WATERBURY PLAZACONFIDENTIAL OFFERING MEMORANDUM
WATERBURY PLAZA WATERBURY, CONNECTICUT
UNIQUE OPPORTUNITY TO ACQUIRE A DUAL TENANTED, DOMINANT GROCERY ANCHORED CENTER OFF I-84 WITH RECENTLY EXTENDED LEASES. OFFERED AT 7.3% CAP RATE.
EXECUTIVE SUMMARY | 1 DISCLAIMER
LIMITING CONDITIONS
© 2018 Holliday Fenoglio Fowler, L.P. Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.
Holliday Fenoglio Fowler, L.P. (“HFF”) has been engaged by Owner to issue this Confidential Offering Brochure, regarding the sale of the Property. The Property is being sold “as-is, where-is” with limited representations and warranties from Owner. Additionally, Owner is not prepared to expand its representations and warranties beyond those contained in Owner’s form disposition contract. Neither the Owner nor HFF has made any warranty or representation, express or implied, about the Property whatsoever, including, without limitation, physical or environmental conditions, its structure or systems, compliance with laws, the ability to expand the Property, or any licenses or permits. Information concerning the Property described herein has been obtained from sources other than HFF and Owner and HFF make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
Financing JAMES KOURY MARC MANDEL STEVE SCHRENK KELLIE COVENEY PORTER TERRY T: 617.848.1554 T: 484.532.4212 T: 484.532.4213 T: 617.848.5852 T: 617.848.1576 [email protected] [email protected] [email protected] [email protected] [email protected]
DISCLAIMER TABLE OF CONTENTS
EXECUTIVE SUMMARY 1 Investment Highlights Regional Competition Property Aerial Site Plan
ASSET OVERVIEW 6 General Information
LOCATION OVERVIEW 7 Market Overview Neighboring Centers
TENANCY 12 Rent Roll Tenant Profiles
FINANCIAL SUMMARY 15 In-Place Income 10-Year Cash Flow Projection Underwriting Assumptions
TABLE OF CONTENTS WATERBURY PLAZA
SECTION
EXECUTIVE SUMMARY
Holliday Fenoglio Fowler, L.P. a Connecticut licensed real estate broker (“HFF”) has been exclusively Iretained by the seller to present the sale of Waterbury Plaza (the “Property” or “Asset”). This sale provides qualified buyers a unique opportunity to acquire a 139,653 SF shopping center with two coveted, regional anchor tenants - Stop & Shop, generating over $29,000,000 (2017) in sales and Raymour & Flanigan.
Occupying a total of 70,163 square feet (both store and gas station), Stop & Shop is the center’s largest tenant and has been in the center since 1992. Stop & Shop’s dedication to the center demonstrates both the historical success of the store and prowess of the center within the submarket. Raymour & Flanigan has been in the center since 2002 and both anchors have recently extended their lease term 10 years (R&F) and 5 years (Stp), demonstrating their commitment to the center.
Located just a few hundred yards from the access ramps to Interstate 84 and just 3 miles from Route 8, Waterbury Plaza is ideally positioned at the figurative and literal crossroads of the southwest corridor of Connecticut. The southwest quadrant of the state is along the direct corridor from Hartford and Boston to New York City, creating both high traffic counts and inevitably, an attractive retail destination. The southwest quadrant of the state is home to many of Connecticut’s wealthiest towns and strongest demographics, of which Waterbury Plaza is a direct beneficiary. Waterbury serves as the region’s primary retail hub and has long been the focus of national tenants due to the city’s dense demographics and highway accessibility. National retailers within the area include BJ’s Wholesale Club, Costco, Shaw’s, Wal-Mart, Target and TJ Maxx. The concentration of major national tenants nearby helps Waterbury Plaza generate consumer demand from an expansive trade area.
EXECUTIVE SUMMARY | 1 WATERBURY PLAZA
INVESTMENT HIGHLIGHTS Waterbury Plaza Address: 410 Reidville Drive
Stop & Shop and Raymour & Flanigan are fully net and reimburse CAM, Insurance and Tax. Landlord is Town, State: Waterbury, CT responsible for Roof & Structure. Square Feet: 139,653 Acres: 14 High Volume Grocer: Stop & Shop has consistently generated over $29mm in sales for the past 7+ years. Leased: 100% Stop & Shop, Stop & Shop Fuel Station, Major Tenants: Both anchors recently extended their lease term: Raymour & Flanigan extended their term for 10 Raymour & Flanigan years through 2027 and Stop & Shop recently extended for 5 years through 2023. These extensions, when considered with their long term occupancy, demonstrate their long term commitment to the center. 695 Vehicles, includes 26 ADA spaces; Parking: 4.97:1,000 Zoning: CA: Arterial Commercial Zoning District Dynamic Retail Location: Located a few hundred yards from the access ramps of Interstate 84 and 3 94,000 ADT on I-84, 12,900 ADT on miles from Route 8, Waterbury Plaza benefits from its location at the southwest quadrant of the state. Traffic Flow: Further, it is in close proximity to Brass Mill Center and Brass Mill Commons, the largest retail destination Reidville Drive in Waterbury, increasing its overall capacity. Trade Area (5 miles): 163,000 Pop., $75,000 Avg. HHI In-Place NOI: $1,810,030
Proximity to Interstate 84: Waterbury Plaza is ideally positioned along Interstate 84 and Reidville drive. Asking Price: $24,700,000 Both of which have 94,000 and 12,900 average daily vehicles, respectively. Cap Rate: 7.3%
Ability to acquire property ‘as-is’; minimal Capital investment needed: The seller has invested in the Property over the years, spending over $500,000 in a roof replacement for both Stop & Shop and Raymour & Flanigan over the past two years.
Attractive Trade Area: Waterbury is the second most populous town in Connecticut. Waterbury Plaza benefits from a dense 3 mile population of 81,000 people and an average household income of $61,000. Within 5 miles, there are 163,000 people and an average household income of $75,000.
Waterbury Plaza is being offered free and clear of debt at an asking price of $24,700,000, a 7.3% Cap Rate on In Place Income.
EXECUTIVE SUMMARY | 2 New Hampshire Vermont
Maine Belmont
Rochester
Merrimack Portsmouth
Nashua
N
WATERBURY PLAZA
Tenants Calling Massachusetts Boston Waterbury Home 90 91 WORCESTER
90 90 90
84
84
395 84
Hartford Rhode Island
8 91 95 395 Waterbury Connecticut 84 84 8 91 95 395 WATERBURY PLAZA WATERBURY , CONNECTICUT 95 8 New Haven 95
95 Stamford
NE O CIT 25 Miles
EXECUTIVE SUMMARY | 3 WATERBURY PLAZA
8 84 8
BRASS MILL CENTER MALL 8 WATERBURY
Exit 21
84 WATERBURY PLAZA WATERBURY , CONNECTICUT
Exit 25A
EXECUTIVE SUMMARY | 4 WATERBURY PLAZA
REIDVILLE DRIVE
12,900 AD
T
Tenant SF: Raymour & Flanigan 69,490 SF Webster Bank Stop & Shop 66,663 SF STP Fuel station 3,500 SF Stop & Shop Gas Station OCCUPIED
NOT INCLUDED IN SALE
INTERST ATE LANE
EXECUTIVE SUMMARY | 5 WATERBURY PLAZA
SECTION
ASSET OVERVIEW IIGENERAL INFORMATION Address: 410 Reidville Drive Town, State: Waterbury, CT Square Feet: 139,653 Acres: 14 Acres Leased: 100% Major Tenants: Stop & Shop, Stop & Shop Fuel Station, Raymour & Flanigan Parking: 695 Vehicles, includes 26 ADA spaces; 4.97:1,000 Zoning: CA: Arterial Commercial Zoning District Traffic Flow: 94,000 ADT on I-84 Trade Area (5 Miles): 163,000 Pop., $75,000 AHHI Stop & Shop - 1992 Year Built: Stop & Shop Fuel Station - 2009 Raymour & Flanigan - 2002 Sewer: City of Waterbury Water: Regional Water Authority - Connecticut Gas: Southern Connecticut Gas Electricity: United Illuminating Company Raymour & Flanigan - 2 years old Roof Age: Stop & Shop -1 Year old Stop & Shop fuel station - 9 years old
ASSET OVERVIEW | 6 SECTION
III LOCATION OVERVIEW WATERBURY PLAZA
MARKET OVERVIEW
Waterbury, CT - With a population of over 110,000, Waterbury is the metropolitan center of a 13-town region known as the Central Naugatuck Valley Region. Within the 13-town region, many cultural, educational, and recreational destinations, including shopping malls, museums, nature trails, and amusement parks are readily available. In addition, Waterbury’s close proximity to the beaches and boating of Long Island Sound further attract residents and guests to explore the area and all Waterbury has to offer. The City of Waterbury stretches 29 square miles and is the second largest city (by population) in New Haven County, Connecticut. Waterbury is 33 miles from Hartford, 77 miles from New York City, 85 miles from Providence, and 120 miles from Boston. Centered about the intersection of Interstate 84 and state Route 8, Waterbury offers a variety of regional retail, commercial, health, educational and social services.
TRANSIT-ORIENTED COMMUNITY
As a part of the New York Metropolitan Area, Waterbury not only has excellent access via state and interstate highways, but also is directly connected to New York City’s Grand Central Terminal via the Metro North Railroad. The Metro-North Railroad runs commuter trains throughout the day to and from Waterbury Station with connections to New York City. Waterbury is split into four sections with Interstate 84 bisecting the city from east to west and Route 8 running north/south through Waterbury. The Interstate 84/Route 8 interchange is located on the William W. Deady Bridge, with eastbound traffic on the upper deck and westbound traffic on the lower deck. The interchange experiences some of the highest daily traffic levels in New York and Connecticut regions.
3 MILE RADIUS 5 MILE RADIUS
Population 81,176 162,500
Average Household Income $60,900 $75,000
LOCATION OVERVIEW | 8 WATERBURY PLAZA
REGION’S COMMERCIAL/CULTURAL HUB
With well over 200 businesses located within its boundaries, including professional offices, restaurants, entertainment venues, educational facilities, and retail establishments, Waterbury’s central business district draws traffic and appeal to the city and the surrounding area. Waterbury is quickly transforming into a multifaceted area for advanced technology, niche manufacturing, healthcare, educational opportunities and cultural venues. There is a strong support and advocacy for economic development in the Waterbury area, including programs and organizations on the local, state, regional and national levels. Recent public investments include the construction of the UCONN downtown branch campus, the construction of the downtown Waterbury Arts Magnet School (WAMS) and the renovation of the historic Palace Theater; the restoration and renovation of Waterbury City Hall; and, the consolidation of City health service into a new downtown Health Department facility. Waterbury, along with the surrounding communities, attracts and retains residents and visitors with numerous entertainment venues in the area. Maybe the most popular of them all is the Palace Theater. A historic venue renovated as part of a $200 million economic redevelopment project for the City of Waterbury and the State of Connecticut, the Palace Theater is an aesthetically pleasing structure providing visitors a highly cultural experience through live performances and shows. Through the generosity of the State of Connecticut and $35 million dollars, the doors of the Palace Theater opened once again to the public in November 2004.
In addition, Waterbury is an active member of the Connecticut Main Street program, which aims to stimulate economic renewal within the framework of historic preservation. Main Street Waterbury has received several awards from the Connecticut Main Street program.
LOCATION OVERVIEW | 9 BUCKINGHAM ST THOMASTON AVE 262 WATERBURY PLAZA WOLCOTT 322 CENT JAMES H DARCEY MEMORIAL HWY ER S Chestnut Hill T W CENTER ST WEST ST W CENTER ST FRENCH ST N MAIN ST 69 Reservoir COUNTY RD SUNNYSIDE AVE
STRAITS TURNPIKE RIVERSIDE ST OAKVILLE Naugatuck Valley S.C. 73 MAIN ST 2 PROSPECT ST WATERTOWN AVE W MAIN ST The Waterbury Center WALCOTT RD HOMER ST 5 Scoville 322 COOKE ST Resrvoir WOODTICK RD CHASE AVE
DAVIS ST DAVIS PLANTSVILLE MARION AVE Southington N Great Brook O Reservoir T 84 BUNKE G ReservoirLAKEWOOD RD Number 2 R HI UN TIN LL AVE H Brass Mill Commons Southington 4 Reservoir VERNON MT RD Mattatuck Plaza S MAIN ST 3 Number 3 Panthorn 73 COUNTY RD 10 Fulton Park Park N MAIN ST N MAIN
HILL ST WOLCOTT ST Hitchcock 63 THOMASTON AVE Lake GRANDVIEW AVE 8 S T I MILLDALE L 322 L MARION AVE S PARK RD O EAST ST 322 N
Western Hills Golf Course WATERBURY W JOHNSON AVE GRAND ST R 691 STRAITS TURNPIKE D N MERIDEN RD R E E 844 HIGHLAND AVE ID T MER T S MAIN ST E MAIN ST Tracys Pond W MAIN ST O 84 WOLCOTT ST T N K N O WOODTICK RD RP PIE Waterbury CrossingHIGHLAND AVE 6 E MAIN ST 801 Hamilton E MAIN ST 801
64 CHASE PKWY Park 10
D HUCKINS RD L
R L MARION RD A
DL Y A I
MID EBU R I R
R SCOTT RD O
Waterbury O 84 M 84 Country Club M
E STRAITS TURNPIKE Brass Mill Center PROSPECT RD 1 M JARVIS ST AUSTIN RD Y
E WATERBURY RD
C Waterbury Plaza R W R
H RE RD SUMMIT RD A
ITTEMO 188 A
D D East Mountain
S MAIN ST PEARL LAKE RD Golf Course 69WATERBURY RD H
S E M A J Waterbury 63 Hop Brook SCOTT RD 8 Reservoir PLATTS MILL RD SPRING LAKE RD Lake D Nomber 2 70 HIGHLAND AVE R
D
R Y SUMMIT RD Whittemore T N I C O Glen State Park SPRING ST 68 MIXVILLE RD
T N W MAIN ST R
R Scenic Reserve CHURCH ST
O
E E I
L L
N N L L UNION CITY RD U A 68 68 MAPLE HILL RD D CHESHIRE RD MOUNTAIN RD R
FIELD ST PROSPECT S PROSPECT ST CORNWALL AVE E BRIDGE ST 68 ACADEMY RD
N 70
O
O 69
J J WALLINGFORD RD 63 NEW HAVEN RD
RUBBER AVE S MAIN ST MAY ST STRAITSVILLE RD HIGGINS RD 10 MEADOW STNAUGATUCK MULBERRY ST Old Naugatuck Roaring Reservoir Brook Park
Towantic COOK RD N LOCATION OVERVIEW | 10 BROOKSVAL 42 Pond 8 E R D WATERBURY PLAZA
Location GLA (SF) Occupancy Tenant Distance Location GLA (SF) Occupancy Tenant Distance
Stop & Shop, Raymour & Waterbury Plaza 139,653 100% - Brass Mill Commons 211,676 100% TJ Maxx, Michaels 3.1 mi Flanigan 4
1 Brass Mill Center 999,163 100% Macy's, Sears, Regal Cinemas 2.2 mi 5 The Waterbury Center 147,928 100% Shoprite, Gamestop 3.2 mi
Naugatuck Valley 382,864 71% Walmart, Stop & Shop 2.7 mi Waterbury Crossing 151,034 63% Petsmart 3.9 mi 2 Shopping Center 6
3 Mattatuck Plaza 153,230 100% Big Lots, Dollar Tree 2.9 mi
8 84 8 WATERBURY CROSSING BRASS MILL MATTATUCK WATERBURY CENTER MALL PLAZA CENTER 8
WATERBURY NAUGATUCK VALLEY SHOPPING CENTER
Exit 21
84 WATERBURY PLAZA WATERBURY , CONNECTICUT
Exit 25A
LOCATION OVERVIEW | 11 SECTION
IVTENANCY WATERBURY PLAZA
WATERBURY PLAZA – RENT ROLL BASE RENT EXPENSE RECOVERIES UPON EXPIRATION Proportionate Current Options/ Assigned Expiration Suite # Tenant Name SF Share Lease Start Lease End Date $/SF Rent/Yr Method Terms MLA Assumption
001 Raymour & Flanigan 69,490 49.8% Mar-02 Nov-27 Current 8.77 609,601 Raymour & Flannigan 2x5 Raymour & Flanigan Option
RET, INS, CAM (110%) Rent inc. Dec-22 9.02 Option 1 Dec-32 9.92 Option 2 Dec-37 10.91
EXCLUSIVE: Retailers whose PPU is any portion of its premises for retail sale of home and office furniture, furnishings, related accessories, or bedding. Shall not apply to Stop & Shop.
002 Stop & Shop 66,663 47.7% Feb-92 Nov-23 Current 18.50 1,233,266 Stop & Shop 5x5 Stop & Shop Option RET, INS, CAM (105%) Option 1 Dec-23 19.00 Option 2 Dec-28 19.50 Option 3 Dec-33 20.00 Option 4 Dec-38 20.50 Option 5 Dec-43 21.00
PERCENTAGE RENT: TT pays 1.0% of gross sales above a natural breakpoint. EXCLUSIVE: Landlord shall not permit any other premises within one mile of the Shopping Center, which is owned or leased by Landlord, to be used for a supermarket business.
01A Stop & Shop (Gas Station) 3,500 2.5% Oct-08 Nov-23 Current 11.06 38,700 Stop & Shop (Gas Station) 5x5 Gas Station Option
RET, INS, CAM (105%) Option 1 Dec-23 12.21 Less Offsets Option 2 Dec-28 13.43 Option 3 Dec-33 14.71 Option 4 Dec-38 16.07 Option 5 Dec-43 17.50
EXCLUSIVE: Auto/truck fueling station; sale of gas and fuel for vehicles.
Webster Bank 3,227 2.3% Mar-76 Jul-29 Current 0.00 0 Webster Bank 2x5 Webster Bank Option 003 (Not included in purchase) RET, INS (115%), CAM (115%) Option 1 Aug-29 0.00 Less Offsets Option 2 Aug-34 0.00
Area(SF) % of Total Annual Rent PSF Annual Rent Leased 139,653 100.0% $13.47 $1,881,567 Available 0 0.0% $0.00 $0 TOTAL 139,653 100.0% $1,881,567
TENANCY | 13 WATERBURY PLAZA
TENANT PROFILES
Stop & Shop / Ahold Delhaize Raymour & Flanigan
NYSE: AD.AS NYSE: N/A - Private
S&P Rating: BBB S&P Rating: N/A - Private
Moody’s Baa2 Moody’s: N/A - Private
www.stopandshop.com raymourflanigan.com
Ahold Delhaize, Stop & Shop’s parent company, is one of the world’s largest food retail Raymour & Flanigan is an American Furniture retail chain based in the Northeastern United groups and a leader in both supermarkets and e-commerce. Its family of great local brands States. It is a private company and was founded in 1946 by Bernard and Arnold Goldberg. It is serves more than 50 million customers each week in Europe, the United States and Indonesia. the largest furniture retailers in the Northeast and the seventh largest in the U.S. It currently Together, these brands employ nearly 370,000 associates in over 6,500 grocery and specialty has over 110 stores in the Northeast. stores and include the top online retailer in the Benelux and the leading online grocers in the Benelux and the U.S. Ahold Delhaize brands are at the forefront of sustainable retailing and Raymour & Flanigan sells home furniture including living room, dining room and bedroom are committed to sourcing responsibly, supporting local communities and helping customers furniture and mattresses. From classic to contemporary and everything in between, Raymour make healthier choices. Headquartered in Zaandam, the Netherlands. & Flanigan offers furniture at a price that’s appealing. Their promise is to provide the ultimate furniture shopping experience from the first meeting through years of after-sale care.
Raymour & Flanigan has increasing market share in the U.S. up .3% over the past 10 years.
TENANCY | 14 SECTION
VFINANCIAL SUMMARY WATERBURY PLAZA
BASE RENT RECOVERIES TOTAL IN-PLACE INCOME ANALYSIS ANNUAL PSF % TENANT SQFT TOTAL LEASE TERM ANNUAL PSF ANNUAL PSF REVENUE PSF Base Rental Revenue $1,881,403 $13.47 SF Recoveries $1,412,502 $10.11 Raymour & Flanigan 69,490 49.8% 03/02 -11/27 $609,427 $8.77 $702,255 $10.11 $1,311,683 $18.88 Effective Gross Income $3,293,905 $23.59
Stop & Shop Supermarket 66,663 47.7% 07/92 - 11/23 $1,233,266 $18.50 $670,262 $10.05 $1,903,527 $28.55 Operating Expenses
Stop & Shop Supermarket Real Estate Taxes $1,219,800 $8.73 3,500 2.5% 04/08 - 11/23 $38,710 $11.06 $35,191 $10.05 $73,901 $21.11 Gas Station Insurance $34,467 $0.25
Total SF 139,653 100% $1,881,403 $13.47 $1,407,708 $10.08 $3,289,110 $23.55 Repairs & Maintenance $14,000 $0.10
Lot Sweeping $22,656 $0.16 Notes: Trash $700 $0.01 1 Expenses based on 2018 Income Statement Expenses grown at a 3% inflation rate 2 Management Fee 3% of Effective Gross In Place Income Landscaping $9,485 $0.07 3 In place NOI only shows income from in place operating tenants, and annualizes any partial year increase or decrease in a tenant’s rent. R&M Landscaping $16,950 $0.12
4 Recoveries number includes webster bank CAM Snow Removal $62,000 $0.44 5 Stop & Shop receives a $308,316 annual credit for the years 2019 and 2020. Represented income does not account for the rent credit. Management Fee $98,817 $0.71 6 2019 Tax amount estimated to decrease. Seller is currently appealing taxes and estimate year 1 taxes to be in the amount of $1,139,800. Parking Lot $5,000 $0.04
Total Operating Expenses $1,483,875 $10.63
Net Operating Income $1,810,030 $12.96
FINANCIAL SUMMARY | 16 WATERBURY PLAZA
WATERBURY PLAZA – 10-YEAR CASH FLOW Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029 Dec-2030
Occupancy 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Vacancy/Credit Loss 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Economic Occupancy 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% INCOME Base Rental Revenue 1,881,393 1,881,393 1,881,393 1,881,393 1,885,956 1,936,147 1,936,147 1,936,147 1,941,359 2,001,820 2,036,269 2,036,269 Total Base Rental Revenue 1,881,393 1,881,393 1,881,393 1,881,393 1,885,956 1,936,147 1,936,147 1,936,147 1,941,359 2,001,820 2,036,269 2,036,269 REIMBURSEMENTS Reimbursement Revenue 1,395,190 1,437,046 1,480,157 1,524,562 1,570,299 1,617,408 1,665,930 1,715,908 1,767,385 1,820,407 1,874,538 1,931,270 Total Potential Gross Revenue 3,276,583 3,318,439 3,361,550 3,405,955 3,456,255 3,553,555 3,602,077 3,652,055 3,708,744 3,822,226 3,910,808 3,967,539 Vacancy Loss ------Effective Gross Revenue 3,276,583 3,318,439 3,361,550 3,405,955 3,456,255 3,553,555 3,602,077 3,652,055 3,708,744 3,822,226 3,910,808 3,967,539 EXPENSES RE Taxes 1,219,800 1,256,394 1,294,086 1,332,908 1,372,896 1,414,083 1,456,505 1,500,200 1,545,206 1,591,562 1,639,309 1,688,488 CAM - R&M 14,000 14,420 14,853 15,298 15,757 16,230 16,717 17,218 17,735 18,267 18,815 19,379 Lot Sweeping 22,656 23,336 24,036 24,757 25,500 26,265 27,052 27,864 28,700 29,561 30,448 31,361 Trash 700 721 743 765 788 811 836 861 887 913 941 969 Landscaping 9,485 9,770 10,063 10,365 10,675 10,996 11,326 11,665 12,015 12,376 12,747 13,129 R&M Landscaping 16,950 17,459 17,982 18,522 19,077 19,650 20,239 20,846 21,472 22,116 22,779 23,463 Snow Removal 62,000 63,860 65,776 67,749 69,782 71,875 74,031 76,252 78,540 80,896 83,323 85,822 Management 98,297 99,553 100,847 102,179 103,688 106,607 108,062 109,562 111,262 114,667 117,324 119,026 Insurance 34,467 35,501 36,566 37,663 38,793 39,957 41,155 42,390 43,662 44,972 46,321 47,710 Parking Lot 5,000 5,150 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 Operating Expenses 1,483,355 1,526,163 1,570,255 1,615,669 1,662,583 1,712,268 1,761,894 1,813,008 1,865,812 1,921,853 1,978,726 2,036,270 Net Operating Income 1,793,228 1,792,276 1,791,296 1,790,286 1,793,672 1,841,286 1,840,183 1,839,047 1,842,931 1,900,373 1,932,081 1,931,269 LEASING & CAPITAL COSTS Tenant Improvements ------Leasing Commissions ------Replacement Reserve 20,948 21,576 22,224 22,890 23,577 24,284 25,013 25,763 26,536 27,332 28,152 28,997 Total Leasing & Capital Costs 20,948 21,576 22,224 22,890 23,577 24,284 25,013 25,763 26,536 27,332 28,152 28,997 CASH FLOW AFTER CAPITAL 1,772,280 1,770,699 1,769,072 1,767,396 1,770,095 1,817,002 1,815,170 1,813,283 1,816,395 1,873,041 1,903,929 1,902,272
1 Stop & Shop receives rent credit in the amout $308,316 annually for 2019-2020. Rent credit not included in analysis as seller will offer a credit at closing. 2 Assumes no vacancy credit loss given 3 Reimbursement Revenue includes recoveries for Webster Bank. Tenant is not included in purchase but pays CAM 4 Seller is currently appealing taxes and estimate year 1 taxes to be in the amount of $1,139,800
FINANCIAL SUMMARY | 17 WATERBURY PLAZA
MARKET PROJECTION ASSUMPTIONS
RAYMOUR & FLANIGAN STOP & SHOP GAS STATION WEBSTER BANK
2019 Market Rent (NNN) $8.77 per SF $19.00 per SF $11.06 per SF N/A - Not included in purchase
NNN NNN NNN NNN Reimbursements CAM @ 110% CAM @ 105% CAM @ 105% CAM @ 115%
General Inflation 3.00% 3.00% 3.00% 3.00%
Market Rent Growth Rate 3.0% per annum 3.0% per annum 3.0% per annum N/A
Contract Rent Growth Rate None None None None
Tenant Renewal Probability 90% 90% 90% 90%
Free Rent 3 Months 3 Months 3 Months N/A
Tenant Improvement Allowance New: $30.00 per SF $30.00 per SF $10.00 per SF N/A Renewal: $0.00 per SF $0.00 per SF $0.00 per SF $0.00 per SF
Leasing Comissions New: 6.00% 6.00% 6.00% N/A Renewal: 0.00% 0.00% 0.00% N/A
Downtime Between Leases New: 12 months 12 months 12 months 12 months Renewal: 0 months 0 months 0 months 0 months
Lease Term All Tenants: 10 years 5 years 5 years 5 years
FINANCIAL SUMMARY | 18 WATERBURY PLAZA
www.hfflp.com
Financing JAMES KOURY MARC MANDEL STEVE SCHRENK KELLIE COVENEY PORTER TERRY T: 617.848.1554 T: 484-532-4212 T: 484-532-4213 T: 617.848.5852 T: 617.848.1576 [email protected] [email protected] [email protected] [email protected] [email protected]
SECTION | 19