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7 Apartments 1 321 Eutaw Place in Historic Bolton Hill, City Maryland 21217

2 One-Bedroom Apartments 4 Two-Bedroom Apartments 1 Three-Bedroom Apartments

» Property BUILT 1880, total gut rehab circa 1985 ZONING OR-1 – Office-Residential, 7 Dwellings Unit License LOT 55’ x 130’ Block 400 Lot 23 SIZE 8,544 Gross Building Area

» Kitchens and Baths

CABINETS Wood Cabinets, Formica counters, stainless sink. » Exterior APPLIANCES 30” electric range, dishwasher, disposal and refrigerator CONSTRUCT Brick construction. in each apartment. Washer-Dryer in each apartment.

ROOF Modified Rubber Roof. BATHS Most ceramic tile floors with shower-tub. 2 vintage cast PARKING 7 off-street parking spaces. iron clawfoot tubs. Modern vanity or pedestal sink. FIRE ESCAPE steel. AMENITIES Washer-dryer in each apartment. Large side yard. » Interior 3 blocks from MICA, WALLS & CEILINGS 10’, 12’ and 13; ceiling heights. Original wood molding 2 Blocks to State Center Metro. and trim. Plaster walls and ceilings. FLOORS Decorative in-lay hardwood veneer flooring in most living areas. Terrace apartments have ceramic tile floors in » Environmental living areas, with some laminate flooring. LEAD PAINT Lead Safe per MDE standards DOORS Many original raised panel doors. Some pocket doors.

OIL No oil tanks observed. WINDOWS Dual pane replacement windows throughout. Wood MOLD No mold observed. windows in front; vinyl on the sides and rear. ASBESTOS No asbestos observed. » Utilities

Seller will convey 100% membership interests in the Limited HEAT Separate gas fired forced air heating for each apartment. Liability Company whose sole asset is this Property. AIR CONDITIONING Central Air Conditioning in each unit. HOT WATER Each unit has a 30- or 40-gallon gas-fired water heater. ELECTRIC All new wiring with 100 Amp Main to each unit. PLUMBING All water pipes appear to be copper. TRASH Waste Management Dumpster at $105/month

Call Ben Frederick, III, CCIM

410 752 6400 Seller’s Exclusive Agent $1,100,000 in fee simple $157,143 per unit. $129 per sq. ft. No ground rent. www.BenFrederick.com This offering is made without regard to race, religion, color, creed, sex, marital & family status, and/or handicap. The information contained herein is believed accurate and from reliable sources; however, neither the owner nor Ben Frederick Realty, Inc. or any of their agents and/or sub-agents make any warranties or representations with regard to this information, the physical condition of the Property or any of its components, nor the financial performance of the Property. All information should be considered as observed by Broker. The Purchaser is hereby advised to verify all information to Purchaser’s own satisfaction. This Property and this offering are subject to prior sale and withdrawal at any time as the owner may deem appropriate. 1 3 2 1 E U T A W P L A C E I N V E S T M E N T P R O P E R T Y I N C O M E A N D E X P E N S E B U D G E T S U G G E S T E D F I N A N C I N G: I N V E S T M E N T O F F E R I N G: 1,100,000 Loan-to-Value 75% S U G G E S T E D L O A N A M O U N T 825,000 Loan Amount 825,000 E S T I M A T E D C L O S I N G C O S T S 55,000 Interest Rate 5.25% T O T A L I N V E S T M E N T 330,000 Term 25 Price Per Unit 7 157,143 Monthly P & I $ 4,943.79 Price Per Sq.Ft. 8,544 129 Unit Size Lease Expires Sec Dep Sec Dep Date Current Actual Rent Market Rent Terrace A 2 BR 1/31/2019 1,295 2/1/2017 1,295 1,350 Terrace B 2 BR monthly 1,350 2/1/2018 1,350 1,400 1st Flr 3 BR 9/8/2019 3,195 9/8/2018 2,195 2,195 2nd Front 1 BR 3/31/2019 1,150 2/10/2018 1,150 1,200 2nd Rear 2 BR 8/31/2019 1,350 9/1/2018 1,350 1,400 3rd Front 1 BR 10/31/2019 1,150 10/25/2018 1,150 1,200 3rd Rear 2 BR 2/28/2019 1,350 2/7/2018 1,350 1,400 parking - 175 Tenants pay a share of water bill 347 Total Monthly Rental Income 9,840 10,667 Gross Annual Income 118,080 128,007 GRM (actual) = 9.3 Vacancy / Credit Loss 3.0% (3,542) (3,840) GRM (market) = 8.6 Effective Annual Income 114,538 124,166 Real Estate Taxes actual 7/1/2018 548,000 12,933 Special Benefits District Surcharge 685 Ground Rent none 0 Insurance budget 500 per unit 3,500 License - Baltimore City MFD actual 35 per resid unit 245 Lead Paint Registration Fee actual 30 per resid unit 210 Property Management budget 5.0% of collections 6,208 Dumpster 105 per month 1,260 Trash/Cleaning/Snow budget 50 per month 600 Repairs & Maintenance budget 750 per unit 5,250 Public Service Electric actual 30 per month 360 Water actual 50 per unit per mo 4,167 Expense/Unit= $5,060 29% TOTAL EXPENSES 35,418 Cap Rate= 8.07% NET OPERATING INCOME 88,749 DCR= 1.50 Less: Mortgage Payments: 59,326 ROI= 8.9% Monthly Cash Flow: $2,452 Annual Cash Flow: 29,423 C O M P A R A B L E S A L E S address date sold sales price # units Monthly Rent Price per Unit GRM 1327 Bolton St Apr-18 405,000 3 3,600 135,000 9.4 1600 Park May-17 540,000 4 5,495 135,000 8.2 1619 Park Ave Feb-16 740,000 5 7,355 148,000 8.4 241 W Lanvale Jun-18 450,000 3 150,000 1435 Bolton St Jul-18 600,000 2 4,707 300,000 10.6 Illustration of the Four Components of "Return on Investment" 1 Cash Flow This first and perhaps most obvious component is "cash flow" - rental income minus expenses - or how much cash ends up in your pocket. 123,423 + Rental Income 34,614 - Operating Expenses 59,326 - Mortgage Payments 29,483 = Cash Flow 330,000 / Downpayment + Closing Costs 8.9% = Return on Investment from Cash Flow

2 Appreciation As the value of the property increases, your return on investment increases. 1,100,000 = Acquisiton Price 5% * First Year Appreciation 1,155,000 = Value at the end of Year 1. 55,000 = Amount of Value Increase 330,000 / Downpayment + Closing Costs 17% = Return on Investment from Appreciation

3 Equity Build-Up 5.25% 25 $ 4,943.79 Even if the property did not increase in value, Equity will increase solely from paying down the mortgage. 825,000 = Loan Amount at Closing 808,596 = Loan Amount at the end of Year 1 16,404 - Equity Build-Up in Year 1 330,000 / Downpayment + Closing Costs 5.0% = Return on Investment from Equity Build-Up

4 Tax Benefits One pays less income taxes on a real estate investment than on other investment vehicles. 88,809 = Cash Flow Before Loan Payments (rents less expenses) 31,167 - Depreciation (assumes 15% land, 30 year recovery) 42,922 - Mortgage Interest 14,721 = Taxable Income Year 1 11,777 Less 20% Exclusion for LLC Ownership under new tax law 37% * Marginal Tax Rate 4,357.32 = Federal Income Tax 4,357 Federal Income Tax 29,483 / Cash Flow 14.8% = Effective Tax Rate on This Investment 10,909 = Tax if Cash Flow came from a non-preferred investment vehicle 4,357 - Tax from this preferred investment vehicle. 6,552 = Income Tax Savings 2.0% Return on Investment from Tax Savings

Total / Summary 1: 29,483 Cash Flow 2: 55,000 Appreciation Year 1 3: 16,404 Equity Build Up Year 1 4: 6,552 Tax Savings Year 1 107,439 Total Return from this Investment 330,000 Downpayment + Closing Costs 32.6% Total Return from this Investment

For illustration purposes only. Though believed accurate reliable, information is not guaranteed. Illustration of Internal Rate of Return over a 10-Year Holding Period 1 3 2 1 E U T A W P L A C E Purchase Price 1,100,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Annual Rent 4.0% 127,240 132,330 137,623 143,128 148,853 154,807 160,999 167,439 174,137 181,102 Vacancy 3.0% 3,817 3,970 4,129 4,294 4,466 4,644 4,830 5,023 5,224 5,433 Effective Income 123,423 128,360 133,494 138,834 144,387 150,163 156,169 162,416 168,913 175,669 Expenses 4.0% 34,614 35,998 37,438 38,936 40,493 42,113 43,798 45,550 47,372 49,266 Exp as a percent of Annual Rent 28% 28% 28% 28% 28% 28% 28% 28% 28% 28% Exp per unit 7 4,945 5,143 5,348 5,562 5,785 6,016 6,257 6,507 6,767 7,038 NOI 0 88,809 92,361 96,056 99,898 103,894 108,050 112,372 116,866 121,541 126,403 Debt Service $ 4,944 59,326 59,326 59,326 59,326 59,326 59,326 59,326 59,326 59,326 59,326 Before Tax Cash Flow (330,000) 29,483 33,036 36,730 40,572 44,568 48,724 53,046 57,541 62,216 923,788 19.1% Internal Rate of Return NOI 88,809 92,361 96,056 99,898 103,894 108,050 112,372 116,866 121,541 126,403 Less Interest 42,922 42,039 41,110 40,130 39,098 38,010 36,863 35,655 34,382 33,041 Less Depreciation 29,333 29,333 29,333 29,333 29,333 29,333 29,333 29,333 29,333 29,333 Taxable Income to Individuals 16,554 20,989 25,613 30,435 35,463 40,707 46,175 51,878 57,826 64,029 Pass Thru Entity 20% (3,311) (4,198) (5,123) (6,087) (7,093) (8,141) (9,235) (10,376) (11,565) (12,806) Taxable Income 0 13,243 16,791 20,490 24,348 28,370 32,565 36,940 41,502 46,260 51,223 Tax @ * 37% 4,900 6,213 7,581 9,009 10,497 12,049 13,668 15,356 17,116 18,953 After Tax Cash Flow (330,000) 24,583 26,823 29,149 31,564 34,071 36,675 39,378 42,185 45,099 771,828 15.6% Internal Rate of Return Purchase 1,100,000 Assume a Sale at End of Year 10 L-V 75% Annual Rent Roll 181,102 Loan 825,000 GRM 8.6 Down Payment 275,000 annual appreciation 3.6% Price 1,565,643 Cap Improvement - Sale Costs 6% 93,939 Closing Costs 55,000 Less: Basis 806,667 Initial Investment 330,000 Gain 665,038 Rate 5.25% Tax @ 20% 133,008 Term 25 Mortgage Balance 614,993 P&I $4,943.79 Sale Proceeds Before Tax 856,711 Sale Proceeds After Tax 723,704 Mortgage Amortization 1 2 3 4 5 6 7 8 9 10 825,000 Beg Bal 825,000 808,596 791,310 773,094 753,898 733,670 712,354 689,892 666,222 641,278 5.25% Prin 16,404 17,286 18,216 19,196 20,228 21,316 22,462 23,670 24,943 26,285 25.0 Int 42,922 42,039 41,110 40,130 39,098 38,010 36,863 35,655 34,382 33,041 4,944 Bal EOY 808,596 791,310 773,094 753,898 733,670 712,354 689,892 666,222 641,278 614,993 Cost Recovery / Depreciation 1,100,000 1,100,000 Building 80% 880,000 Land 20% 220,000 Life 30 29,333 29,333 29,333 29,333 29,333 29,333 29,333 29,333 29,333 29,333 Basis 1,070,667 1,041,333 1,012,000 982,667 953,333 924,000 894,667 865,333 836,000 806,667 * Tax rate of 35% applies to income of $200,001 to $500,000 for singles; $400,001 to $600,000 for married filing jointly. Marginal rate above $500k/$600k is 37%.

Prepared by: Ben Frederick Realty Inc. For Illustration Purposes Only. Though believed accurate and reliable, information is not guaranteed.

BOLTON HILL source: http://BoltonHill.org

Bolton Hill, only 1.5 miles from Baltimore’s world-famous Inner Harbor, and 2 miles from Camden Yards and Ravens Stadium, is a premier neighborhood of about nine blocks by five blocks. The community, consisting of approximately 2,000 residents and several shops, has a rich history and a bright future. Primarily a residential community of single-family homes, Bolton Hill also includes schools, churches, grocery stores, a florist, a video store, restaurants, hardware and drug stores, bed- and-breakfasts, and more.

Bolton Hill’s elegant 19th century row houses set among tree-lined streets and deep, leafy gardens qualified the neighborhood for placement on the National Register of Historic Places. Several enclaves of award-winning contemporary town homes and parks blend with the classic architecture of the larger 19th century community. New Orleans-style balconies are fragrant with flowers and parks with fountains and sculptures are alive with neighbors, art students, dog walkers, and joggers.

Bolton Hill overlooks the monuments, church steeples, and skyscrapers of Baltimore's downtown. As part of the Baltimore Cultural District, Bolton Hill is within walking distance of the Meyerhoff Symphony Hall, Lyric Opera House, , Maryland Institute College of Art, and Theatre Project. Neighboring Mt. Vernon with the Enoch Pratt Free Library, Walters Art Gallery, Peabody Conservatory, Antique Row, more shops, and restaurants is a ten minute walk away.

Public transportation includes a light rail Cultural Center stop on Howard Street, the State Center subway stop on Dolphin, a five-minute walk to Penn Station, and a 20 minute drive to BWI airport, as well as City transit buses along the periphery of the neighborhood. Bolton Hill's neighborhood association, the Mount Royal Improvement Association, represents the community, increasing the power of our individual voices. It serves as liaison with City departments, addresses concerns of the community, and coordinates communications including the Bolton Hill Bulletin, Bolton Hill E-Mail Network (BHEN), and this web site. We welcome you to explore this site and take a closer look at our neighborhood. The menu on the left will give you detailed information about Bolton Hill.Our links page will connect you to those organizations and places mentioned above.

Located directly northwest of downtown Baltimore, Bolton Hill is one of Baltimore's premier neighborhoods. Elegant homes, landscaped boulevards, decorative civic monuments, and lovely religious buildings are distinctive characteristics of this community. Major development took place in Bolton Hill between 1850 and 1900. Primarily a row house neighborhood, Bolton Hill architecture ranges from traditionally styled row houses with refined details to elaborately decorated Queen Anne designs. Other historic housing types include huge mansions, early brick cottages, alley houses, duplexes with small front yards, early 20th century apartment buildings, and carriage houses converted into residences.

Among the prominent residents of Bolton Hill were noted writer F. Scott Fitzgerald, art collectors Dr. Claribel and Etta Cone; Johns Hopkins PhD. candidate and later U.S. President ; first Johns Hopkins president Daniel Coit Gilman; department store owners Thomas O'Neill and David Hutzler; and philanthropist Jacob Epstein. In the nineteenth century, Bolton Hill was also home to many Confederate Civil War veterans, German Jews, and a few African-Americans who lived in small alley houses or within large houses as servants of wealthy homeowners. The community experienced a brief period of decline in the mid-20th century, followed by a period of stabilization. Urban renewal efforts replaced deteriorated housing with new townhouses and private preservation activities restored magnificent Victorian-era houses to their original splendor. At the turn of the 21stcentury, Bolton Hill is a bastion of in-town living. As one long time resident stated, "Bolton Hill is more than a neighborhood. It is a state of mind."

The name Bolton Hill is derived from "Bolton-le-Moors," the English property after which the Baltimore merchant, George Grundy, named his original estate house. Bolton stood on the current site of the Fifth Regiment Armory. Rose Hill and Mount Royal were other early estates in this vicinity.

Although estate houses were built in the area as early as the Revolutionary War era, the major development in Bolton Hill took place between 1850 and 1900. Two of the earliest individual brick cottages survive: 204 W. Lanvale Street, now home to the Family and Children's Services of Central Maryland, and 232 W. Lanvale Street, a private residence. By 1870, the neighborhood extended from Eutaw Place to John Street and from Dolphin Street to roughly Mosher Street. Unlike most Baltimore neighborhoods that were built along a north-south grid, Bolton Hill’s traditional brick row houses were built along a diagonal orientation first laid out in 1821 by Thomas Poppleton, a surveyor. Poppleton departed from the norm in the northwest section of Baltimore, following instead the alignment of the old Reisterstown Road (Pennsylvania Avenue) and the Jones Falls.

The early stately row houses of Bolton Hill feature plain brick facades with refined ornamentation, primarily to define front entrances, windows, and rooflines. The only decorations on these austere facades are bracketed cornices, decorative door surrounds, and the occasional ornate window lintel. These traditional red brick row houses express simplicity and elegance. Other early housing types include: unified row houses and duplexes. Beethoven Terrace in the 1500 block of Park Avenue is an early example of a unified block front of row houses faced with stucco and designed in the Second Empire style. In addition to the rows of houses, duplexes were built in the 1300 block of John Street and 100 block of West Lafayette Avenue. These houses are set back from the street with small front yards. Some have entrances on the side, rather than on the front facade.

Later 19th century row houses were influenced by popular architectural styles of the era, most notably Queen Anne. These later houses are more highly ornamented than the traditional row house. Red brick gives way to stone and other materials. Projecting bay windows and balconies break the plane of front walls. Terra cotta decoration, corner towers, rusticated stonework, stained glass, and distinctive rooflines replace the tradition of simplicity and elegance. Huge mansions were built along Eutaw Place, taking advantage of the landscaped setting.

By the end of the 19th century, row house development was complete. A few large apartment buildings, most notably the Marlborough Apartments, were constructed in the neighborhood in the first decade of the 20th century

Public urban renewal funding used for slum clearance in the early 1960s, spawned major changes in the community. Three new townhouse developments – Linden Green, Bolton Common, and Park Purchase – replaced the buildings in the 1200 through 1600 blocks of Linden Avenue. The Memorial Apartments for senior citizens and the Bolton Hill Plaza shopping center were built on either side of McMechen Street. New apartments, a school, and an office building replaced several blocks of houses along Eutaw Place. Other new structures included Sutton Place, a multi-story apartment building constructed in 1969 to anchor the southern edge of the community, Mount Royal Elementary School, on McMechen Street, and Bolton North, a high-rise apartment building for the elderly anchoring the northwestern corner of the neighborhood. While public efforts often centered on demolition and new construction, private preservation activities focused on restoring original houses. Preservation activities ran the gamut from restoring mansion houses to the adaptive reuse of carriage houses for homes. Some buildings were meticulously restored while other were preserved on the exterior but completely remodeled inside. Alley houses on Rutter Street became an artist colony.

Bolton Hill became a Baltimore City historic district in 1967, mandating the preservation of building exteriors. The neighborhood was listed on the National Register of Historic Places in 1971. A major preservation battle took place in 1978 when the Beethoven Apartments suffered a devastating fire. The Baltimore City’s Commission for Historic and Architectural Preservation (CHAP) refused to allow its demolition. Instead, a new developer was found to renovate the building. The preservation of historic houses, parks, and monuments is now standard policy in Bolton Hill.

The 1960s innovative, adaptive reuse of Mount Royal Station for the Maryland Institute helped spearhead not only local efforts to find new uses for old buildings, but also a national movement. Railroad stations became art schools. Schools became apartment buildings. Industrial buildings were converted into offices. Power plants became entertainment centers.

The past ten years witnessed major improvements in Bolton HIll. The Maryland Institute built dormitories for students on a large vacant parcel of land bound by North and Mount Royal avenues. Between Eutaw Place, North Avenue, Robert Street and Bolton Street, Spicer's Run, a modern market-rate townhouse development, replaced the deteriorated Eutaw Gardens apartments. New townhouses compatible to the historic character of the neighborhood were built on a continuation of the street grid, including the first new houses on Linden Avenue after so much of that street was razed during the urban renewal era. The long vacant Women's Hospital was converted into Maryland Institute's Meyerhoff Hall taking advantage of Maryland Heritage Tax Credits. Also noteworthy was the 1999 restoration of the Key Monument on Eutaw Place, part of a nation-wide effort to preserve America’s historic treasures.

Artscape, Baltimore’s annual major arts festival continues to attract hundreds of thousands of people from Maryland and beyond each July along Mount Royal Avenue on the eastern edge of Bolton Hill. The festival takes full advantage of the cultural institutions in and around Bolton Hill, including the Lyric Theatre, Meyerhoff Symphony Hall, and the Maryland Institute College of Art.

Bolton Hill was one of the original communities to join its neighbors in forming the Midtown Community Benefits District, created primarily to combat crime and grime in the greater midtown area. The District encompasses Bolton Hill, Charles North, Madison Park, and Mount Vernon-Belvedere.

At the turn of the the 21st century, Bolton Hill, better than any other Baltimore neighborhood, has preserved its 19th century character, while remaining a vibrant in-town community. It has a diverse population of all age groups, races, religions, ethnic backgrounds and lifestyles. The arts thrive. Parks and gardens abound. Home ownership is pervasive and on the rise as many sub-divided houses are restored to single-family dwellings.

Bolton Hill’s future will be built on its strong foundation combining a high quality physical environment with civic activism. Working together, its residents continue to improve the neighborhood’s physical character and enhance its quality of life.