Virtual Tour BIG MILL APARTMENTS 702 N 8th Street, Reading, PA 19604 Class A Product - Fully Redeveloped in 2017 Offering Memorandum NON-ENDORSEMENT & DISCLAIMER NOTICE EXECUTIVE SUMMARY CONFIDENTIALITY & DISCLAIMER Big Mill Apartments The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Investment Overview • Property Overview BIG MILL 04 Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect APARTMENTS FINANCIAL ANALYSIS to the income or expenses for the subject property, the future projected financial performance of the property, the size and square Big Mill Apartments footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business pros- 12 Unit Mix • Operating Expenses pects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. RENT COMPARABLES All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service EXCLUSIVELY LISTED BY: Reading Apartments mark of Marcus & Millichap Real Estate Investment Services, Inc. 20 Comparables Maps • Rent Comparables © 2017 Marcus & Millichap. All rights reserved. COVID-19 NOTICE CRAIG DUNKLE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence MARKET OVERVIEW and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing Vice President Investments Reading Apartments COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries Philadelphia Demographics • Related Press 28 between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, Cell 717.554.4881 contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regula- Office 215.531.7046 tory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections [email protected] and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers License PA RS324418 should be comfortable with and rely solely on their own projections, analyses, and decision-making. NON-ENDORSEMENT NOTICE MHER M. VARTANIAN Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Associate marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or Philadelphia sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, prod- uct, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee Cell 267.664.7118 information about this listing to prospective customers. Office 215.531.7083 [email protected] ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. License PA RS345557 PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. JEREMY RYAN Marcus & Millichap Investment Services of Seattle,Inc - 215-531-0000 Associate BROKER OF RECORD - SEAN BEUCHE LIC. # RB062197C Philadelphia Cell 302.494.4998 Office 215.531.7037 [email protected] License PA RS355231 OFFICES NATIONWIDE AND THROUGHOUT CANADA WWW.MARCUSMILLICHAP.COM INVESTMENT HIGHLIGHTS INVESTMENT OVERVIEW PRIME LOCATION The Dunkle Group of Marcus & Millichap is pleased to present the Big Mill Apartments, ► Convenient Access to Center City located at 702 N 8th St, Reading, PA. The Subject Property, built-in 1904, is a 6-story, Class A Mixed-Use Apartment building that is well managed and most recently renovated ► Walking Distance to Restaurants & Route 422 in 2017. In 2017, the property was also honored with the Pennsylvania Historic Preser- ► 4 Minute Walk to Reading Towne Shopping Center vation Award. ► 3.5 Miles (9 mins) from Reading Regional Airport Every piece of material has been replaced, and every primary mechanical system is reconstructed and installed. The roof has a 20-year warranty and was installed through Liquid Membrane Roofing Systems, allowing an extended warranty program beyond the RECENTLY UPDATED initial 20 years, which currently has 15 years remaining. ► Renovated in 2017 The building’s features and amenities are superb, including a full-scale restaurant for tenants to enjoy, medical office space, and focused retail space. The retail spaces are ► All New Fire Alarm Systems impressive in that they consist of all original hardwood floors and clear span open- Exposed Beams Throughout spaced layouts. The building is made up of high-end features, and one of the building’s ► major attractions is the core pavilion area, which can accommodate outdoor seating and ► Beautiful Maple Wood Flooring events. The property is ideally located within walking distance to the city center and major ameni- VALUE-ADD OPPORTUNITY ties. The property is also conveniently located to several shopping centers, malls, parks, universities, and colleges. This densely populated area lends itself to high occupancy ► Keystone Opportunity Zone Rent Restrictions End April 2021 rates for the subject property. The rents are currently well below market, allowing a new investor a significant opportunity to increase net operating income. ► 27% Increase in Rents in the Next 1-2 Years The property is a true class A asset, and as a result, the overall repair and maintenance ► High Occupancy Rates budget and any future CapEx will be limited for the next 5-7 years. It has a net rentable area of 122,000 SF, with a parcel size of 0.93 Acres. It consists of 57 two (2) bedroom ► Below Market Rents apartments and 12 one (1) bedroom studio apartments with the current average rent at below-market-rate rents due to the Keystone Opportunity Program and related new market and historic tax credit programs. There is currently seven (7) class A commercial UNIT MIX spaces (office & retail) as well. Unit Type Number of Units SF RENTS MARKET RENTS BIG MILL APARTMENTS Important Note: As of April 2021, those restrictions will sunset, and apartment rent can be drastically increased. Base on recent rent studies, the average rent PSF is $1.27; 2 Bed/2 Bath 57 1156 $878 $1,218 however, in this model of the proforma income, we used $1.05 to be conservative (Which Studio/1 Bed/1 Bath 12 488 $448 $429 equates to a 27% purely administrative upside) It is presumed higher rents can be achieved in the near future related to the residential Retail/Office 7 36,194 $34,340 $35,234 Executive Summary cash flow. The only words to describe the asset/offering as-a-whole is impressive... and a must-see. Please contact agents for more information. 5 PROPERTY OVERVIEW COMM. UNITS RES. UNITS LOT SIZE (AC) YEAR REBUILT YEAR BUILT 7 69 0.93 2015 1905 BIG MILL APARTMENTS 702 N 8th St, Reading, PA 19604 OFFERING PRICE NET OPERATING INCOME Unpriced $760,011 PROPERTY INFO Neighborhood Outlet Area MF Parcel 12-5307-60-94-3381 Location Suburban Zoning Office & Residential BUILDING DESCRIPTION Year Renovated 2017 Type 4 Star Mid-Rise Apartments Buildings 1 Stories 6 SCHOOL DISTRICT Elementary Tenth & Green El School 670 Students Middle School Northeast Middle School 931 Students High School Reading Senior High School 3,352 Students COLLEGES Reading Area Community College 1.5 Miles Albright College 1.8 Miles 6 Alvernia University 3.4 Miles PROPERTY DETAILS ON-SITE SECURITY SITE DESCRIPTION SYSTEM Units 76 Residential Units 69 Commercial Units 7 Buildings 1 Stories 6 Year Built 1904/2015/2017 VAULTED CEILINGS Rentable Square Feet (Apt) 71,763 Rentable Square Feet (Retail/Office) 36,194 Total Rentable Area 107,957 Topography Flat Parking 45 Spaces Density Limited, Urban Ownership Fee Simple ON SITE BAR RESTAURANT MECHANICAL HVAC 100% New/Updated Wiring 100% New/Updated COMMON AREA AMENITIES UNIT AMENITIES Fire Protection Fully Sprinklered CONSTRUCTION ► High End Laundry Facilities ► Large Windows - Natural Light Foundation Concrete, Masonry, Steel ► On-site Maintenance ► Great Views Framing Brick, Masonry, Hardwood Beams