240 Main Condo Investment Package
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Offering Memorandum 240 MAIN STREET, NEW BRITAIN, CT 29 UNIT CONDO PORTFOLIO OFFERING PRICE: $1,300,000 9.3% Cap Rate Investment Eric Amodio 860.256.7986 AMODIO & CO REAL ESTATE (860) 674-8908 Table of Contents Property Summary 3 Property Information 4 Property Information (cont.) 5 Condo Association Expenses 6 Unit Breakdown 7 Financial Pro-Forma 8 Property Photos 9 AMODIO & CO REAL ESTATE (860) 674-8908 Property Summary Amodio & Co. Real Estate is pleased to offer Central Park Place Condominiums; an urban mixed use investment comprised of 28 residential condo units and 1 commercial retail condo. The entire property has undergone extensive capital improvements and rebalancing of the condo association budget since new ownership took over. Upgrades to both the common areas and individual units have resulted in both increased rents, as well as reduced vacancy. Historically this asset has enjoyed low vacancy from it’s downtown location and proximity to public transit and shopping amenities. The property is ideally located to benefit from the new Hartford area BRT (bus rapid transit) system, CTfastrak. The busway is a dedicated highway connecting Hartford and New Britain, with additional stops in between. It is also worth noting that the CTfastrak route makes a direct connection with Central Connecticut State University (CCSU), allowing students to easily live downtown and commute to campus car-free. Furthermore, employees working in Downtown Hartford will enjoy living in Downtown New Britain at reduced rental rates and making a 10-12 minute commute to Downtown Hartford without traffic congestion or delay. The city streetscape improvement project is nearly complete and has dramatically improved the street appeal by converting existing concrete sidewalks to brick, installation of new trees and plantings in sidewalk beds, as well as a complete demolish and rebuild of the Central Park, outside the doorstep of this asset. A new owner would highly benefit from increasing rents even further, bringing them up to market rate for the area. Historically, the impact of other BRT systems like this have increased both property values and rents within a 1/2 mile radius of the transit stations. Central Park Place Condominiums falls well within that radius and will likely see similar impacts. Eric Amodio, MBA Commercial Broker Amodio & Co Real Estate 860.256.7986 [email protected] CCIM Candidate AMODIO & CO REAL ESTATE (860) 674-8908 Property Information Property Address: 240-242 Main Street, New Britain, CT Total Residential Units in the Building: (35) Residential Condos Total Commercial Retail Units in the Building: (3) Commercial Condos Residential Units in the Sale: (24) 1-Bedroom Condos & (4) Efficiency Condos Retail Units in the Sale: (1) 2,200 SF Commercial Condo, 242-B Main Street Year Built: 1880, Renovated in 1980’s and upon each unit turnover Parking: Public street parking & two (2) municipal garages in 1-block radius Condo Real Estate Taxes: Paid separately by unit owners. See “Unit Breakdown” page below for more information. Condo Association (HOA) Fee: Paid separately by unit owners. See “Unit Breakdown” page below for more information. Condo HOA Fees (Annual) $56,645.76/yr 28 Residential Units $7,999.68/yr 1 Commercial Unit AMODIO & CO REAL ESTATE (860) 674-8908 Property Information (cont.) Property Address: 240 Main Street New Britain, CT Number of Units: 29 in this sale, 35 total in building Unit Mix: Studio 4 One Bedroom 24 Commercial Storefront 1 Year Built: 1880 Construction: Brick Foundation: Concrete Roof: Flat - Tar & Gravel/Rubber Windows: Vinyl Replacement Unit entry doors: Solid core to unit Heat: Individual in-unit HVAC, Tenant paid Electrical: Updated, Individual electric meters Air conditioning: Individual in-unit central A/C, Tenant paid Water/sewer: Municipal Kitchens: Wooden wall & base cabinets. Fully applianced, tenant paid gas for cooking Baths: Three fixture Fire Safety: Emergency Lighting, Smoke Detectors, Fire System Entry system: Secure entry doors Parking: Street parking, 2 municipal garages nearby Site: Level in elevation from the street level, CBD zone AMODIO & CO REAL ESTATE (860) 674-8908 Condo Association Expenses Paid directly by Condo Association from monthly HOA fees from each condo owner. Total Condo Association Income (HOA fees collected): $96,000/yr Building Insurance: $10,847/yr City Water/Sewer: $13,400/yr Elevator Maintenance Fees: $1,400/yr Phone Line (Elevator): $98/mo ($1,176/yr) Sprinkler Maintenance Fees: $1,100/yr Trash Removal Fees: $3,192/yr Common Electric: $1,200/mo ($14,400/yr total) Fire Alarm Inspection: $750/yr On-Site Superintendent: $350/mo ($4,200/yr total) Condo Management: $7,992/yr Comcast for IP cameras & elevator phone line: $2,520/yr Total Condo Association Expenses (Paid from HOA fees): $60,977/yr AMODIO & CO REAL ESTATE (860) 674-8908 Unit Breakdown Unit # Unit Address SF Monthly Annual % of Common Monthly Condo Unit Type Rent Rent Expenses HOA Fee Taxes 1 1 Bed 242-1 479 $750.00 $9,000.00 2.280 $182.40 $691.80 3 1 Bed 242-3 490 $750.00 $9,000.00 2.333 $186.64 $701.07 4 1 Bed 242-4 483 $650.00 $7,800.00 2.299 $183.92 $694.89 6 1 Bed 242-6 483 $650.00 $7,800.00 2.299 $183.92 $694.89 7 1 Bed 242-7 483 $650.00 $7,800.00 2.299 $183.92 $694.89 8 1 Bed 242-8 437 $600.00 $7,200.00 2.081 $166.48 $660.92 9 1 Bed 242-9 432 $700.00 $8,400.00 2.057 $164.56 $657.83 10 1 Bed 242-10 465 $650.00 $7,800.00 2.213 $177.04 $679.45 11 1 Bed 242-11 494 $650.00 $7,800.00 2.351 $188.08 $704.16 12 1 Bed 242-12 403 $600.00 $7,200.00 1.919 $153.52 $636.21 13 1 Bed 242-13 480 $625.00 $7,500.00 2.285 $182.80 $691.80 15 1 Bed 242-15 498 $750.00 $9,000.00 2.371 $189.68 $707.24 18 1 Bed 242-18 486 $650.00 $7,800.00 2.314 $185.12 $697.98 19 1 Bed 242-19 489 $650.00 $7,800.00 2.328 $186.24 $697.98 20 1 Bed 242-20 441 $650.00 $7,800.00 2.099 $167.92 $664.01 21 1 Bed 242-21 433 $675.00 $8,100.00 2.061 $164.88 $657.83 22 1 Bed 242-22 469 $700.00 $8,400.00 2.233 $178.64 $682.54 23 1 Bed 242-23 401 $650.00 $7,800.00 1.909 $152.72 $633.12 24 1 Bed 242-24 398 $600.00 $7,200.00 1.895 $151.60 $630.03 26 1 Bed 242-26 467 $700.00 $8,400.00 2.223 $177.84 $682.54 27 1 Bed 242-27 494 $700.00 $8,400.00 2.351 $188.08 $704.16 28 1 Bed 242-28 489 $650.00 $7,800.00 2.314 $185.12 $697.98 30 1 Bed 242-30 489 $650.00 $7,800.00 2.314 $185.12 $697.98 31 1 Bed 242-31 489 $650.00 $7,800.00 2.328 $186.24 $697.98 32 Studio 242-32 278 $500.00 $6,000.00 1.323 $105.84 $540.47 33 Studio 242-33 283 $500.00 $6,000.00 1.347 $107.76 $543.56 34 Studio 242-34 296 $525.00 $6,300.00 1.409 $112.72 $552.82 35 Studio 242-35 372 $550.00 $6,600.00 1.771 $141.68 $608.41 242-B Retail 242-B 2,200 $1,500.00 $18,000.00 8.333 $666.64 $2,050.70 14,601 $19,525.00 $234,300.00 67.339 $5,387.12 $20,655.24 AMODIO & CO REAL ESTATE (860) 674-8908 Financial Pro-Forma PRO FORMA - 29 Units Only 242 Main Street, New Year 1 Year 2 Year 3 Year 4 Year 5 Total Britain, CT Potential Gross Income $234,300 $241,329 $248,569 $256,026 $263,707 $1,243,931 Vacancy $11,715 $12,066 $12,428 $12,801 $13,185 $62,197 Effective Income $222,585 $229,263 $236,140 $243,225 $250,521 $1,181,734 Management $11,129 $11,463 $11,807 $12,161 $12,526 $59,087 Repairs & Maintenance $3,000 $3,090 $3,183 $3,278 $3,377 $15,927 CAPEX Reserves $2,000 $2,060 $2,122 $2,185 $2,251 $10,618 HOA Fees - 29 Units $64,645 $66,585 $68,582 $70,640 $72,759 $343,211 Real Estate Taxes $20,655 $21,275 $21,913 $22,571 $23,248 $109,661 Total Expenses - 29 Units $101,430 $104,473 $107,607 $110,835 $114,160 $538,505 CFBDS $121,155 $124,790 $128,533 $132,389 $136,361 $643,229 Debt Service $55,948 $55,948 $55,948 $55,948 $55,948 $279,738 PreTax CF $65,208 $68,842 $72,586 $76,442 $80,414 $363,491 ASSUMPTIONS Annual FINANCING DETAILS HOA Fees - 28 Apts $56,645.76 Purchase Price $1,300,000 HOA Fee - 1 Retail $7,999.68 Down Payment $325,000 25.00% Real Estate Taxes $20,655 Amount Financed $975,000 Management 5.00% Debt Interest 5.00% 0.42% Vacancy 5.00% Amortization Term 30 360 Repairs & Maintenance $3,000 Debt Payment $5,234.01 CAPEX Reserves $2,000 Cap Rate 9.3% Income Growth 3% Expense Growth 3% AMODIO & CO REAL ESTATE (860) 674-8908 Property Photos AMODIO & CO REAL ESTATE (860) 674-8908 AMODIO & CO REAL ESTATE (860) 674-8908 AMODIO & CO REAL ESTATE (860) 674-8908 AMODIO & CO REAL ESTATE (860) 674-8908 AMODIO & CO REAL ESTATE (860) 674-8908 AMODIO & CO REAL ESTATE (860) 674-8908.