berlin rite aid/walgreens 200 pleasant street, berlin, nh · berlin rite aid/walgreens 200 pleasant...

Berlin Rite Aid/Walgreens

200 Pleasant Street, Berlin, NH

John Gendron, CCIM207-939-8500

[email protected]

Table of Contents

Investment Details .................................................................................... 3

Professional Bio ....................................................................................... 4

Property Description ................................................................................ 5

Property Photos ........................................................................................ 6

Executive Summary .................................................................................. 7

Cash Flow Analysis .................................................................................. 8

Financial Indicators .................................................................................. 10

Annual Property Operating ................................................................. 12

Rite Aid Extension Letter ......................................................................... 14

Walgreens Letter ....................................................................................... 16

INVESTMENT DETAILS Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH

Analysis

Analysis Date November 2017

Scenario Parking Lot Included

Property

Property Berlin Rite Aid/Walgreens

Property Address 200 Pleasant StreetBerlin, NH

Financial Information

Down Payment $337,500

Closing Costs $50,000

LT Capital Gain 28.00%

Federal Tax Rate 35.0%

Discount Rate 6.00%

Purchase Information

Property Type Retail

Purchase Price $1,350,000

Fair Market Value $1,350,000

Tenants 3

Total Rentable Sq. Ft. 7,520

Resale Valuation 2.5% (annual appreciation)

Resale Expenses 4.0%

Loans

Type Debt Term Amortization Rate Payment LO Costs

Fixed $1,012,500 25 years 25 years 4.0% $5,344

Income & Expenses

Gross Operating Income $106,800

Monthly GOI $8,900

Total Annual Expenses ($9,109)

Monthly Expenses ($759)

Contact Information

John Gendron, CCIM

207-939-8500

[email protected]

page - 3

PROFESSIONAL BIO Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH

John R. Gendron is a commercial real estate broker specializing in the selling,leasing and development of all types of commercial properties. He earned thedesignation of CCIM (Certified Commercial Investment Member) and holdsseveral real estate broker licenses including Maine, New Hampshire, New York,Massachusetts, Florida and Connecticut. He is a past President, Vice Presidentand Treasurer of the York County Board of Realtors, past President of MaineHomebuilders Association, past Director of the State of Maine RealtorsAssociation, past Director of Portland Chamber of Commerce, past Director ofGreater Portland Landmarks; past Member of Mercy Hospital Board ofTrustees, and past Director of McAuley Residence.

John Gendron has represented CVS & Rite Aid as a preferred Broker andpreferred developer during the 90s and 2000s. John represented CVS and RiteAid (at different time periods), primarily in Maine and New Hampshire forseveral years.

John has also represented numerous national companies over the years (I.E. Gannet Corp, Home Depot and manymore)!

page - 4

PROPERTY DESCRIPTION Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH

Rite Aid for Sale set to become Walgreens!!The subject property is comprised of two parcels in Berlin NH. One parcel is a corner lot located at the corner of MasonStreet and Pleasant St with an address of 200 Pleasant Street in Berlin, NH. the second parcel is a parking lot used foradditional parking. Current Tenant is Rite Aid. 7,520 +/- SF building and sits on .38 Acres of land. Approximately 18+/-parking spots. Current Lease extension period expires 1/31/19. Rite Aid just elected to renew the lease for anadditional 5 years, showing their commitment to this site extending the lease until 1/31/2024. Additionally, this store isset to be assumed by Walgreens!! Rite Aid has (1) additional 5-year option period remaining.

***Property is being valued based on the renewal rent of $106,800. The sellers are pledging the difference in the currentrent from now-1/31/2019, when the renewal rent is set to begin.

Rite Aid Rent Schedule:Current- 2/1/2014-1/31/2019 $84,000/Annually3rd Option **EXERCISED- 2/1/2019-1/31/2024 $96,600/Annually4th Option- 2/1/2024-1/31/2029 $111,090/Annually

The second lot is located next to the Rite Aid parcel on Pleasant St. It is a vacant lot used for additional parking. This isa 0.13 AC lot which runs until 1/31/19 has been extended to 1/31/2024. There are 2 remaining options to extended thislease agreement for 5 year periods pushing this lease out until 2034, should all renewals be used.

Parking Lot Rent Schedule:

Current (2nd Option)- 2/1/2014- 1/31/2019 $9,000/Annually3rd Option- 2/1/2019- 1/31/2024 $10,200/Annually4th Option- 2/1/2024-1/31/2029 $11,300/Annually5th Option- 2/1/2029- 1/31/2034 $12,400/ Annually

Total Lot Size between two parcel: 0.51 AC218 FT of Frontage on Pleasant Street130 FT of Frontage on Mason StreetBook/Page: 661/212 Approximately 5,800 +/- cars a day!

page - 5

PROPERTY PHOTOS Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH

Front View Rear View

Inside

Inside Citizens Across Street

page - 6

EXECUTIVE SUMMARY Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH

Acquisition Costs

Purchase Price, Points and Closing Costs $1,400,000

Investment - Cash $389,000

First Loan $1,012,500

Investment Information

Purchase Price $1,350,000

Price per Tenant $450,000

Price per Sq. Ft. $179.52

Income, Expenses & Cash Flow

Gross Scheduled Income $106,800

Total Vacancy and Credits $0

Operating Expenses ($9,109)

Net Operating Income $97,692

Debt Service ($64,132)

Cash Flow Before Taxes $33,559

(After Tax Results)Total Interest (Debt Service) ($40,062)

Depreciation and Amortization ($34,398)

Taxable Income (Loss) $23,232

Tax Savings (Costs) ($8,131)

Cash Flow After Taxes $25,428

Financial Indicators

Cash on Cash Return Before Taxes 8.63%

Optimal Internal Rate of Return (yr 9) 12.71%

Debt Coverage Ratio 1.52

Capitalization Rate 7.24%

Gross Income / Square Feet $14.20

Gross Expenses / Square Feet ($1.21)

Operating Expense Ratio 8.53%

page - 7

CASH FLOW ANALYSIS Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH

Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

GROSS SCHEDULED INCOME $106,800 $106,800 $106,800 $106,800 $106,800 $106,800 $118,493 $122,390 $122,390 $122,390

Total Operating Expenses ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109)

NET OPERATING INCOME $97,692 $97,692 $97,692 $97,692 $97,692 $97,692 $109,384 $113,282 $113,282 $113,282

Loan Payment ($64,132) ($64,132) ($64,132) ($64,132) ($64,132) ($64,132) ($64,132) ($64,132) ($64,132) ($64,132)

NET CASH FLOW (b/t) $33,559 $33,559 $33,559 $33,559 $33,559 $33,559 $45,252 $49,149 $49,149 $49,149

Cash On Cash Return b/t 8.63% 8.63% 8.63% 8.63% 8.63% 8.63% 11.63% 12.63% 12.63% 12.63%


Depreciation ($34,398) ($35,896) ($35,896) ($35,896) ($35,896) ($35,896) ($35,896) ($35,896) ($35,896) ($35,896)

Loan Interest ($40,062) ($39,081) ($38,061) ($36,998) ($35,893) ($34,742) ($33,545) ($32,299) ($31,002) ($29,652)

TAXABLE INCOME (LOSS) $23,232 $22,714 $23,735 $24,797 $25,903 $27,053 $39,943 $45,087 $46,384 $47,733

Income Taxes ($8,131) ($7,950) ($8,307) ($8,679) ($9,066) ($9,469) ($13,980) ($15,780) ($16,234) ($16,707)

CASH FLOW (a/t) $25,428 $25,609 $25,252 $24,880 $24,493 $24,091 $31,272 $33,369 $32,915 $32,443

Cash On Cash Return a/t 6.54% 6.58% 6.49% 6.40% 6.30% 6.19% 8.04% 8.58% 8.46% 8.34%

* b/t = before taxes;a/t = after taxes

page - 8

CASH FLOW ANALYSIS Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH



Total Operating Expenses ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109)


Loan Payment ($64,132) ($64,132) ($64,132) ($64,132) ($64,132) ($64,132) ($64,132) ($64,132) ($64,132) ($64,132)

NET CASH FLOW (b/t) $49,149 $58,306 $61,358 $61,358 $61,358 $61,358 $61,358 $61,358 $61,358 $61,358



Depreciation ($35,896) ($35,896) ($35,896) ($35,896) ($35,896) ($35,896) ($35,896) ($35,896) ($35,896) ($34,452)

Loan Interest ($28,247) ($26,785) ($25,264) ($23,680) ($22,032) ($20,317) ($18,532) ($16,674) ($14,741) ($12,728)

TAXABLE INCOME (LOSS) $49,138 $59,757 $64,331 $65,914 $67,562 $69,277 $71,063 $72,920 $74,854 $78,311

Income Taxes ($17,198) ($20,915) ($22,516) ($23,070) ($23,647) ($24,247) ($24,872) ($25,522) ($26,199) ($27,409)

CASH FLOW (a/t) $31,951 $37,391 $38,843 $38,288 $37,712 $37,111 $36,486 $35,836 $35,159 $33,950


* b/t = before taxes;a/t = after taxes

page - 9

FINANCIAL INDICATORS Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH


Gross Rent Multiplier 12.96 13.28 13.61 13.95 14.30 14.66 13.54 13.44 13.78 14.12

Capitalization Rate 7.24% 7.24% 7.24% 7.24% 7.24% 7.24% 8.10% 8.39% 8.39% 8.39%



Debt Coverage Ratio 1.52 1.52 1.52 1.52 1.52 1.52 1.71 1.77 1.77 1.77

Gross Income per Sq. Ft. $14.20 $14.20 $14.20 $14.20 $14.20 $14.20 $15.76 $16.28 $16.28 $16.28

Expenses per Sq. Ft. ($1.21) ($1.21) ($1.21) ($1.21) ($1.21) ($1.21) ($1.21) ($1.21) ($1.21) ($1.21)

Net Income Multiplier 14.16 14.52 14.88 15.25 15.63 16.03 14.67 14.52 14.88 15.26

Operating Expense Ratio 8.53% 8.53% 8.53% 8.53% 8.53% 8.53% 7.69% 7.44% 7.44% 7.44%

Loan To Value Ratio 71.43% 67.92% 64.47% 61.08% 57.74% 54.46% 51.22% 48.04% 44.90% 41.81%

* b/t = before taxes; a/t = after taxes

page - 10

FINANCIAL INDICATORS Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH


Gross Rent Multiplier 14.47 13.80 13.83 14.17 14.53 14.89 15.26 15.64 16.03 16.43

Capitalization Rate 8.39% 9.07% 9.30% 9.30% 9.30% 9.30% 9.30% 9.30% 9.30% 9.30%



Debt Coverage Ratio 1.77 1.91 1.96 1.96 1.96 1.96 1.96 1.96 1.96 1.96

Gross Income per Sq. Ft. $16.28 $17.49 $17.90 $17.90 $17.90 $17.90 $17.90 $17.90 $17.90 $17.90

Expenses per Sq. Ft. ($1.21) ($1.21) ($1.21) ($1.21) ($1.21) ($1.21) ($1.21) ($1.21) ($1.21) ($1.21)

Net Income Multiplier 15.64 14.83 14.83 15.20 15.58 15.97 16.37 16.78 17.20 17.63

Operating Expense Ratio 7.44% 6.92% 6.77% 6.77% 6.77% 6.77% 6.77% 6.77% 6.77% 6.77%

Loan To Value Ratio 38.76% 35.76% 32.80% 29.88% 27.00% 24.15% 21.34% 18.57% 15.83% 13.12%

* b/t = before taxes; a/t = after taxes

page - 11

ANNUAL PROPERTY OPERATING DATA Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH


Rental Income $106,800 $106,800 $106,800 $106,800 $106,800 $106,800 $118,493 $122,390 $122,390 $122,390


GROSS OPERATING INCOME $106,800 $106,800 $106,800 $106,800 $106,800 $106,800 $118,493 $122,390 $122,390 $122,390

Expenses

Replacement Reserves ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500)

Parking Lot Taxes ($335) ($335) ($335) ($335) ($335) ($335) ($335) ($335) ($335) ($335)

Taxes - Real Estate ($7,274) ($7,274) ($7,274) ($7,274) ($7,274) ($7,274) ($7,274) ($7,274) ($7,274) ($7,274)

TOTAL OPERATING EXPENSES ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109)


page - 12

ANNUAL PROPERTY OPERATING DATA Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH


Rental Income $122,390 $131,547 $134,599 $134,599 $134,599 $134,599 $134,599 $134,599 $134,599 $134,599


GROSS OPERATING INCOME $122,390 $131,547 $134,599 $134,599 $134,599 $134,599 $134,599 $134,599 $134,599 $134,599

Expenses

Replacement Reserves ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500) ($1,500)

Parking Lot Taxes ($335) ($335) ($335) ($335) ($335) ($335) ($335) ($335) ($335) ($335)

Taxes - Real Estate ($7,274) ($7,274) ($7,274) ($7,274) ($7,274) ($7,274) ($7,274) ($7,274) ($7,274) ($7,274)

TOTAL OPERATING EXPENSES ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109) ($9,109)


page - 13

RITE AID EXTENSION LETTER Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH

EgnooKs2l

MAILING ADDRESSPO. Box 3165,Harrisburg, PA 17105OFFICE30 Hunter Lane,

Camp Hill, PA 1701 1

volcE 717.761 .2633cAx 717.975.5952

November 8, 2017LEGAL DEPARTMENT

Vfu Certificd MaiL Retarn Receiol Reouesled

Berlin 200 Realty, LLC12 Brook StreetWellesley, Massachusetts 02482

Re: LEASE RENEWAL OPTION FOR RITE AID #102E72OO PLEASAI{T STREETBERLIN, NEW HAMPSHIRE

Ladies and Gentlemen:

Please be advised that MAXI DRUG, INC. hereby elects to exercise its option to extendthe temr of the Lease for the referenced premises for an additional five (5) years. Our new termwill commence on February l, 2019 and will expire on January 31,2024.

While your acknowledgment of receipt of this notice is not required for its validity, werequest that you do so by signing and retuming the copy of this letter in the postage-paidenvelope enclosed.

Very truly yours,

MAXI DRUG, INC.

((t^------'Joseph J. NotarianniVice President

JJN:llb

Acknowledged:

nv,-5.--L,l&-la".sf*a-*,y E or&.|f'kn-

page - 14

WALGREENS LETTER Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH

page - 16

WALGREENS LETTER Berlin Rite Aid/Walgreens200 Pleasant Street | Berlin, NH

page - 17

berlin rite aid/walgreens 200 pleasant street, berlin, nh · berlin rite aid/walgreens 200 pleasant...

Documents