FOR SALE: URBAN RETAIL/MIXED-USE 274-280 REVERE BEACH PARKWAY Chelsea, Massachusetts TRAFFIC COUNTS Revere Beach Parkway Route 1 52,800 ADT 100,000+ ADT 16 1 Capital Markets Investment Properties CB Richard Ellis N.E. Partners, LP, a CBRE Joint Venture
LOGAN INTERNATIONAL AIRPORT DOWNTOWN EAST BOSTON SILVER LINE ESTIMATED TRAVEL TIMES FROM CHELSEA STATION East Boston (Logan International Airport) 10 minutes Seaport (World Trade Center) Boston CBD (South Station) 17 minutes 20 minutes DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 7 MILES Population 51,723 268,253 622,874 1,082,862 Households 17,532 103,512 259,759 440,850 Avg. HH Income $60,131 $76,961 $94,589 $91,955 1 2016 Daytime Population 42,043 231,390 857,987 1,319,103 16 CONTACT US TRANSACTION LEADS BRUCE LUSA +1 617 912 7012 bruce.lusa@cbre-ne.com JOHN FERRIS +1 617 912 6871 john.ferris@cbre-ne.com CAPITAL MARKETS DAVE PERGOLA +1 617 912 7011 dave.pergola@cbre-ne.com SARA FORINO +1 617 912 7004 sara.forino@cbre-ne.com BRIAN DOHERTY +1 617 912 7018 brian.doherty@cbre-ne.com JOHN EDER +1 617 912 6812 john.eder@cbre-ne.com
BOSTON WYNN EVERETT CASINO: 2.6 MILES 1 ADMIRALS HILL MYSTIC MALL STARBUCKS CHELSEA HIGH SCHOOL 16 274-280 REVERE BEACH PARKWAY CHELSEA, MA CB Richard Ellis N.E. Partners, LP, a CBRE Joint Venture
01 THE EXECUTIVE SUMMARY OFFERING CBRE/New England is pleased to offer for sale 274-280 Revere Beach Parkway (Route 16) in Chelsea, Massachusetts. Situated prominently at the three-way signalized intersection of Route 16, Garfield Avenue and Webster Avenue, the property is located in the midst of a densely populated urban area just five miles north of downtown Boston. The site offers tremendously high visibility and heavy drive-by traffic with over 52,800 passing cars per day immediately in front of the site, as well as visibility and access to Route 1 (immediately adjacent). The in-fill property is fully leased and offers durable, contractually increasing cash flow while also presenting considerable imbedded upside in the low in-place rent and the potential to reposition the site to create significant long-term value. PROCESS & PRICING 274-280 Revere Beach Parkway is offered for sale as is and without a formal asking price. Once qualified investors have had an opportunity to review the Offering Memorandum, CBRE/New England will schedule a call for offers date. FINANCIAL SUMMARY CBRE/New England has analyzed the financial position of 274-280 Revere Beach Parkway based on current and historical income and expenses. The in-place net operating income for the year ending October 2018 is estimated to be approximately $180,000. 274-280 REVERE BEACH PARKWAY
VALUE CREATION OPPORTUNITIES INCREASE VERY LOW IN-PLACE RENTS CONTRACTUAL RENT/NOI INCREASES UPGRADE THE TENANCY AND CREDIT REDEVELOPMENT POTENTIAL ideal for restaurant, coffee/food, bank, convenience or service retail pad site or strip development KEY PARCEL TO LARGER ASSEMBLAGE THAT WOULD CREATE A CRITICAL MASS (1+ACRE) AND PRESENT A MULTITUDE OF DEVELOPMENT OPTIONS, INCLUDING RESIDENTIAL/MIXED-USE (ALLOWED BY RIGHT) EXECUTIVE SUMMARY 3
INVESTMENT HIGHLIGHTS HIGH-PROFILE RETAIL LOCATION Access and visibility on heavily traveled Route 16 (±52,800 cars/day), as well as visibility from Route 1 (additional ±100,000 cars/day) and convenient access sets the site apart as an ultimate in-fill location just five miles north of Boston with ±268,000 people living within three miles generating average household incomes of ±$77,000. RECENT CAPITAL IMPOVEMENTS Current ownership recently invested heavily in the property, including new roof, HVAC equipment and many building upgrades, mitigating the buyer s future capital exposure. STABLE, IN-PLACE INCOME The property is 100% leased providing stable, contractually increasing cash flow through December 2025. UPSIDE POTENTIAL Catalyzed by the tremendous recent investment and economic development, Chelsea is rapidly changing as the city s underlying fundamental advantages relative affordability, proximity, transit accessibility (bus, commuter rail and Silver Line) are attracting new residents, employers and amenities. The influx of residents, led by artists and young professionals, and new employers, such as the FBI s regional headquarters and accompanying 400+ new white collar professionals, are driving demand for new and upmarket amenities. 274-280 Revere Beach Parkway represents a distinct opportunity to buy early and take advantage of the shifting demographics and accelerating market fundamentals that are transforming Chelsea. The property offers stable cash flow while presenting compelling income growth and value appreciation through long term ownership as the overall market improves. 1 16
THE CITY HAS WITNESSED A WAVE OF NEW RESTAURANT OPENINGS, FOLLOWING THE CUSTOMERS, INCLUDING: CIAO MYSTIC BREWERY FUSION BISTRO CHELSEA STATION The Boston Globe recently called Chelsea the new it zip.
02 PROPERTY DESCRIPTION Site Area ±0.45 acres # of Buildings 2 ASSET OVERVIEW Building Area 280 Revere Beach Parkway - Retail ±10,000 SF 274 Revere Beach Parkway - Residential ±6,000 SF TOTAL ±16,000 SF Access Ingress/egress via Revere Beach Parkway & Garfield Street Zoning Residential 1 SITE PLAN
274-280 REVERE BEACH PARKWAY, CHELSEA, MA ZONING SUMMARY District Residential 1 Height 35 (2.5 stories) Setbacks Front 20 Side 25% height building Rear 25 Parking Setbacks Front Yard Side Yard Rear Yard Max Lot Coverage 30% 20 (shall be the FY building setback) Not specifically mentioned Not specifically mentioned ASSET OVERVIEW 7
03 LOCATION OVERVIEW EMERGING MARKET Chelsea s proximity to Boston, Cambridge and Logan Airport, coupled with new public transportation (MBTA Silver Line) that will provide direct access to downtown Boston, has stimulated substantial public and private investment in the city in recent years. Developments, within one mile (10-minute walk) of the property, that are reshaping Chelsea include: + + Extension of the MBTA Silver Line to Chelsea (service beginning Spring 2018) $82M publicly funded infrastructure project connecting Chelsea, with four new stations, to Logan Airport, Boston s Seaport and South Station via dedicated bus roadways. + + New England Regional FBI headquarters (completed 2016) 220,000 SF Class A office building; 400-500 new jobs now housed at the building + + One North of Boston (completed 2016) ±450-unit luxury apartment complex + + Chelsea Lofts ±692-unit fully permitted multifamily development site Developer: Fairfield Residential; purchased March 2016; $45.7M. + + Various hotels, including Homewood Suites by Hilton (100-key extended stay) and envision by Choice Hotels (101-key boutique) (completed 2016) + + Mystic Mall (completed 2012) ±217,000 SF shopping center; fully leased
274-280 REVERE BEACH PARKWAY, CHELSEA, MA 274-280 REVERE BEACH PARKWAY 1 EVERETT 1 Mile CHELSEA SOMERVILLE CHARLESTOWN 93 1 3 Miles EAST BOSTON CAMBRIDGE BOSTON 90 5 Miles LOCATION OVERVIEW 9
MARKET AERIAL 6 GATEWAY CENTER WYNN BOSTON HARBOR HOTEL & RESORT CASINO (Expected Completion: Mid-2019) 1 DISTRIGAS 99 PRIORITY DEVELOPMENT AREAS: DEVELOPMENT PROJECTS: CONSTELLATION ENERGY EVERETT AVENUE URBAN RENEWAL (REGIONAL, SHORT-TERM) COMMERCIAL TRIANGLE (REGIONAL, SHORT-TERM) LOWER BROADWAY (LOCAL) The Wynn Boston Harbor Hotel and Resort Casino, located in Everett just 2.6 miles from the property, is under construction and expected to be delivered in mid-2019. The $2.4 billion project is SCHNITZER STEEL the largest private single-phased development in Massachusetts history. The resort has a building footprint of 13 acres and will contain over 3.0 million square feet, including a 29-story hotel tower reaching a height of 370. The economic impact of this massive project is already being felt throughout the inner suburb region. Wynn Boston Harbor is expected to create more than 4,000 permanent jobs and greatly expand the MYSTIC RIVER need for services in the area, including retail sales COMPLETED/UNDER CONSTRUCTION UPCOMING DEVELOPMENTS
274-280 REVERE BEACH PARKWAY, CHELSEA, MA 16 274-280 REVERE BEACH PARKWAY 1 13 3 12 MBTA COMMUTER RAIL (NEWBURYPORT/ROCKPORT LINE) 11 10 CHELSEA HIGH SCHOOL 5 7 NEW ENGLAND PRODUCE CENTER 3.0 million square foot fivestar luxury resort and casino MBTA COMMUTER RAIL STATION (UNDER CONSTRUCTION) 2 MBTA SILVER LINE STATION (UNDER CONSTRUCTION) 8 4 9 MASS DEPT OF REVENUE AMAZON PREFERRED FREEZER and services, hotel rooms, improved housing and commercial space. As a result of the aforementioned public and private investments, and other smaller projects, the city of Chelsea is quickly being redefined and is arguably in the early stages of a what may be a transformative period of change and growth of new amenities, services, residents and tenants. The next owner of 274-280 Revere Beach Parkway will be the beneficiary of the major changes underway now that are fundamentally changing the dynamic of the location. ADMIRALS HILL COMPLETED/UNDER CONSTUCTION 1. Wynn Evertt Resort & Casino 2. MBTA Silver Line Extension 3. envision Hotel 4. FBI Boston Headquarters 5. Homewood Suites 6. The Batch Yard 7. One North of Boston 8. Residence Inn by Marriott 9. The Mystic Mall UPCOMING DEVELOPMENTS 10. Chelsea Lofts 11. Thibeault Development 12. 1760 Revere Beach Parkway 13. 35 Garvey Street LOCATION OVERVIEW 11
16
274-280 REVERE BEACH PARKWAY, CHELSEA, MA DISCLAIMER CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an Affiliate ) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CB Richard Ellis Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the Property ) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the Owner ), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CB Richard Ellis, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc. CBRE/NEW ENGLAND 33 ARCH STREET. 28TH FLOOR BOSTON, MASSACHUSETTS 02110 +1 617 912 7000, F +1 617 912 7001 WWW.CBRE-NE.COM 2017, C.B. Richard Ellis - N.E. Partners, LP. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. LOCATION OVERVIEW 17
CONTACT US TRANSACTION LEAD BRUCE LUSA +1 617 912 7012 bruce.lusa@cbre-ne.com JOHN FERRIS +1 617 912 6871 john.ferris@cbre-ne.com CAPITAL MARKETS DAVE PERGOLA +1 617 912 7011 dave.pergola@cbre-ne.com BRIAN DOHERTY +1 617 912 7018 brian.doherty@cbre-ne.com SARA FORINO +1 617 912 7004 sara.forino@cbre-ne.com JOHN EDER +1 617 912 6812 john.eder@cbre-ne.com Capital Markets Investment Properties CB Richard Ellis N.E. Partners, LP, a CBRE Joint Venture