX SQUARE FEET Bedrooms Bedrooms UNIT MIX INCOME UNIT MIX MARKET INCOME Bedrooms Bedrooms 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