866 Flatbush Ave 866 Flatbush Ave Brooklyn, NY 11226 Contact: Samuel Mizrahi President, Commercial Investment Division Phone : (718) 998-5700 Email : [email protected] ©Copyright 2011-2019 CRE Tech, Inc. All Rights Reserved. TABLE OF CONTENTS PROPERTY INFO & DISCLAIMER 2 PROPERTY DESCRIPTION 3 PROPERTY PHOTOS 4 866 FLATBUSH AVE FOR SALE 6 WHY C21 COMMERCIAL 7 INVESTMENT ANALYSIS - 5 YEAR BEFORE TAX 10 AERIAL & LOCATION REPORT 12 RESUME/BIO 14 ©Copyright 2011-2019 CRE Tech, Inc. All Rights Reserved. Page 1 PROPERTY INFO: PURCHASE PRICE: 866 FLATBUSH $2,400,000 AVE PROPERTY ADDRESS: 866 FLATBUSH AVE BROOKLYN, NY 11226 YEAR BUILT: PROPERTY SIZE 4,000 SQ. FT. LAND SIZE 2,075.00 SQ. FT. COMPANY DISCLAIMER ©Copyright 2011-2019 CRE Tech, Inc. All Rights Reserved. Page 2 PROPERTY DESCRIPTION Prime Flatbush Retail location 1900 sq ft Store plus basement 2- 3 Bedroom Apartment 866 Flatbush Ave Brooklyn NY 11226 ©Copyright 2011-2019 CRE Tech, Inc. All Rights Reserved. Page 3 PROPERTY PHOTOS ©Copyright 2011-2019 CRE Tech, Inc. All Rights Reserved. Page 4 PROPERTY PHOTOS ©Copyright 2011-2019 CRE Tech, Inc. All Rights Reserved. Page 5 866 Flatbush Avenue, Brooklyn, NY 11226 Price: $2.400,000 For Sale, Mixed use Property PROPERTY HIGHLIGHTS Prime Flatbush avenue Retail Corridor between Church Ave and Martense Store plus basement 1900 sq ft, projected $8,000 per month,2/ 2 Bedroom apartments- $1,100/$900 Gross Income: $120,000/ Net$100,000Taxes: $8,750/ Insurance: $3,600/ Water and sewer: $3,000/ Electric: $1,200/ Heat:$3,000 Neighboring Tenants Commercial Children’s Place, 7-Eleven Mizrahi Realty Jimmy Jazz, Sleepys We Know The Boroughs Golden Krust,GNC Samuel Mizrahi Walgreens Broker Associate McDonalds President Commercial Division Rent A Center Off: 718-998-5700 ext 107 Bargain Hunters Fax: 718-998-5804 Cell: 917-561-4526 Email: [email protected] https://samuelmizrahicommercial.c21.com/ ©2018 Century 21 Real Estate LLC. All Rights Reserved. C21 Commercial® and CENTURY 21® are registered service marks owned by Century 21 Real Estate LLC. Century 21 Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each office is independently owned and operated. WE ARE A GLOBAL BRAND *In 2017, over $121 billion was spent on real estate investment properties in the United States from international buyers, with 72% of those being cash buyers. Our domestic commercial investment offices have connections to Global Network, so your next buyer could come from anywhere in the world! We also offer a robust global web-site with 36 currency conversions in 18 languages, to ensure that buyers have all the tools they need to purchase investments properties here in the U.S. *SOURCE: National Association of REALTOR® International Real Estate Outlook THE POWER OF C21 COMMERCIAL® C21 Commercial is unique to commercial real estate, in that, we can represent investment properties in various U.S. markets, covering Metro, Secondary, Sub or Tertiary markets. We are connected to over 630+ qualified Investment Network offices and Commercial Specialists nationwide. Let us put our network to work for you when looking for investment properties outside your local investment marketplace. CENTURY 21 Commercial®, the CENTURY 21 Commercial Logo and C21 Commercial® are registered service marks owned by Century 21 Real Estate LLC. Century 21 Real Estate LLC fully supports the principles of the Fair Housing Act and Equal Opportunity Act. Each office is independently owned and operated. A ROBUST C21 COMMERCIAL® WEBSITE We have a Robust National Commercial Web-site with extended search capabilities that can draw the commercial investor to use the web-site and stay awhile. Searchers can filter results referencing points of interest like eating establishments, retails shops, community services, etc.… Heat maps can show population density and median household income that can assist an investor in their purchase decision making. WEB-SITE FOR INTERNATIONAL BUYERS C21Global.com allows investors from all over the world to find a C21® investment office, sales professional or real estate property.. Whether you’re in a market that attracts international business or not, this worldwide web-presence is a great marketing tool for your investment properties, giving exposure and driving your property’s SEO in a search result. This robust web-site boosts 36 currency conversions in 18 languages, to ensure that buyers have all the tools they need to purchase investments properties here in the U.S. CENTURY 21 Commercial®, the CENTURY 21 Commercial Logo and C21 Commercial® are registered service marks owned by Century 21 Real Estate LLC. Century 21 Real Estate LLC fully supports the principles of the Fair Housing Act and Equal Opportunity Act. Each office is independently owned and operated. C21 COMMERCIAL® SYNDICATION PARTNERS The C21 Commercial National and C21® Global website attract nearly 500,00 views per month in 2018. C21 Commercial has a growing list of syndicated listing partners, which are vital in getting your properties exposed to specific investment buyers across the country. We also have other listing partners, the listing partners posted here have an API feed from our database, which allows automatic listing feeds for your property. Speed to market is important! SEARCH ENGINE OPTIMIZATION (SEO) FOR YOUR PROPERTIES We have two features we include on every listing. 1. We create a stand alone website for your property listing which is based on the actual street address. We/You can send buyers directly to your Unique Property Site to view all the property features and photos. Our service also includes a Craigslist eFlyer and posting tool to help drive traffic to your site. 2. We also create YouTube videos for your properties. This is a great eResource for buyers to preview your property quickly by viewing a short video and listening to all of the property details while being narrated. Videos sell properties! CENTURY 21 Commercial®, the CENTURY 21 Commercial Logo and C21 Commercial® are registered service marks owned by Century 21 Real Estate LLC. Century 21 Real Estate LLC fully supports the principles of the Fair Housing Act and Equal Opportunity Act. Each office is independently owned and operated. 866 FLATBUSH AVE 866 Flatbush Ave, Brooklyn, NY, 11226 5-YEAR CASH FLOW ANALYSIS Fiscal Year Beginning June 2020 INITIAL INVESTMENT MORTGAGE DATA 1ST LIEN Purchase Price $2,400,000 Loan Amount $1,440,000 + Acquisition Costs $48,000 Interest Rate 4.500% - Mortgage(s) $1,440,000 Amortization Period 30 Years + Loan Fees & Points $14,400 Periodic Payment $7,296 Initial Investment $1,022,400 Annual Debt Service $87,555 CASH FLOW Year 1 Year 2 Year 3 Year 4 Year 5 For the Year Ending May-2021 May-2022 May-2023 May-2024 May-2025 POTENTIAL RENTAL INCOME (PRI) $120,000 $123,600 $127,308 $131,127 $135,061 - Vacancy / Credit Loss $6,000 $6,180 $6,365 $6,556 $6,753 EFFECTIVE RENTAL INCOME $114,000 $117,420 $120,943 $124,571 $128,308 + Other Income $0 $0 $0 $0 $0 GROSS OPERATING INCOME (GOI) $114,000 $117,420 $120,943 $124,571 $128,308 - Operating Expenses $20,000 $20,600 $21,218 $21,855 $22,510 NET OPERATING INCOME (NOI) $94,000 $96,820 $99,725 $102,716 $105,798 NET OPERATING INCOME (NOI) $94,000 $96,820 $99,725 $102,716 $105,798 - Capital Expenses / Replacement Reserves $0 $0 $0 $0 $0 - Annual Debt Service 1st Lien $87,555 $87,555 $87,555 $87,555 $87,555 CASH FLOW BEFORE TAXES $6,445 $9,265 $12,170 $15,161 $18,243 Loan Balance $1,416,770 $1,392,472 $1,367,058 $1,340,477 $1,312,674 Loan-to-Value (LTV) - 1st Lien 73.18% 69.8% 66.56% 63.35% 60.24% Debt Service Coverage Ratio 1.07 1.11 1.14 1.17 1.21 Before Tax Cash on Cash 0.63% 0.91% 1.19% 1.48% 1.78% SALES PROCEEDS INVESTMENT PERFORMANCE Projected Sales Price (EOY 5) $2,179,000 Internal Rate of Return (IRR) N/A Acquisition CAP Rate 3.92% Cost of Sale $108,950 Year 1 Cash-on-Cash 0.63% Mortgage Balance 1st Lien $1,312,674 Gross Rent Multiplier 20.00 Sales Proceeds Before Tax $757,376 Loan to Value 57.31% Debt Service Coverage Ratio 1.07 Samuel Mizrahi, DISCLAIMER: Year 5 sales price based on estimated NOI in year 6. All information is based on estimated forecast and are intended for the purpose of example projections and analysis. The information presented herein is provided as is, without warranty of any President, Commercial kind. Mizrahi Realty nor CRE Tech, Inc. assume any liability for errors or omissions. This information is not intended to replace or serve as substitute for any legal, investment, real estate or other professional advice, consultation or service. Investment Division © Copyright 2011- 2019 CRE Tech, Inc. All Rights Reserved. Mizrahi Realty Phone: (718) 998-5700 Page 10 Email: [email protected] https://samuelmizrahicommercial.c21.com/ 866 FLATBUSH AVE 866 Flatbush Ave, Brooklyn, NY, 11226 5-YEAR CASH FLOW ANALYSIS Fiscal Year Beginning June 2020 ASSUMPTION / INPUTS Purchase Price $2,400,000 Acquisition Costs 2.00% Year 1 Potential Income $120,000 Annual Income Increase 3.00% Vacancy & Credit Loss 5.00% Other Income Increase 3.00% Year 1 Expenses $20,000 Annual Expense Increase 3.00% Acquisition CAP Rate 3.92% Loan Fees & Points 1.00% Sale Price - CAP Rate 5.00% Cost of Sale upon Disposition 5.00% Cash Flow $ 6,445 Investment Performance (%) 73% 4.00 3.92 2.00 0.63 0.00 5% 5% -2.00 17% -4.00 Debt Service Expenses Cash Flow -4.44 -6.00 Vacancy CAP Rate Cash-on-Cash IRR 5-YEAR EQUITY YIELD & EFFECTIVE LOAN RATE Unleveraged Investment Financing Cash Flow Equity Investment Cash Flow & 5-year Yield + & Effective Rate = Cash Flow & 5-year Yield N $ N $ N $ 0 ($2,448,000) 0 $1,425,600 0 ($1,022,400) 1 $94,000 1 ($87,555) 1 $6,445 2 $96,820 2 ($87,555) 2 $9,265 3 $99,725 3 ($87,555) 3 $12,170 4 $102,716 4 ($87,555) 4 $15,161 5 $2,175,848 5 ($1,400,229) 5 $775,619 Property IRR/Yield = 1.05% Effective Loan Rate = 4.70% Equity IRR/Yield = N/A Negative Leverage.