For more information contact: Managing Director ejordan@northeastpcg.com Bradley Balletto Regional Manager (203) 307-1574 bballetto@northeastpcg.com Taylor Perun Senior Associate (203) 307-1576 tperun@northeastpcg.com 8-Unit Townhouse Apartment Property Tenant-Paid Electric Heat & Hot Water 2-Bedroom Floor Plans On-Site Parking, Recent Capital Improvements Phone: (203) 692-2420 Fax: (203) 663-8011 2 Trap Falls Road, Suite 312 Shelton, CT 06484 www.northeastpcg.com
Table of Contents Real Estate Investment Details... 3 Property Description... 4 Location Map... 5 Executive Summary... 6 Unit Mix Report... 7 Pricing Analysis... 8 Biography... 10
Real Estate Investment Details Analysis Analysis Date December 2016 Property Property Property Address Year Built 1965 Blakeslee Street Townhomes Purchase Information Property Type MultiFamily Purchase Price $640,000 Units 8 Total Rentable Sq. Ft. 6,144 Resale Valuation 7.0% (capitalization of noi) Financial Information Down Payment $128,000 Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $512,000 30 years 30 years 4.5% $2,594 Income & Expenses Gross Operating Income $75,840 Monthly GOI $6,320 Total Annual Expenses ($30,394) Monthly Expenses ($2,533) Contact Information ejordan@northeastpcg.com Bradley Balletto (203) 307-1574 bballetto@northeastpcg.com Taylor Perun (203) 307-1576 tperun@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 8-Unit Townhouse Apartments Recent Capital Improvements The multifamily property at, Bristol, CT comprises eight (8) townhouse-style 2- bedroom apartments in a 6144 SF building constructed in 1965 on 0.44 acres. Tenants pay individually-metered electric heat and hot water, and benefit from on-site laundry and parking, in a quiet residential setting located 20 minutes West of Hartford, CT. The location provides easy access to State Route 6 and Interstate 84, and all local amenities, health care, and employment centers. Recent capital improvements include all new windows on the first floor of the building. page 4 of 10
Location Map page 5 of 10
Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $640,000 Investment - Cash $128,000 First Loan $512,000 INVESTMENT INFORMATION Purchase Price $640,000 Price per Unit $80,000 Price per Sq. Ft. $104.17 Income per Unit $9,975 Expenses per Unit ($3,799) INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $79,800 Total Vacancy and Credits ($3,960) Operating Expenses ($30,394) Net Operating Income $45,446 Debt Service ($31,131) Cash Flow Before Taxes $14,315 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 11.18% Debt Coverage Ratio 1.46 Capitalization Rate 7.10% Gross Rent Multiplier 8.02 Gross Income / Square Feet $12.99 Gross Expenses / Square Feet ($4.95) Operating Expense Ratio 40.08% page 6 of 10
Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 8 2-BR Townhouse 768 $825 $6,600 $900 $7,200 8 6,144 $6,600 $7,200 UNIT MIX UNIT MIX SQUARE FEET 2-BR Townhouse 2-BR Townhouse UNIT MIX INCOME UNIT MIX MARKET INCOME 2-BR Townhouse 2-BR Townhouse page 7 of 10
Pricing Analysis INCOME Actual Per Unit Pro Forma Per Unit Gross Potential Rent $79,200 $9,900 $86,400 $10,800 Less: Vacancy ($3,960) ($495) ($4,320) ($540) Misc. Income $600 $75 $600 $75 Effective Gross Income $75,840 $9,480 $82,680 $10,335 OPERATING EXPENSES Actual Per Unit Pro Forma Per Unit Property Management Fee $3,192 $399 $3,456 $432 Building Insurance $4,751 $594 $4,751 $594 Contract Services $3,042 $380 $3,042 $380 Super (P/T) $1,200 $150 $1,200 $150 Repairs & Maintenance $2,133 $267 $2,133 $267 Taxes - Real Estate $10,112 $1,264 $10,112 $1,264 Trash Removal $2,080 $260 $2,080 $260 Utility - Electricity $1,401 $175 $1,401 $175 Utility - Water/Sewer $2,483 $310 $2,483 $310 Total Expenses ($30,394) ($3,799) ($30,658) ($3,832) Net Operating Income $45,446 $5,681 $52,022 $6,503 page 8 of 10
Pricing Analysis UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Pro Forma Total 2-BR Townhouse 8 $9,900 $79,200 $10,800 $86,400 TOTALS 8 $79,200 $86,400 INVESTMENT SUMMARY Price: $640,000 Year Built: 1965 Units: 8 Price/Unit: $80,000 RSF: 6,144 Price/RSF: $104.17 Lot Size: 0.44 acres Floors: 2 Cap Rate: 7.1% Pro Forma Cap Rate: 8.13% GRM: 8.02 Pro Forma GRM: 7.36 FINANCING SUMMARY Loan Amount: $512,000 Down Payment: $128,000 Loan Type: Fixed Interest Rate: 4.5% Term: 30 years Monthly Payment: $2,594 DCR: 1.46 ANNUALIZED INCOME Actual Pro Forma Gross Potential Rent $79,200 $86,400 Less: Vacancy ($3,960) ($4,320) Misc. Income $600 $600 Effective Gross Income $75,840 $82,680 Less: Expenses ($30,394) ($30,658) Net Operating Income $45,446 $52,022 Debt Service ($31,131) ($31,131) Net Cash Flow after Debt Service $14,315 $20,891 Principal Reduction $8,260 $8,260 Total Return $22,575 $29,151 ANNUALIZED EXPENSES Actual Pro Forma Property Management Fee $3,192 $3,456 Building Insurance $4,751 $4,751 Contract Services $3,042 $3,042 Super (P/T) $1,200 $1,200 Repairs & Maintenance $2,133 $2,133 Taxes - Real Estate $10,112 $10,112 Trash Removal $2,080 $2,080 Utility - Electricity $1,401 $1,401 Utility - Water/Sewer $2,483 $2,483 Total Expenses $30,394 $30,658 Expenses Per RSF $4.95 $4.99 Expenses Per Unit $3,799 $3,832 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