For more information contact: Managing Director ejordan@northeastpcg.com Bradley Balletto Regional Manager (203) 307-1574 bballetto@northeastpcg.com Mallory Chila Licensed Associate (203) 307-1578 mchila@northeastpcg.com 28 Unit, Two Building Property Located in Hamden, CT Studio, One, and Two Bedroom Unit Layouts Walking Distance to SCSU Additional Income From Parking Phone: Fax: 203-663-8011 2 Trap Falls Road, Suite 312 Shelton, CT 06484 www.northeastpcg.com
Real Estate Investment Details Analysis Analysis Date January 2017 Property Property Property Address Year Built 1926 Purchase Information Property Type MultiFamily Purchase Price $1,900,000 Units 28 Total Rentable Sq. Ft. 21,900 Financial Information Down Payment $420,000 Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $1,680,000 30 years 30 years 4.5% $8,512 Income & Expenses Gross Operating Income $292,869 Monthly GOI $24,406 Total Annual Expenses ($145,026) Monthly Expenses ($12,086) Contact Information ejordan@northeastpcg.com Bradley Balletto (203) 307-1574 bballetto@northeastpcg.com Mallory Chila (203) 307-1578 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 2 of 11
Property Description Circular Gardens Apartmnets 28 Unit Apartment Property Circular Gardens is a 28 unit apartment property located in Hamden, CT. Circular Gardens is comprised of 3 studio, 12 one bedroom, and 13 two bedroom apartment units. Oil heat and gas hot water are provided by the landlord. Tenants are responsible for their own electric expense. Circular Gardens features off street parking, on-site laundry facilities, and is within walking distance of Southern Connecticut State University. page 3 of 11
Property Photos Property Photos 28 Unit Property Front View Side View Interior page 4 of 11
Location Map page 5 of 11
Maps and Aerials page 6 of 11
Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $1,900,000 Investment - Cash $420,000 First Loan $1,680,000 INVESTMENT INFORMATION Purchase Price $1,900,000 Price per Unit $67,857 Price per Sq. Ft. $86.76 Income per Unit $11,610 Expenses per Unit ($5,180) INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $325,071 Total Vacancy and Credits ($32,202) Operating Expenses ($145,026) Net Operating Income $147,843 Debt Service ($102,148) Cash Flow Before Taxes $45,695 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 10.88% Debt Coverage Ratio 1.45 Capitalization Rate 7.78% Gross Rent Multiplier 5.84 Gross Income / Square Feet $14.84 Gross Expenses / Square Feet ($6.62) Operating Expense Ratio 49.52% page 7 of 11
Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 3 Studio 650 $708 $2,124 $750 $2,250 13 One Bedroom 750 $891 $11,583 $1,000 $13,000 12 Two Bedroom 850 $1,094 $13,128 $1,275 $15,300 28 21,900 $26,835 $30,550 UNIT MIX UNIT MIX SQUARE FEET Studio One Bedroom Two Bedroom Studio One Bedroom Two Bedroom UNIT MIX INCOME UNIT MIX MARKET INCOME Studio One Bedroom Two Bedroom Studio One Bedroom Two Bedroom page 8 of 11
Pro Forma Summary INCOME Actual Per Unit Pro Forma Per Unit Gross Potential Rent $322,020 $11,501 $366,600 $13,093 Less: Vacancy ($32,202) ($1,150) ($18,330) ($655) Misc. Income $3,051 $109 $3,048 $109 Effective Gross Income $292,869 $10,460 $351,318 $12,547 OPERATING EXPENSES Actual Per Unit Pro Forma Per Unit Property Management Fee $14,643 $523 $18,330 $655 Insurance $14,000 $500 $14,000 $500 Landscaping & Grounds $3,471 $124 $3,471 $124 Legal & Professional Fees $896 $32 $896 $32 Repairs & Maintenance $14,000 $500 $14,000 $500 Property Taxes $50,716 $1,811 $50,716 $1,811 Trash Removal $7,357 $263 $7,357 $263 Utilities $24,705 $882 $24,705 $882 Water & Sewer $15,237 $544 $15,237 $544 Total Expenses ($145,026) ($5,180) ($148,713) ($5,311) Net Operating Income $147,843 $5,280 $202,605 $7,236 page 9 of 11
Pro Forma Summary UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Pro Forma Total Studio 3 $8,496 $25,488 $9,000 $27,000 One Bedroom 13 $10,692 $138,996 $12,000 $156,000 Two Bedroom 12 $13,128 $157,536 $15,300 $183,600 TOTALS 28 $322,020 $366,600 INVESTMENT SUMMARY Price: $1,900,000 Year Built: 1926 Units: 28 Price/Unit: $67,857 RSF: 21,900 Price/RSF: $86.76 Lot Size: 0.16 acres ANNUALIZED INCOME Actual Pro Forma Gross Potential Rent $322,020 $366,600 Less: Vacancy ($32,202) ($18,330) Misc. Income $3,051 $3,048 Effective Gross Income $292,869 $351,318 Less: Expenses ($145,026) ($148,713) Net Operating Income $147,843 $202,605 Debt Service ($102,148) ($102,148) Net Cash Flow after Debt Service $45,695 $100,457 Principal Reduction $27,102 $27,102 Total Return $72,797 $127,559 Floors: 3 Cap Rate: 7.78% Pro Forma Cap Rate: 10.66% GRM: 5.84 Pro Forma GRM: 5.14 FINANCING SUMMARY Loan Amount: $1,680,000 Down Payment: $420,000 Loan Type: Fixed Interest Rate: 4.5% Term: 30 years Monthly Payment: $8,512 DCR: 1.45 ANNUALIZED EXPENSES Actual Pro Forma Property Management Fee $14,643 $18,330 Insurance $14,000 $14,000 Landscaping & Grounds $3,471 $3,471 Legal & Professional Fees $896 $896 Repairs & Maintenance $14,000 $14,000 Property Taxes $50,716 $50,716 Trash Removal $7,357 $7,357 Utilities $24,705 $24,705 Water & Sewer $15,237 $15,237 Total Expenses $145,026 $148,713 Expenses Per RSF $6.62 $6.79 Expenses Per Unit $5,180 $5,311 page 10 of 11
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 11 of 11