executive summary - Boston Realty Advisors

Confidential offering memorandum
Beacon Hill RETAIL OPPORTUNITY
B o s t o n , M a s s a c hu s e tt s
Two Two
PrimePrime
Retail
Condominiums
For For
Sale Sale
Retail
Condominiums
125 Charles
Street
125 Charles
Street
CondosCondos
offeredoffered
for Sale
or Sold
Package
for Individually
Sale Individually
or as
Solda as
a Package
CONTENTS
EXECUTIVE SUMMARY
3
Condominium Overview
market overview
9
Area Retailers
Beacon Hill & Boston
Demographics
financial overview
Financial Summary
Rent Roll
Operating Statement
Cash Flow Summary
Real Estate Tax and Assessment
Disclaimer
15
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
10
9
8
7
6
5
4
3
1
1
2
3
Sovereign Bank
A Room with A Vieux
Upper Crust
Bin 26 Enoteca
Evergreen
Cafe Bella Vita
Starbucks
Deluca’s Market
The Ruby Door
Charles St Cleaners
Beacon Hill Hotel
J. McLaughlin
E.R. Butler
Core de Vie
Figs
The Paramount
Blackstone’s of Beacon Hill
Linens on the Hill
Charles Street Supply Co.
Flat of the Hill
7-Eleven
4
5
6
2
Beauty Mark
Anton’s Cleaners
Charles Street Laundrette
Toscano
Wish
Moxie
Gary Drug
Nino’s Pizza
Elegant Antiques
Artu
Beacon Hill Chocolates
Pinckney Nails
7
Cafe Vanille
Eugene Galleries
Second Time Around
Charles Street Inn
Good
Polly Latham Antiques
Eskil
Boston Art & Framing
Helen’s Leather Shop
Lauren’s Nails
Cibelline
Churchill & White
8
Beacon Hill Wine & Spirits
Naha’s Shoes
Red Wagon
The Hungry I
20th Century Ltd Goods
Sevens Ale House
Starbucks
Bridge Antiques
Black Ink
Four Preppy Paws
Rugg Road Paper
Clevergreen Cleaners
Baranzelli Silk Surplus
9
Marika’s Antiques
US Post Office
Panaficio
Charles Street Garage
Charles Street Animal Clinic
Savenor’s Market
10
Boston Running Co.
Period Furniture & Hardware
SUBJECT PROPERTY
Crown Cleaners
Crush Boutique
Pixie Stix
UPS Store
Charles Street Liquors
King & I
Beacon Hill Pub
Beacon Hill Cleaners
executive summary
BEACON HILL CONDO OPPORTUNITIES
investment summary
Boston Realty Advisors has been exclusively retained by 125 Charles LLC., to
sell two prime retail condominiums in Boston’s Beacon Hill. The units can be
sold individually or together.
Charles Street in Beacon Hill is a six block street filled with boutique retail
and residential apartments and condominiums. The street is a national/
international tourist attraction.
There is impressive retailer demand for retail storefronts on Charles Street.
Many retail tenants have been priced out of Newbury Street, and they are
electing to lease on Charles Street as a Newbury Street alternative.
The spaces are both occupied; however, an opportunity exists for an
owner/user to purchase the spaces.
The building was completely gutted to the studs in 2009.
Improvements include new:
• Roof
• Plumbing
• Heating System
• Window System
• Electrical System
• Masonry
transaction guidelines
On Page 8, there is a complete overview of the sales process and timeline. Boston Realty Advisors is offering these retail assets, separately or all
together. The properties have not been priced. In late December or January 2011, there will be a call for offers. Buyers have the ability to preempt
the offering process, as all offers will be presented to the selling entity. All information pertaining to the buildings will be made available in a
“document war room” available at www.bradvisors.com
3
executive summary
BEACON HILL CONDO OPPORTUNITIES
Property details • 125 Charles street #C-1
4
Square Footage: 973 square feet
Condo Fee:
$3,330 Per Annum
Taxes:
$10,532 Per Annum
Tenant:
Uncle Pete’s • Local Retailer, Men’s Apparel Boutique www.unclepetesshop.com
Lease Rate: $55 Per Square Foot or $54,000 Per Annum, NNN
Options:
None
Lease Expiration:
9/30/2011
executive summary
BEACON HILL CONDO OPPORTUNITIES
floor plan • 125 Charles street #C-1
BUILDING INFORMATION
Fuel Source: Gas Service, Provided by National Grid
Year Built:
1899
Year Renovated: 2009
Heating: Gas Boiler
Façade: Brick Masonry
Stories:
5
Roof: Rubber Membrane
5
executive summary
BEACON HILL CONDO OPPORTUNITIES
Property details • 125 Charles street #C-B
Square Footage: 1,100 square feet
Condo Fee:
$2,904 Per Annum
Taxes:
$9,576 Per Annum
Tenant:
BOS TAN • Tanning Salon
bostanoncharles.com
Lease Rate: $38 Per Square Foot or $42,000 Per Annum, NNN
Options:
None
Lease Expiration:
9/30/2014
Expense Caps:
6
executive summary
BEACON HILL CONDO OPPORTUNITIES
floor plan • 125 Charles street #C-B
7
executive summary
BEACON HILL CONDO OPPORTUNITIES
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.
CALL FOR OFFERS
A call for offers will be held in January 2011. Investors will be notified about the date by separate
email. 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, non-refundable deposit, and closing period.
• 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.
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]
8
market overview
9
10
11
2
3
12
8
4
market overview
1
1
2
3
CVS/Pharmacy
Top Shelf
The Spotted Apron
Cambridge Nails
Harvard Gardens
Best Buy Gas
Villa Mexico Cafe
Antonio’s
Fresco Flowers
Felcaro Pizzeria
Pierrot Bistrot Francais
White Hen Pantry
Discoveries Plus II
Mike’s Movies
Anna’s Taqueria
4
Phoenicia
The Hill Tavern
Starbucks
5
Simmons Liquors
6
Venice Cafe
Boston Fire Dept
Beantown Nail Spa
7
American Dry Cleaners
Jobi Liquors
Beacon Hill Athletic Club
Ma Soba
8
Liberty Hotel
Clink
Alibi
9
Massachusetts General Hospital
10
11
Finagle A Bagel
Gulf
Holiday Inn
Au Bon Pain
Dollar Rent A Car
Sarni Cleaners
Pro Optical
12
Whole Foods
CVS/Pharmacy
BoYO Frozen Yogurt
Boston West End Library
5
6
7
market overview
BEACON HILL CONDO OPPORTUNITIES
AREA RETAILERS
RETAILERS • CHARLES STREET & CAMBRIDGE STREET
ART & ANTIQUES
20th Century Ltd Goods
A Room with A Vieux
Bridge Antiques
Elegant Antiques
Marika’s Antiques
Polly Latham Antiques
Boston Art & Framing
Eugene Galleries
BANKS & CONVENIENCE
Bank of America
Sovereign Bank
7-Eleven
Best Buy Gas
US Post Office
UPS Store
Gulf
SALONS
Beantown Nail Spa
Beauty Mark
Cambridge Nails
Discoveries Plus II
Lauren’s Nails
Pinckney Nails
CLEANERS
American Dry Cleaners
Anton’s Cleaners
Beacon Hill Cleaners
Charles St Cleaners
Charles Street Laundrette
Clevergreen Cleaners
Crown Cleaners
Evergreen
Sarni Cleaners
RESTAURANTS
Anna’s Taqueria
Antonio’s
Artu
Au Bon Pain
Bin 26 Enoteca
BoYO Frozen Yogurt
Clink
Felcaro Pizzeria
Figs
Finagle A Bagel
Harvard Gardens
King & I
Ma Soba
Nino’s Pizza
Phoenicia
Pierrot Bistrot Francais
The Hungry I
The Paramount
The Spotted Apron
Toscano
Upper Crust
Venice Cafe
Villa Mexico Cafe
HOTELS
Beacon Hill Hotel
Charles Street Inn
Holiday Inn
Liberty Hotel
RETAIL SHOPS
Beacon Hill Chocolates
Black Ink
Blackstone’s of Beacon Hill
Boston Running Co.
E.R. Butler
Flat of the Hill
Four Preppy Paws
Fresco Flowers
Helen’s Leather Shop
J. McLaughlin
Linens on the Hill
Mike’s Movies
Period Furniture & Hardware
Pixie Stix
Pro Optical
Red Wagon
Rugg Road Paper
The Ruby Door
Wish
CLOTHING BOUTIQUES
Churchill & White
Cibelline
Core de Vie
Crush Boutique
Eskil
Good
Moxie
Naha’s Shoes
Second Time Around
PHARMACY
CVS/Pharmacy
Gary Drug
GROCERY
Deluca’s Market
Savenor’s Market
White Hen Pantry
Whole Foods
BARS & LIQUOR STORES
Beacon Hill Wine & Spirits
Charles Street Liquors
Jobi Liquors
Simmons Liquors
Top Shelf
Alibi
Beacon Hill Pub
Sevens Ale House
The Hill Tavern
CAFES
Cafe Bella Vita
Cafe Vanille
Panaficio
Starbucks
9
market overview
BEACON HILL CONDO OPPORTUNITIES
market • beacon hill
Beacon Hill is a historic neighborhood of Boston,
Massachusetts, that along with the neighboring Back Bay
is home to about 26,000 people. It is a neighborhood
of Federal-style rowhouses and is known for its narrow,
gas-lit streets and brick sidewalks. Today, Beacon Hill
is regarded as one of the most desirable and expensive
neighborhoods in Boston. The Beacon Hill area is located
just north of Boston Common and the Boston Public Garden
and is bounded generally by Beacon Street on the south,
Somerset Street on the east, Cambridge Street to the north
and Storrow Drive along the riverfront of the Charles
River Esplanade to the west. The block bounded by Beacon,
Tremont and Park Streets is included as well, as is the
Boston Common itself. The level section of the neighborhood
west of Charles Street, on landfill, is known locally as the
“Flat of the Hill”, this is where the subject properties are
located.
Institutions
Institutions in Beacon Hill include Mass General Hospital,
Mass Eye and Ear and Suffolk University. Additionally, both
the State House and City Hall are located just under ¼ of
a mile from the subject properties.
market • bOSTON
According to the 2000 United States Census there were
589,141 people, 239,528 households, and 115,212 families
residing in the city. The population density was 12,166
people per square mile (4,697/km²). Of major US cities only
New York City, and San Francisco have a greater population
density than Boston. There were 251,935 housing units at
an average density of 5,203 per square mile (2,009/km²).
The 2009 U.S. Census population estimate for the city is
645,169, a 8.7% increase from 2000. During weekdays,
the population of Boston can grow during the daytime
to over 1.2 million, and can reach as many as 2 million
during special events. This fluctuation of people is caused
by hundreds of thousands of suburban residents who travel
to the city for work, education, health care, and special
events.
10
In the city, the population was spread out with 19.8%
under the age of 18, 16.2% from 18 to 24, 35.8% from
25 to 44, 17.8% from 45 to 64, and 10.4% who were 65
years of age or older. The median age was 31 years. For
every 100 females, there were 92.8 males. For every 100
females age 18 and over, there were 90.2 males. There
were 239,528 households, of which 22.7% had children
under the age of 18 living in them, 27.4% were married
couples living together, 16.4% had a female householder
with no husband present, and 51.9% were non-families.
37.1% of all households were made up of individuals and
9.1% had someone living alone who was 65 years of age
or older. The average household size was 2.31 and the
average family size was 3.17.
market overview
BEACON HILL CONDO OPPORTUNITIES
demographics
Population for 1 Mile Radius
population
• 02114
one mile radius
58-60
Charles St, Boston, MA
Population
1 Mile
2009 Total Population: 53,892
Pop Growth 2009-2014:
0.80%
Per Capita Income: $70,824
Average Age:
40.20
Households
2009 Total Households: 30,045
HH Growth 2009-2014:
1.00%
Median Household Inc: $81,041
Avg Household Size:
1.61
Avg HH Vehicles:
.70
Avg Travel Time - Wrk: 22 min
Housing
Median Housing Value: $617,731
Median Year Built:
1940
3 Mile
410,141
1.00%
$38,778
35.50
5 Mile
874,853
0.60%
$36,036
36.20
176,976
1.20%
$57,636
2.09
.80
26 min
365,321
0.90%
$59,465
2.25
1.00
28 min
$399,359
1940
$366,776
1940
3 Mile
410,141
1.00%
$38,778
35.50
5 Mile
9/11/2010
874,853
0.60%
$36,036
36.20
176,976
1.20%
$57,636
2.09
.80
26 min
365,321
0.90%
$59,465
2.25
1.00
28 min
$399,359
1940
$366,776
1940
Consumer Spending Totals for 1 Mile Radius
consumer
58-60
Charles St, Boston,spending
MA 02114
Population
1 Mile
2009 Total Population: 53,892
This copyrighted report contains research licensed to Boston Realty Advisors - 65561.
Pop Growth 2009-2014:
0.80%
Per Capita Income: $70,824
Average Age:
40.20
Households
2009 Total Households: 30,045
HH Growth 2009-2014:
1.00%
Median Household Inc: $81,041
Avg Household Size:
1.61
Avg HH Vehicles:
.70
Avg Travel Time - Wrk: 22 min
Housing
Median Housing Value: $617,731
Median Year Built:
1940
This copyrighted report contains research licensed to Boston Realty Advisors - 65561.
11
9/11/2010
market overview
BEACON HILL CONDO OPPORTUNITIES
demographics
12
market overview
BEACON HILL CONDO OPPORTUNITIES
demographics • daytime employment
13
market overview
BEACON HILL CONDO OPPORTUNITIES
demographics
Housing Values for 1 Mile Radius
housing
value,
58-60
Charles St, Boston,
MA 02114city of boston
Population
1 Mile
2009 Total Population: 53,892
Pop Growth 2009-2014:
0.80%
Per Capita Income: $70,824
Average Age:
40.20
Households
2009 Total Households: 30,045
HH Growth 2009-2014:
1.00%
Median Household Inc: $81,041
Avg Household Size:
1.61
Avg HH Vehicles:
.70
Avg Travel Time - Wrk: 22 min
Housing
Median Housing Value: $617,731
Median Year Built:
1940
This copyrighted report contains research licensed to Boston Realty Advisors - 65561.
14
3 Mile
410,141
1.00%
$38,778
35.50
5 Mile
874,853
0.60%
$36,036
36.20
176,976
1.20%
$57,636
2.09
.80
26 min
365,321
0.90%
$59,465
2.25
1.00
28 min
$399,359
1940
$366,776
1940
9/11/2010
financial overview
financial overview
financial overview
BEACON HILL CONDO OPPORTUNITIES
125 Charles Street • Retail Condominium Overview
For Year Beginning 10/2011
Total SF:
Base Rental Revenue
C-1
C-B
Potential Gross Revenue
Vacancy/Credit Loss
Net Rental Revenue
Remibursable Rent
Condo Fee
Taxes
Tenant Name
Square Footage
Price Per Square Foot
Actual Per Annum
Condo Fee Taxes
Lease Term
2,073
Uncle Pete's
Bos Tan, Inc.
$
3%
93,120
$
$
6,204
20,108
$
$
973 $
1,100 $
2.99
9.70
Total Reimbursable Rent
$
26,312
$
12.69
Effective Gross Rent
$
119,432
$
57.61
$
$
$
1.39
0.71
0.24
55
38
Cap Rate Sensitivity Analysis
6%
6.50%
7%
7.50%
8%
$1,471,000
$1,357,846
$1,260,857
$1,176,800
$1,103,250
$
$
$
$
54,000
42,000
96,000
2,880
$
$
3,300
2,904
$ 10,532
$ 9,576
11/1/2009-9/30/2011
9/1/2009-9/30/2014
PricePerSquareFoot
$710
$655
$608
$568
$532
Non-Recoverable Expenses (Landlord Paid)
Management Fee - 3%
Lessor paid taxes
Lessor paid condo fees
$
2,880.00
Net Operating Income
$88,260.00
$1,476.00
$504.00
15
financial overview
BEACON HILL CONDO OPPORTUNITIES
125 Charles street • Operating Statement & Projections
For Year Beginning 10/2011
Total SF:
Base Rental Revenue
C-1
C-B
Tenant Name
Square Footage
Uncle Pete's
Bos Tan, Inc.
973
1,100
Price/PSF
FY 2011
FY 2012
FY 2013
FY 2014
2,073
$
$
54,000
42,000
$ 56,160 $58,406 $60,743
$
43,680
$
43,680
$
43,680
$
96,000
$
99,840
$
102,086
$
104,423
$
2,880
$
2,995
$
3,063
$
3,133
Remibursable Rent
Condo Fee
Taxes
$
$
6,204
20,108
$
$
6,390
20,711
$
$
6,390
20,711
$
$
6,390
20,711
Total Reimbursable Rent
$ 26,312 $ 27,101 $27,101 $27,101
Potential Gross Revenue
Vacancy/Credit Loss
3%
$
$
55
38
Effective Gross Rent
Non-Recoverable Expenses (Landlord Paid)
Management Fee - 3%
Lessor paid taxes
Lessor paid condo fees
$2,880.00 $2,995.20 $ 3,062.59 $ 3,132.68
$ 1,476 $ 1,520 $1,566 $ 1,613
$ 504.00 $ 519.12 $534.69 $550.73
Net Operating Income
$ 88,260 $ 91,810 $93,861 $95,994
16
financial overview
BEACON HILL CONDO OPPORTUNITIES
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 125 Charles Street, Unit(s) C-1 and/or C-B 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
BEACON HILL CONDO OPPORTUNITIES
notes
18
www.bradvisors.com
Selling Commercial Real Estate
throughout New England & New York since 2001