beacon hill retail opportunity boston, massachusetts

Two Prime reTail Condominiums For sale 125 Charles sTreeT Condos offered for sale individually or sold as a Package

Beacon Hill ReTail oPPoRTUniTYBosTon, MassacHUseTTs

ConFidenTial oFFering memorandum

Two Prime reTail Condominiums For sale 125 Charles sTreeT Condos offered for sale individually or sold as a Package

CONTENTS

Condominium Over view

EXECUTIVE SUMMARY 3

Area Retai lersBeacon Hi l l & Boston Demographics

MARkET oVERVIEw 9

Financia l SummaryRent Rol lOperat ing StatementCash Flow Summary Real Estate Tax and AssessmentDisc la imer

fInAnCIAl oVERVIEw 15

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Sovereign BankA Room with A VieuxUpper CrustBin 26 EnotecaEvergreenCafe Bella Vita

StarbucksDeluca’s MarketThe Ruby DoorCharles St CleanersBeacon Hill Hotel

J. McLaughlinE.R. ButlerCore de VieFigsThe ParamountBlackstone’s of Beacon HillLinens on the HillCharles Street Supply Co.Flat of the Hill7-Eleven

Beauty MarkAnton’s CleanersCharles Street LaundretteToscanoWishMoxieGary Drug

Cafe VanilleEugene GalleriesSecond Time AroundCharles Street InnGoodPolly Latham AntiquesEskilBoston Art & Framing

Beacon Hill Wine & SpiritsNaha’s ShoesRed WagonThe Hungry I20th Century Ltd GoodsSevens Ale House

Nino’s PizzaElegant AntiquesArtuBeacon Hill ChocolatesPinckney Nails

Helen’s Leather ShopLauren’s NailsCibellineChurchill & White

StarbucksBridge AntiquesBlack InkFour Preppy PawsRugg Road PaperClevergreen CleanersBaranzelli Silk Surplus

Marika’s AntiquesUS Post OfficePanaficioCharles Street Garage

Charles Street Animal ClinicSavenor’s Market

Boston Running Co.Period Furniture & HardwareSUBJECT PROPERTYCrown CleanersCrush BoutiquePixie StixUPS StoreCharles Street LiquorsKing & IBeacon Hill PubBeacon Hill Cleaners

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ExECuTivE SummaryBEACON 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.

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

TRAnSACTIon gUIdElInES

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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

• Heating System

• Electrical System

• Plumbing

• Window System

• Masonry

Square footage: 973 square feet

Condo fee: $3,330 Per Annum

Taxes: $10,532 Per Annum

Tenant: Uncle Pete’s • Local Retai ler , Men’s Apparel Bout ique www.unclepetesshop.com

lease Rate: $55 Per Square Foot or $54,000 Per Annum, NNN

options: None

lease Expiration: 9/30/2011

PRoPERTY dETAIlS • 125 ChARlES STREET #C-1


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ExECuTivE SummaryBEACON HILL CONDO

flooR PlAn • 125 ChARlES STREET #C-1


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BUIldIng InfoRMATIon

fuel Source: Gas Ser vice , Provided by National Grid

Year Built: 1899

Year Renovated: 2009

heating: Gas Boi ler

façade: Brick Masonry

Stories: 5

Roof: Rubber Membrane

Square footage: 1,100 square feet

Condo fee: $2,904 Per Annum

Taxes: $9,576 Per Annum

Tenant: BOS TAN • Tanning Salon bostanonchar les .com

lease Rate: $38 Per Square Foot or $42,000 Per Annum, NNN

options: None

lease Expiration: 9/30/2014

Expense Caps:

PRoPERTY dETAIlS • 125 ChARlES STREET #C-B


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ExECuTivE SummaryBEACON HILL CONDO

flooR PlAn • 125 ChARlES STREET #C-B


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TRAnSACTIon gUIdElInESIn 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. WeissmanBoston Realty Advisors745 Boylston StreetBoston, 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 [email protected]


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CVS/PharmacyTop ShelfThe Spotted ApronCambridge NailsHarvard Gardens

Best Buy GasVilla Mexico CafeAntonio’sFresco FlowersFelcaro PizzeriaPierrot Bistrot Francais

White Hen PantryDiscoveries Plus IIMike’s MoviesAnna’s Taqueria

PhoeniciaThe Hill TavernStarbucks

Simmons Liquors

Venice CafeBoston Fire DeptBeantown Nail Spa

American Dry CleanersJobi LiquorsBeacon Hill Athletic ClubMa Soba

Liberty HotelClinkAlibi

Massachusetts General Hospital

Finagle A BagelGulf

Holiday InnAu Bon PainDollar Rent A CarSarni CleanersPro Optical

Whole FoodsCVS/PharmacyBoYO Frozen YogurtBoston West End Library

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AREA RETAIlERS

markET OvErviEwBEACON HILL CONDO OPPORTUNITIES

ART & ANTIQUES20th Century Ltd GoodsA Room with A VieuxBridge AntiquesElegant AntiquesMarika’s AntiquesPolly Latham AntiquesBoston Art & FramingEugene Galleries

BANKS & CONVENIENCEBank of AmericaSovereign Bank7-ElevenBest Buy GasUS Post OfficeUPS StoreGulf

SALONSBeantown Nail SpaBeauty MarkCambridge NailsDiscoveries Plus IILauren’s NailsPinckney Nails

CLEANERSAmerican Dry CleanersAnton’s CleanersBeacon Hill CleanersCharles St CleanersCharles Street LaundretteClevergreen CleanersCrown Cleaners

EvergreenSarni Cleaners

RESTAURANTSAnna’s TaqueriaAntonio’sArtuAu Bon PainBin 26 EnotecaBoYO Frozen YogurtClinkFelcaro PizzeriaFigsFinagle A BagelHarvard GardensKing & IMa SobaNino’s PizzaPhoeniciaPierrot Bistrot FrancaisThe Hungry IThe ParamountThe Spotted ApronToscanoUpper CrustVenice CafeVilla Mexico Cafe

HOTELSBeacon Hill HotelCharles Street InnHoliday InnLiberty Hotel

RETAIL SHOPSBeacon Hill ChocolatesBlack InkBlackstone’s of Beacon HillBoston Running Co.E.R. ButlerFlat of the HillFour Preppy PawsFresco FlowersHelen’s Leather ShopJ. McLaughlinLinens on the HillMike’s MoviesPeriod Furniture & HardwarePixie StixPro OpticalRed WagonRugg Road PaperThe Ruby DoorWish

CLOTHING BOUTIQUESChurchill & WhiteCibellineCore de VieCrush BoutiqueEskilGoodMoxieNaha’s ShoesSecond Time Around

PHARMACYCVS/PharmacyGary Drug

GROCERYDeluca’s MarketSavenor’s MarketWhite Hen PantryWhole Foods

BARS & LIQUOR STORESBeacon Hill Wine & SpiritsCharles Street LiquorsJobi LiquorsSimmons LiquorsTop ShelfAlibiBeacon Hill PubSevens Ale HouseThe Hill Tavern

CAFESCafe Bella VitaCafe VanillePanaficioStarbucks

RETAIlERS • ChARlES STREET & CAMBRIdgE STREET

BEACon hIll is a histor ic neighborhood of Boston, Massachusetts , that along with the neighboring Back Bay is home to about 26,000 people . It is a neighborhood of Federal-sty le rowhouses and is known for its narrow, gas- l i t streets and brick s idewalks . Today, Beacon Hi l l i s regarded as one of the most des irable and expensive neighborhoods in Boston. The Beacon Hi l l area is located just nor th of Boston Common and the Boston Publ ic Garden and is bounded general ly by Beacon Street on the south, Somerset Street on the east , Cambridge Street to the nor th and Storrow Drive along the r iver front of the Char les River Esplanade to the west . The block bounded by Beacon,

Tremont and Park Streets is inc luded as wel l , as is the Boston Common itse l f . The level sect ion of the neighborhood west of Char les Street , on landf i l l , i s known local ly as the “Flat of the Hi l l” , this is where the subject proper t ies are located.

InSTITUTIonS

Inst i tut ions in Beacon Hi l l inc lude Mass General Hospita l , Mass Eye and Ear and Suf fo lk Univers i ty . Addit ional ly , both the State House and City Hal l are located just under ¼ of a mile from the subject proper t ies .


MARkET • BEACon hIll

According to the 2000 United States Census there were 589,141 people , 239,528 households , and 115,212 fami l ies res id ing in the city . The populat ion densi ty was 12,166 people per square mile (4,697/km²) . Of major US cit ies only New York City , and San Francisco have a greater populat ion densi ty than Boston. There were 251,935 housing units at an average densi ty of 5,203 per square mile (2,009/km²) . The 2009 U.S . Census populat ion est imate for the city is 645,169, a 8.7% increase from 2000. During weekdays , the populat ion of Boston can grow during the dayt ime to over 1.2 mil l ion, and can reach as many as 2 mil l ion during specia l events . This f luctuat ion of people is caused by hundreds of thousands of suburban res idents who travel to the city for work, educat ion, health care , and specia l events .

In the city , the populat ion 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 ever y 100 females , there were 92.8 males . For ever y 100 females age 18 and over , there were 90.2 males . There were 239,528 households , of which 22.7% had chi ldren under the age of 18 l iv ing in them, 27.4% were marr ied couples l iv ing together , 16.4% had a female householder with no husband present , and 51.9% were non-fami l ies . 37.1% of al l households were made up of indiv iduals and 9.1% had someone l iv ing alone who was 65 years of age or older . The average household s ize was 2.31 and the average fami ly s ize was 3.17.

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MARkET • BoSTon


dEMogRAPhICS

58-60 Charles St, Boston, MA 02114

Population 1 Mile 5 Mile3 Mile2009 Total Population: 53,892 874,853410,141

Pop Growth 2009-2014: 0.80% 0.60%1.00%Per Capita Income: $70,824 $36,036$38,778

Average Age: 40.20 36.2035.50Households2009 Total Households: 30,045 365,321176,976HH Growth 2009-2014: 1.00% 0.90%1.20%Median Household Inc: $81,041 $59,465$57,636

Avg Household Size: 1.61 2.252.09Avg HH Vehicles: .70 1.00.80

Avg Travel Time - Wrk: 22 min 28 min26 minHousing

Median Housing Value: $617,731 $366,776$399,359Median Year Built: 1940 19401940

Population for 1 Mile Radius

This copyrighted report contains research licensed to Boston Realty Advisors - 65561.9/11/2010

PoPUlATIon • onE MIlE RAdIUS








Consumer Spending Totals for 1 Mile Radius


ConSUMER SPEndIng

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dEMogRAPhICS


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dEMogRAPhICS • dAYTIME EMPloYMEnT


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dEMogRAPhICS









Housing Values for 1 Mile Radius


hoUSIng VAlUE, CITY of BoSTon

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fiNaNCial OvErviEwBEACON HILL CONDO OPPORTUNITIES

125 ChARlES STREET • RETAIl CondoMInIUM oVERVIEw

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For Year Beginning 10/2011 Tenant Name Square Footage Price Per Square Foot Actual Per Annum Condo Fee Taxes Lease TermTotal SF: 2,073Base Rental Revenue

C-1 Uncle Pete's 973 55$ 54,000$ 3,300$ 10,532$ 11/1/2009-9/30/2011C-B Bos Tan, Inc. 1,100 38$ 42,000$ 2,904$ 9,576$ 9/1/2009-9/30/2014Potential Gross Revenue 96,000$ Vacancy/Credit Loss 3% 2,880$ Net Rental Revenue 93,120$ Remibursable RentCondo Fee 6,204$ 2.99$ Taxes 20,108$ 9.70$ Price Per Square Foot

6% 1,471,000$ 710$Total Reimbursable Rent 26,312$ 12.69$ 6.50% 1,357,846$ 655$

7% 1,260,857$ 608$Effective Gross Rent 119,432$ 57.61$ 7.50% 1,176,800$ 568$

8% 1,103,250$ 532$Non-Recoverable Expenses (Landlord Paid) Management Fee - 3% 2,880.00$ 1.39$ Lessor paid taxes 1,476.00$ 0.71$ Lessor paid condo fees 504.00$ 0.24$

Net Operating Income 88,260.00$

Cap Rate Sensitivity Analysis

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125 ChARlES STREET • oPERATIng STATEMEnT & PRoJECTIonSFor Year Beginning 10/2011 Tenant Name Square Footage Price/PSF FY 2011 FY 2012 FY 2013 FY 2014Total SF: 2,073Base Rental RevenueC-1 Uncle Pete's 973 55$ 54,000$ 56,160$ 58,406$ 60,743$C-B Bos Tan, Inc. 1,100 38$ 42,000$ 43,680$ 43,680$ 43,680$

Potential Gross Revenue 96,000$ 99,840$ 102,086$ 104,423$

Vacancy/Credit Loss 3% 2,880$ 2,995$ 3,063$ 3,133$

Remibursable RentCondo Fee 6,204$ 6,390$ 6,390$ 6,390$ Taxes 20,108$ 20,711$ 20,711$ 20,711$

Total Reimbursable Rent 26,312$ 27,101$ 27,101$ 27,101$

Effective Gross Rent

Non-Recoverable Expenses (Landlord Paid) Management Fee - 3% 2,880.00$ 2,995.20$ 3,062.59$ 3,132.68$Lessor paid taxes 1,476$ 1,520$ 1,566$ 1,613$Lessor paid condo fees 504.00$ 519.12$ 534.69$ 550.73$

Net Operating Income 88,260$ 91,810$ 93,861$ 95,994$

Jason S. weissman Founder And [email protected]

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 feasi-bility 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 inde-pendent 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

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www.bradvisors.comSelling Commercial Real Estate throughout New England & New York since 2001

beacon hill retail opportunity boston, massachusetts

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