80 pickett district

Contact:J. Michael StrunaOwner / BrokerPhone : 203-733-1290Email : [email protected]

80 Pickett DistrictRoad80 Pickett District RoadNew Milford, CT 06776

The ARC logo is a service mark of Advantage Realty, Inc companies in Connecticut and Florida in the United States of America. All other marks displayed onthis document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement.©Copyright 2011-2020 CRE Tech, Inc. All Rights Reserved.

TABLE OF CONTENTSTABLE OF CONTENTS

Page 1

PROPERTY INFO & DISCLAIMER

PROPERTY PHOTOS

PROPERTY DESCRIPTION

INVESTMENT ANALYSIS - 5 YEAR BEFORE TAX

DEMOGRAPHIC ANALYSIS

AERIAL & LOCATION REPORT

RESUME/BIO

2

3

8

9

18

23

25

The ARC logo is a service mark of Advantage Realty, Inc companies in Connecticut and Florida in the United States ofAmerica. All other marks displayed on this document are the property of their respective owners, and the use of such logosdoes not imply any affiliation with or endorsement.©Copyright 2011-2020 CRE Tech, Inc. All Rights Reserved.

80 PICKETTDISTRICT ROAD

PROPERTYINFO:

PURCHASE PRICE:$5,250,000

PROPERTY ADDRESS:80 PICKETT DISTRICT ROADNEW MILFORD, CT 06776

YEAR BUILT:1956

PROPERTY SIZE63,567 SQ. FT.

LAND SIZE8.00 ACRES

Page 2

COMPANY DISCLAIMERAdvantage Realty Commercial (ARC) has obtained this information from sourcesbelieved reliable. We have not verified this information and make no guarantee,warranty, or representation about it. Any projections, opinions, assumptions, orestimates used are for example only and do not represent the current or futureperformance of the property. You and your advisers should conduct a careful,independent investigation of the property and the information provided here todetermine to your satisfaction the suitability of the property as an investment thatcan fit your needs. The photos herein are the property of their respective ownersand the use of these images without the express written consent of the owner isprohibited. The ARC logo is a service mark of Advantage Realty, Inc companies inConnecticut and Florida in the United States of America. All other marks displayedon this document are the property of their respective owners, and the use of suchlogos does not imply any affiliation with or endorsement.©Copyright 2011-2020 CRE Tech, Inc. All Rights Reserved.

PROPERTY PHOTOSPROPERTY PHOTOS

Page 3The ARC logo is a service mark of Advantage Realty, Inc companies in Connecticut and Florida in the United States of America. All other marks displayed on this document arethe property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement.©Copyright 2011-2020 CRE Tech, Inc. All Rights Reserved.

PROPERTY DESCRIPTIONPROPERTY DESCRIPTIONINVESTMENT SALE at $5,250,000 - 7.40% Cap Rate - 9 to12% Cash on Cash over 5Yrs. This 63,967 s.f. industrial building built in 1956 on 8 acres. Edelman LeatherCompany (a subsidiary of Knoll, Inc.) is the anchor Tenant for 15 years and has 4.5years remaining on its latest lease extension. The building is fully sprinklered andhas HVAC. There are also approximately 7,100 s.f. currently available for lease at$5.95 s.f. NNN. The 2020 Per Forma estimates the NOI at $373,181.

The property has 700' of frontage and 500’ deep on Pickett District Road and islocated adjacent to Kimberly Clark. The roof age is estimated at 12 years. Ceilingheight in warehouse areas estimated at 18'. The building has public water, septic,and gas. The current taxes are $42,022 for the 2019-2020 tax year and annualexpenses estimated at $2.50 s.f. Potential 40,000 building expansion dependingon the use. The site has excellent on-site paved parking for fleet vehicles, trucks,and employee cars.

80 Pickett District RoadNew Milford CT 06776


INITIAL INVESTMENTPurchase Price $5,250,000 + Acquisition Costs $105,000 - Mortgage(s) $3,675,000 + Loan Fees Points $36,750 Initial Investment $1,716,750

MORTGAGE DATA 1ST LIENLoan Amount $3,675,000 Interest Rate (30/360) 4.000% Amortization Period 25 Years Loan Term 25 Years Loan Fees Points 1.00% Periodic Payment $19,398.00 Annual Debt Service $232,776

CASH FLOW

For the Year EndingYear 1

Dec-2021Year 2

Dec-2022Year 3

Dec-2023Year 4

Dec-2024Year 5

Dec-2025POTENTIAL RENTAL INCOME (PRI) Base Rental Income $387,140 $398,754 $410,717 $427,287 $441,066 - Turnover Vacancy $0 $0 $0 $0 $0 - Rent Concessions $0 $0 $0 $0 $0 Total Base Rental Income $387,140 $398,754 $410,717 $427,287 $441,066 - General Vacancy / Credit Loss $0 $0 $0 $0 $0 EFFECTIVE RENTAL INCOME $387,140 $398,754 $410,717 $427,287 $441,066 + Tenant Expense Reimbursements $144,296 $145,739 $147,197 $149,109 $150,600 + Other Income $0 $0 $0 $0 $0 GROSS OPERATING INCOME (GOI) $531,436 $544,493 $557,914 $576,396 $591,666 - Operating Expenses $143,026 $144,456 $145,901 $147,360 $148,833 NET OPERATING INCOME (NOI) $388,410 $400,037 $412,013 $429,036 $442,833

NET OPERATING INCOME (NOI) $388,410 $400,037 $412,013 $429,036 $442,833 - Capital Expenses / Replacement Reserves $0 $0 $0 $0 $0 - Annual Debt Service 1st Lien $232,776 $232,776 $232,776 $232,776 $232,776 - Tenant Improvements (TI) $0 $0 $0 $0 $0 - Leasing Commissions (LC) $0 $0 $0 $0 $0 CASH FLOW BEFORE TAXES $155,634 $167,261 $179,237 $196,260 $210,057

Loan Balance $3,587,634 $3,496,708 $3,402,078 $3,303,593 $3,201,095 Loan-to-Value (LTV) - 1st Lien 71.75% 67.9% 63.44% 59.69% 56.06% Debt Service Coverage Ratio 1.67 1.72 1.77 1.84 1.90 Before Tax Cash on Cash 9.07% 9.74% 10.44% 11.43% 12.24%

SALES PROCEEDSProjected Sales Price (EOY 5) $5,710,000

Cost of Sale $285,500 Mortgage Balance 1st Lien $3,201,095

Sales Proceeds Before Tax $2,223,405

INVESTMENT PERFORMANCEInternal Rate of Return (IRR) 14.76% Acquisition CAP Rate 7.40% Year 1 Cash-on-Cash 9.07% Gross Rent Multiplier 13.56 Loan to Value 66.35% Debt Service Coverage Ratio 1.67

80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 067765-YEAR CASH FLOW ANALYSIS

Fiscal Year Beginning January 2021

Page 9

DISCLAIMER: Year 5 sales price based on estimated NOI in year 6. All information is based on estimated forecast and are intendedfor the purpose of example projections and analysis. The information presented herein is provided as is, without warranty of any

kind. Advantage Realty Of Florida, LLC. nor CRE Tech, Inc. assume any liability for errors or omissions. This information is notintended to replace or serve as substitute for any legal, investment, real estate or other professional advice, consultation or service.The ARC logo is a service mark of Advantage Realty, Inc companies in Connecticut and Florida in the United States of America. Allother marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any

affiliation with or endorsement.

© Copyright 2011- 2020 CRE Tech, Inc. All Rights Reserved.

J. Michael Struna, Owner /BrokerAdvantage Realty Of Florida, LLC.Phone: 203-733-1290Email: [email protected] Bonita Bay Blvd., Bonita Springs FL 34134

http://www.advantagerealtyinc.com

Suite/Unit Tenant RentableArea(Sq. Ft.)

LeaseStart Date

LeaseEnd Date

Initial LeaseTerm

(Months)

CurrentMonthlyRate PerSq. Ft.

CurrentAnnual

Rate PerSq. Ft.

Current YearAnnual

Base Rent

1 Edelman Leather, LLC 56,467.00 Jan-20 Aug-24 56 $0.51 $6.11 $344,895 2 Vacant - Brokers Estimate 7,100.00 Jan-21 Dec-25 60 $0.50 $5.95 $42,245

Total Amount 63,567.00 $387,140

80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776TENANT RENT ROLL


Page 10







Tenant Occupancy Edelman Leather, LLC (88.83%) Vacant - Brokers Estimate (11.17%)



Page 11







Rate Per Square Feet

Annualized Rate$0.00 $2.00 $4.00 $6.00 $8.00 $10.00

Suite

/Uni

t

1

2

$6.11

$5.95



Page 12







For the Year Ending Year 1Dec-2021

Year 2Dec-2022

Year 3Dec-2023

Year 4Dec-2024

Year 5Dec-2025

1 Edelman Leather, LLC Base Rent $344,895 $355,242 $365,899 $381,125 $393,519 - Turnover Vacancy $0 $0 $0 $0 $0 - Rent Concessions $0 $0 $0 $0 $0

+ Tenant Exp Reimb. $128,321 $129,604 $130,901 $132,650 $133,977 Net Tenant Income $473,216 $484,846 $496,799 $513,775 $527,495 Tenant Improvements (TI) $0 $0 $0 $0 $0 Leasing Commission (LC) $0 $0 $0 $0 $0

For the Year Ending Year 1Dec-2021

Year 2Dec-2022

Year 3Dec-2023

Year 4Dec-2024

Year 5Dec-2025

2 Vacant - Brokers Estimate Base Rent $42,245 $43,512 $44,818 $46,162 $47,547 - Turnover Vacancy $0 $0 $0 $0 $0 - Rent Concessions $0 $0 $0 $0 $0

+ Tenant Exp Reimb. $15,975 $16,135 $16,296 $16,459 $16,624 Net Tenant Income $58,220 $59,647 $61,114 $62,621 $64,171 Tenant Improvements (TI) $0 $0 $0 $0 $0 Leasing Commission (LC) $0 $0 $0 $0 $0

TOTAL Base Rent $387,140 $398,754 $410,717 $427,287 $441,066 -Turnover Vacancy $0 $0 $0 $0 $0 -Rent Concessions $0 $0 $0 $0 $0 + Tenant Exp Reimb. $144,296 $145,739 $147,197 $149,109 $150,600 Total Tenant Income $531,436 $544,493 $557,913 $576,396 $591,666 Tenant Improvements (TI) $0 $0 $0 $0 $0 Leasing Commission (LC) $0 $0 $0 $0 $0

80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776ANNUAL TENANT INCOME DETAIL


Page 13







5-YEAR EQUITY YIELD & EFFECTIVE LOAN RATE

Unleveraged Investment

Cash Flow & 5-year YieldN $

0 ($5,355,000)

1 $388,410

2 $400,037

3 $412,013

4 $429,036

5 $5,867,333

+Financing Cash Flow

& Effective RateN $

0 $3,638,250

1 ($232,776)

2 ($232,776)

3 ($232,776)

4 ($232,776)

5 ($3,433,871)

=Equity Investment

Cash Flow & 5-year YieldN $

0 ($1,716,750)

1 $155,634

2 $167,261

3 $179,237

4 $196,260

5 $2,433,462

ASSUMPTION / INPUTSPurchase Price $5,250,000 Year 1 Potential Income $387,140 Vacancy & Credit Loss 0.00% Year 1 Expenses $143,026 Acquisition CAP Rate 7.40% Sale Price - CAP Rate 8.00%

Acquisition Costs 2.00% Annual Income Increase 0.00% Other Income Increase 0.00% Annual Expense Increase 1.00% Loan Fees Points 1.00% Cost of Sale upon Disposition 5.00%

Property IRR/Yield = 7.92% Effective Loan Rate = 4.19% Equity IRR/Yield = 14.76%

Positive Leverage! Leverage INCREASED the Yield by 6.84%

43.80%

0.00%

29.29%

0.00%

26.91%

Cash Flow $ 155,634

Vacancy Expenses CapX / ReservesDebt Service Cash Flow

0.00

3.00

6.00

9.00

12.00

15.00

18.00

CAP Rate Cash-on-Cash IRR

7.409.07

14.76

Investment Performance (%)

80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 067765-YEAR CASH FLOW ANALYSIS


Page 14







Lease Sq. Ft. Expiring For the Year Ending

Year 1Dec-2021

Year 2Dec-2022

Year 3Dec-2023

Year 4Dec-2024

Year 5Dec-2025

1 Edelman Leather, LLC 56,467.00 2 Vacant - Brokers Estimate 7,100.00

Total Square Feet Expiring 0 0 0 56,467 7,100 Percent of Building Total 0% 0% 0% 89% 11%

Lease Expiration Rollover Analysis

0

12,424

24,848

37,272

49,696

62,120

Year 1 Year 2 Year 3 Year 4 Year 5

0 0 0

56,467

7,100

80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776LEASE EXPIRATION ROLLOVER ANALYSIS


Page 15







Annual GOI, Expense and NOI Percent Change

Expense Ratio % of GOI

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

Year 1 Year 2 Year 3 Year 4 Year 5

GOI Change Expense Change NOI Change

Year 1 Year 2 Year 3 Year 4 Year 5$0

$120,000

$240,000

$360,000

$480,000

$600,000

23.0%

24.8%

26.6%

28.4%

30.2%

32.0%

26.9%26.5%

26.2%25.6%

25.2%

GOI Expenses Expense Ratio

80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776ANNUAL GOI, EXPENSE AND NOI PERCENT CHANGE, EXPENSE RATIO % OF GOI


Page 16







Year Year 1 Year 2 Year 3 Year 4 Year 5Before Tax Cash on Cash Return 9.07% 9.74% 10.44% 11.43% 12.24%

Annual Cash-on-Cash Dividend Return

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

1 2 3 4 5

Before Tax Cash on Cash Retum

80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776CASH-ON-CASH ANALYSIS


Page 17







80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776LOCATION/STUDY AREA MAP (DRIVE TIME: 30 MINUTES)

Page 18

The ARC logo is a service mark of Advantage Realty, Inc companies in Connecticut and Florida in the United States of America. All other marks displayed on this document are theproperty of their respective owners, and the use of such logos does not imply any affiliation with or endorsement.


J. Michael Struna, Owner/ BrokerAdvantage Realty Of Florida, LLC.Phone: 203-733-1290Email: [email protected] Bonita Bay Blvd., Bonita Springs FL34134


80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776INFOGRAPHIC: KEY FACTS (DRIVE TIME: 30 MINUTES)

Page 19





80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776INFOGRAPHIC: COMMUNITY PROFILE (DRIVE TIME: 30 MINUTES)

Page 20





80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776INFOGRAPHIC: PROPORTIONAL CIRCLES (DRIVE TIME: 30 MINUTES)

Page 21





80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776INFOGRAPHIC: POPULATION TRENDS (DRIVE TIME: 30 MINUTES)

Page 22





80 Pickett District80 Pickett District Road, New Milford, CT, 06776

80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776AREA LOCATION MAP

Page 23

The ARC logo is a service mark of Advantage Realty, Inc companies in Connecticut and Florida in the United States of America. All othermarks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with

or endorsement.


J. Michael Struna, Owner /BrokerAdvantage Realty Of Florida, LLC.Phone: 203-733-1290Email: [email protected] Bonita Bay Blvd., Bonita Springs FL34134


80 Pickett District80 Pickett District Road, New Milford, CT, 06776

80 PICKETT DISTRICT ROAD80 Pickett District Road, New Milford, CT, 06776AERIAL ANNOTATION MAP

Page 24

The ARC logo is a service mark of Advantage Realty, Inc companies in Connecticut and Florida in the United States of America. All othermarks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with

or endorsement.


J. Michael Struna, Owner /BrokerAdvantage Realty Of Florida, LLC.Phone: 203-733-1290Email: [email protected] Bonita Bay Blvd., Bonita Springs FL34134


The Commercial Real Estate Specialist for Northern Fairfield County ARC – Rev. 1/1/2020

• Industrial • Office • Retail • Land • Investments • Business • Residential

Advantage Realty Commercial, Inc.

Advantage Realty continues to be recognized and awarded by the COSTAR GROUP as one of the “Top

10 Power Brokers” in Westchester and Fairfield Counties. Advantage Realty Commercial continues to

represent, sell, and lease the largest industrial and office projects in Northern Fairfield County.

Advantage Realty Commercial is a commercial real estate agency founded in 1978 by Mike and Patti

Struna. Patti is the company’s current President and co-owner. Patti has been involved in the real estate

business for the past 31 years. J. Michael Struna is co-owner and Broker. He also has been active in the

Housatonic Valley Region commercial real estate business for the past 35 years. George F. Walker, a

seasoned and long term Real Estate Executive and Developer joined the firm in 2005 as Director of

Corporate Development & Sales Associate. Chris Cosio is the Vice president of Real Estate Serv ices

and joined the firm 4 years ago. He brings with him problem solving skills from Gardner Inc. Advantage

Realty Commercial continues to specialize in the leasing and sales of office, industrial, investment, retail,

and “build to suit” properties in the Northern Fairfield County and specifically the Greater Danbury Area.

The company continues to maintain its lead in market share as it has done for the past 35 years.

LEAD BROKER and OWNER – J. Michael Struna – 40 years in real estate brokerage specializing

in the “Greater Danbury” area!

Professional Memberships & Networking:

• National Commercial-Investment Real Estate Council

• Danbury Board of Realtors

• National Real Estate Brokers Council

• Member of the Fairfield County Consolidated Multiple Listing Service

• Connecticut Association of Realtors

• National Association of Realtors

• National Residential Sales Council

• CT Real Estate Brokers Council

• Commercial Investment Division of CT Association of Realtors

• Representative to the CT Economic Development “Sitefinder” council

• Speaker 1995 and 1996-Chamber of Commerce (Lease prep and site selection)

• Retired Captain with American Airlines -28 Years - Flying Boeing 757, 767, 727 and DC-10

• Currently qualified in the Citation V business jet.

The Commercial Real Estate Specialist for Northern Fairfield County ARC – Rev. 1/1/2020

• Industrial • Office • Retail • Land • Investments • Business • Residential

Community affiliations – J. Michael Struna

• Previously the Exclusive Broker for Town of Newtown’s Fairfield Hills Campus

• Town of Bethel Economic Development Outreach Committee

• Board of Directors of the Danbury Hospital Development Fund (10 Years)

• Danbury Hospital Development Fund- Investment Committee

• Danbury Hospital Executive Committee

• Previous two-time chairman Danbury Hospital Annual Campaign

• Previous chairman of annual Danbury Hospital auto raffle

• Member and Treasurer of the Interlude Board of Directors (Currently member of Advisory

Committee)

• Active in the “City Center Danbury” redevelopment marketing program

• CT Economic Development “Site-finder” Representative

• Danbury Chamber of Commerce

• Bethel Chamber of Commerce

• Ridgefield Chamber of Commerce

• Richter Park Men’s Golf Club

• Member of the Ridgewood Country Club – 8 Handicap

Education/Designations-National Networks – J. Michael Struna

• BA - Degree in Industrial Education and Psychology University of Minnesota

• GRI - Realtors designation

• CRB - Certified Real Estate Broker management designation

• CRS - Certified Residential Specialist Designee

• CCIM-Certified Commercial Investment Member candidate

• BA Degree Industrial Education University of Minnesota

• Pilot-Holds Airline Transport Rating, Flight Instructor, Flight Engineer, Captain B-767, B757, B-

727

Completed C.C.I.M. Courses – J. Michael Struna

• Marketing Techniques for leasing and Selling Commercial Properties

• Fundamentals of Real Estate Investment and Taxation

• Fundamentals of Location and Market Analysis

• Advanced Real Estate Taxation and Marketing

• The Impact of Human Behavior on Com-Investment Decision Making

• Portfolio Analysis in Commercial-Investment

• Regional seminar on lease negotiating strategies

203-733-1290

[email protected]

4731 Bonita Bay Blvd., Bonita Springs, FL, 34134, unitedstates

ADVANTAGE REALTY OFFLORIDA, LLC.J. MICHAEL STRUNA,OWNER / BROKER

The ARC logo is a service mark of Advantage Realty, Inc companies in Connecticut and Florida in the United States of America. All other marks displayed on this document are the property of theirrespective owners, and the use of such logos does not imply any affiliation with or endorsement.©Copyright 2011-2020 CRE Tech, Inc. All Rights Reserved.

80 pickett district

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