Investment Property For Sale

Sanseer Mill Office Park 282 Main St. Extension, Middletown ‣ Beautifully Rehabbed Mill ‣ 100% Leased ‣ 70% Handicapped Accessible ‣ 24,581 GSF in 3 buildings ‣ Plentiful Free Parking ‣ New Heating and Cooling ‣ 2019 N.O.I. $142,141

TREVOR DAVIS COMMERCIAL REAL ESTATE, LLC

363 Main St, Suite 502, Middletown, CT 06457 [email protected] 860-347-8738 www.trevordavis.biz

OVERVIEW

Sanseer Mill Professional Offices/282 Main Street Extension Middletown, CT

Three buildings comprise Sanseer Mill Professional Offices on approximately 2.1 acres of land on the South side of Middletown, between Downtown and the “Big Box” area at Stop & Shop. This area is also between Middlesex Hospital and their other ‘campus’ with more medical buildings. This area continues its revitalization and offers great opportunities for enhanced value.

Sanseer Mill is in Middletown’s Transitional Development Zone (TD) and there are many potentially allowable uses in this zone. Besides having 644 feet of frontage on the heavily traveled (ADT 11,100) Main Street Extension that connects the downtown area with points South (Routes 9, 154 and 17), the property also has another egress on East Main Street. A yellow blinking light is located approximately 1000 feet North of this parcel on Main Street Extension, at the entrance to Routes 9 and 17.

CVS is contiguous and across the street is Saybrook Corners, including Walgreens, Advanced Autoparts, Webster Bank. Across from that is Stop & Shop, Bob’s Stores, Marshall’s, and Dollar Store.

All of the 10 office spaces in the park are rented. The actual 2018 Net Operating Income is approximately $122,228.

All the gas boilers (3) for heat were replaced in 2016, and 10 of the 11 air conditioning units and virtually all lighting were replaced in 2016. This was partially financed by Connecticut Property Assessed Clean Energy (C-PACE) funding completed in April 2016 for a total of $269,950. This loan will be paid off before closing. The total capital investment of over $500,000 includes HVAC, paint, signage, awnings and more.

All three buildings underwent a gut rehabilitation approximately 35 years ago, including new elevator, windows, etc. Since then the buildings have been maintained and roofs have been replaced and repaired. The parking lot has been maintained.

The property has been managed by Trevor Davis Commercial Real Estate since C&S Investments purchased the property in February of 2012.

REGIONAL ANALYSIS

The town of Middletown is located in the northwest corner of Middlesex County, situated approximately 26 miles northeast of New Haven, 16.4 miles south of Hartford, 105.4 miles northeast of New York City and 115.5 miles southwest of Boston. Middletown is bordered on the north by the Mattabassett River, Berlin, and Cromwell, on the east by the Connecticut River, Cromwell, Portland, and East Hampton, on the south by Durham and Haddam, and on the west by Middlefield and Meriden.

REGIONAL ANALYSIS (Cont.)

Population

The data is based upon the CERC (Connecticut Economic Resource Center) Town Profile for Middletown. The Town Profile reports Middletown has a geographical area of 41 square miles and an estimated population, as of 2015, of 47,218 residents. The Middletown profile indicates the population increased from 43,167 to 47,218 between 2000-2015, a growth rate of about 9.3%, while Middlesex County has grown at a slower rate of 6.5% over the same time period. CERC reports indicate Connecticut had been losing residents since 1990, primarily due to the soft Connecticut economy. The migration occurred primarily in larger cities, such as Meriden, New Haven, Hartford, and Bridgeport as opposed to smaller suburban/rural communities. As evidenced from the above data, Middletown is experiencing modest positive population growth.

Income

The County’s (Middlesex) median household income was $79,893, higher than the State income estimate of $70,331. The median household income in Middletown was $63,691 in 2015, which is lower than the State and County figures. Household incomes tend to be lower in the urban areas. A summary chart depicting median household income levels in Middletown and nearby towns based upon 2015 estimates prepared by CERC is shown below.

Town Median Household Income (2015 Estimates) Cromwell $82,081 Durham $113,152 East Haddam $82,117 Middlefield $102,426 Middletown $63,691 Portland $90,417

REGIONAL ANALYSIS (Cont.)

Employment

Middletown is aligned with the Hartford Labor Market Area (LMA) which demonstrated an average unemployment rate of 4.7% in August 2017, which is similar to the State rate of 4.60%. Middletown had a slightly lower rate of 4.5% consistent with the average unemployment rate in the United States of 4.5%. The rates have trended downward over the past few years.

Top Employers Type of Industry

Middlesex Hospital Healthcare State Police Law Enforcement Connecticut Valley Hospital Hospital Wesleyan University College

Eversource, United Technologies and Aetna Life Insurance are also large employers and among the top five taxpayers.

Transportation

Middletown benefits from good access to major highways and a centralized location within the State. Several interchanges of I-91 pass through Middletown and Route 9 provides highway access along the eastern perimeter of the city. Local routes include Routes 17 and 66, which provide convenient linkages with neighboring communities. Route 66 provides access to I-91 in Meriden and runs south into Portland and beyond. Route 17 provides access to Durham and terminates in New Haven County to the south. Air transportation is available at the Tweed Airport in New Haven and Bradley International Airport, located 32 miles north in Windsor Locks. REGIONAL ANALYSIS (Cont.)

Summary Middletown is an urban community located halfway between Hartford, the State capital, and New Haven. It benefits from its centralized location and convenient access to major highways. The city has a revitalized downtown area offering good shopping opportunities and numerous popular restaurants. In addition, there is a well-developed industrial base in park settings near I-91. Market conditions in the city and the region have been soft over the past several years. However, stability has returned to the market and there appears to be good demand for well-located commercial product. Middletown has the lowest vacancy rate of office space in Connecticut. Location Map !

Aerial View (Bing Maps) ! 1/3/2019 Vision Government Solutions 282 MAIN ST EXT

Location 282 MAIN ST EXT Map­Lot 34/ / 0073/ /

Acct# R10321 Owner C&S INVESTMENTS LLC

Municipality Assessment $707,350

Appraisal $1,010,500 PID 1053

Building Count 3 Assessing Distr…

Current Value

Appraisal

Valuation Year Improvements Land Total

2017 $709,560 $300,940 $1,010,500

Assessment

Valuation Year Improvements Land Total

2017 $496,690 $210,660 $707,350

Parcel Addreses

Additional Addresses

Address City, State Zip Type

282 MAIN ST EXT MIDDLETOWN, CT 06457 Primary

Owner of Record

Owner C&S INVESTMENTS LLC Sale Price $700,000 Co­Owner Certificate Address 6 SPECTACLE LA Book & Page 1747/ 886 RIDGEFIELD, CT 06877 Sale Date 02/03/2012 Instrument 14

Ownership History

Ownership History

Owner Sale Price Certificate Book & Page Instrument Sale Date

C&S INVESTMENTS LLC $700,000 1747/ 886 14 02/03/2012

TD BANK NA $0 1733/ 373 29 08/03/2011

LUPA LLC $1,510,000 1497/ 791 00 05/31/2005

VENTURA I LLC $0 1487/ 297 29 03/17/2005

JOHANNS JILL M $0 1487/ 294 29 03/17/2005

http://gis.vgsi.com/middletownct/Parcel.aspx?Pid=1053 1/5 1/3/2019 Vision Government Solutions

Building Information

Building 1 : Section 1

Year Built: 1850 Building Photo Living Area: 13,331 Replacement Cost: $1,040,937 Building Percent 35 Good: Replacement Cost Less Depreciation: $364,330 Building Attributes

Field Description

STYLE Office Bldg

MODEL Commercial

Grade C­

Stories 3.75

Occupancy 6 (http://images.vgsi.com/photos/MiddletownCTPhotos//\00\02\72

Exterior Wall 1 Brick/Masonry Building Layout

Exterior Wall 2

Roof Structure Gable

Roof Cover Asphalt Shingl

Interior Wall 1 Minimum

Interior Wall 2 Drywall

Interior Floor 1 Hardwood

Interior Floor 2 Carpet

Heating Fuel Gas

Heating Type Forced Air

AC Type Central

Bldg Use Commercial Improv Building Sub­Areas (sq ft) Legend Cov Parking 0 Gross Living Code Description Uncov Parking 0 Area Area

Percent Fin 100 FUS Finished Upper Story 7,303 7,303

1st Floor Use BAS First Floor 3,839 3,839

Heat/AC Heat/AC Pkg TQS Three Quarter Story 2,918 2,189

Frame Type Wood Frame BSM Basement 3,839 0

Baths/Plumbing Average 17,899 13,331

Ceiling/Walls Susp Ceil Only

Rooms/Prtns Average

Wall Height 11

Building 2 : Section 1

http://gis.vgsi.com/middletownct/Parcel.aspx?Pid=1053 2/5 1/3/2019Year Built: 1850 Vision GovernmentBu Solutionsilding Photo Living Area: 4,680 Replacement Cost: $330,937 Building Percent 25 Good: Replacement Cost Less Depreciation: $82,730 Building Attributes : Bldg 2 of 3

Field Description

STYLE Office Bldg

MODEL Commercial

Grade C­

Stories 2.25 (http://images.vgsi.com/photos/MiddletownCTPhotos//\00\02\72 Occupancy 3 Building Layout Exterior Wall 1 Brick/Masonry

Exterior Wall 2

Roof Structure Gable

Roof Cover Arch. Shingles

Interior Wall 1 Minimum

Interior Wall 2 Drywall

Interior Floor 1 Hardwood

Interior Floor 2 Carpet

Heating Fuel Gas

Heating Type Forced Air

AC Type None

Bldg Use Commercial Improv Building Sub­Areas (sq ft) Legend

Gross Living Cov Parking 0 Code Description Area Area Uncov Parking 0 BAS First Floor 1,560 1,560 Percent Fin 100 FLL Finished LL 1,560 1,560 1st Floor Use FUS Finished Upper Story 1,560 1,560 Heat/AC Heat/AC Pkg UAT Unfinished Attic 1,560 0 Frame Type Masonry 6,240 4,680 Baths/Plumbing Average

Ceiling/Walls Susp Ceil Only

Rooms/Prtns Average

Wall Height 11

Building 3 : Section 1

Year Built: 1860 Living Area: 6,560 Replacement Cost: $596,998 Building Percent 45 Good: Replacement Cost http://gis.vgsi.com/middletownct/Parcel.aspx?Pid=1053Less Depreciation: $268,650 3/5 1/3/2019 Building Attributes : Bldg 3 of 3 Vision Government Solutions Building Photo Field Description

STYLE Office Bldg

MODEL Commercial

Grade B­

Stories 2.5

Occupancy 3

Exterior Wall 1 Vinyl Siding

Exterior Wall 2

Roof Structure Gable

Roof Cover Arch. Shingles

Interior Wall 1 Drywall (http://images.vgsi.com/photos/MiddletownCTPhotos//\00\02\72

Interior Wall 2 Building Layout

Interior Floor 1 Hardwood

Interior Floor 2 Carpet

Heating Fuel Gas

Heating Type Forced Air

AC Type Central

Bldg Use Commercial Improv

Cov Parking 0

Uncov Parking 0

Percent Fin 100

1st Floor Use

Heat/AC Heat/AC Pkg Building Sub­Areas (sq ft) Legend

Frame Type Wood Frame Gross Living Code Description Baths/Plumbing Average Area Area

Ceiling/Walls Sus Ceil & Wal BAS First Floor 2,624 2,624

Rooms/Prtns Average FUS Finished Upper Story 2,624 2,624

Wall Height 10 FHS Finished Half Story 2,624 1,312

FOP Framed Open Porch 40 0

7,912 6,560

Extra Features

Extra Features Legend

Code Description Size Value Bldg #

SPR1 Sprinklers­Wet 6240 UNITS $1,250 2

SPR1 Sprinklers­Wet 17584 UNITS $3,520 1

SPR1 Sprinklers­Wet 5360 UNITS $1,070 3

ELV1 Elevator ­ Passenger 4 STOPS $22,500 1

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Land Use Land Line Valuation

Use Code 201 Size (Acres) 2.1 Description Commercial Improv Assessed Value $210,660 Zone TD Appraised Value $300,940 Neighborhood 3075 Alt Land Appr No Category

Outbuildings

Outbuildings Legend

Code Description Sub Code Sub Description Size Value Bldg #

PAV1 Paving AS Asphalt 35000 UNITS $39,380 1

SHD1 Shed MS Masonry 144 UNITS $1,440 3

LT1 Lights­In W/Pl 4 UNITS $210 1

LT2 W/Double Light 3 UNITS $300 1

Valuation History

Appraisal

Valuation Year Improvements Land Total

2017 $709,560 $300,940 $1,010,500

2016 $665,680 $255,940 $921,620

2015 $665,680 $255,940 $921,620

Assessment

Valuation Year Improvements Land Total

2017 $496,690 $210,660 $707,350

2016 $465,970 $179,160 $645,130

2015 $465,970 $179,160 $645,130

(c) 2016 Vision Government Solutions, Inc. All rights reserved.

http://gis.vgsi.com/middletownct/Parcel.aspx?Pid=1053 5/5 City of Middletown, Connecticut Map generated 12/2/2017

Map Legend: http://gis.cityofmiddletown.com/middletownct/legend.pdf Property Card: http://gis.vgsi.com/MiddletownCT/Parcel.aspx?pid=1053

Feet ´ 0 30 60 120 180 240 1 in = 100 ft MAP FOR REFERENCE ONLY - NOT A LEGAL DOCUMENT Because of different update schedules, current property assessments may not reflect recent changes to property boundaries. Check with the Board of Assessors to confirm boundaries uses at the time of assessment. Current Rent Roll Sanseer Mill Professional Park

Initial Leased Occupancy Lease Unit # Tenant Area Date Expiration Monthly Rent Annual Rent Rent Incs. $/SF

A-1 The Village 2,673 Nov-13 Dec-19 $3,193 $38,316 Flat $14.33 A-3 Adventure Room 3,053 Jan-15 Feb-20 $3,148 $37,776 4%/ Yr. $12.37 A-4 Church 1,980 Nov-15 Mo-Mo. $550 $6,600 ------$3.33

A-2/B-4 New England Residential 4,851 Jun-06 Oct-19 $4,327 $51,922 1%/ Yr. $10.70

B-1 Columbus House 1,353 Oct-13 Sep-19 $1,804 $21,645 2.5%/ Yr. $16.00

B-0 Columbus House 1,468 Oct-15 Sep-22 $1,721 $20,651 2%/ Yr. $9.35 C-1 Palmer Eye Care 2,209 May-07 Apr-24 $3,183 $38,196 ------$17.29

C-2 New England Geo Systems 2,285 Aug-13 Aug-21 $1,968 $23,616 3%/ Yr. $10.69

C-3 Yoga 1,403 May-18 May-23 $1,169 $14,028 3%/ Yr. $10.00

Total Rentable SF 21,275 $21,062 $252,750 Projected 2019 Operating Income Sanseer Mill Professional Park (282 Main Street Ext)

Income: Unit Size Rent/ Mo. Annual The Village A-1 2,673 $3,193 38,316 Adventure Rooms A-3 3,053 $3,148 37,776 NE Residential Service A-2/B-4 4,851 $4,327 51,922 Emanual Tab. A-4 1,980 $550 6,600 Columbus House-1 B-1 1,353 $1,804 21,645 Columbus House-2 B-2 1,468 $1,721 20,651 Palmer Eye Care C-1 2,209 $3,183 38,196 NE Geo Systems C-2 2,285 $1,968 23,616 Yoga C-3 1,403 $1,169 14,028 Total 21,275 $21,063 $252,751 Reimbursment Income 1./ CAM Escalations $13,544 2./ Gas Reimbursement $20,000 3./ Capital Energy Reimbursements $543 $7,266 Total Reimbursements $40,810 Gross Income- $293,561

Expenses: $/Sq. Ft. Real estate taxes $1.32 $28,138 Insurance $0.50 10,735 Flood Insurance $0.28 6,024 Utilities (Common Area) $2.14 45,500 Common Janitorial $0.43 9,225 Snow & Garden $0.55 11,687 Repairs & Maintenance $0.47 10,000 Elevator $0.12 2,579 Trash Removal $0.12 2,579 Management Fee 6.0% $0.83 17,614 Reserves 2.5% $0.34 7,339 Total Expenses $7.12 $151,420 Net Operating Income $6.68 $142,141

1./ Escalations above the base year paid by 8 out of 9 tenants 2./ Gas Reimbursement paid by 9 out of 9 tenants 3./ Capital Energy Reimbursements- 50% of estimated savings for new boilers and air conditioning paid by 8 of the 9 tenants. Disclaimer

This Investment Offering Package has been prepared solely for informational purposes and does not constitute all or any part of an offer or contract. It is designed to assist a potential investor in determining whether to proceed with an in-depth investigation of the subject property.

Trevor Davis Commercial Real Estate, LLC, hereinafter TDCRE, makes no representations concerning the condition of the subject property and advises prospective investors to obtain professional assistance in this regard.

TDCRE strongly recommends that each potential investor review the information contained in the Offering Package with its accountants, attorney, and tax advisors. While the information contained herein is from sources deemed reliable, it has not been expressed or implied, with respect to the information. Any projections contained herein represent best estimates based on assumptions that are considered reasonable. No representations or warranties, expressed or implied, are made that actual results will conform to such projections. This document is provided subject to errors, omissions, subject to modification or withdrawal without notice. The contents herein are confidential and are not to be reproduced or distributed to another party without the proper written consent of TDCRE.