For more information contact: Managing Director ejordan@northeastpcg.com Drew Kirkland Licensed Associate (857) 990-6802 dkirkland@northeastpcg.com Francis Saenz Investment Associate (857) 990-6803 fsaenz@northeastpcg.com 14,944 SF Class-B Office Property 1990 Construction Lot Size 1.45 Acres Ample On-Site Parking; 5.09 per 1000 SF Excellent Location; Mass Pike, I-290, & I-395 Phone: 300 Washington Street, Suite 300 Newton, MA 02458 www.northeastpcg.com
Real Estate Investment Details Analysis Analysis Date September 2017 Property Property Property Address Year Built 1990 Midstate Office Park Purchase Information Property Type Office Purchase Price $1,650,000 Tenants 8 Total Rentable Sq. Ft. 14,944 Financial Information Down Payment $350,000 Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $1,050,000 25 years 25 years 4.75% $5,986 Income & Expenses Gross Operating Income $186,971 Monthly GOI $15,581 Total Annual Expenses ($56,527) Monthly Expenses ($4,711) 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 9
Location Map page 3 of 9
Property Photos 14,944 SF Office Property 1990 Construction Exterior Front Exterior Rear page 4 of 9
Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $1,650,000 Investment - Cash $350,000 First Loan $1,050,000 INVESTMENT INFORMATION Purchase Price $1,650,000 Price per Tenant $206,250 Price per Sq. Ft. $110.41 INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $196,812 Total Vacancy and Credits ($9,841) Operating Expenses ($56,527) Net Operating Income $130,444 Debt Service ($71,835) Cash Flow Before Taxes $58,609 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 16.75% Debt Coverage Ratio 1.82 Capitalization Rate 7.91% Gross Income / Square Feet $13.17 Gross Expenses / Square Feet ($3.78) Operating Expense Ratio 30.23% page 5 of 9
Pricing Analysis INCOME Actual Per SF Pro Forma Per SF Gross Potential Rent $196,812 $13.17 $208,884 $13.98 Less: Vacancy ($9,841) ($0.66) ($10,444) ($0.70) Effective Gross Income $186,971 $12.51 $198,440 $13.28 OPERATING EXPENSES Actual Per SF Pro Forma Per SF Property Management Fee $9,349 $0.63 $8,355 $0.56 Building Insurance $2,306 $0.15 $2,306 $0.15 Repairs & Maintenance $7,472 $0.50 $7,472 $0.50 Taxes - Real Estate $29,536 $1.98 $29,536 $1.98 Snow Removal $2,500 $0.17 $2,500 $0.17 Trash Removal $1,500 $0.10 $1,500 $0.10 Utility - Electricity $3,065 $0.21 $3,065 $0.21 Utility - Water & Sewer $800 $0.05 $800 $0.05 Total Expenses ($56,527) ($3.78) ($55,534) ($3.72) Net Operating Income $130,444 $8.73 $142,906 $9.56 page 6 of 9
Pricing Analysis TENANT ANNUAL SCHEDULED INCOME Tenant Actual Pro Forma Prestige Marketing $48,528 $52,260 Passports Inc $53,076 $53,076 Solar Consulting Inc. $21,600 $25,920 Pro Weight Loss $9,000 $11,220 Vacant $10,200 $10,200 Advantage Home Care $18,528 $18,312 JS Transport Services $19,800 $21,816 INVESTMENT SUMMARY Price: $1,650,000 Year Built: 1990 Tenants: 8 RSF: 14,944 Price/RSF: $110.41 Lot Size: 1.45 acres Floors: 2 Parking Spaces: 5.09/1000 Cap Rate: 7.91% Pro Forma Cap Rate: 8.66% Mass Turnpike $16,080 $16,080 TOTALS $196,812 $208,884 ANNUALIZED INCOME Actual Pro Forma Gross Potential Rent $196,812 $208,884 Less: Vacancy ($9,841) ($10,444) Effective Gross Income $186,971 $198,440 Less: Expenses ($56,527) ($55,534) Net Operating Income $130,444 $142,906 Debt Service ($71,835) ($71,835) Net Cash Flow after Debt Service $58,609 $71,071 Principal Reduction $22,444 $22,444 Total Return $81,054 $93,515 FINANCING SUMMARY Loan Amount: $1,050,000 Down Payment: $350,000 Loan Type: Fixed Interest Rate: 4.75% Term: 25 years Monthly Payment: $5,986 DCR: 1.82 ANNUALIZED EXPENSES Actual Pro Forma Property Management Fee $9,349 $8,355 Building Insurance $2,306 $2,306 Repairs & Maintenance $7,472 $7,472 Taxes - Real Estate $29,536 $29,536 Snow Removal $2,500 $2,500 Trash Removal $1,500 $1,500 Utility - Electricity $3,065 $3,065 Utility - Water & Sewer $800 $800 Total Expenses $56,527 $55,534 Expenses Per RSF $3.78 $3.72 page 7 of 9
Lease Rent Roll Suite Tenant Start Date Expire Date RSF $/RSF Annualized Rent Tenant Improvements Commissions Renewal Term Renewal Increase Notes 101 Prestige Marketing 05/01/2015 04/30/2019 3,733 $13.00 $48,528 $0.00 $0.00 1 year $0.00 No Increase in 2nd Year 102 Passports Inc 07/01/2017 06/30/2020 3,791 $14.00 $53,076 $0.00 $0.00 1 year $0.00 $14.50/foot in 2nd Year; $15.00/foot in 3rd Year 201 Solar Consulting Inc. 07/15/2016 07/31/2019 2,160 $10.00 $21,600 $0.00 $0.00 1 year $0.00 No Increases 202 Pro Weight Loss 09/23/2016 02/28/2020 935 $9.63 $9,000 $0.00 $0.00 1 year $0.00 $800/month in 2nd Year; $850/month in 3rd Year. 203 Vacant 09/01/2017 09/30/2017 820 $12.44 $10,200 $0.00 $0.00 1 year $0.00 Tenant moved to a larger space in the building. 204 Advantage Home Care 06/01/2015 06/30/2020 1,526 $12.14 $18,528 $0.00 $0.00 1 year $0.00 $1,559/month in 2nd Year; $1,574/month in 3rd Year. 205 JS Transport Services 08/01/2016 07/31/2019 1,818 $10.89 $19,800 $0.00 $0.00 1 year $0.00 No increase in 2nd year - TAW Parking Mass Turnpike 12/01/2002 12/31/2017 0 NA $16,080 $0.00 $0.00 1 year $0.00 Tenant of 20 Years - Working on renewal now. page 8 of 9
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 9 of 9