For more information contact: Managing Director ejordan@northeastpcg.com Bradley Balletto Regional Manager bballetto@northeastpcg.com David Almeida Senior Associate dalmeida@northeastpcg.com 45 Unit New Haven Apartment Building Loft Style Units, High Ceilings, Attractive Views Tenant Paid Utilities Central Air, Elevator, Laundry, Off-Street Gated Parking Value- Add Opportunity Phone: Fax: (203) 663-8011 211 State Street, 4th Floor Bridgeport, CT 06604 www.northeastpcg.com
Real Estate Investment Details ANALYSIS Analysis Date April 2015 PROPERTY Property Property Address Year Built 1917 Mill River Lofts PURCHASE INFORMATION Property Type MultiFamily Purchase Price $3,600,000 Units 45 Total Rentable Sq. Ft. 43,994 FINANCIAL INFORMATION Down Payment $900,000 LOANS Debt Term Amortization Rate Payment LO Costs Fixed $2,700,000 30 years 30 years 4.2% $13,203 INCOME & EXPENSES Gross Operating Income $479,017 Monthly GOI $39,918 Total Annual Expenses ($235,349) Monthly Expenses ($19,612) CONTACT INFORMATION ejordan@northeastpcg.com Bradley Balletto bballetto@northeastpcg.com David Almeida dalmeida@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 9
Property Description Mill River Lofts is a 45 unit loft style apartment building located in New Haven, CT. Mill River Lofts is comprised of 44 large one bedroom, and 1 two bedroom apartment. Units feature central air, floor to ceiling windows, and open floor plans. Units have views of the new haven skyline, Mill River, and the new Q Bridge, and some feature open air balconies. The building has off-street gated parking, an elevator, and on-site laundry. Mill River Lofts is located on Chapel Street, just across the Mill River, and enjoys easy access to Wooster Square, Downtown, and I-95 and I-91. The property is surrounded by schools, parks, and some industrial properties, giving the location a very quiet feel. Mill River Lofts provides a new owner with a classic value-add opportunity. New Haven continues to add high-end units, and minor upgrades to Mill River Lofts could position it to compete with alternatives to the city's luxury rental options. page 3 of 9
Maps and Aerials page 4 of 9
Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $3,600,000 Investment - Cash $900,000 First Loan $2,700,000 INVESTMENT INFORMATION Purchase Price $3,600,000 Price per Unit $80,000 Price per Sq. Ft. $81.83 Income per Unit $11,199 Expenses per Unit ($5,230) INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $503,940 Total Vacancy and Credits ($24,923) Operating Expenses ($235,349) Net Operating Income $243,668 Debt Service ($158,442) Cash Flow Before Taxes $85,226 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 9.47% Debt Coverage Ratio 1.54 Capitalization Rate 6.77% Gross Rent Multiplier 7.14 Gross Income / Square Feet $11.45 Gross Expenses / Square Feet ($5.35) Operating Expense Ratio 49.13% page 5 of 9
Unit Mix Report UNIT MIXES Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 44 One Bedroom 875 $921 $40,524 $1,100 $48,400 1 Two Bedroom 1200 $1,015 $1,015 $1,350 $1,350 45 39,700 $41,539 $49,750 UNIT MIX UNIT MIX SQUARE FEET One Bedroom Two Bedroom One Bedroom Two Bedroom UNIT MIX INCOME UNIT MIX MARKET INCOME One Bedroom Two Bedroom One Bedroom Two Bedroom page 6 of 9
Pro Forma Summary INCOME Actual Per Unit Market Per Unit Gross Potential Rent $498,468 $11,077 $597,000 $13,267 Less: Vacancy ($24,923) ($554) ($29,850) ($663) Misc. Income $5,472 $122 $5,472 $122 Effective Gross Income $479,017 $10,645 $572,622 $12,725 OPERATING EXPENSES Actual Per Unit Market Per Unit Property Management Fee $23,951 $532 $29,850 $663 Accounting $1,500 $33 $1,500 $33 Advertising $1,800 $40 $1,800 $40 Building Insurance $24,184 $537 $24,184 $537 Landscaping & Snowplowing $3,000 $67 $3,000 $67 Cleaning/Payroll $15,000 $333 $15,000 $333 Elevator $5,513 $123 $5,513 $123 Repairs & Maintenance $22,500 $500 $22,500 $500 Taxes - Real Estate $85,251 $1,894 $85,251 $1,894 Trash Removal $8,239 $183 $8,239 $183 Common Electricity $21,945 $488 $21,945 $488 Water & Sewer $22,466 $499 $22,466 $499 Total Expenses ($235,349) ($5,230) ($241,248) ($5,361) Net Operating Income $243,668 $5,415 $331,374 $7,364 page 7 of 9
Pro Forma Summary UNIT MIX & ANNUAL SCHEDULED INCOME Type Units Actual Total Market Total One Bedroom 44 $11,052 $486,288 $13,200 $580,800 Two Bedroom 1 $12,180 $12,180 $16,200 $16,200 TOTALS 45 $498,468 $597,000 INVESTMENT SUMMARY Price: $3,600,000 Year Built: 1917 Units: 45 Price/Unit: $80,000 RSF: 43,994 Price/RSF: $81.83 ANNUALIZED INCOME Actual Market Gross Potential Rent $498,468 $597,000 Less: Vacancy ($24,923) ($29,850) Misc. Income $5,472 $5,472 Effective Gross Income $479,017 $572,622 Less: Expenses ($235,349) ($241,248) Net Operating Income $243,668 $331,374 Debt Service ($158,442) ($158,442) Net Cash Flow after Debt Service $85,226 $172,932 Principal Reduction $45,919 $45,919 Total Return $131,145 $218,851 Lot Size: 0.84 acres Floors: 4 Cap Rate: 6.77% Market Cap Rate: 9.2% GRM: 7.14 Market GRM: 5.98 FINANCING SUMMARY Loan Amount: $2,700,000 Down Payment: $900,000 Loan Type: Fixed Interest Rate: 4.2% Term: 30 years Monthly Payment: $13,203 DCR: 1.54 ANNUALIZED EXPENSES Actual Market Property Management Fee $23,951 $29,850 Accounting $1,500 $1,500 Advertising $1,800 $1,800 Building Insurance $24,184 $24,184 Landscaping & Snowplowing $3,000 $3,000 Cleaning/Payroll $15,000 $15,000 Elevator $5,513 $5,513 Repairs & Maintenance $22,500 $22,500 Taxes - Real Estate $85,251 $85,251 Trash Removal $8,239 $8,239 Common Electricity $21,945 $21,945 Water & Sewer $22,466 $22,466 Total Expenses $235,349 $241,248 Expenses Per RSF $5.35 $5.48 Expenses Per Unit $5,230 $5,361 page 8 of 9
Biography PROFESSIONAL BIO Northeast Private Client Group supports real estate investors with offices in New York, Connecticut & Massachusetts. With more than 20,000 active investor relationships and a tight focus on transaction management, we have a track record of successfully connecting our clients with qualified buyers for multifamily and commercial properties. Through all market cycles, our team continues to partner with building owners to help preserve and grow capital, reposition investment assets and maximize value. Northeast Private Client Group has been selected by CoStar Group, Inc., commercial real estate's leading provider of information and analytics, to receive the "CoStar Power Broker Award". This annual award recognizes the best of the best in commercial real estate brokerage by highlighting the U.S. firms who closed the highest transaction volumes in commercial property sales or leases in their respective markets., the firm's Managing Director, has advised clients in the purchase and sale of more than $2 billion in investment real estate assets. With over 20 years of experience, Jordan founded Northeast Private Client Group in 2010 to support real estate investors in markets from New York to Boston. Since then, he s quickly established NortheastPCG as one of the region s fastest growing investment sales firms. Previously, Jordan developed regional markets for a national real estate investment services firm as East Coast Director of Net Leased Properties and Northeast Director of Special Assets Services. In 2005 he earned the firm s National Achievement Award as Director of the National Multi Housing Group, and in 2008 he received the firm s Excellence in Management award for outstanding performance in the management of the firm s Manhattan office. Jordan began his career in 1988 as a real estate attorney after graduating from Allegheny College (BA) and Brooklyn Law School (JD). He holds the Certified Commercial Investment Member (CCIM) designation and has served on the CCIM Board of Directors. page 9 of 9