BOSTON, MASSACHUSETTS - Boston Realty Advisors

Confidential offering memorandum
prime urban RETAIL OPPORTUNITY
Bo s to n , M a s s a c h u s e tt s
Prime Urban Retail in Uphams Corner
in Boston’s Dorchester Submarket
area retailers
CONTENTS
EXECUTIVE SUMMARY
4
Investment Summary
Property Description
Transaction Guidelines
Deal Highlights
market overview
9
Dorchester
Area Retailers
Demographics
Annual Spending
financial overview
Financial Summary
Rent Roll
Operating Statement
Disclaimer
15
executive summary
750 DUDLEY STREET, DORCHESTER, MA
investment summary
Boston Realty Advisors has been exclusively retained by the ownership of 750-756 Dudley Street.
The asset is located on 4,940 square feet and is improved by 4,320 square of prime urban retail space. The building is offered on an all cash basis.
The building is currently 100% occupied. Retail Space # 1 has a TAW lease with Amado Enterprises. The spaces market rent is between $25-35 PSF.
Retail Space # 2 has a newly executed lease with a local restaurant, Paraiso Restaurant.
The property abuts a municipal parking lot, while the building sits in a busy urban shopping district with ample co-tenancy. Retail co tenancy
includes Foot Locker, Family Dollar, CVS Pharmacy, Rent-A-Center, Aaron Rents, Sovereign Bank and Aaron Rents.
Prime long term investment opportunity or user property.
transaction guidelines
On Page 7, there is a complete overview of the sales process and timeline. Boston Realty Advisors is offering this retail asset for sale at a price of
$1,300,000. All information pertaining to the buildings will be made available in a “document war room” available at www.bradvisors.com.
4
executive summary
750 DUDLEY STREET, DORCHESTER, MA
Property description • retail space #1
Square Footage: 2,140 square feet - delivered vacant at closing
Tenant:
Amado Enterprises, Incorporated
Lease Rate: (Pro Forma Rent, $32 PSF) Rent in Place, $22.43 PSF
Options:
N/A
Lease Expiration:
Tenant in place is Tenant at Will
5
executive summary
750 DUDLEY STREET, DORCHESTER, MA
Property description • retail space #2
Square Footage: 3,000 square feet
Tenant:
Paraiso Restaurant
Lease Rate: $14 PSF, NNN, 50% Pro Rata Share of building
Options:
None
Lease Expiration:
1/1/2021
Additional Information:
72 Hour Right of First Refusal to Purchase
building description
Legal Address:
750-756 Dudley Street, Ownership, Deva Realty Trust
Deed Info:
Suffolk County Registry of Deeds
Existing Ownership:
Fee Simple
Fuel Source: Gas Service, Provided by National Grid
Year Built:
1940
Heating: Gas Boiler
Façade: Brick Masonry
Stories:
One Floor with Basement
Roof: Rubber Membrane
6
executive summary
750 DUDLEY STREET, DORCHESTER, MA
transaction guidelines
In addition to the limitations outlined herein, the Seller reserves the right to accept or reject
any offer at any time and to extend the date for submissions of offers for any reason at its sole
discretion.
DUE DILIGENCE
Investors shall have the opportunity to schedule a site inspection. All asset documents, licensing,
reports, surveys, etc. shall be available upon request.
FINANCING
Boston Realty Advisors has a strong debt team with excellent lender relationships to assist potential
buyers. For further information, please contact our investment sales team.
BUILDINGS ARE SOLD SEPARATE OR TOGETHER
Offers will be entertained and evaluated for both condominium units, either separately and/or
“package offers”. Buildings will convey separately, as the buildings are held in separate entities.
OFFERING PRICE
The asset is being offered at an asking price of $1,300,000. Investors can submit offers in writing.
Your proposal should be delivered to Boston Realty Advisors, Attention: Jason S. Weissman, by
facsimile at 617.395.2715, email at [email protected], or overnight courier to:
Jason S. Weissman
Boston Realty Advisors
745 Boylston Street
Boston, MA 02116
In the interim, the seller is encouraging preemptive offers.
FORM OF PROPOSALS
Prospective purchasers will be required to submit in writing a detailed, non-binding proposal for the
property (“Proposal”). All proposals must include the following:
• Acquisition details including purchase price, deposit, transaction expense responsibility, due
diligence and closing periods.
• Sources of equity for the acquisition and specific discussion on the availability and level of
committed funds at the time of the Proposal.
• A detailed description of the principals of the prospective purchaser including, if applicable, each
member of a consortium formed for the transaction and the single representative to act on their
behalf in connection with their Proposal.
• Any anticipated conditions to execution of the transaction documents including shareholder’s
consent and board, regulatory or other approvals must be attached to the offer. An indication of
the time required to obtain such approvals should be included as well.
EXCLUSIVE SALES AGENT
For further information, please contact the exclusive sales agent, Boston Realty Advisors.
Jason S. Weissman
Founder And Principal
617.850.9608
[email protected]
7
EXECUTIVE SUMMARY
750 DUDLEY STREET, DORCHESTER, MA
DEAL HIGHLIGHTS
Dense Urban Shopping District
The subject property is located in a dense neighborhood shopping district of Boston. National
tenants are looking to penetrate this local market.
Retail Owner Occupancy Potential
Great opportunity for an owner user to purchase their retail space.
Replacement Cost
The buildings can be potentially purchased significantly below replacement cost. Replacement cost
will include land, hard and soft costs, that will be significantly higher than the cost to acquire the
buildings in their existing form.
Uphams Corner Revitalization
The submarket, “Upham’s Corner” Main Street will have a $100M community center delivered this
year, the rail station has had a $7M improvement and the Strand Theater has just had a $6M
renovation.
Success of South Bay
The retail market in Boston has been totally underserved and markets such as Dorchester, Roxbury
and Mattapan have underserved demand of quality retailers. The asset is located just one mile from
South Bay.
South Bay Center
• 445,626 square feet
• Major retailers: OfficeMax, Marshalls, Old Navy, Target,
The Home Depot, Bed Bath & Beyond, TJ Maxx
• Boston’s most accessible shopping center; All of
Boston’s major roadways meet at the South Bay site
• Urban density and demographics in a suburban format
• Over 790,000 people and 33,000 businesses in a 5mile radius
8
market overview
750 DUDLEY STREET, DORCHESTER, MA
market • dorchester
Upham’s Corner is a bustling Boston neighborhood retail district rich
in history and filled with opportunities for innovation. This compact, walkable,
urban village offers restaurants from casual to chic, a newly renovated 1,400-seat
Strand Theatre, a supermarket, three major banks, a large health center, shoes,
clothing, and drug stores, as well as other goods and services.
The commercial district serves a diverse mix of neighborhood residents, commuters,
and employees of nearby businesses. It is easily accessible from I-93 and is
located along a major commuter route into Boston, with people traveling by bus,
Fairmount/Indigo Line, the Red Line, and car. The abundant, free off-street parking
makes Upham’s Corner an easy stop for shopping and services.
The Strand Theatre
The business district is set amid the Victorian homes of Jones Hill and among our
neighboring areas of Savin Hill and Edward Everett Square. The district is also
rich with historical landmarks such as the Strand Theatre, the Dorchester North
Burying Ground, the nation’s second oldest cemetery, and the site of the country’s
first supermarket. The neighborhood has a lively mix of cultures and lifestyles and
is welcoming to new residents moving in, ranging from residents moving from the
South End in search of historic homes to recently settled immigrants.
9
market overview
750 DUDLEY STREET, DORCHESTER, MA
area retailers
10
11
1
2
4
3
6
9
5
7
8
1
Spot Cleaners
Only One Designs
Hermanos Unidos
5
Family Dollar
Upham’s Corner Beauty Supply
Foot Locker
2
Yanet Restaurant
Alexandra Beauty Salon
El Frutero
6
99 Cents Store
MadRag
CVS/Pharmacy
3
T&T Nails
Lee Brothers Liquors
L&M Bargain
7
4
Mario’s Party
New Garden
Jerusalem Furniture
SUBJECT PROPERTY
Tran’s Jewelry
Pacific Insurance Company
Citizens Bank
Upham House of Pizza
Fantasy Nails
H&R Block
Upham Chiropractic
Metro PCS
10
8
Dublin House
Sovereign Bank
Bank of America
United States Postal Service
Strand Theatre
Strand Pharmacy
9
Payless Shoesource
Avalon Law Office
Aaron’s
10
Dunkin Donuts
KFC
11
Super Stop & Shop
Olive Garden
Marshalls
Old Navy
Famous Footwear
Home Depot
Target
Applebees
Marshalls
TJ Maxx
Panera Bread
iParty
market overview
750 DUDLEY STREET, DORCHESTER, MA
demographics
Radius
Population:
2015 Projection
2010 Estimate
2000 Census
Growth 2010-2015
Growth 2000-2010
2010 Population by Hispanic Origin
2010 Population by Race:
White
Black or African American
American Indian and Alaska Native
Asian
Native Hawaiian and Pacific Islanders
Other Race
Two or More Races
2010 Households:
2015 Projection
2010 Estimate
2000 Census
Growth 2010-2015
Growth 2000-2010
Owner Occupied
Renter Occupied
2010 Avg Household Income
2010 Med Household Income
2010 Per Capita Income
2010 Households by Household Inc:
Income Less than $15,00
Income $15,000 - $24,999
Income $25,000 - $34,999
Income $35,000 - $49,999
Income $ 50,000 - $74,999
Income $75,000 - $99,999
Income $100,000 - $149,999
1 Mile
3 Mile
5 Mile
58,911
57,566
55,176
2.30%
4.30%
13,456
388,408
378,273
355,520
2.70%
6.40%
66,782
784.225
767,493
731,730
2.20%
4.90%
122,797
14,068
22,945
325
4,740
44
10,637
4,807
173,917
108,402
1,750
37,306
273
37,388
19,236
419,937
156,982
2,912
87,866
531
62,092
37,171
19,738
19,344
18,921
2.00%
2.20%
5,451
13,893
$54,596
$43,006
$18,547
154,368
150,240
144,208
2.70%
4.20%
43,913
106,327
$75,758
$51,504
$31,242
315,488
308,602
298,915
2.20%
3.20%
105,596
203,006
$83,011
$57,906
$34,400
3,800
1,987
2,120
3,349
3,322
2,228
1,860
25,973
12,739
12,812
21,535
25,974
17,192
20,122
44,645
24,307
24,333
40,690
54,319
38,420
47,818
Income $150,000 and above
11
market overview
750 DUDLEY STREET, DORCHESTER, MA
demographics
POpulation, One Mile radius
12
market overview
750 DUDLEY STREET, DORCHESTER, MA
Annual Consumer Spending
Annual Consumer Spending
Radius
Total Specified Consumer Spending
Apparel:
Total Apparel
Women’s Apparel
Men’s Apparel
Girl’s Apparel
Boy’s Apparel
Infant Apparel
Footwear (excl. Infants)
Other Apparel Prod./Services
Entertainment:
Total Entertainment
Sports and Recreation
TV, Radio, and Sound Equipment
Reading Materials
Travel
Photographic Equipment
Food at Home:
Total Food At Home
Cereal Products
Bread & Bakery Products
Seafood
Meat/Poultry/Fish/Eggs
Dairy Products
Fruits and Vegetables
Food Away from Home:
Total Food Away from Home
Breakfast and Brunch
Lunch
Dinner
Snacks and Non-Alcoholic
Catered Affairs
Alcoholic Beverages
1 Mile
544,884
2010
2 Mile
2,525,619
1 Mile
644,976
2015
2 Mile
3,015,779
3 Mile
5,966,044
3 Mile
7,045,803
21,801
8,364
4,924
1,848
1,531
1,567
3,402
3,567
100,001
38,711
22,781
8,253
6,817
7,283
15,664
16,156
232,244
90,898
53,539
18,729
15,349
17,265
36,575
36,464
25,806
9,901
5,829
2,188
1,812
1,855
4,027
4,222
119,409
46,224
27,203
9,854
8,140
8,696
18,705
19,292
274,277
107,349
63,229
22,119
18,127
20,389
43,195
43,064
52,566
1,826
19,581
2,394
29,119
646
242,540
8,654
90,382
10,993
129,480
3,032
569,576
21,115
210,553
25,595
305,025
7,289
62,222
2,162
23,178
2,834
33,248
764
289,611
10,333
107,923
13,126
154,609
3,620
672,660
24,936
248,660
30,227
360,229
8,608
51,949
3,305
6,527
2,996
17,558
8,050
13,513
235,431
14,961
29,659
13,475
79,505
36,645
61,188
538,871
34,038
68,140
30,562
181,726
84,432
139,973
61,491
3,913
7,726
3,546
20,784
9,528
15,995
281,123
17,864
35,415
16,090
94,935
43,757
73,063
636,399
40,198
80,472
36,094
214,616
99,713
165,306
49,021
5,462
15,896
22,356
3,911
1,397
225,885
24,681
73,438
103,356
18,034
6,376
529,121
56,384
172,101
243,135
42,373
15,149
58,026
6,465
18,815
26,463
4,629
1,653
269,724
29,471
87,690
123,415
21,534
7,614
624,884
66,565
203,249
287,139
50,041
17,890
13
market overview
750 DUDLEY STREET, DORCHESTER, MA
Annual Consumer Spending, Continued
Annual Consumer Spending
Radius
Alcoholic Beverages:
Total Alcoholic Beverages
Total Alcoholic Bev. at Home
Total Alcoholic Bev. away from Home
Furniture and Appliance:
Total Furniture and Appliances
Bedroom Furniture
Living Room Furniture
Other Living & Family Room Furniture
Other Furniture
Major Appliances
Small Appliances
Misc Household Eqiupment
Transportation and Maintenance:
Total Transportation and Maintenance
New Authos/Trucks/Vans
Used Vehicles
RVs and Boats
Gasoline
Diesel Fuel
Automotive Maintenance/Repair
Health Care:
Total Health Care
Medical Services
Presciption Drugs
Medical Supplies
Education and Day Care:
Total Education and Day Care
Education
Room and Board
Tution/School Supplies
Day Care
14
1 Mile
2010
2 Mile
1 Mile
2015
2 Mile
3 Mile
3 Mile
9,335
5,067
4,268
44,040
23,823
20,217
105,828
57,195
48,633
11,050
5,998
5,052
52,587
28,447
24,140
124,981
67,546
57,435
49,134
2,693
4,656
1,023
509
3,874
10,273
26,106
228,716
12,717
21,676
4,832
2,303
17,856
47,898
121,435
542,859
30,454
51,249
11,607
5,397
42,094
114,086
287,971
58,160
3,188
5,511
1,211
602
4,586
12,160
30,902
273,105
15,185
25,882
5,770
2,750
21,321
57,194
145,002
641,108
35,966
60,525
13,708
6,374
49,712
134,734
340,089
111,540
27,885
27,964
2,382
39,053
430
13,825
522,427
131,191
132,033
11,932
181,238
2,094
63,938
1,251,367
316,853
319,321
30,512
428,902
5,246
150,534
132,029
33,007
33,101
2,820
46,226
509
16,365
623,817
156,652
157,657
14,248
216,412
2,501
76,347
1,477,845
374,198
377,113
36,034
506,526
6,195
177,778
20,097
12,582
6,159
2,166
96,447
57,986
28,518
9,944
225,491
136,220
66,133
23,137
24,747
14,894
7,290
2,564
115,166
69,239
34,053
11,874
266,301
160,873
78,103
27,325
44,217
19,871
1,387
17,841
5,118
205,812
92,403
6,445
82,854
24,110
491,293
220,276
15,262
197,321
58,434
52,340
23,522
1,641
21,118
6,059
245,755
110,337
7,695
98,934
28,789
580,209
260,142
18,024
233,033
69,010
financial overview
750 DUDLEY STREET, DORCHESTER, MA
operating statEment
For Years Ending
Year 1
2011
Year 2
2012
Year 3
2013
Year 4
2014
Year 5
2015
Gross Rental Revenue
Vacancy/Credit Loss
Effective Gross Revenue
Tenant Reimbursable
Net Revenue
Expenses
Utilities
Electricity
Water & Sewer
Gas
Total Utilities
Repairs & Maintenance
Total Repairs & Maintenance
Other Expenses
Property Taxes
Insurance
Property Mgmt. & Admin.
Administration
MSC
Total Other Expenses
$110,480
$8,838
$101,642
$49,195.00
$150,837
$112,690
$9,015
$103,674
$50,670.85
$163,360
$114,943
$9,195
$105,748
$52,190.98
$167,134
$117,242
$9,379
$107,863
$53,756.70
$170,999
$119,587
$9,567
$110,020
$55,369.41
$174,957
$3,500
$5,000
$10,000
$18,500
$5,000
$5,000
$3,605
$5,150
$10,300
$19,055
$5,150
$5,150
$3,713
$5,305
$10,609
$19,627
$5,305
$5,305
$3,825
$5,464
$10,927
$20,215
$5,464
$5,464
$3,939
$5,628
$11,255
$20,822
$5,628
$5,628
$13,195
$3,500
$5,000
$2,000
$2,000
$25,695
$13,591
$3,605
$5,150
$2,060
$2,060
$26,466
$13,999
$3,713
$5,305
$2,122
$2,122
$27,260
$14,419
$3,825
$5,464
$2,185
$2,185
$28,078
$14,851
$3,939
$5,628
$2,251
$2,251
$28,920
Total Building Expenses
$49,195
$50,671
$52,191
$53,757
$55,369
Net Operating Income
$101,642
$112,690
$114,943
$117,242
$119,587
15
financial overview
750 DUDLEY STREET, DORCHESTER, MA
Rent Roll
Tenant
Name
Sq. Footage Pro Rata
FRONT RETAIL New Tenant 2140
REAR RETAIL Ladies
3000
Lounge
Total Rental
5140
Income
Income Approach
Cap Rate Range
6.00%
6.50%
7.50%
8.00%
8.50%
Operating Expenses
Real Estate Taxes
Insurance
Total Utilities
Repairs and Maintenance`
Management & Admin
16
Montly
Rent
Actual Per
Annum
Per
Lease
Sq. Ft. Expiration
Rent
2013
2014
2015
50.00%
50.00%
$5,707
$198
$68,480
$42,000
$32
$14
$69,849.60
$42,840.00
$71,246.59
$43,696.80
$72,671.52
$44,570.74
100.00%
$5,905
$110,480
$112,690
$114,943
$117,242
N/A
1/1/2021
Net Operating Income
$1,694,027
$1,563,717
$1,355,221
$1,270,520
$1,195,784
Per Annum Amounts
$13,195
$3,500
$18,500
$5,000
$5,000
Price Per Square Foot
$329.58
$304.23
$263,66
$247.18
$232.64
% of EGR
8.7%
2.3%
12.3%
3.3%
3.3%
Total $/PSF
$2.57
$0.68
$3.60
$0.97
$0.97
financial overview
750 DUDLEY STREET, DORCHESTER, MA
disclosures
The information furnished in the Boston Realty Advisors (“BRA”) Offering Memorandum (“OM”) is highly confidential of nature and has privileged content. It has been furnished
solely to the purchaser for the purposes of evaluating the potential acquisition of 750 Dudley Street in Boston, Massachusetts.
The OM should not be distributed or made available to persons who have not executed in writing or completed our on-line confidentially agreement. The OM is the property of BRA
and shall not be reproduced or distributed without the prior written consent of BRA.
The OM is subject to prior replacement, errors, omissions, changes or withdrawal WITHOUT notice. BRA will not be held responsible for any errors or omissions. Purchasers should
evaluate the opportunity with their own assumptions, underwriting and building inspections. Purchasers should rely upon its own investigation, evaluation, judgment as to the feasibility of a purchase of the subject properties. BRA makes no claims of value and is not an appraiser. Purchasers should not rely on forward making predictions and or the accuracy
of market comps and/or market data provided.
BRA and Owner makes no representation or warranty as to the accuracy or completeness of the information provided herein. Any prospective purchaser will rely on its own independent evaluation and underwriting pertaining to the acquisition of the properties. Prospective purchasers should make their own projections, assumptions and conclusions regarding
the subject properties. Purchasers should conduct their own due diligence, including environmental and engineering inspections. Purchasers should determine the condition of the
property and the potential existence of hazardous material used in the construction or on-going maintenance of the properties.
The OM is the property of BRA. The OM shall not be used by third parties, unless they are approved by BRA. By accepting the OM, the purchaser agrees to immediately return the
OM to BRA upon request. The purchaser agrees to not contact the properties tenants directly or indirectly, without prior written notice.
Cooperating brokers who are participating in the sales process are not representing the Owner. Cooperating brokers shall not advertise the properties for sale in print, on-line or
with mass email distribution.
contact
Jason S. Weissman
Founder And Principal
617.850.9608
[email protected]
17
financial overview
750 DUDLEY STREET, DORCHESTER, MA
notes
18
www.bradvisors.com
Selling Commercial Real Estate
throughout New England & New York since 2001